Aviation Fuel Market Outlook - 2026
The global aviation fuel market size was valued at $179.2 billion in 2018 and is anticipated to generate $238.5 billion by 2026. The market is growing at a CAGR of 3.5% from 2019 to 2026. The expansion of the military aviation sector and the rising adoption of sustainable aviation fuels are key drivers of demand in the aviation fuel market. Increased defense budgets and modernization of air forces are boosting the use of fuel-intensive military aircraft, while the aviation industry’s shift toward sustainable aviation fuels, driven by environmental regulations and sustainability goals, is creating demand for cleaner fuel alternatives.
Introduction
Aviation fuel is a type of petroleum-based or kerosene-based fuel used to operate an aircraft. The aviation fuel possesses better quality than fuels used in other modes of transportation. They are produced in different combinations of kerosene, kerosene-gasoline, kerosene-biofuel, and others. The fuels used in aviation reduce the risk of icing or explosion due to high temperature, which is obtained by incorporating some additives such as corrosion inhibitors and others. Aviation fuel is primarily used by most of the military aircrafts and commercial airlines to maximize fuel efficiency and to lower the operational cost. Aircraft industry is expanding nowadays, which is increasing competition among aircraft aviation fuel production in all sectors.
Market Dynamics
As nations prioritize defense and security, there has been a marked increase in the production and deployment of military aircraft, such as fighter jets, helicopters, transport planes, and unmanned aerial vehicles (UAVs). These aircraft require large amounts of aviation fuel for training missions, combat operations, surveillance, and logistical support. The ongoing modernization of air forces, coupled with increasing geopolitical tensions, has further fueled the growth of military aviation, thereby intensifying the need for consistent and reliable fuel supplies. All these factors are expected to drive the demand for the aviation fuel market during the forecast period.
However, sustainable aviation fuels offer a cleaner alternative to traditional jet fuels. The processes involved in their production such as refining bio-based feedstocks, utilizing advanced conversion technologies, and meeting stringent fuel specifications are considerably more expensive than conventional methods. These elevated costs are a barrier to widespread adoption, as airlines face difficulties justifying the switch to sustainable aviation fuels when traditional aviation fuels are often available at much lower prices. In addition to the complex production processes, the limited availability of feedstock sources such as waste oils, agricultural residues, and renewable biomass further inflates sustainable aviation fuels prices. This scarcity, combined with the high costs of research and development, makes sustainable aviation fuels less economically attractive, especially for budget-conscious airlines. All these factors hamper the growth of aviation fuel market during the forecast period.
As the aviation industry faces increasing pressure to reduce its carbon emissions, governments, airlines, and energy companies are directing substantial resources into the development and scaling of SAF production. This surge in investment is helping to lower the costs of SAF production through technological advancements, improving the efficiency of fuel conversion processes, and expanding feedstock availability. As production costs decrease, SAFs will become more competitive with traditional jet fuels, paving the way for their widespread adoption across the aviation sector. Moreover, the commitment of airlines to long-term sustainability goals is driving partnerships with energy companies and biofuel producers to secure SAF supply. Many airlines are entering into multi-year contracts with SAF manufacturers to ensure consistent fuel supply for their fleets. All these factors are anticipated to offer new growth opportunities for the global aviation fuel market throughout the forecast period.
Market Segmentation
Aviation fuel market is segmented on the basis of fuel type, aircraft type, end user, and region. Depending on fuel type, it is divided into jet A, jet A1, jet B, JP 5, JP 8, avgas, and biofuels. Depending on aircraft type, the market is categorized into fixed wings, rotorcraft, and others. By end user, the market is classified into civil, military, private, and sports & recreational. Region wise, the aviation fuel market analysis is done across North America, Europe, Asia-Pacific and LAMEA (Latin America, Middle East and Africa).
By Fuel Type
By fuel type, jet A1 segment dominated the market share in 2018, owing to easy availability and higher efficiency in comparison to other fuels. Furthermore, this segment is also expected to grow at a higher CAGR during the forecast period followed by jet A fuel. The biogas segment will also experience growth, owing to growing efforts from several governments and companies to lower carbon emissions.
By Fuel Type
Jet A-1 is projected as the most lucrative segment.
By Aircraft Type
By aircrafts type, the fixed wings segment garnered the highest market share in 2018 as the piston and turbine engines are used in such aircrafts, which require fuel as main source to generate lift and also push the aircrafts forward. The fixed wings segment is expected to grow at higher CAGR during the forecast period followed by rotorcraft segment, which is expected to grow at CAGR of 3.4%.
By Aircraft Type
Fixed Wing is projected as the most lucrative segment.
By End User
By end user, the civil segment was the largest market share holder in 2018, owing to large number of commercial airliners that offer passenger and freight transit services. The civil segment is also expected to grow at the highest CAGR followed by the military segment.
By End-user
Civil is projected as the most lucrative segment.
By Region
North America was the largest shareholder in terms of revenue in 2018, owing to presence of key players in the developing countries and rise in number of air travelers. However, Asia-Pacific is expected to grow at a higher CAGR, owing to increase in investment by the government, introduction of new flight routes, increased fleet sizes, and high demand for fuel from emerging economies in the region.
By Region
Asia-Pacific is projected as the most lucrative market.
Competitive Landscape
The key players operating in the aviation fuel industry are Bp p.l.c., Chevron Corporation, Exxon Mobil Corporation, Gazprom, Indian Oil Corporation Limited, Petrobras, Royal Dutch Shell plc, Sinopec Group, Total SA, and Oman Oil Company SAOC. The key players have adopted strategies such as partnership and business expansion to sustain the intense competition in the market.
Key Benefits for Stakeholders:
- The report provides an in-depth analysis and aviation fuel market forecast along with the current and future market trends
- This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the aviation fuel industry for strategy building
- A comprehensive analysis of the factors that drive and restrain the aviation fuel market growth is provided
- The qualitative data in this report aims on aviation fuel market trends, dynamics, and developments
- The aviation fuel market size is provided in terms of revenue
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable aviation fuel market share
Aviation Fuel Market Report Highlights
| Aspects | Details |
 By Fuel Type |
|
 By Aircraft Type |
|
 By End User |
|
 By Region |
|
 Key Market Players | TOTAL S.A., British Petroleum (BP) p.l.c, EXXONMOBIL, INDIAN OIL CORPORATION LTD., Oman Oil Company SAOC., Public Joint Stock Company Gazprom, Sinopec Corp., Royal Dutch Shell plc, Petróleo Brasileiro S.A. (Petrobras), Chevron Corporation |
Analyst Review
The global aviation fuel market is anticipated to grow at a considerable rate during the forecast period. This is attributed to the rise in demand for aviation fuel from various emerging economies and military sector. Moreover, introduction of new flight routes (domestic and international) and investments from government in the field for construction of new airports also fosters the aviation fuel market growth. Furthermore, there is an increase in the demand from developing economies from Asia-Pacific region such as China and India owing to increased disposable income encouraging people to opt for air transport, boom in tourism industry, and rise in air traffic which further fosters the aviation fuel market growth. In-addition, demand from North America also largely contributed to the market growth owing to the presence of key market players and increased investment for development from government in the region. Aviation fuel is capable of enduring high temperature environment and is corrosion resistant, which makes it suitable for use at high altitudes. However, fluctuating crude oil prices and strict rules & regulation regarding carbon emissions impact the production process and limits the market growth. Meanwhile, emerging sustainable aviation fuel (SAF) offer opportunities for the growth of the aviation fuel industry.
The aviation fuel market will grow to $238.5 billion by 2026 at CAGR of 3.5%.
North America holds the maximum share of aviation fuel market.
To get latest version of aviation fuel market report
Currently, demand from military sector for efficient and low cost military grade fuel has increased as all the nations are increasing their military strength. Owing to increased disposable income and boom in tourism industry, rise in air transportation has been experienced, which further drives market.
The market size for aviation fuel market was $179.2 billion in 2018 and is expected to reach $238.5 billion by 2026.
The top ten market players are selected based on two key attributes - competitive strength and market positioning
Most companies taken for profiling are major key players in aviation fuel industry. The fuel type offered by selected companies was also taken into consideration.
Fluctuations in crude oil prices and rise in concerns over high level of carbon emissions leading to strict rules and regulations hampers the market growth.
The key growth strategies adopted by major players were collaboration, joint venture, partnership, and business expansion.
The applications of aviation fuel are in civil aviation, military, private aviation, and sports & recreational activities.
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