Global Aviation Fuel Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Grade;
Jet fuel, Aviation Gasoline, and Biokerosene.By Fuel Type;
Conventional, and Sustainable.By Aircraft Type;
Fixed Wing, Rotary Wing, and Unmanned Aerial Vehicle.By End-Use;
Commercial - Narrow Body and Wide Body, Regional, Business, Helicopter, and Military.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Aviation Fuel Market (USD Million), 2021 - 2031
In the year 2024, the Global Aviation Fuel Market was valued at USD 959.86 million. The size of this market is expected to increase to USD 26,914.79 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 61.0%.
The Global Aviation Fuel Market serves as the lifeblood of the aviation industry, powering the world's aircraft and facilitating the movement of people and goods across the globe. This vital market encompasses the production, distribution, and sale of aviation fuels, primarily Jet A-1 and Avgas, which are specially formulated to meet the stringent performance and safety requirements of aircraft engines.
The aviation fuel market operates within the broader energy sector, with its own unique dynamics shaped by factors such as global air travel demand, geopolitical events, regulatory standards, and technological advancements. Jet fuel, the predominant type of aviation fuel used in commercial and military aircraft, is derived from crude oil through a refining process that removes impurities and ensures consistent quality and performance.
The market for aviation fuel is characterized by its critical role in ensuring the safe and efficient operation of aircraft worldwide. Airlines, air cargo operators, and military forces rely on a steady and reliable supply of fuel to support their flight operations, making fuel procurement and management a strategic priority for aviation stakeholders.
Moreover, the aviation fuel market is subject to various economic, environmental, and regulatory pressures that influence supply and demand dynamics. Fluctuations in crude oil prices, geopolitical tensions, and environmental concerns about carbon emissions and air pollution can impact fuel costs, operational expenses, and investment decisions within the aviation industry.
In recent years, the aviation fuel market has witnessed growing interest in sustainable aviation fuels (SAFs) as part of efforts to reduce the carbon footprint of air travel and mitigate climate change. SAFs, derived from renewable sources such as biofuels, synthetic fuels, and hydrogen, offer a promising pathway to decarbonize aviation and achieve long-term sustainability goals.
Global Aviation Fuel Market Recent Development
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In August 2022, British Petroleum (BP) unveiled an innovative, all-electric refueling vehicle at Brisbane Airport in Australia. This next-generation refueler, designed specifically for customers requiring Jet A-1 fuel, boasts a capacity of approximately 16,000 liters and operates entirely on electric power. Notably, it is capable of functioning for an entire day on a single charge, facilitating uninterrupted refueling operations with the convenience of overnight charging.
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In June 2022, Shell made headlines with the launch of Avelia, a pioneering digital platform powered by blockchain technology. Avelia represents one of the world's premier solutions for the booking and claiming of sustainable aviation fuel (SAF), catering primarily to business travelers. This innovative system offers access to around 1 million gallons of SAF, making it one of the largest book-and-claim solutions available in the market.
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In June 2022, Exxon Mobil Corporation and Qatar Energy joined forces in a landmark agreement to advance Qatar's North Field East project. This project aims to expand Qatar's liquefied natural gas (LNG) production capacity from 77 million tons to 110 million tons annually by the year 2026. The collaboration underscores a significant milestone in the global energy industry, reflecting a concerted effort to meet growing demand for LNG on a global scale.
- In May 2022, Chevron Corporation and Pertamina announced a strategic partnership to explore potential business opportunities with a focus on reducing carbon emissions in Indonesia. This collaboration aims to identify and develop initiatives that promote lower-carbon solutions in various sectors, aligning with both companies' commitment to sustainability and environmental stewardship.
Segment Analysis
This report extensively covers different segments of Global Aviation Fuel Market and provides an in depth analysis (including revenue analysis for both historic and forecast periods) for all the market segments. In this report, the analysis for every market segment is substantiated with relevant data points and, insights that are generated from analysis of these data points (data trends and patterns).
Aviation fuel can be classified into different grades based on its specifications and performance characteristics. Common grades include Jet A, Jet A-1, and Avgas (aviation gasoline). Jet A and Jet A-1 are kerosene-based fuels primarily used in commercial and military jet aircraft, with Jet A-1 being more widely used due to its lower freezing point and better thermal stability. Avgas, on the other hand, is used in piston-engine aircraft and is available in different octane ratings depending on the aircraft's requirements.
The aviation fuel market can also be segmented based on the type of fuel, including conventional fossil fuels and sustainable aviation fuels (SAFs). Conventional fuels derived from petroleum sources dominate the market but face increasing scrutiny due to environmental concerns. SAFs, derived from renewable sources such as biofuels, synthetic fuels, and hydrogen, offer a cleaner-burning alternative to traditional jet fuels and are gaining traction as a viable solution to reduce carbon emissions in the aviation sector.
The aviation fuel market caters to different types of aircraft, including commercial airliners, business jets, military aircraft, general aviation aircraft, and helicopters. Each aircraft type has unique fuel requirements and consumption patterns, influencing demand for specific grades and types of aviation fuel.
End-use segmentation of the aviation fuel market encompasses various applications within the aviation industry, including scheduled passenger air transport, air cargo operations, business and general aviation, military aviation, and training and recreational flying. Each end-use segment has distinct fuel consumption patterns, operational requirements, and regulatory considerations, driving demand for specific types of aviation fuel.
Geographical segmentation divides the aviation fuel market based on regional markets, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Regional variations in air travel demand, regulatory frameworks, infrastructure development, and economic factors influence the demand for aviation fuel and market dynamics in each region.
Global Aviation Fuel Segment Analysis
In this report, the Global Aviation Fuel Market has been segmented by Grade, Fuel Type, Aircraft Type, End-Use and Geography.
Global Aviation Fuel Market, Segmentation by Grade
The Global Aviation Fuel Market has been segmented by Grade into Jet fuel, Aviation Gasoline and Biokerosene.
Jet fuel, including Jet A, Jet A-1, and Jet B, is the most widely used grade and is primarily used in commercial and military jet aircraft. Jet fuel is a type of kerosene-based fuel known for its high energy density, stability at high temperatures, and low freezing point, making it suitable for use in high-performance turbine engines. Jet A and Jet A-1 are the standard grades for commercial aviation, while Jet B is primarily used in military applications and in colder climates where additional anti-freezing additives are required.
Aviation Gasoline, also known as Avgas, is a specialized grade of fuel designed for use in piston-engine aircraft, including small general aviation aircraft, helicopters, and some military trainers. Avgas is available in different octane ratings to meet the performance requirements of various aircraft engines, with the most common grades being Avgas 100LL and Avgas 100. Unlike jet fuel, Avgas contains lead as an octane enhancer to improve combustion stability and prevent engine knocking in piston engines. However, the environmental impact of leaded Avgas has led to efforts to develop unleaded alternatives and promote the adoption of sustainable aviation fuels (SAFs) in piston-engine aircraft.
Biokerosene is an emerging grade of aviation fuel derived from renewable sources such as biomass, waste oils, and algae. Biokerosene offers environmental benefits over conventional fossil fuels by reducing greenhouse gas emissions and dependence on finite fossil fuel resources. As a drop-in replacement for conventional jet fuel, biokerosene can be blended with petroleum-based fuels or used as a standalone fuel in aircraft engines without requiring modifications to existing infrastructure or engine designs. The development and commercialization of biokerosene represent a promising opportunity to decarbonize the aviation sector and promote sustainable aviation practices in line with global climate goals.
Global Aviation Fuel Market, Segmentation by Fuel Type
The Global Aviation Fuel Market has been segmented by Fuel Type into Conventional and Sustainable.
Conventional aviation fuels are derived from petroleum sources and have been the primary fuel choice for the aviation industry for decades. These fuels, such as Jet A, Jet A-1, and Avgas, provide the energy density and performance characteristics required for safe and efficient aircraft operation. However, concerns about carbon emissions, air pollution, and climate change have prompted the exploration of alternative fuel options to mitigate the environmental impact of aviation.
In contrast, Sustainable Aviation Fuels (SAFs) represent a growing segment of the aviation fuel market, offering renewable alternatives to conventional petroleum-based fuels. SAFs are derived from sustainable feedstocks such as biomass, waste oils, and synthetic fuels produced through environmentally friendly processes. These fuels can significantly reduce lifecycle greenhouse gas emissions compared to conventional jet fuels, contributing to the aviation industry's efforts to achieve carbon neutrality and sustainability goals.
The adoption of SAFs in commercial aviation has gained momentum, driven by regulatory incentives, industry partnerships, and growing consumer demand for eco-friendly travel options. As sustainability becomes a top priority for airlines and aviation stakeholders, the market for sustainable aviation fuels is expected to expand, offering new opportunities for innovation and environmental stewardship in the aviation industry.
Global Aviation Fuel Market, Segmentation by Aircraft Type
The Global Aviation Fuel Market has been segmented by Aircraft Type into Fixed Wing, Rotary Wing and Unmanned Aerial Vehicle.
Fixed-wing aircraft include commercial airliners, cargo planes, private jets, and military fighter jets, among others, which rely on aviation fuel for propulsion. These aircraft operate with wings that generate lift as they move forward through the air, enabling sustained flight. The demand for aviation fuel in fixed-wing aircraft is driven by factors such as air travel demand, fleet expansion, and military operations, making it a significant segment of the aviation fuel market.
Rotary-wing aircraft, commonly known as helicopters, also utilize aviation fuel for powering their engines and rotor systems. Helicopters are versatile aircraft capable of vertical takeoff and landing (VTOL), making them suitable for various applications such as transportation, emergency services, law enforcement, and military missions. The unique operational characteristics of helicopters, including their agility and ability to hover, require specialized aviation fuels to meet their performance requirements. As such, the rotary-wing segment represents an important niche within the aviation fuel market, serving the needs of helicopter operators worldwide.
Unmanned Aerial Vehicles (UAVs), also referred to as drones, have emerged as a rapidly growing segment of the aviation industry, driven by advancements in technology and increasing applications across various sectors. UAVs can be powered by a range of propulsion systems, including internal combustion engines fueled by aviation fuel. These drones are used for diverse purposes such as aerial surveillance, agriculture, infrastructure inspection, delivery services, and military reconnaissance. The demand for aviation fuel in the UAV segment is fueled by the proliferation of drone technology and the expansion of UAV operations in both commercial and military applications, presenting new opportunities and challenges for the aviation fuel market.
Global Aviation Fuel Market, Segmentation by End-Use
The Global Aviation Fuel Market has been segmented by End-Use into Commercial, Regional, Business, Helicopter and Military.
The Commercial segment encompasses large passenger airlines and cargo carriers engaged in scheduled air transportation services on international and domestic routes. These airlines operate a wide range of aircraft types, including narrow-body and wide-body jets, which rely on aviation fuel for propulsion. The demand for aviation fuel in the commercial sector is driven by factors such as global air travel demand, fleet expansion, and route network expansion, making it a significant segment of the aviation fuel market.
The Regional segment comprises regional airlines and operators providing short-haul and feeder services to smaller airports and communities. Regional aircraft, such as turboprops and regional jets, are optimized for shorter routes and lower passenger volumes, requiring specific grades of aviation fuel suited to their operational needs. The regional aviation sector plays a crucial role in connecting remote and underserved regions, contributing to regional economic development and accessibility.
The Business segment includes corporate and executive aviation operations, including private jets and charter services catering to business travelers, high-net-worth individuals, and government officials. Business aviation relies on aviation fuel to power a diverse fleet of aircraft used for executive travel, corporate shuttle services, and special missions. The business aviation sector offers flexibility, convenience, and privacy for travelers, with aviation fuel representing a significant operational cost for operators.
The Helicopter segment encompasses a wide range of rotary-wing aircraft used for various applications, including emergency medical services (EMS), search and rescue (SAR), law enforcement, offshore oil and gas operations, and aerial firefighting. Helicopters operate in diverse environments and missions, requiring specialized aviation fuel to meet their unique performance requirements. The helicopter sector serves critical roles in public safety, emergency response, and transportation, with aviation fuel serving as a vital resource for operational readiness.
The Military segment includes military aviation operations conducted by armed forces for defense, security, and national interests. Military aircraft, including fighter jets, transport planes, helicopters, and unmanned aerial vehicles (UAVs), rely on aviation fuel for training exercises, combat missions, reconnaissance, and logistical support. The military aviation sector demands high-performance fuels tailored to the stringent requirements of military aircraft, with aviation fuel playing a crucial role in supporting defense capabilities and national security objectives.
Global Aviation Fuel Market, Segmentation by Geography
In this report, the Global Aviation Fuel Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Aviation Fuel Market Share (%), by Geographical Region, 2023
The Asia Pacific region emerges as a dominant force in the global aviation fuel market, buoyed by its gradual reopening to foreign visitors and the resurgence of tourism. Despite prevailing economic uncertainties, travel demand is on an upward trajectory, spurred by the lifting or easing of travel restrictions in key Asian destinations. With developing countries contributing to the region's economic growth, the outlook for airline travel appears promising during the forecast period.
Meanwhile, North America is poised to witness the second-highest growth rate, as reflected in the significant increase in air traffic reported by North American airlines in May 2022. The lifting of most travel restrictions in the region has revitalized tourism and fueled the ongoing global recovery process.
Europe is anticipated to maintain a significant share of the market, although the aviation sector in the region continues to grapple with the lingering effects of the COVID-19 pandemic. While there has been a notable increase in air passenger traffic compared to 2020, the industry still operates below pre-pandemic levels.
Latin America presents promising growth opportunities, particularly in the private aviation segment, with the development of new helicopter models catering to business aviation and VIP transport needs. Similarly, the Middle East & Africa region is poised for growth, driven by tourism recovery efforts and the influx of international workers, which stimulates demand for aviation jet fuel, especially in countries like the UAE and Saudi Arabia.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Aviation Fuel Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Demand to Reduce Emissions
- Fleet Expansion
- Regulatory Standards
- Fuel Efficiency Improvements
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Crude Oil Prices- Crude oil prices play a pivotal role in shaping the dynamics of the global aviation fuel market, exerting significant influence on supply, demand, and pricing trends within the industry. As aviation fuel is derived from crude oil through refining processes, fluctuations in crude oil prices have a direct and immediate impact on the cost of aviation fuel. When crude oil prices rise, aviation fuel costs typically follow suit, leading to higher operational expenses for airlines and air travel-related businesses. Conversely, declines in crude oil prices can result in cost savings for aviation fuel consumers, providing relief from high fuel expenditures.
The volatility of crude oil prices is influenced by a myriad of factors, including geopolitical tensions, supply and demand dynamics, macroeconomic trends, and geopolitical events. Geopolitical conflicts in major oil-producing regions, such as the Middle East, can disrupt oil supply chains and lead to spikes in crude oil prices, which reverberate throughout the aviation fuel market. Similarly, shifts in global oil demand, such as those driven by economic growth or changes in energy consumption patterns, can affect crude oil prices and, consequently, aviation fuel costs.
For airlines and aviation stakeholders, managing the impact of crude oil price volatility is a critical aspect of business operations. Strategies such as fuel hedging, where airlines lock in fuel prices through futures contracts, and fuel-efficient aircraft technologies are employed to mitigate the financial risks associated with fluctuating oil prices. Additionally, investments in alternative fuels and sustainability initiatives offer long-term solutions to reduce dependence on conventional aviation fuels derived from crude oil. Overall, monitoring and responding to changes in crude oil prices remain integral to navigating the complexities of the global aviation fuel market and ensuring the financial viability of air travel operations.
Restraints:
- Price Difference Between SAF and Conventional Aviation Fuel
- Volatility in Crude Oil Prices
- Investment Costs for Alternative Fuels
- Technological Barriers
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Geopolitical Risks and Trade Policies- Geopolitical risks and trade policies exert a significant influence on the global aviation fuel market, shaping supply, demand, and pricing dynamics in the industry. Geopolitical tensions and conflicts in key oil-producing regions can disrupt global oil supply chains, leading to supply shortages and price volatility in crude oil markets. Such disruptions pose challenges for aviation fuel suppliers and consumers alike, as they navigate uncertain geopolitical environments and the potential for supply disruptions that can impact the availability and pricing of aviation fuel. Trade policies also play a crucial role in shaping the global aviation fuel market, as they determine the flow of crude oil and refined petroleum products across international borders.
Tariffs, trade barriers, and sanctions imposed on oil-exporting countries can disrupt oil trade flows and influence the availability and pricing of aviation fuel in global markets. Moreover, trade disputes between major economies can exacerbate market uncertainties and contribute to volatility in crude oil prices, which directly affects the cost of aviation fuel for airlines and air travel-related businesses. Furthermore, geopolitical risks and trade policies can influence investment decisions and infrastructure development in the aviation fuel sector. Uncertainties surrounding trade relations and geopolitical tensions may deter investments in refining capacity expansion, pipeline infrastructure, and storage facilities, which are essential components of the aviation fuel supply chain.
Changes in trade policies or geopolitical alignments can impact the competitiveness of aviation fuel suppliers in global markets, affecting market access and strategic partnerships. In navigating geopolitical risks and trade policy uncertainties, stakeholders in the global aviation fuel market must remain vigilant and adaptable to changing geopolitical landscapes and trade dynamics. Proactive risk management strategies, including diversification of supply sources, investment in alternative fuels, and contingency planning for supply disruptions, can help mitigate the impact of geopolitical risks and trade policy uncertainties on the aviation fuel market.
Opportunities:
- Growing Need for Alternative Aviation Fuel by Airlines
- Investment in Infrastructure
- Government Incentives and Policies
- Collaboration and Partnerships
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Transition to Sustainable Aviation Fuels- The transition to sustainable aviation fuels (SAFs) represents a significant paradigm shift in the global aviation fuel market, driven by mounting environmental concerns and the imperative to reduce greenhouse gas emissions from the aviation sector. Sustainable aviation fuels, derived from renewable feedstocks such as biomass, waste oils, and synthetic fuels, offer a promising alternative to conventional fossil-based jet fuels. Unlike traditional jet fuels, SAFs have the potential to significantly reduce the carbon footprint of air travel by providing a lower lifecycle carbon intensity, thereby contributing to global efforts to mitigate climate change and achieve carbon neutrality in the aviation industry.
The growing interest in sustainable aviation fuels is propelled by regulatory incentives, industry initiatives, and consumer demand for eco-friendly travel options. Governments around the world are implementing policies and incentives to promote the production and use of SAFs, including blending mandates, tax incentives, and research grants. Industry stakeholders, including airlines, aircraft manufacturers, and fuel producers, are investing in research and development efforts to scale up SAF production capacity, improve production processes, and reduce production costs, with the aim of making SAFs commercially viable and cost-competitive with conventional jet fuels.
The transition to sustainable aviation fuels presents opportunities for innovation, collaboration, and market growth in the aviation fuel sector. As demand for SAFs continues to rise, new supply chains, distribution networks, and infrastructure investments are emerging to support the production, storage, and distribution of SAFs on a global scale. Partnerships between airlines, fuel producers, airports, and government agencies are fostering the development of sustainable aviation fuel projects and initiatives, accelerating the adoption of SAFs across the aviation industry. With the aviation sector increasingly embracing sustainability as a core value, the transition to sustainable aviation fuels is poised to reshape the global aviation fuel market, driving towards a more environmentally sustainable and resilient future for air travel.
Competitive Landscape Analysis
Key players in Global Aviation Fuel Market include:
- ExxonMobil
- Chevron
- Shell
- Gazprom
- World Fuel Service
- Neste
- Gazprom
- India Oil Corporation
- TotalEnergies
- Velero Energy Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Grade
- Market Snapshot, By Fuel Type
- Market Snapshot, By Aircraft Type
- Market Snapshot, By End-Use
- Market Snapshot, By Region
- Global Aviation Fuel Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Demand to Reduce Emissions
- Fleet Expansion
- Regulatory Standards
- Fuel Efficiency Improvements
- Crude Oil Prices
- Restraints
- Price Difference Between SAF and Conventional Aviation Fuel
- Volatility in Crude Oil Prices
- Investment Costs for Alternative Fuels
- Technological Barriers
- Geopolitical Risks and Trade Policies
- Opportunities
- Growing Need for Alternative Aviation Fuel by Airlines
- Investment in Infrastructure
- Government Incentives and Policies
- Collaboration and Partnerships
- Transition to Sustainable Aviation Fuels
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Aviation Fuel Market, By Grade, 2021 - 2031 (USD Million)
- Jet fuel
- Aviation Gasoline
- Biokerosene
- Global Aviation Fuel Market, By Fuel Type, 2021 - 2031 (USD Million)
- Conventional
- Sustainable
- Global Aviation Fuel Market, By Aircraft Type, 2021 - 2031 (USD Million)
- Fixed Wing
- Rotary Wing
- Unmanned Aerial Vehicle
- Global Aviation Fuel Market, By End-Use, 2021 - 2031 (USD Million)
- Commercial
- Narrow Body
- Wide Body
- Regional
- Business
- Helicopter
- Military
- Global Aviation Fuel Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Aviation Fuel Market, By Grade, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- ExxonMobil
- Chevron
- Shell
- Gazprom
- World Fuel Service
- Neste
- Gazprom
- India Oil Corporation
- TotalEnergies
- Velero Energy Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market