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Aviation Gasoline (Avgas) Market Size, Share & COVID-19 Impact Analysis, By End-User (Private, Commercial, and Military), and Regional Forecasts, 2020-2027

Region : Global | Format: PDF | Report ID: FBI103446

 

KEY MARKET INSIGHTS

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The global aviation gasoline market size was valued at USD 1.78 billion in 2019 and is projected to reach USD 1.91 billion by 2027, exhibiting a CAGR of 4.2% during the forecast period.

COVID-19 Cover

This report covers COVID-19 impact analysis on Aviation Gasoline (Avgas) Market

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Aviation gasoline (Avgas) is a fuel type primarily used for reciprocating a piston-engine aircraft. It is highly flammable at normal operating temperatures and is primarily defined by their octane rating. Several grades such as 80/87, 91/96, 100/130, 108/135, and 115/145 of Avgas were in use, however, due to diminishing demand, it has been modernized to one grade, i.e., Avgas 100/130. Growing demand for piston-engine aircraft for training purposes, sports activities, and aerial applications provide a positive influence on the growth of the market.


Decreasing Demand for Aviation Fuel Amid COVID-19 to Hinder Growth


The ongoing COVID-19 pandemic has resulted in a full-scale crisis with the imposition of travel restrictions and the suspension of flights to contain the spread of the virus. Therefore, the current demand for aviation turbine fuel (ATF) and aviation gasoline (Avgas) has decreased significantly. Owing to this coronavirus outbreak, operations of several flights are down by 40%. Most of the countries across the globe are slowly unlocking their markets. Hence the demand for jet fuel is expected to start recovering slowly. But the demand for aviation gasoline is still very low, due to the restrictions on the private and business aircraft. Also, training schools are closed due to Covid-19.


The price of Avgas is directly proportional to crude oil prices. Currently, due to COVID-19, the demand for crude oil is very low; hence the price of crude oil is also low. This negatively affects the jet fuel and Avgas prices. Post Covid-19, when the demand for Jet fuel and Avgas may start to recover, prices for the same will also show an increasing trend.


LATEST TRENDS


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High Growth in Business Aviation to Boost Market Growth


Business aviation means the use of a general aviation aircraft by air travelers for business purposes. Several aviation industry companies of all sizes across the globe, use different types of general aviation aircraft for business usage that fly internationally. It is essential for many companies to provide speed, flexibility, efficiency, and productivity to compete in a marketplace. Business aviation offers multiple advantages due to its flexibility. According to Dassault Aviation is a French aerospace company, Business purpose aircraft offers time savings of around two and a half hours compared to commercial lines and provide comfort while travelling. This enables the traveler to complete the business objective quickly and smoothly. Thus, the demand for business aviation is constantly increasing across the globe. According to National Business Aviation Association (NBAA), only about 3% of the approximately 15,000 business aircraft registered in the United States. are flown by Fortune 500 companies. In comparison, the remaining 97% are operated by a broad cross-section of organizations, including governments, charitable organizations, and businesses – large, medium, and small.


DRIVING FACTORS


Growing Demand for Small Aircraft & Sports Activities to Augment Aviation Gasoline Market Growth


The growing demand for small aircraft for sightseeing, photography, tourism, and other applications are anticipated to witness considerable growth in the global aviation gasoline market. There is a significant increase in the sale of piston based aircraft for sports activities such as aerobatics, air rallies, aeromodelling, air racing, ballooning, gliders, sailplanes, and among other activities. As per General Aviation Manufacturers Association, the sale of piston based aircraft increased from 1,218 in 2017 to 1,302 in 2018 with a growth rate of 1.4% annually. Hence, the increase in demand for small aircraft & the growing sports activities is expected to bode well for market growth during the forecast period.


Increasing Focus on Advanced Designing of Aircraft to Propel Demand


The designing of aircraft has become cheaper, safer, faster, and greener and has improved the fuel-burning efficiency, which has increased the demand for gasoline fuel. Piston based aircraft operating on leaded aviation gasoline is the contributor to air pollution, which is anticipated to endanger public health or welfare. Significant research from the Aviation industry is aiding in reducing the fuel application by delivering lighter-weight engines and hybrid-electric engines. For instance, Honeywell's efficient hybrid-electric turbogenerator aircraft propels on electricity that leads to less consumption of fuel. Hence, increasing advancement in designing aircraft is expected to boost the market growth in the forthcoming years.


RESTRAINING FACTORS


Increasing Preference for Hybrid And Electric Aircrafts to Restrain Market Growth


There has been significant growth in the demand for hybrid and electric aircraft owing to reduced energy consumption, emissions, and noise. Increasing energy demand and rising fuel prices has led to the development of hybrid-electric propulsion systems, which hold the potential to reduce fuel consumption in the aviation industry. For instance, in 2019, Collins Aerospace, a technologically advanced and intelligent solution provider for the global aerospace and defense industry, has planned to invest USD 150 million over the next 3 years to incorporate electric architecture in existing aircraft. Hence, increasing preference for emission-free fuel for hybrid and electric aircraft restraints the market growth.


SEGMENTATION


By End-User Analysis


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Private End-user Segment Dominated the Market in 2019


Based on end-user, the private segment held a dominant share of the market in 2019. An increasing number of high net worth individuals (HNWIs) and ultra-high net worth individuals (UHNWIs), coupled with a growing preference of people opting for private aircraft to reduce their travel time, is driving the demand for private aircraft.


The commercial is the second-largest segment of the market. International air transport is increasing continuously. Growing demand for aircraft from charitable organizations and large, medium, and small size businesses driving the growth of the market. According to the Asian Sky Group, there were a total of 1,213 business aircraft in the Asia Pacific region by the end of 2019. China had a total fleet of 464 operational business aircraft, making the country the largest operator of business aircraft in the Asia Pacific.


The military segment is expected to contribute significantly in the forthcoming years. The spending on military aircraft is anticipated to be driven by several factors such as fleet replacement programs, internal and external security threats, and territorial disputes across the globe.


REGIONAL INSIGHTS


North America Aviation Gasoline Market Size, 2019 (USD Billion)

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North America is anticipated to lead the global aviation gasoline (Avgas) market. The U.S. is the major consumer for aviation gasoline. The growing number of air travelers (private as well as commercial) in the country is expected to fuel the growth of the market. According to The General Aviation Manufacturers Association (GAMA), more than 211,000 aircraft are based in the U.S., out of which more than 143,000 aircraft are piston engine aircraft. The Federal Aviation Administration (FAA) tracks active certified pilots (pilots that both have their licenses and are current and eligible to fly). Of the 594,285 certificated pilots in the U.S., 211,619 are private pilots. In Canada, there are approximately 1,900 business aviation aircraft operating in every province and territory.


Asia-Pacific is expected to hold the second position in the market and is likely to showcase significant growth during the forecast period. In terms of revenue, Australia, China, and other Southeast Asian countries are the major contributor to the market in the Asia Pacific. According to the Civil Aviation Administration of China (CAAC), the total flown hours of China's general aviation industry in 2019 recorded to 1.12 million hours. As per the CAAC, China had only 2,562 at the end of 2019. China is planning to establish as many as 500 general aviation airports. Additionally, the country is also planning to increase the number of aircraft, including helicopters and private jets, to more than 5,000 by 2020.


Europe and Latin America are also expected to contribute significantly to the market growth during the forecast period. Latin America is an important part of business aviation. According to AMSTAT, Mexico (fleet size 988) and Brazil (fleet size 782) are the second and third largest business aircraft holders by fleet size within the Americas.


KEY INDUSTRY PLAYERS


Key Market Players Focus on Signing New Contracts to Strengthen Their Position


The global aviation gasoline market is consolidated owing to the strong product portfolio and a remarkable global network of major companies in developed and emerging countries. Currently, ExxonMobil and Shell lead the market, accounting for a dominant share in 2019. However, strong barriers to entry are projected to the limited number of domestic players entering the global market that enables the market to be more competitive in the future.


The companies are focusing on signing new contracts to increase their revenue. For instance, in January 2019, Global energy leader World Fuel Services (World Fuel) secured two contracts with London Oxford Airport and London Heliport to supply Jet A-1, Avgas, and training packages. According to the company, the five-year contract is expected to commence in February 2019.


LIST OF KEY COMPANIES PROFILED:



  • ExxonMobil (U.S.)

  • Shell (Netherlands)

  • BP Plc (U.K)

  • Total (France)

  • Vitol Group (U.K)

  • Phillips 66 (U.S.)

  • Repsol (Spain)

  • Indian Oil Corporation Limited (India)

  • Naftal (Algeria)

  • Hjelmco Oil AB (Sweden)


KEY INDUSTRY DEVELOPMENTS:



  • In January 2020, Air BP has agreed with BAA Training to supply Avgas 100LL and unleaded aviation fuel market share to all BAA Training flight bases, and other Spanish airports where it delivers its training activities.

  • In July 2018, Phillips 66 and Afton Chemical were working under collaboration to develop and distribute unleaded 100-octane Avgas (UL100). The company aims to eliminate the use of leaded 100LL fuel, which is widely used in piston-engine aircraft.


REPORT COVERAGE


The aviation gasoline market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies and leading end-user of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.


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REPORT SCOPE & SEGMENTATION





































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Volume (Thousand Tons) & Value (USD Billion)



Segmentation



By End-User



  • Private

  • Commercial

  • Military



By Region



  • North America (U.S., and Canada)

  • Europe (France, Germany, Russia, Spain, Kazakhstan, Jersey, Poland, Switzerland, Norway, Czech Republic, Austria, and Rest of Europe)

  • Asia Pacific (China, Australia, South East Asia, and Rest of Asia Pacific)

  • Latin America (Brazil, Mexico, Colombia, Chile, Argentina, Cuba, Ecuador, and Rest of Latin America)

  • Middle East & Africa (South Africa, Kenya, GCC, Guinea, Botswana, Liberia, Libya, and Rest of Latin America)



Frequently Asked Questions

Fortune Business Insights says that the global aviation gasoline market size was USD 1.78 billion in 2019.

In 2019, the North America market value stood at USD 0.94 Billion.

The global market is projected to grow at a CAGR of 4.2% in the forecasted period.

The private end-user segment is expected to be the leading segment in this market during the forecast period.

The global market size is anticipated to reach USD 1.91 billion by 2027 growing at a substantial CAGR of 4.2% during the forecast period (2020 – 2027).

High growth in business aviation across the globe is a major factor driving the growth of the market

The North America region dominated the market share in 2019.

ExxonMobil, Shell, BP Plc, and Total S.A. are major players of the global market.

Aviation Gasoline (Avgas) Market Size, Share and Global Industry Trend Forecast till 2026
  • Aug, 2020
  • 2019
  • 2016-2018
  • 156

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