Aviation fuel is an exclusive type of fuel that is mainly used for energizing an aircraft. The fuel is petroleum-based and is of a superior quality than the regular ones used in rail transport or road transport or others. The additives in aviation fuel help in reducing the risk of explosion or icing because of the high temperatures. This type of fuel is mainly used by majority of the commercial airlines and military aircrafts so as to optimize fuel efficiency. Using aviation fuel also helps in improving the overall cost of operations. In recent years, there has been a tremendous growth in the aviation sector. The competition in the sector is quite intense, which in turn is leading to increased competition among the aviation fuel providers for both military as well as commercial applications. This is expected to create huge growth opportunities for the overall development of the global aviation fuel market.
The competitive landscape of the global aviation fuel market is quite fragmented. This fragmentation of the vendor landscape is due to presence of several notable companies operating in the market space. Even though the growing number of aircrafts will provide huge and lucrative development opportunities, there are a few factors that might impede the overall development of the global market. One of the key restraining factor for market growth has been slow ceasing of finances for upstream gas and oil projects by the World Bank. Moreover, emergence of renewable aviation fuel is also expected to present a significant challenge to the overall growth of the global market.
In order to make most of the currently available growth opportunities, the leading companies in the global aviation fuel market must focus on the emerging trends in the rapidly developing segments, while keeping strong hold on the slow-growing sectors.
Global Aviation Fuel Market: Overview
Aviation fuels are petroleum-based fuels used for aircraft propulsion that runs on gas turbine engines. Various types of aviation fuels are used extensively to power aircrafts in commercial as well as military applications across the globe. Rising air traffic passengers worldwide, particularly in emerging economies, and fluctuations in crude oil prices are underpinning the evolution trajectories of the aviation fuel market. Rising number of airline passengers has spurred the consumption of aviation fuels in developing regions. Growing focus on reducing the carbon footprint of the overall transportation industry is driving the demand for biofuels. Renewable aviation fuels have generated enormous attention of aviation industry players, especially in developed countries such as the U.S.
According to the International Air Transport Association, passenger air traffic is has witnessed substantial rise in the past years and the number is expected to double by 2036 end. Recent improvements in global economic conditions have given rise to big increase in annual air passenger numbers in recent years. Declining average airfares is a key stimulating factor for airline passenger, especially in regions with cost-sensitive passengers. Rising cargo handling requirements also bodes well for the market.
The study offers critical assessment of key growth dynamics, current outlook, emerging avenues, and highlights the contours of the competitive dynamics. The various assessments and projections help market participants’ gain a reliable and elaborate perspective of the market.
Global Aviation Fuel Market : Trends and Opportunities
The global aviation fuel market is expected to make substantial strides from rapidly rising air passengers in developing countries such as those in Asia Pacific. Rising revenue passenger kilometers over the past few years is propelling the growth of the market. The demand for aviation fuels has been witnessing robust fillip from the rising capacity of passenger airlines in various developing regions. Conscious shift toward adoption of more cost-effective aviation fuels and the fuels that have less carbon footprint is fueling the expansion of the market.
Growing spending capacity of middle class populations in emerging economies is a prominent factor boosting the aviation fuels market. Liberalization in aviation markets brought about by positive regulatory thrusts in recent years also augurs well for the aviation fuels market. Increasing focus by regulatory agencies on bio-fuels adoption is a key factor boosting the market. In developing economies, making of new passenger aircrafts will catalyze new demand dynamics in near future. However, rising price of jet fuels may pose as substantial challenge for airlines to sustain a high air passenger traffic in next few years.
Global Aviation Fuel Market: Regional Landscape
On the regional front, developing regions are expected to hold vast growth potential in the global aviation fuel market. In particular, a positive demographics in Asia Pacific is expected to present substantial lucrative prospects for market players. Sizeable investment in the transportation infrastructure across the region in recent years has catalyzed the growth of the aviation fuel market. Countries such as China, Indonesia, and India are expected to witness vast prospects in the near future. Rising demand for air freight will keep the outlook attractive in some developing countries. These countries will also benefit from growing affordability of international travel. Moreover, the demand for various types of aviation fuels in emerging markets is likely to gain from rapidly growing air cargo transportation.
Global Aviation Fuel Market: Competitive Landscape
The study takes a closer look at competitive dynamics and the strategies adopted by various players to strengthen their positions in the market. Some of the key participants in the global aviation fuel market are Hindustan Petroleum, Gazprom, Exxon Mobil, Royal Dutch Shell Plc., Qatar Jet Fuel Company, Total SA, and Chevron Corporation.
The study is a source of reliable data on:
- Market segments and sub-segments
- Market trends and dynamics
- Supply and demand
- Market size
- Current trends/opportunities/challenges
- Competitive landscape
- Technological breakthroughs
- Value chain and stakeholder analysis
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.