Aviation Gasoline (Avgas) Market Size, Share & COVID-19 Impact Analysis, By End-user (Private, Commercial, and Military), and Regional Forecast, 2023-2030

The aviation gasoline (Avgas) market size was USD 2.26 billion in 2022. The market is projected to grow from USD 2.42 billion in 2023 to USD 3.46 billion by 2030, exhibiting a CAGR of 5.19% during the forecast period.

Aviation Gasoline (Avgas) is generally used to power piston-engine aircraft. At typical operating temperatures, it is highly flammable and primarily determined by its octane rating. Avgas was used in many grades, including 80/87, 91/96, 100/130, 108/135, and 115/145. Due to the declining demand, it has been updated to a single grade, Aviation Gasoline (Avgas) 100/130. The growing demand for piston-engine aircraft for training, sports, and aerial applications will fuel the long-term growth of the market.

COVID-19 IMPACT

Declining Demand for Aviation Gasoline Due to COVID-19 Impeded Market Growth

The COVID-19 outbreak caused a major crisis in 2020 as flights were canceled and travel restrictions were imposed to restrict the virus' spread. This factor caused a major decline in the demand for aviation gas and Aviation Turbine Fuel (ATF). During the peak of the pandemic, several flights witnessed a reduction in operations. Due to private and corporate aircraft restrictions, the consumption of aviation gasoline was still relatively low. The pandemic also forced the closure of training schools. However, several countries around the globe are opening up their borders to increase air traffic. This scenario is likely to normalize the demand for jet fuel in the coming years.

The price of avgas is linked to crude oil prices. There was a low need for crude oil due to COVID-19. The price of crude oil was also low. This negatively influenced the costs of aviation gasoline and jet fuel. As there is a renewed demand for these products post the pandemic period, the prices of these fuels are expected to fluctuate.

Aviation Gasoline (Avgas) Market Trends

Growth in Business Aviation Sector to Boost Aviation Gasoline (Avgas) Market Progress

The utilization of small aircraft for business purposes is known as business aviation. Business aviation is a subset of commercial aviation that relies on airplanes for commercial purposes. Around 3% of private jets registered in the U.S. are flown by Fortune 500 corporations, according to the National Business Aviation Association (NBAA). The remaining 97% are run by diverse groups, including governments, nonprofit organizations, and large, medium, and small businesses. According to a report by Airports Council International Asia Pacific and Middle East, the Middle East saw 26% growth in air connectivity with direct connectivity to destination choice, saving frequency, onward connectivity and price, contributing to the business expansion. As a result, gasoline-based fuel industry participants are also foreseen for large-scale opportunities. Furthermore, in May 2023, India’s first subscription-based business aviation company, IndiaJets, started its operations with the IndiaJets Aircraft Membership program. According to the company, the model mimics timeshare in the sky and is customized for senior management and business owners who can enjoy the advantages of a private aircraft without the responsibilities of ownership, such as overseeing and managing airworthiness, crew, and maintenance.

Aviation Gasoline (Avgas) Market Growth Factors

Growing Adoption of Small Aircraft for Different Sporting Events to Accelerate Market Growth

This market is expected to grow significantly due to the rising need for small airplanes for photography, tourism, sightseeing, and other purposes. Air rallies, aerobatics, air racing, ballooning, aeromodelling, sailplanes, gliders, and many other sports activities have increased the sales of piston-based aircraft significantly. According to the General Aviation Manufacturers Association, the sales of piston-based aircraft climbed from 1,409 in 2021 to 1,524 in 2022. The aforementioned factors are likely to boost the aviation gasoline market growth in the coming years.

Increased Private Aviation to Propel Market Growth

Increased private aviation is expected to have a positive impact on the aviation gas market. Private aviation typically relies on general aviation fuels, such as Avgas for piston-engine aircraft and jet fuel for turbine-engine aircraft. As the demand for private aviation services, including business jets and recreational flying, rises, it can lead to increased consumption of aviation fuels. The demand for fixed base operators also increases due to the rise in private aviation, thereby propelling the product demand.

For instance, in May 2023, Chartright Air Group, Canada's largest provider of private jet charter activity, held the grand opening of its latest Fixed Base Operator (FBO), Hangar 64, at the Waterloo International Airport in Canada. This advanced facility is a major accomplishment for Chartright as it expands its operations to cater to the industry's rising demands effectively. The FBO boasts an astonishing 100,000 sq. ft. of area and 150,000 sq. ft. of ramp area, increasing Chartright's footprint at the Waterloo International Airport.

RESTRAINING FACTORS

Rising Inclination Toward Electric and Hybrid Aircraft to Slump Market Progress

The creation of hybrid-electric propulsion systems, which can cut the use of fuel in the aviation sector, has been prompted by increased energy demand and rising fuel prices. In June 2023, Daher partnered with a French technology start-up to develop power systems required for a hybrid-electric aircraft that the airframer intends to have available in 2027. Daher’s Chief Executive Didier Kayat stated on 20^th June that Toulouse-based Ascendance Flight Technologies had joined the project, which he described as a shift by Daher toward reducing its aircraft’s carbon output.

Aviation Gasoline (Avgas) Market Segmentation Analysis

By End-user Analysis

Private Segment’s Dominance is Led by Increased Private Aviation

Based on end-user, the market is segmented into private, commercial, and military.

The private segment is expected to dominate the market over the forecast timeframe. The segment held the largest aviation gasoline (Avgas) market share in 2022. The demand for private aircraft is being driven by a growing percentage of some of the largest providers of private jet charter in emerging economies and a rising need among people to fly private planes to shorten their trip time. For instance, in July 2023, UAE-based Emirates launched a new private jet arm using Embraer Phenom 100EV business planes. It will carry elite customers from Dubai to cities in the Gulf region using a fleet of Embraer Phenom 100EV twin-engine private jets.

The commercial segment held the market's second-largest share in 2022. The segment is growing due to increased demand for airplanes from philanthropic organizations and large, medium, and small businesses. According to Airbus, Asia Pacific will have 17,620 aircraft, with 13,660 of them in the Small category, such as the A220 and A320 families by the end of 2040.

In the coming years, the military segment is likely to contribute to the market’s growth considerably. Several variables, including rise in fleet replacement programs, internal & external security concerns, and territorial disputes worldwide, are expected to drive military aircraft spending.

REGIONAL INSIGHTS

Geographically, the market is segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

North America is anticipated to lead the global market. The U.S. is a major consumer of aviation gasoline. The country's increasing number of private aviation travelers is likely to propel the regional market's expansion.

On 14th June 2022, the LIFT Academy flight training program strengthened its collaboration with Diamond Aircraft Industries with new aircraft orders. It took delivery of a Diamond training aircraft, reinforcing its Diamond Aircraft Industries fleet to 47 aircraft, including two DA20 planes. LIFT Academy is one of the largest U.S. operators of Diamond aircraft as it coaches around 300 aviation students every year. In addition, it has one of the most technologically advanced fleets in the U.S. Furthermore, it has an option for 50 additional aircraft.

Asia Pacific is predicted to hold the second-largest position in the market and grow significantly during the forecast period. Australia, China, Japan, and other Asia Pacific countries held the largest share in terms of disposable incomes.

For instance, according to the IATA, Asia-Pacific Airlines witnessed a growth of 192.7% in air traffic in April 2023 as compared to that of April 2022. The load factor surged by 13.2 percentage points to 81.6%, and capacity climbed by 145.3%. China’s domestic traffic increased by 536.2% in April compared to a year ago, exceeding the April 2019 levels by 6%.

Europe is witnessing steady growth in the global market. The growing preference of people for charter and private aircraft to reduce their travel time is driving this market in the region.

In May 2022, Jetex, one of the leaders in private aviation, announced its first Fixed Based Operator (FBO) in London. The new expansion aims to help the company enhance its market position and reinforce its international expansion.

Latin America has captured a major global market share, with Mexico (fleet size 988) and Brazil (fleet size 782) being the second and third largest business aircraft owners in the Americas, respectively, as per AMSTAT.

The Middle East & Africa will hold a substantial share of the global market. Oxford Economics estimates that by 2036, the impact of air travelers and the tourism sector it facilitates in Middle Eastern countries will have increased to support 4.3 million jobs (78% more than in 2016) and contribute USD 345 billion to the GDP (166% increase).

List of Key Companies in Aviation Gasoline (Avgas) Market

Key Players Prioritize Contract Extensions to Strengthen Their Position

A broad product portfolio and a spectacular global network of large corporations in developed and developing nations will help ExxonMobil and Shell hold a substantial market share during the forecast period. However, the market is anticipated to witness fierce competition in the future as a small number of local competitors joining the global market may create high entry barriers.

Some of the major companies are concentrating on negotiating new contracts to increase their revenue. For example, in January 2021, World Fuel Services (World Fuel), a global energy provider, won two contracts to supply Jet A-1, Aviation Gasoline (Avgas), and training packages to the London Oxford Airport and London Heliport. The firm's five-year contract was projected to begin in February 2021.

LIST OF KEY COMPANIES PROFILED:

• ExxonMobil (U.S.)


• Shell (Netherlands)


• BP Plc (U.K.)


• Total (France)


• Repsol (Spain)


• Vitol Group (U.K.)


• Phillips 66 (U.S.)


• Indian Oil Corporation Limited (India)


• Viva Energy Group (Algeria)


• Hjelmco Oil AB (Sweden)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: AV GAS 100 LL, produced by Indian Oil’s flagship refinery at Vadodara, India, was tested and certified by the Directorate General of Civil Aviation (DGCA). It is a higher-octane aviation fuel that claims to meet the product specifications with superior performance quality standards as compared to imported grades.


• January 2023: State-run Indian Oil Corporation (IOC) started the export of its special aviation fuel for small aircraft and unmanned aerial vehicles (drones), AVIATION GASOLINE (AVGAS) 100 LL. By exporting special aviation fuel, the country’s largest auto fuel retailer aims to tap lucrative opportunities in this market.


• September 2022: IndianOil became the first oil marketing company to manufacture and market aviation gasoline (Avgas) 100 LL in India. Highlighting the significance of indigenous AVGAS 100 LL, the Minister for Petroleum and Natural Gas stated that launching an indigenous aviation oil is crucial to meet the requirements of a growing aviation industry with increased airport footfall.


• August 2020: The U.S. government ordered to pay ExxonMobil Corporation USD 20.3 million for cleanup at aviation gasoline refineries.


• January 2020: Air BP extended its agreement with BAA Training to supply aviation gasoline (Avgas) 100LL aviation fuel to all BAA Training flight bases, as well as unleaded aviation fuel for BAA Training’s aircraft in Lleida-Alguaire and at other Spanish airports where it delivers its training activities. With this agreement, BAA Training became one of the first aviation academies in southern Europe to use unleaded aviation fuel.

REPORT COVERAGE

The research report offers an in-depth analysis of the market. Information on trends, drivers, opportunities, threats, and restraints of the market can further help stakeholders gain valuable insights into the market. The report also offers a detailed competitive landscape by presenting information on key players along with their strategies for expansion.

Report Scope & Segmentation