Jet Fuel Market Report 2025

The jet fuel market size has grown strongly in recent years. It will grow from $204.34 billion in 2024 to $214.57 billion in 2025 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to commercial aviation growth, OPEC oil embargoes, jet engine technology developments, shifts in oil prices, emergence of low-cost carriers, military aviation demand.

The jet fuel market size is expected to see strong growth in the next few years. It will grow to $261.14 billion in 2029 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to transition to sustainable aviation fuel (SAF), evolving aviation industry regulations, geopolitical oil dynamics, research in electric aviation, carbon neutrality commitments. Major trends in the forecast period include renewable aviation fuel initiatives, regulatory emissions standards, demand for air travel, geopolitical factors, and electric aviation development.

The anticipated increase in air passengers is expected to drive the growth of the jet fuel market in the future. Air passengers include individuals traveling by air on commercial airlines or private airplanes. The surge in air passengers, facilitated by globalization, is prompting aircraft companies to organize more domestic and international flights, leading to a higher consumption of jet fuel. For example, in 2022, according to the International Air Transport Association (IATA), a Canada-based agency for world airlines, total air traffic (measured in revenue passenger kilometers, or RPKs) increased by 64.4% over 2021. The total air traffic in December 2022 increased by 39.7% compared to December 2021. Hence, the rise in passengers is a driving force behind the jet fuel market.

The increasing trend of urbanization is expected to fuel the growth of the jet fuel market. Urbanization involves the migration of the population from rural or less developed areas to urban or metropolitan regions, resulting in the expansion of cities and towns. The growth of urbanization leads to increased air travel and aviation-related activities, creating a higher demand for jet fuel as urban centers become hubs for economic, cultural, and commercial activities, emphasizing the crucial role of air transportation in meeting the travel needs of urbanized populations. According to a report from the World Bank, in 2022, more than 50% of the world's population resides in urban regions, and this number is projected to increase to 6 billion by 2045, representing a 1.5-fold increase. By 2030, urban land consumption is expected to grow at a rate up to 50% faster than population growth, resulting in an additional 1.2 million km2 of urban built-up area. Therefore, the growth of urbanization is a driving factor for the jet fuel market.

Technological advancements are a significant trend gaining momentum in the jet fuel market. Major companies in the jet fuel market are actively developing innovative technologies to enhance their market position. For instance, in October 2022, Honeywell Aerospace, a US-based manufacturer of aircraft engines and aviation technologies, introduced an innovative ethanol-to-jet fuel (ETJ) processing technology. This technology allows producers to create sustainable aviation fuel (SAF) by converting corn-based cellulosic and sugar-based ethanol. The ethanol-jet fuel produced by Honeywell reduces greenhouse gas emissions by 80% compared to regular petroleum fuel.

Major companies in the jet fuel market are adopting a strategic partnership approach to produce green jet fuel. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. For example, in May 2023, Alfanar Group, a Saudi Arabia-based manufacturer of electrical construction products, partnered with N+P Group, a Netherlands-based environmental solutions company. This collaboration aims to process waste equivalent to that produced by Birmingham and the broader West Midland Metropolitan Area, using it to generate feedstock pellets for the production of green jet fuel, also known as Sustainable Aviation Fuel (SAF). The waste management strategy includes establishing up to three additional processing facilities throughout the country, with their locations determined by the origin of the waste.

In February 2023, Indian Oil Company Ltd. (Indian Oil), an oil producer in India, collaborated with LanzaJet Inc. to explore the development of sustainable aviation fuel (SAF) in India. This partnership supports India's transition to cleaner fuels and contributes to the country's carbon reduction goals. LanzaJet Inc., a US-based aviation fuel manufacturer, captures waste gas emissions and uses microorganisms to convert them into usable ethanol fuel.

Major companies operating in the jet fuel market include Exxon Mobil Corporation, BP plc, Chevron Corporation, Valero Energy Corporation, Shell plc, TotalEnergies SE, Gazprom Neft PJSC, Indian Oil Corporation, Bharat Petroleum Corp. Ltd., Honeywell International Inc., World Fuel Service Corp., Neste Oyj, World Energy LLC, Rosneft Deutschland GmbH, China Aviation Oil Corporation Ltd., Qatar Jet Fuel Company, Allied Aviation Services Inc., Sinopec Corp., Oman Oil Company SAOC, Marathon Petroleum Corporation, Hess Corporation, National Refinery Limited, CNOOC Limited.

North America was the largest region in the jet fuel market in 2024. The regions covered in the jet fuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the jet fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Jet fuel, a crucial petroleum product derived from crude oil and processed in petroleum refineries, plays a significant role in the transportation sector, particularly in aircraft. The same jet fuel, albeit of a lower quality, is marketed as kerosene for non-aircraft purposes.

Various types of jet fuels exist, including conventional fuel (air turbine fuel), avgas, sustainable fuel (biofuel), power-to-liquid, and gas-to-liquid. Conventional jet fuels consist of hydrocarbons, primarily normal and iso-paraffins, cycloparaffins, and aromatics. They come in different fuel grades such as Jet A, Jet A1, Jet B, and TS-1, catering to diverse aircraft such as fixed-wing, rotary-wing, and unmanned aerial vehicles. Its applications encompass commercial, defense, general aviation, and private sectors.

The jet fuels market research report is one of a series of new reports that provides jet fuels market statistics, including industry global market size, regional shares, competitors with a jet fuels market share, detailed jet fuels market segments, market trends and opportunities, and any further data you may need to thrive in the jet fuels industry. This jet fuel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The jet fuel market consists of sales of naphtha-type jet fuel, and aviation kerosene. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.