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As per the International Energy Agency (IEA), carbon emission in airlines is estimated to increase to 3.5% of the global energy as compared to 2.5% in 2019. These fuel demand for aviation fuel and enabled by this, the global Aviation Fuel Market sees an upward trajectory. Fortune Business Insights in a new study, titled “AVIATION FUEL: GLOBAL MARKET ANALYSIS, INSIGHTS AND FORECAST, 2018-2026” predicts that the global market was worth US$ 300.4 Bn in 2018 and is anticipated to reach US$ 451.4 Bn by 2026. Furthermore, the global for aviation fuel is expected to rise at a CAGR of 5.22% during the forecast period. The evolving e-commerce industry and rising per capita income are factors boosting the aviation fuel market potential to a great extent. Driven by this, the demand for aviation fuel is escalating, which will expand the aviation fuel market share.
Intensifying tourism and rapidly expanding socio-economic sectors are key factors responsible for positively impacting the air travel industry. This is compelling companies to use high-quality aviation fuel such as jet fuel, biofuel, and others. As per the International Air Transport Association (IATA), the number of air passengers in a year has crossed 4 billion across the world. This is primarily on account of reduced airfares and rapidly pacing economic development. Several countries around the world are expanding their services to the military for the better enhancement of national security. The military sector plays a significant role in the consumption of aviation fuel. Hence companies are increasing their defense budget to broaden their product portfolio. Following commercial airlines, military and private jets are increasingly consuming aviation fuel, thereby supporting the growth of the market.
BP and Shell are Among the Leading Players in the Market
The global aviation fuel market size is expected to increase owing to the presence of leading players. The report profiles some of the leading players functioning in the global market. Some of them include Total, ExxonMobil, British Petroleum (BP), World Fuel Services, Shell, Gazprom, Chevron, Vitol, Mercury Air Group, and China Aviation Oil. Of these, BP and Shell are leading the market. Other companies are anticipated to increase the consumption of aviation fuel from the private, military, and commercial sector. Several companies are adopting strategies to expand their market share. For instance, Boeing invested around US$ 1 million to create a sustainable aviation fuel industry in Brazil in June 2019. The company collaborated with partners such as the World Wide Fund for Nature and Roundtable on Sustainable Biomaterials (RSB) to produce green aviation fuel.
Growing Air Passenger Traffic in Commercial Airlines Propels Growth in the Market
Commercial airlines are expected to grow at a faster pace in the forecast years over private and military airlines. This is expected to surge the aviation fuel market revenue over the projected horizon. The growth is attributable to the rapidly increasing air passenger and growing economic development. In addition to this, aviation fuel companies are investing heavily in the infrastructure of commercial airplanes, which is driving the segment’s growth. The air passenger traffic has increased over the years, mainly owing to rising per capita income of people in developing nations and preference towards traveling among masses in developed countries. This, in turn, is enabling growth in the commercial airline's segment. With better air connectivity and increasing industrial production, commercial airlines can create attractive business opportunities for the market.
As per fuel, jet fuel or aviation turbine fuel is expected to witness considerable growth in the market during the forecast period. However, bio-jet fuel is likely to gain traction as these fuels can help to reduce pollution levels and ensure sustainable air travel.
Researchers Plan to Set up a New Sustainable Aviation Fuel Factory in Ireland
The highly developed U.S economy is one of the primary factors responsible for energetic growth in the market. Among regions, North America is expected to lead the global market owing to the growing tourism industry and the increasing number of tourists. Moreover, the market was worth US$ 141.74 Bn in the year 2018. Other factors, such as the rising number of manufacturing units and rising investments in Information, Communication, and Technology (ICT) are encouraging growth in the market in North America.
The market in Europe is expected to create attractive growth opportunities in the forecast years owing to good demographics. Moreover, researchers are planning to build a sustainable aviation fuel factory in Ireland to reduce carbon dioxide emissions.
The market in the Asia Pacific is expected to grow substantially in the forecast period. This is ascribable to the presence of developing countries such as India, China, Japan, and others.
Browse Complete Report Details: https://www.fortunebusinessinsights.com/industry-reports/aviation-fuel-market-100427
The global aviation fuel market can be segmented into the following categories:
· Jet Fuel (Aviation Turbine Fuel)
· Bio Jet Fuel
By End User
· North America (the USA and Canada)
· Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
· Asia Pacific (China, India, Japan, Australia, Southeast Asia and Rest of Asia Pacific)
· Latin America (Mexico, Brazil and Rest of Latin America)
· Middle East & Africa (GCC, South Africa and Rest of the Middle East & Africa)