The aviation fuel market is anticipated to grow significantly by 2028 driven by notable technological advancements in the product. In addition, increasing investments towards enhancing fuel development techniques as well as reducing the environmental influence of fossil fuels, coupled with rising number of air passengers due to growing disposable income, are likely to further facilitate market growth through the forecast timeframe.
Notably, increased emphasis on green initiatives has encouraged industry players to invest in sustainable fuel solutions along with forming strategic partnerships with airline operators to innovate technologies to expand their business presence, which has been favorable for aviation fuel market growth. For instance, in January 2021, BP, a British oil & gas company, announced a strategic alliance with Qantas Airways Ltd., an Australian airline, to advance their shared net-zero ambitions. The alliance was intended to allow both companies to work together on opportunities to lower carbon emissions.
To quote an instance, in September 2021, Shell, a leading British oil company, announced a final investment decision to build a biofuel facility with an 820,000-tons-a-year capacity at the Shell Energy and Chemicals Park Rotterdam refinery. The facility was aimed to be one of Europe’s biggest production facilities for renewable diesel and sustainable aviation fuel (SAF). Furthermore, in April 2022, Shell was chosen to supply fuel for Asia’s first major sustainable aviation fuel (SAF) program launched by Cathay Pacific, a Hong Kong airline.
In another instance, in September 2021, Chevron, an American multinational energy corporation, and Gevo, Inc., a leading producer of hydrocarbons and chemicals, collaborated to produce sustainable aviation fuel from processed inedible corn. The resulting new facilities were purposed to produce proteins and corn oil.
Similarly, in September 2021, Gazprom, a leading player in the industry, joined forces with Aeroflot, the largest airline of Russia, to make Russia’s first minimum carbon-footprint SAF. Likewise, in February 2022, ExxonMobil, a U.S.-based oil & gas corporation, was selected as the official supplier of SAF, produced from cooking oil and waste animal fats, by the Civil Aviation Authority of Singapore (CAAS), Temasek, a Singapore-based global investment company, and Singapore Airlines (SIA).
The aviation fuel market has been bifurcated based on grade, end-user, and region. In terms of end-user, the market has been further divided into regional, commercial, business, military, and helicopter.
The business segment is estimated to garner a revenue share of over 10% by the end of the analysis timespan. The aviation fuel market share from the helicopter segment is slated to grow with a CAGR of nearly 7.6% through the review period.
With respect to region, the Middle East & Africa aviation fuel industry accounted for around 8% volume share in 2021 and is slated to progress at a robust pace over 2022-2028. Meanwhile, the Latin America aviation fuel market is anticipated to grow at a CAGR of roughly 8.5% through the study timeframe.