Aviation fuel: Key market research findings
- The Americas to dominate the market geographically
- The commercial segment to account for a majority share of the market revenue
- Key vendors – Air BP, Shell, Exxon Mobil, Chevron, and Gazprom
Technavio’s market research analysts predict the global aviation fuel market to grow at a CAGR of around 3% between 2016 and 2020. The growing use of biofuels across the globe is one of the key factors spurring growth in this market. Countries are introducing mandates and policies to encourage the use of biofuels in the aviation industry to deal with the issue of greenhouse gas emissions (GHG). A few countries in Europe and the US are using biofuel in the form of blended fuel in the aviation industry. China, the US, and Brazil are some of the prominent countries besides the EU countries, which are projected to drive the demand for biofuels. During 2015, the Americas dominated the global aviation fuel market with a 65% share of the market. The increase in the number of aircraft in the recent years and continued growth in the number of air passengers in the region are expected to contribute to the growth in the aviation fuel market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the aviation fuel segments based on the application.
“Falling crude oil prices have a direct impact on the global aviation fuel market. This decline has brought the standard aviation fuel prices down. Currently, aviation turbine fuel (ATF) is cheaper than petrol and diesel in India. As a result, airlines are not focusing much on biofuels, because biofuels are two to four times costlier than aviation fuel,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
By 2020, the commercial segment will continue its domination over the global aviation fuel market with around 73% share of the total market revenue. Expansions in air fleets globally and the resultant hike in the demand for ATF is the major driving force behind the growth of this market segment. Aviation fuel is predominantly used for commercial purposes owing to the growing interstate and intercontinental connectivity, increasing functions in the airport and it’s relatively low cost when compared to alternatives such as biofuels.
The key vendors in the global aviation fuel market include Air BP, Shell, Exxon Mobil, Chevron, and Gazprom. The market is characterized by the presence of several global, regional, and local aviation fuel companies. Since all the players compete to gain a considerable share of the market, the market appears to be highly competitive. Since the governments of the Chinese, the US, and European governments have imposed strict environmental protection to reduce carbon emissions caused by the aviation industry, the industry is currently undergoing consolidation. Owing to the year-on-year increase in the number of air passengers and aircraft, China will become the leading country in the aviation fuel market.
A more detailed analysis is available in the Technavio report, Global Aviation Fuel Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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