Market Size (2018)
$299.67M
Vertical: AnDBase Year: 2018
Market Size (2018)
$299.67M
Projected (2025)
$427.72M
CAGR (2018–2025)
5.2%
Key Players
10+
Competitive crude oil prices, rising global trade, and growing disposable income of the population have increased air travel across the world. Furthermore, rising air passenger traffic and subsequent demand for new aircraft and increasing demand for alternative fuel are some of the key drivers of the global aviation fuel market. North America is anticipated to remain the largest market for aviation fuel as countries in the region are extensively investing in the defense industry. However, during the forecast period, the market in Asia-Pacific is expected to grow at the highest rate.
The Aviation Fuel Market market is projected to grow at a CAGR of 5.2% from 2018 to 2025.
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View Subscription PlansAviation Fuel Market
Historical performance and future projections (2020–2030, USD Billion)
Market Size (USD Mn)
Aviation fuel is a specialized type of petroleum fuel used to power aircraft. It is of a higher quality than the fuel used in less critical applications, such as heating or road transportation, and often contains additives to reduce the risk of icing or explosion due to high temperature. Current commercial and military aircraft are expected to use sustainable alternative fuel to reduce environmental pollution.
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View Subscription PlansResearch Process
Wantstats analysis is based on interviews with industry experts who offer insight into the market structure, market segmentation, technology assessment, competitive landscape (CL), market penetration, as well as the emerging trends. Besides primary interviews (~80%) and secondary research (~20%), their analysis is based on years of professional expertise in their respective industries. Our analysts also predict where the market will be headed in the next five to 10 years, by analyzing historical trends and the current market position. Furthermore, the varying trends in segments and categories in each region are studied and estimated based on primary and secondary research.
Primary Research
Extensive primary research was conducted to gain a deeper insight into the market and the industry performance. For this particular report, we have conducted primary surveys (interviews) with the key level executives (VPs, CEOs, marketing directors, and business development managers, among others) of the major players active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed in the next five years.
Secondary Research
Secondary research was mainly used to collect and identify information useful for an extensive, technical, market-oriented, and commercial study of the pharmaceutical analytical testing outsourcing market. It was also used to obtain key information about major players, market classification and segmentation according to industry trends, geographical markets, and developments related to the market and technology. For this study, analysts have gathered information from various credible sources such as annual reports, SEC filings, journals, white papers, corporate presentations, company websites, international organizations of chemicals manufacturers, and paid databases.
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of the overall global Aviation Fuel market. The key players in the market were identified through secondary research, and their market contributions in different applications across the globe were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Wantstats added before being presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study.
Base Year
2018
Historical Period
2018 – 2018
Forecast Period
2019 – 2025
Primary Interviews
150+
Historical data (2018–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThe global aviation fuel market is characterized by the presence of many global and regional vendors. The market is highly competitive with all the players competing to gain market share. Intense competition, frequent changes in government policies, and stringent regulations are key factors affecting the growth of the market. The vendors compete based on cost, product quality, and reliability. It is crucial for the vendors to provide cost-efficient and high-quality aviation fuel to survive and succeed in an intensely competitive market environment.
Threat Of New Entrants
The global aviation fuel market is expected to grow at a considerable rate during the forecast period. However, the capital-intensive nature of the market and the need to cater to the high demand for fuel are important factors considered by new players in the market. Moreover, well-established players such as Shell International BV, AirBP Inc., and Exxon Mobil Corporation have a wide geographic reach in this market. This makes it difficult for new entrants to achieve economies of scale, which the leading players already possess. Therefore, new entrants present a moderate threat to the major stakeholders operating in the market.
Bargaining Power Of Suppliers
The fuel providers procure oil from the oil refineries. The fuel is procured and made available to the airports by the fuel providers such as Shell International BV and Total. These providers need to adhere to stringent regulatory reviews and need to be certified by regulatory authorities such as the Federal Aviation Administration (FAA) in the US or respective aircraft applications. Switching costs from dual providers are moderate, resulting in the overall low bargaining power of suppliers in the market.
Bargaining Power Of Buyers
The buyer concentration in the global aviation fuel market is high. Airlines are the buyers of this fuel. These buyers rely on the established aircraft fuel providers as they provide fuel which adheres to the specifications and standards provided by airlines. Airlines have long-term contracts with the fuel suppliers and the need for fuel can vary due to the increase in the number of new aircraft and the type of engine specifications. Hence, the bargaining power of buyers in the global aviation fuel market is projected to be moderate.
Threat Of Substitutes
Presently, CNG and LNG are the substitutes for aircraft fuel. However, the demand for electric aircraft is at a nascent stage and rise in advancements in the engine technology is projected to propel the demand for electric aircraft. Thus, the threat of substitutes in the market is expected to be low.
Intensity Of Rivalry
There is intense competition among the existing players in the market as fuel companies are investing heavily in the research and development to offer high-quality and cost-effective aircraft fuel. Moreover, the costs of crude oil play a key role among the competitors as the availability of this oil at a required time and location determines the overall cost. Therefore, the intensity of rivalry is expected to be high.
Market estimates by geography (2025)
InsightNorth America leads with $194.57M by 2025, while Asia Pacific is projected to grow fastest at a 7.6% CAGR.
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View Subscription Plans| REGION | 2018 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $33.23M | $44.48M | $55.35M | 7.6% | 13% |
| South America | $17.62M | $21.04M | $23.65M | 4.3% | 6% |
| Europe | $79.08M | $96.30M | $111.63M | 5.0% | 26% |
| North America | $141.74M | $169.87M | $194.57M | 4.6% | 45% |
| Middle East and Africa | $27.99M | $35.54M | $42.52M | 6.2% | 10% |
| Total | $299.66M | $367.23M | $427.72M | 5.2% | 100% |
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View Subscription PlansTotal Market Size
$427.72M
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Jet Fuel | $219.46M | 4.4% | 51% |
| Avgas | $103.56M | 6.8% | 24% |
| Biofuels | $59.88M | 5.9% | 14% |
| CNG | $27.89M | 5.8% | 7% |
| LNG | $11.98M | 4.7% | 3% |
| Others | $4.95M | 2.2% | 1% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Aviation Fuel Market covering market dynamics, competitive landscape, and strategic outlook.
The Aviation Fuel Market market is projected to reach $427.72M by 2025, growing at 5.2% CAGR. The Jet Fuel segment holds the largest share.
The global aviation fuel market is growing at a rapid rate due to the rising demand for commercial and military aircraft across the globe. Furthermore, an increase in passenger traffic across the globe and subsequent demand for new aircraft and a rise in the demand for alternative fuel are expected to positively impact the growth of the market. However, stringent regulations to minimize CO2 emissions and rising preference for bio-based solvents are expected to hinder the expansion of the market.
On a global scale, air passenger traffic has been increasing at a significant pace during the past couple of years. Decreasing airfares, increasing disposable income, especially in developing countries, and rising standard of living, are some factors influencing the growth of the market. According to the International Air Transport Association (IATA), global air travel is likely to double by 2035. It also estimates that China is likely to surpass the US and become the largest aviation market (in terms of passenger traffic) in the world by 2024.
Increasing air passenger traffic across the globe is projected to boost the demand for new aircraft, thus driving the expansion of commercial aircraft fleets. According to the Federal Aviation Administration (FAA), as of 2018, there were more than 22,000 commercial aircraft across the globe. The existing commercial aircraft are expected to be replaced by more than 40,000 new aircraft over the next 20 years. The overall fleet is likely to reach 45,000 aircraft by 2036. Moreover, the high demand for air travel in developing regions, such as Asia-Pacific, the Middle East, and Latin America, is expected to lead to an increase in the number of aircraft in these regions. However, according to the FAA, over 15,000 aircraft are projected to be delivered in North America and Europe by 2036. The expansion of commercial fleets is expected to result in an increased demand for aviation fuel, which, in turn, is projected to drive market growth.
The pie chart below shows the number of domestic and international aircraft passengers carried by airlines in Asia-Pacific, Europe, North America, the Middle East, Africa, and Latin America regions. Among these, Asia-Pacific accounted for the largest share of 34.50% in 2019.
In 2018, Asia-Pacific emerged as a global leader in the aviation fuel market, accounted for a 11.09% share of the global market. According to the latest edition of International Air Transport Association (IATA)’s 20-Year Air Passenger Forecast, Asia-Pacific will witness significant demand between 2020 to 2035, accounting for more than half of the global passenger traffic. China will replace the US as the world’s largest aviation market around 2024. It is also expected that India will have the third-highest passenger traffic in 2025. It is expected that by the end of 2029 there would be 6,629 new aircraft delivery in Asia-Pacific excluding China. Whereas, alone in China, 7,209 new aircraft delivery is expected. Therefore, there would be a rise in the demand for new aircraft, leading to the demand for aircraft fuel. Rise in the number of commercial and military aircraft in China is attributed to factors such as favorable government policies, increasing preference to travel by air, and growing defense budgets in the past few years. Therefore, it is a prominent country for the market in the region. Moreover, the Indian government is implementing rules to reduce air travel fare and indirectly is expected to create demand for aviation fuel in next few years. Thus, these factors are anticipated to create opportunities for the players operating in the market.
Aircraft use fuel for operation, which increases CO2 emissions. Therefore, government authorities in several countries have implemented several stringent regulations. According to the US Environmental Protection Agency, aircraft account for 12% in the US transportation greenhouse gas emissions. In March 2017, the International Civil Aviation Organization (ICAO) implemented a new aircraft CO2 emissions standard to reduce the impact of aviation greenhouse gas emissions on the global climate. These standards are applicable for new aircraft designs from 2020. By 2028, manufacturers would need to adhere to the design norms before delivery of the aircraft. Moreover, several airports have made it mandatory to switch off the auxiliary power unit (APU) and use fixed ground power and pre-conditioned air when an aircraft is parked. The Barcelona El Prat Airport in Spain mandates the use of its fixed ground power and pre-conditioned air after an aircraft arrives at a terminal gate, which reduces CO2 emissions by 58,000 tons per year. Therefore, stringent government regulations to minimize CO2 emissions are expected to restrain the growth of the global aviation fuel market.
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Profiles of 106 companies operating in the Aviation Fuel Market market, including revenue, employee count, and market positioning where available.
Showing 106 of 106 companies
Shell International BV
Company Headquarters: Netherlands Founded: 1907 Workforce: ~81,000 Company Working: Shell International BV is a global oil & gas company engaged in crude oil exploration. The company is actively engaged in oil & natural gas production. It operates through four business segments—integrated gas, upstream, downstream, and corporate. The company’s integrated gas segment is involved in the conversion of natural gas into GTL fuel and other products. Its upstream segment is engaged in the exploration for and extraction of crude oil, natural gas, and natural gas liquids. The downstream segment of Shell International BV markets different oil products and chemical activities as part of an integrated value chain, including trading activities. The company’s downstream segment provides aviation fuel. Shell International BV provides aviation fuel at 900 airports and operates in 45 countries.
Gazprom Neft PJSC
Company Headquarters: St. Petersburg, Russia Founded: 1995 Workforce: ~70,648 Company Working: Gazprom Neft PJSC is a subsidiary of Gazprom. The company is involved in the production, exploration, development, distribution, and sale of crude oil & gas. It operates through two business segments—upstream and downstream. Under its upstream segment, the company explores, develops, produces, and sells crude oil and natural gas. Gazprom Neft PJSC, through its downstream segment, sells crude oil and petroleum products. The company exports products worldwide and sells them in Russia through its sales network.
INDIAN OIL CORPORATION LTD
Company Headquarters: New Delhi, India Founded: 1959 Workforce: ~33,498 Company Working: Indian Oil Corporation Ltd (IOCL) carries out oil & gas exploration, production, refining, pipeline transportation, and sale of natural gas & petroleum products. Additionally, it produces and sells petrochemicals and engages in a sizable amount of alternative energy business. High-speed diesel, jet fuel, light petroleum gas, gasoline, bitumen, heavy fuel oil, naphtha, lubricants, and greases are some of the refined petroleum products offered by IOCL. The business established subsidiaries in the US, the Netherlands, Sweden, Mauritius, the UAE, and Sri Lanka. More than 35 countries, including Sri Lanka, Mauritius, Bangladesh, Nepal, several Middle Eastern nations, Indonesia, Thailand, Vietnam, and African nations, import SERVO lubricants. In each of the three key product categories—automotive oils, industrial oils, and greases—SERVO holds the largest market share. The first oil brand from the Asia-Pacific region to receive approval from marine engine builders like MAN B&W and Wartsila Sulzer is SERVO, which is the sixth oil brand overall. It is a Maharatna business owned by the Indian government.
Exxon Mobil Corporation
Company Headquarters: Texas, US Founded: 1882 Workforce: ~71,200 Company Working: Exxon Mobil Corporation majorly deals in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through three business segments: upstream, downstream, and chemical. The upstream segment produces crude oil and natural gas. The downstream segment manufactures and trades petroleum products. The chemical segment offers petrochemicals such as polyethylene, olefins, aromatics, and polypropylene plastics, along with a range of specialty products. It has 136 cross-functional sites located in 39 countries across the world. Gas treatment solvents are offered under the chemical business segment under the brand “FLEXSORB SE”. ExxonMobil’s FLEXSORB SE or SE Plus solvents are used in a wide variety of acid gas enrichment (AGE) design for the selective removal of H2S. This gas treatment technology has been used in over 100 commercial units worldwide and is considered as the best available technology in many regions across the globe.
Air BP Limited
Company Headquarters: Sunbury on the Thames, Middlesex, UK Founded: 1926 Workforce: ~10,000 Company Working: Air BP Limited is the aviation division of BP plc. The company markets and distributes aviation fuel and lubricants. The company provides aviation gasoline, jet kerosene, and lubricants for piston engine aircraft and turbines. It offers its products to commercial airlines, helicopter operators, business jet operators, and military and aviation authorities. Air BP Limited distributes 6.6 billion gallons of aviation fuel a year and fuels 6,000 flights a day. The company has a global presence and operates through its offices in 55 countries such as the US, Singapore, China, Australia, New Zealand, France, and Denmark.
SkyNRG
Company Headquarters: Amsterdam, The Netherlands Founded: 2010 Workforce: NA Company Working: SkyNRG is involved in the production and distribution of sustainable aviation fuel (SAF) solutions. The company provides its products to airports, airlines, and governments. The aviation fuel offered by the company assists in reducing CO2 emissions by up to 85%. SkyNRG provides its products to around 30 airlines worldwide.
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