Aviation Fuel Market to Receive Overwhelming Hike in Revenues by 2026
Global Aviation Fuel Market: Overview
Aviation fuels are petroleum-based fuels used for aircraft propulsion that runs on gas turbine engines. Various types of aviation fuels are used extensively to power aircrafts in commercial as well as military applications across the globe. Rising air traffic passengers worldwide, particularly in emerging economies, and fluctuations in crude oil prices are underpinning the evolution trajectories of the aviation fuel market. Rising number of airline passengers has spurred the consumption of aviation fuels in developing regions. Growing focus on reducing the carbon footprint of the overall transportation industry is driving the demand for biofuels. Renewable aviation fuels have generated enormous attention of aviation industry players, especially in developed countries such as the U.S.
According to the International Air Transport Association, passenger air traffic is has witnessed substantial rise in the past years and the number is expected to double by 2036 end. Recent improvements in global economic conditions have given rise to big increase in annual air passenger numbers in recent years. Declining average airfares is a key stimulating factor for airline passenger, especially in regions with cost-sensitive passengers. Rising cargo handling requirements also bodes well for the market.
The study offers critical assessment of key growth dynamics, current outlook, emerging avenues, and highlights the contours of the competitive dynamics. The various assessments and projections help market participants’ gain a reliable and elaborate perspective of the market.
Global Aviation Fuel Market: Trends and Opportunities
The global aviation fuel market is expected to make substantial strides from rapidly rising air passengers in developing countries such as those in Asia Pacific. Rising revenue passenger kilometers over the past few years is propelling the growth of the market. The demand for aviation fuels has been witnessing robust fillip from the rising capacity of passenger airlines in various developing regions. Conscious shift toward adoption of more cost-effective aviation fuels and the fuels that have less carbon footprint is fueling the expansion of the market.
Growing spending capacity of middle class populations in emerging economies is a prominent factor boosting the aviation fuels market. Liberalization in aviation markets brought about by positive regulatory thrusts in recent years also augurs well for the aviation fuels market. Increasing focus by regulatory agencies on bio-fuels adoption is a key factor boosting the market. In developing economies, making of new passenger aircrafts will catalyze new demand dynamics in near future. However, rising price of jet fuels may pose as substantial challenge for airlines to sustain a high air passenger traffic in next few years.
Global Aviation Fuel Market: Regional Landscape
On the regional front, developing regions are expected to hold vast growth potential in the global aviation fuel market. In particular, a positive demographics in Asia Pacific is expected to present substantial lucrative prospects for market players. Sizeable investment in the transportation infrastructure across the region in recent years has catalyzed the growth of the aviation fuel market. Countries such as China, Indonesia, and India are expected to witness vast prospects in the near future. Rising demand for air freight will keep the outlook attractive in some developing countries. These countries will also benefit from growing affordability of international travel. Moreover, the demand for various types of aviation fuels in emerging markets is likely to gain from rapidly growing air cargo transportation.
Global Aviation Fuel Market: Competitive Landscape
The study takes a closer look at competitive dynamics and the strategies adopted by various players to strengthen their positions in the market. Some of the key participants in the global aviation fuel market are Hindustan Petroleum, Gazprom, Exxon Mobil, Royal Dutch Shell Plc., Qatar Jet Fuel Company, Total SA, and Chevron Corporation.