The North America Commercial Aircraft Aviation Fuel Market is expected to register a CAGR of greater than 15% during the forecast period.
The market has been negatively impacted by the outbreak of COVID-19 due to regional lockdowns and flight restrictions. Currently, the market has reached pre-pandemic levels.
Key Highlights
- Factors such as increasing air passenger traffic, increasing the number of low-cost carriers (LCC) across the region, and growing demand for air cargo transportation, are expected to drive the market over the forecast period.
- However, volatile crude oil and jet fuel prices are expected to restrain the target market.
- The commercial aviation industry aims to increase domestic renewable jet fuel supply to reduce carbon emissions. Thus, there is an increasing demand for alternatives, such as renewable aviation fuel, which will likely provide an opportunity in the near future.
- The United States is expected to dominate the North American commercial aircraft aviation fuel market over the forecast period.
North America Commercial Aircraft Aviation Fuel Market Trends
Air Turbine Fuel (ATF) Segment is Expected to Dominate the Market
- Aviation turbine fuel (ATF) or jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. Jet A1 and Jet A are two primary grades of aviation fuel used in commercial aircraft.
- Factors such as growth in air traffic passenger, global economic scenario, and improvement in aircraft fuel-burning efficiency are influencing demand for jet fuel in the commercial aircraft aviation fuel market.
- Jet A1 is likely to remain a dominant aviation fuel in terms of consumption, followed by the Jet A type, for locations outside the United States. Jet A-1 must have a freeze point of minus 47°C or below. This fuel normally contains a static dissipator additive.
- Jet A specification fuel is mainly used in the United States, and it is usually not available outside the United States and a few Canadian airports, such as Toronto and Vancouver. Jet A fuel must have a freeze point of minus 40oC or below and does not typically contain a static dissipator additive.
- LanzaTech's ethanol-based ATJ-SPK (alcohol-to-jet synthetic paraffinic kerosene) was made eligible for use as a blending component with standard Jet A for commercial airline use in the United States. Under the revised ASTM D7566, LanzaTech ATJ-SPK is eligible to be used up to a 50% blend in conventional jet fuel for commercial flights.
- Hence, such ongoing developments are expected to increase the demand for Jet A fuel (air turbine fuel) during the forecast period.
- Moreover, according to IATA, passengers traveling by air from Canada are expected to increase to 118 million by 2037. Therefore, the demand for aviation turbine fuel for commercial aircraft is expected to increase in the coming years.
The United States is Expected to Dominate the Market
- General Aviation included a total of 440,000 general aircraft flying worldwide (GAMA) as of 2021, ranging from two-seat training aircraft and utility helicopters to intercontinental business jets. Over 211,000 general planes are based in the United States, which makes the nation dominate the sector.
- According to the Airlines for America (A4A), in 2021, the country's airlines carried 2.5 million passengers worldwide daily, which was an all-time high number of passengers in the country's airline history. Moreover, 68,000 metric tons of cargo per day were ferried by the country's airlines in 2020 (A4A).
- Therefore, the country's robust air travel and cargo volume growth has resulted in greater demand for aviation fuel in the past years.
- Air travel in the country has increased as real airfares have plunged in the past. Therefore, the increased propensity of people to prefer domestic and international air travel has led to increased consumption of aviation fuel.
- Hence, due to factors such as high air traffic passenger and cargo, the United States is expected to dominate in the North American commercial aircraft fuel market over the forecast period.
North America Commercial Aircraft Aviation Fuel Industry Overview
The North American commercial aircraft aviation fuel market is moderately fragmented. Some of the major players in the market (in no particular order) include Chevron Corporation, World Fuel Services Corp, Total S.A., Vitol Holding BV, and Royal Dutch Shell Plc.
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