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Aviation Fuel: Introduction

  • Aviation fuels are petroleum-based fuels used for aircraft propulsion that run on gas turbine engines. Various types of aviation fuels are used extensively to power aircraft in commercial as well as military applications across the globe. Rise in air traffic passengers across the globe, particularly in emerging economies; and fluctuations in crude oil prices are underpinning the evolution trajectories of the aviation fuel market. Increase in number of airline passengers has boosted the consumption of aviation fuel in developing regions. Growth in focus on reducing the carbon footprint of the overall transportation industry is driving the demand for biofuels. Renewable aviation fuels have generated significant 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 last few years and the number is expected to double by the end of 2036.  Recent improvements in global economic conditions have been driving the annual air passenger numbers since the last few years. Decline in average airfares is a key factor encouraging airline passengers, especially among the cost-sensitive passengers. Increase in cargo handling requirements also bodes well for the market.

Key Drivers and Restraints of Global Aviation Fuel Market

  • The global aviation fuel market is expected to expand substantially due to the rapid rise in air passengers in developing countries such as those in Asia Pacific. Increase in revenue passenger kilometers over the past few years is propelling the market. Demand for aviation fuel has been rising significantly owing to the increase in capacity of passenger airlines in various developing regions. The shift toward adoption of more cost-effective aviation fuels and the fuels with less carbon footprint is driving the market.
  • Growth in spending capacity of the middle class population in emerging economies is a prominent factor boosting the aviation fuel market. Liberalization in the aviation market brought about by positive regulatory thrusts in recent years also augurs well for the aviation fuel market. Increase in focus by regulatory agencies on the adoption of bio-fuels is also a key factor boosting the market. Manufacture of new passenger aircrafts in developing economies is expected to drive new demand dynamics in the near future. However, rise in prices of jet fuels is anticipated to pose a substantial challenge for airlines to sustain high air passenger traffic in the next few years.

Aviation Fuel: Product Type Segment

  • In terms of product type, the global aviation fuel market can be segmented into air turbine fuel, aviation biofuel, avgas, and others
  • The air turbine fuel segment is expected to account for significant share of the global aviation fuel market during the forecast period. It is anticipated to be followed by the avgas segment.
  • The aviation biofuel segment is likely to expand at a rapid pace during the forecast period, due to the expansion of the renewable fuels market around the globe

Aviation Fuel: Application Segment

  • In terms of application, the global aviation fuel market can be divided into civil, military, private, and others
  • The civil segment is estimated to expand at a rapid pace during the forecast period. It is projected to be followed by the private segment.
  • The military segment is likely to expand at a healthy CAGR during the forecast period, owing to the growth of the defense industry across the globe

COVID-19 Impact on Aviation Fuel Market

  • On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency of international concern. Originating in China, the virus has spread to at least 213 countries and territories around the world.
  • Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic
  • Manufacture of various consumer goods and other products across the globe has come to a halt due to the unavailability of raw materials, shortage of labor, etc. This is expected to hamper the aviation fuel market.

North America to Dominate Aviation Fuel Market

  • In terms of region, the global aviation fuel market can be segregated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
  • North America dominated the aviation fuel market in 2020. This trend is anticipated to continue during the forecast period. However, the aviation fuel market in Asia Pacific is anticipated to expand at a rapid pace owing to the significant investment in the transportation infrastructure across the region in the recent years. China, Indonesia, and India are expected to witness vast prospects in the near future. Rise in demand for air freight is estimated to keep the outlook attractive in some developing countries. These countries also stand to benefit from the growing affordability of international travel.

Key Manufacturers Operating in Global Aviation Fuel Market

The global aviation fuel market was consolidated in 2020. Major players have prominent presence in developed and developing countries. Key manufacturers operating in the global aviation fuel market include:

  • Hindustan Petroleum
  • Gazprom
  • Exxon Mobil
  • Royal Dutch Shell Plc.
  • Qatar Jet Fuel Company
  • Total SA
  • Chevron Corporation
  • British Petroleum
  • Vitol
  • China Aviation Oil

Global Aviation Fuel Market: Research Scope

Global Aviation Fuel Market, by Product Type

  • Air Turbine Fuel
  • Aviation Biofuel
  • Avgas
  • Others

Global Aviation Fuel Market, by Application

  • Civil
  • Military
  • Private
  • Others

Global Aviation Fuel Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

With a robust experience in creating exceptional market reports, Transparency Market Research has emerged as one of the trusted market research companies among a large number of stakeholders and CXOs. Every report at Transparency Market Research goes through rigorous research activity in every aspect. The researchers at TMR keep a close watch on the market and extract beneficial growth-boosting points. These points help the stakeholders to strategize their business plans accordingly.

TMR researchers conduct exhaustive qualitative and quantitative research. This research involves taking inputs from the experts in the market, focused attention on recent developments, and others. This method of research makes TMR stand out from other market research firms.

Here's how Transparency Market Research helps the stakeholders and CXOs through the reports:

Inculcation and Evaluation of Strategic Collaborations: The TMR researchers analyze recent strategic activities like mergers, acquisitions, partnerships, collaborations, and joint ventures. All the information is compiled and included in the report.

Perfect Market Size Estimations: The report analyzes the demographics, growth potential, and capability of the market through the forecast period. This factor leads to the estimation of the market size and also provides an outline about how the market will retrieve growth during the assessment period.

Investment Research: The report focuses on the ongoing and upcoming investment opportunities across a particular market. These developments make the stakeholders aware of the current investment scenario across the market.

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.

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