Jet Fuel Analytics, Market Size & Share Analysis
The Jet Fuel Market is projected to witness substantial growth over the forecast period from 2024 to 2029, with an estimated size of USD 175.76 billion in 2024, expected to reach USD 297.10 billion by 2029, at a CAGR of 11.07%. This growth is primarily attributed to the increasing number of air passengers, driven by cheaper airfare, improving economic conditions, and rising disposable income globally.
Despite this optimistic outlook, the market faces challenges due to the environmental impact of fossil-fuel-based jet fuels, prompting concerns about degradation. However, governments worldwide are implementing mandates for blending renewable aviation fuel with conventional types, creating opportunities for market players to address these concerns.
Asia-Pacific leads the global market, fueled by increasing passenger traffic, particularly from emerging economies.
In terms of market trends, the commercial segment dominates, driven by scheduled and non-scheduled commercial aviation operations. The commercial aviation sector is a significant consumer of aviation fuel, accounting for a quarter of an airline operator’s total operating expenditure. The accessibility of air travel has increased substantially, with airfares averaging less than half of 1995 levels, and the airline network surpassing 20,000 unique city pairs. As a result, the growth of commercial airlines is bolstered by direct city-to-city connections, facilitating the movement of goods and people.
According to the International Air Transport Association (IATA), the global airline industry’s passenger air traffic revenue in 2022 amounted to USD 732 billion, signifying a substantial increase compared to previous years. The demand for aviation fuel is expected to rise in tandem with the increasing number of passengers on commercial flights, driving market growth.
Domestic aviation markets have proven more resilient than international ones, with international traffic gradually recovering from the pandemic-induced slump. As travel restrictions ease for domestic and international travelers, a positive trend in air passenger traffic is anticipated, further boosting demand for jet fuel in commercial applications.
Overall, the Jet Fuel Market is poised for significant growth, driven by increasing air passenger traffic, government mandates for renewable fuel blending, and the dominance of the commercial aviation segment.
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Jet Fuel Market – Size, Trend & Forecast Industryy | Rigzone