Aircraft are powered by aviation fuel. Crude oil byproducts include all forms of fuel. Jet fuel's primary function is to power aircraft; its energy content and ignition quality are crucial aspects of its performance. Other crucial performance attributes include lubricity, stability, volatility, and non-corrosiveness. Besides being an energy source, fuel also acts as a coolant for different fuel system components and a hydraulic fluid in engine controls.
Asia-Pacific Aviation Fuel Market Driving Factors and Challenges
Drivers: The two primary drivers of market expansion are expected to be the expanding air travel industry and the growing demand from the military sector. Newly built airports and flight paths raise the need for fuel, which fuels the market for aviation fuel's expansion.
Furthermore, several significant factors that collectively are propelling the market's robust growth are facilitating the aviation industry's expansion in the Asia-Pacific region. First off, the growing demand for air travel—which is being fueled by economic growth, rising disposable income, and the emergence of a middle class—results in an increase in both passengers and flights. This increased aviation activity directly contributes to the increased use of aviation fuel.
Challenges: Expansion of the market will be limited by high aviation fuel costs. It is expected that the primary factor preventing the aviation fuel market from expanding is fuel prices. The market's growth will likely be impeded by the high price. Fuel costs have increased due to the higher price of Brent crude oil, which is the source of jet fuel. Brent crude oil prices are rising as a result of a mismatch between supply and demand. Despite an increase in demand for Brent crude oil, the scarcity of crude oil is driving up its prices. The dynamics and sustainability of the aviation fuel market are further impacted by a number of factors.
Impact of COVID-19 on Asia-Pacific Aviation Fuel Market
Air travel has been severely disrupted by the COVID-19 pandemic, presenting previously unheard-of difficulties for the Asia-Pacific Aviation Fuel Market. Flight operations throughout the region were significantly reduced as a result of lockdowns, travel restrictions, and a significant decline in passenger demand. The use of aviation fuel fell precipitously as a result of airline fleets being grounded. Fuel suppliers and refineries were left with excess inventory and reduced profit margins as a result of the decline in demand and the drop in oil prices. The financial burden on airlines and the uncertainty surrounding the timing of the aviation industry's recovery have further impeded the growth prospects of the aviation fuel market.
Asia-Pacific Aviation Fuel Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; Bharat Petroleum Corp Ltd, BP plc, Chevron Corporation, China Aviation Oil Corporation Ltd, Exxon Mobil Corporation, Pertamina Persero PT, Petronas Aviation Sdn Bhd, Royal Dutch Shell Plc, Vitol Holding BV, World Fuel Services Corp, Others.
Asia-Pacific Aviation Fuel Market Segmentation:
By Fuel Type: Based on the Fuel Type, Asia-Pacific Aviation Fuel Market is segmented as; Air Turbine Fuel, Aviation Biofuel, Others.
By Application: Based on the Application, Asia-Pacific Aviation Fuel Market is segmented as; Commercial Aircraft, Military Aircraft, General Aviation.
By Region: This research also includes data for China, India, Japan, South Korea, Australia and New Zealand, Indonesia, Thailand, Malaysia, Vietnam, Philippines, Singapore, Rest of Asia-Pacific.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.