North America Aviation Fuel Market Report and Forecast 2025-2034

The North America aviation fuel market size is further projected to grow at a CAGR of 3.10% between 2025 and 2034.

Key Takeaways

Aviation fuel is a specialised type of fuel used to power aircraft for propulsion. The two main types of aviation fuel are jet fuel and aviation gasoline (avgas), and each are used in specific aircraft engines. Jet fuel, such as Jet A and Jet A-1, is used in gas turbine-powered aircraft, while avgas, such as 100 octane Low Lead (100LL), is commonly used in piston-engine aircraft within the general aviation community. These fuels are critical for the efficient and safe operation of aircrafts across the region.

The aviation fuel market encompasses the production, distribution, and utilisation of fuels specifically designed for aviation purposes. North America aviation fuel market growth is driven by the continuing expansion of the aviation industry and technological advancements in aircraft engines. Moreover, the ongoing advancements, such as production of sustainable aviation fuel (SAF), including biofuels and synthetic fuels, further contributes to North America aviation fuel market development.

Key Trends and Developments

Growing focus on environmental sustainability, increasing passenger traffic, and increasing popularity of UAVs are increasing the demand for aviation fuel

North America Aviation Fuel Market Trends

The key trends driving the market include the rising demand for worldwide air travel, a growing emphasis on lowering carbon emissions in the aviation industry, and advancements in fuel economy technologies. The increasing number of annual passengers, projected to reach up to 6.9 billion by 2035, is expected to drive the demand for sustainable aviation fuel (SAF). It is estimated that around 350 billion litres of SAF will be needed for optimal travel by 2035, impacting the aviation fuel market in North America.

To meet this demand, Neste has become the world's largest provider of renewable fuels, with airlines such as Alaska Airlines and American Airlines already using SAF produced by the company. The North America aviation fuel market outlook is also influenced by the development of guidelines for aviation carbon offsetting, including mandatory schemes such as Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and voluntary offset schemes targeted at passengers to reduce their own carbon footprint.

Market Segmentation

North America Aviation Fuel Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Fuel Type:

• Air Turbine Fuel (ATF)
• Aviation Biofuel
• Aviation Gasoline (AVGAS)

Market Breakup by Aircraft Type:

• Fixed Wing
• Rotary Wing
• Unmanned Aerial Vehicle (UAV)

Market Breakup by Application:

• Commercial
• Defense
• General Aviation

Market Breakup by Region:

• United States of America
• Canada

Commercial aviation is expected to increase the North America aviation fuel market share due to increasing expansion of international and domestic routes

According to the market analysis, commercial aircraft dominates the market share due to the presence of prominent players, such as Airbus SE, ATR, Embraer, Boeing Company, and United Aircraft Corporation, who provide narrow and wide-body commercial aircrafts to various airlines. Additionally, the demand for aviation fuel in commercial aircrafts is driven by the increasing expansion of international and domestic route networks in the region, growing tourism, and a high passenger traffic to and from the US.

Meanwhile, as per North America aviation fuel market report, the increasing number of passengers traveling by air is driving the demand for general aviation fleet, which, in turn, is expected to increase the demand for aviation fuel during the forecast period. To meet this growing demand for aviation fuel, in 2021, Aemetis Inc. signed a USD 2.1 billion agreement with Delta Air Lines to supply approximately 250 million gallons under 10-years.

Fixed wing aircraft holds the leading market share due to rising demand for business jets

The fixed-wing segment is anticipated to lead the North America aviation fuel market, driven by various factors such as the wide use of fixed-wing aircraft in the civil sector, the increase in air passengers, and the need for sustainable aviation. Additionally, the general aviation market is projected to grow, with a recovery in demands for business jets and private leisure aircraft, further supporting the growth of the fixed-wing aircraft segment.

However, the UAV segment is anticipated to grow rapidly due to the increased Airforce defence budget and the rising demand for fixed-wing UAVs in the US. Moreover, Aero Tec Laboratories (ATL) offers advanced fuel system technology, including custom shaped fuel bladders, for Unmanned Aerial Vehicles (UAVs). These fuel bladders are designed to be ultra-lightweight, flexible, reliable, durable, and cost-effective, catering to military UAV applications, thereby accelerating the North America aviation fuel market development.

Competitive Landscape

Competitive landscape of the North America aviation fuel market is characterised by the presence of both established and emerging players who are actively engaged in sustainable practises.

Other key players in the North America aviation fuel market report include Chevron Corporation, Honeywell International Inc., Gevo, Inc., Suncor Energy Inc., and Fulcrum BioEnergy, among others.

North America Aviation Fuel Market Analysis by Country

United States has a dominant position due to its extensive air travel network

The United States holds a significant position in the market, primarily due to its extensive air travel network, robust military sector, and the presence of numerous airlines. In US, the military sector is a significant consumer of aviation fuel as it allocates approximately USD 10 billion on aviation fuel annually, accounting for about 81% of the total Air Force Energy Budget. The defence budget is expected to increase in future, which will result in acquiring more aircrafts for military purposes. This can positively impact the aviation fuel market demand in North America.

Moreover, the increasing number of passengers traveling by air in the country is expected to increase the demand for aviation fuel. In March 2022, Aemetis Inc announced an agreement with Qantas Airways Limited to supply 35 million litters of blended aviation fuel from 2025. The blended fuel will be produced at a facility in California and will primarily be used to power Boeing and Airbus planes operating in US.

Additionally, rising government initiatives in US to advance the future of sustainable fuels in American aviation, including the launch of a Sustainable Aviation Fuel Grand Challenge to expand the production and use of sustainable aviation fuels, will further aid the North America aviation fuel market value.