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Aviation Fuel Market Trends

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

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Aviation Fuel Market Trends

The aviation fuel industry is witnessing a turning point, driven by increased investments and enhanced efforts toward increasing sustainable aviation fuel (SAF) production by stakeholders. Research, development, and manufacture of SAF to reduce carbon footprints and comply with stringent environmental regulations have been made. This transformation has been spurred by increasing awareness and airline commitment toward setting carbonization targets.

Technological advances in biofuels, synthetic fuels, and electric propulsion systems are fueling innovation and helping expand sustainable options. Furthermore, government incentives and industry collaboration are accelerating SAF adoption, forcing a greener future promised for air travel. These developments highlight a critical moment in the aviation industry, where sustainable practices are becoming central to business strategies to ensure a more environmentally responsible approach to the markets.

Citing an instance, in June 2024, Bharat Petroleum Corp announced that it is all set to set up sustainable aviation fuel (SAF) units at its three refineries. This policy aims to reinforce the government’s commitment to achieving a 1% mix target. The company plans to spend about Rs 1,400 crore to build these units.

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.