Aviation Fuel Market Size, Share, Growth Analysis, By Fuel(Avgas, Jet Fuel, Synthetic Fuel), By End User(Private, Commercial, Military), By Region - Industry Forecast 2024-2031

The applications of aviation fuel are in civil aviation, military, private aviation, and sports & recreational activities.

Inadequate availability of feedstock and refineries to fulfill the SAF production demands is the major challenge for the aviation fuel market.

Aviation Fuel Market size was valued at USD 219.79 billion in 2022 and is poised to grow from USD 249.9 billion in 2023 to USD 793.62 billion by 2031, growing at a CAGR of 13.7% in the forecast period (2024-2031).

Global aviation fuel market is somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. 'TotalEnergies', 'ExxonMobil', 'British Petroleum Fuel', 'Royal Dutch Shell plc', 'Chevron Corporation', 'Gazprom Neft PJSC', 'China National Petroleum Corporation (CNPC)', 'Lukoil', 'Indian Oil Corporation Limited', 'Air BP Ltd.', 'Essar Oil Limited', 'Marathon Petroleum Corporation', 'Valero Energy Corporation', 'Hindustan Petroleum Corporation Limited', 'Sinopec Group', 'Puma Energy Holdings Pte. Ltd.', 'SK Energy Co., Ltd.', 'Phillips 66', 'Bharat Petroleum Corporation Limited', 'Reliance Industries Limited'

Growth and development of the economy depend heavily on air travel. Air travel promotes integration into the global economy and provides essential links on a national, regional, and international level. It supports the expansion of trade, tourism, and employment opportunities. The aviation system is changing and will keep changing. Long term, it will be challenging for the air transportation system to adapt quickly enough to meet changing demands in terms of capacity, environmental impact, consumer happiness, safety, and security, all while preserving the financial viability of service providers.

The aviation industry is expanding, which has increased competition among all types of producers of aircraft aviation fuel. Future developments in the production of aviation fuel from sustainable sources are anticipated to have an impact on the industry. Due to the global trend of using advanced fuels in airplanes, the market for sustainable aviation fuel has expanded significantly over the years. Farmers can increase their income during the off-season by providing feedstock to this new industry by growing biomass crops for the production of sustainable aviation fuel, while also securing agricultural benefits like nutrient loss reduction and improved soil quality.

Demand for various types of aircraft, including military, commercial, and private ones, has been steadily increasing, and North America now holds a sizeable portion of the global aviation fuel market. Due to the region's established aviation industry and the presence of significant aircraft manufacturers, Europe also ranks among the top markets for aviation fuel. But during the forecast period, Asia Pacific is anticipated to experience a significant compound annual growth rate. This growth is primarily attributed to the Asia Pacific region's rapidly expanding travel and tourism sector. In recent years, the economies of India, China, and Southeast Asia have increased their investments in the tourism sector. In this region, both domestic and foreign tourists are steadily increasing. People are more likely to take vacations frequently as a result of rising disposable incomes and living standards combined with a demanding work schedule. A rise in business air travel across the world and the region has also been attributed to the acceleration of globalization. As a result, the growth of the aviation fuel market in the Asia Pacific is being supported by the sharp increase in air travel passengers, both domestically and internationally. Government policies encouraging the construction of new airports to handle the increasing number of tourists are additional factors fueling the expansion of this regional market.