Air-to-jet Fuel Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030
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The global air-to-jet fuel market was valued at USD 230.1 billion in 2022, and a CAGR of 14.2% is expected during the forecast period. Increasing demand for air travel and increasing growth in the aviation industry are driving growth in the market. Demand for low-cost carriers and the development of advanced aviation biofuels are driving significant growth in the market. Volatile crude oil prices and increasing demand from more people for air travel are the driving factors in the market. The increasing number of passengers worldwide is driving growth in the market significantly.
The increasing growth of the tourism industry and increasing disposable income are driving growth in the market significantly. Increasing demand for reducing emissions is the leading factor in the market's significant growth. The increasing emphasis on reducing carbon emissions is driving demand in the market significantly. The rising shift towards sustainable fuel is driving growth in the market. It is used to power aircraft and has properties similar to those of traditional jet fuel. The increasing demand for renewable fuels in the aviation industry is driving significant growth in the global market. The increasing number of sporting events worldwide and sports tourism are driving growth in the market significantly. Rising disposable income in emerging economies is driving the demand for air-to-jet fuel efficiently.
Growth Drivers
Increasing growth in the tourism industry due to lucrative packages from various companies is driving growth in the market. The increasing number of passengers worldwide is driving growth in the market directly. Rising initiatives by the government to adopt the SAF are driving the market significantly. Conventional and sustainable fuels are driving the demand in the market significantly. An increase in air passenger traffic is driving demand for conventional jet fuel. Although governments are initiating the switch to sustainable aviation fuel, due to the low cost of jet fuel, airlines are heavily dependent on conventional jet fuel. Increasing growth in the tourism industry is driving growth in the market significantly.
The rising disposable
income of the people is indirectly impacting this market significantly.
Increasing regulations aimed at reducing carbon emissions are driving the
growth of the market. As production sales increase and technology improves, the
cost-competitiveness of alternative jet fuels becomes more favorable. AJFs
provide a hedge against the volatility of traditional jet fuel prices,
potentially offering stability and cost savings. Increasing emphasis on
sustainability and reducing their carbon footprint is driving demand for AJFs.
Subsidies, tax incentives, and grants from governments encourage research development
and the adoption of AJFs. Advances in biofuel technology and synthetic fuel
processes enhance the efficiency and viability of AJFs. The increasing number
of passengers is driving the growth of the market significantly.
Sports tourism is the key factor behind the significant
growth in the market. The Indian cricket team is an essential driver of sports
tourism in India, while European countries are an essential region for football
tourism due to the lucrative leagues played over there. European countries
offer lucrative offers for air passengers. The increasing number of franchise
tournaments in these countries is driving significant growth in the market. IPL
in India and the English Premier League, along with La Liga in Spain, are
driving the market towards new heights.
Segmentation
By Fuel Type
·
Conventional
·
Sustainable
By Aircraft Type
·
Fixed Wing
·
Rotatory Wing
·
Unmanned Aerial Vehicle
Regional Outlook
·
Asia Pacific
·
North America
·
Latin America
·
Europe
·
Middle East and Africa
Air-to-Jet Fuel Market by fuel type
segmentation
On the basis of fuel type, the air-to-jet fuel market is segmented into conventional and sustainable. Sustainable fuels are the leading segment and are expected to dominate during the forecast period. Due to environmental concerns and regulatory pressure to reduce carbon emissions in aviation, sustainable fuels such as biofuel and synthetic fuels are becoming more attractive to airlines, and regulators are aiming to achieve carbon neutrality and sustainability goals.
Conventional fuels are typically derived
from petroleum sources, which historically dominated the market during the
forecast period. The aviation industry’s effort to reduce carbon emissions is a
key factor driving growth in the market. Increasing worldwide air passenger
numbers are driving growth in the market significantly.
Air-to-Jet Fuel Market by Aircraft Segmentation
On the basis of the air-to-jet fuel market by aircraft type,
the market is segmented into fixed-wing, rotatory-wing, and unmanned aerial
vehicles. Fixed-wing aircraft vehicles dominate the use of jet fuel, whether
conventional or sustainable. These include commercial airliners, business jets,
and military aircraft, which collectively account for the largest share of jet
fuel consumption globally. Rotatory wing aircraft and unmanned aerial vehicles
also use jet fuels, but their overall consumption globally is comparatively
low.
Regional Outlook
On the basis of the regions, the air-to-jet fuel market is segmented into 5 parts: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. North America is the leading segment, and it is expected to dominate the market during the forecast period. The presence of many key players in the United States of America and Canada is dominating the market due to the various products and services offered by them. Increasing investment by the key players in the sustainable aviation fuel market. Competition in the market is intensifying the growth of the market.
Asia Pacific, including emerging economies like China and India, is witnessing significant growth due to an increasing number of patients and rising disposable income along with urbanization. The increasing number of flights from Asia to all over the world is driving the demand for jet fuel. China, India, Japan, South Korea, and Singapore are witnessing moderate growth in the market. The presence of key players in the region is another factor behind the significant growth of the market.
Europe, being a developed continent, is witnessing significant growth during the forecast period due to increasing initiatives taken by the government in countries like Germany, France, Russia, and Belgium, which are driving growth in the market. The increasing number of air passengers is driving the growth of the market significantly. The presence of key companies like Exxon Mobil Corporation and Chevron Corporation is driving growth in the United States market significantly.
Key Players
·
Exxon Mobil Corporation
·
Chevron Corporation
·
Total Energies
·
Indian Oil Corporation
·
Valero Corporation
·
World Fuel Services
·
Neste
·
Gazprom
·
Shell
·
British Petroleum
· Other Players