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Aviation Fuel Market Size

Report ID: GMI4455
Published Date: Jul 2024
Report Format: PDF

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Aviation Fuel Market size

Aviation Fuel Market was valued at over USD 220.1 billion in 2023 and will register 9.7% CAGR from 2024-2032. The fuel is experiencing increased demand due to joint ventures and large-scale production efforts in the market. As companies enter into strategic alliances that aim to strengthen supply chains and improve operational efficiencies, the market will register remarkable growth.

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For instance, in June 2024, MAJOR S.p.A. announced that NEXTCEM, through its subsidiary MyRechemical, entered into an agreement with DG Fuels for its NX circular gasification technology. The plant, targeted to start operations in 2028, aims to produce 450 million liters of sustainable aviation fuel (SAF) per year from residual and urban biomass waste.

These collaborations are critical to globalization, meeting the growing demand generated by the revival of air travel and freight transportation. Furthermore, production efforts are intensifying, with innovations in renewable technologies and sustainable fuel alternatives playing an important role. Industry push towards cleaner aviation fuels aligns with global climate goals and regulatory framework. This dynamic landscape underscores the shift toward environmental sustainability. It highlights the market’s adaptability as well as resilience in the face of ongoing economic and ecological challenges. Furthermore, investment in sustainable products and practices is poised to shape the market, ensuring it plays a key role in the future of global transport.

Aviation Fuel Market Report Attributes
Report Attribute	Details
Base Year:	2023
Aviation Fuel Market Size in 2023:	USD 220.1 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	9.7%
2032 Value Projection:	USD 412.3 Billion
Historical Data for:	2021 - 2023
No. of Pages:	200
Tables, Charts & Figures:	264
Segments covered:	Grade, End User, and Region
Growth Drivers:	Proliferating demand for air travel owing to low-cost carriers Increasing production and deliveries of aircrafts Construction and expansion of airports Booming trade activities and proliferating ecommerce industry Expanding middle class population and proliferating tourism industry Supporting regulatory norms and rising demand for green and sustainable fuel
Pitfalls & Challenges:	Volatile crude oil pricing and geopolitical issues Rising preference for hybrid and electric aircrafts Capacity constraints and congestion related issues

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Despite the growth of the aviation fuel market, there are notable constraints. Regulatory constraints such as stringent emission standards and environmental regulations challenge the acceptance of conventional and alternative fuels. Crude oil price fluctuations also affect market position and costs. Technological barriers to upscaling sustainable aviation fuel (SAF) hinder its widespread use and limit the variety of products offered. Moreover, geopolitical conflicts and economic uncertainties affect global supply chains and investments in the fuel system. These constraints require innovative solutions and a collaborative approach to move towards a more sustainable and flexible market.

Authors: Kiran Pulidindi, Manish Verma

Frequently Asked Questions (FAQ) :

Industry size for aviation fuel was worth USD 220.1 billion in 2023 and will grow at 7.1% CAGR between 2024 and 2032 due to the rising demand for air travel, both for passenger and cargo transportation.

Aviation fuel industry from the commercial aircraft segment recorded 47.1% share in 2023, driven by the exponential growth in global passenger and cargo air traffic, increasing disposable incomes and the rise of low-cost carriers.

North America industry will register 6.1% CAGR through 2032, attributed to robust domestic markets, encompassing passenger and freight airlines, as well as international routes linking vast regions globally.

Major companies operating in the industry are Bharat Petroleum Corporation Limited (BPCL), BP p.l.c., Chevron, China Aviation Oil, ExxonMobil, Gazprom, HPCL, Indian Oil Corporation Limited, Mercury Air Group, Reliance Petroleum, Shell, Vitol, and World Fuel Services, among others.