Aviation fuel is used to power aircraft and is made from refined petroleum and is available in a number of forms. The rising demand for aviation fuel is primarily being driven by the expansion of the aviation industry in many developing nations as well as the rising popularity of air travel. Because of the development of the most recent aviation biofuels and the increasing demand for low-cost carriers, a significant number of opportunities are anticipated to arise for all market participants during the study period. Factors such as volatile crude oil prices and stringent environmental regulations could potentially hinder the growth of the aviation fuel market.
Middle-East and Africa Aviation Fuel Market Driving Factors and Challenges
Drivers: Some of the major market drivers include improving economic conditions, rising disposable income, and an increase in the number of air travelers. Recent decreases in airfare have also fueled this expansion. The recent and upcoming deals in various nations in the region for fighter jets are expected to drive up demand for aviation fuel. In the next 20 years, Middle Eastern countries will need to buy over 2,600 new aircraft to keep up with the region's increasing air traveler population. Market participants for aviation fuel should be prepared for opportunities of this magnitude.
Furthermore, the Middle East and Africa's population growth and economic development are factors in the growing demand for air travel. Rising disposable incomes among the expanding middle class are leading to an increasing inclination towards air travel, which in turn is creating demand for both domestic and international flights. The aviation industry and, by extension, the aviation fuel market, benefit from this trend and the region's strategic significance for international trade and commerce.
Challenges: The market for aviation fuel in the Middle East and Africa faces many challenges. It is anticipated that the market will be constrained by the high and volatile price of aviation fuel.
In addition, the SAF rigorously verifies technical certifications prior to authorizing their application in aircraft engines. For application purposes, strict approval procedures are applied to every stage of the value chain of the SAF market. However, the number of parties involved and the quantity of fuel required for the testing parameters raise the cost of SAF approval. These elements might also have hindered market expansion.
Impact of COVID-19 on Middle-East and Africa Aviation Fuel Market
The COVID-19 pandemic has had a major effect on the aviation fuel market in the Middle East and Africa. Due to strict travel restrictions, lockdowns, and a sharp decline in air travel, the region's need for aviation fuel drastically decreased. Airlines' fleets were forced to land, which drastically cut down on fuel consumption. Compounding this decline were economic uncertainties and challenges that impeded the aviation sector's recovery. The Middle East and African governments' stringent measures to curb the virus's spread resulted in a protracted period of low demand for air travel. The aviation industry in the region was facing unprecedented financial challenges, which prompted the need for cost-cutting measures and operational modifications.
Middle-East and Africa 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; Abu Dhabi National Oil Company, BP PLC, Chevron Corporation, Emirates National Oil Company, Exxon Mobil Corporation, Repsol SA, Shell PLC, TotalENergies SE.
Middle-East and Africa Aviation Fuel Market Segmentation:
By Fuel Type: Based on the Fuel Type, Middle-East and Africa Aviation Fuel Market is segmented as; Air Turbine Fuel, Aviation Biofuel.
By Application: Based on the Application, Middle-East and Africa Aviation Fuel Market is segmented as; Commercial, Defence, General Aviation.
By Region: This research also includes data for United Arab Emirates, Saudi Arabia, Qatar, Egypt, South Africa, Rest of Middle-East and Africa.
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.