Europe Aviation Fuel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Europe Aviation Fuel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The aviation fuel market in Europe is anticipated to register a CAGR of more than 14% during the forecast period.

The market was 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

• The increasing number of air passengers, on account of the cheaper airfare in recent times, stronger economic conditions, and increasing disposable income, are among the major driving factors for the market. Efforts to increase the share of biofuels in the aviation sector are also driving the market considerably.
• However, the high and volatile cost of aviation fuel is expected to restrain the market.
• The European Commission is aiming to increase the Sustainable Aviation Fuel (SAF) to 40% by 2040 to reduce greenhouse gas emissions. The initiative is expected to create significant opportunities in the aviation fuel market.
• With the largest market size in Europe, Spain is leading the market in the region and is likely to continue its dominance during the forecast period as well.

Europe Aviation Fuel Market Trends

Commercial Sector to Dominate the Market

• Commercial aviation includes operating scheduled and non-scheduled aircraft, which involves commercial air transportation of passengers or cargo. The commercial segment is one of the largest consumers of aviation fuel, and it accounts for a quarter of the total operating expenditure for an airline operator.
• Air transportation of passengers in European countries is increasing considerably. Germany reported around 54.6 million passengers' transportation by air between April 2022 to October 2022.
• In 2021, the total number of passengers carried by commercial airlines rose to around 4.54 billion, which was 5.58% higher than the previous years. Europe accounted for 26.4% of the total world aviation traffic in 2020.
• The European Union (EU) has proposed a mandate of Sustainable Aviation Fuel use from 2% in 2025 to 63% in 2050. Such measures are likely to witness significant developments in achieving sustainable aviation biofuels during the forecast period.
• Therefore, due to the aforementioned factors, the commercial sector is expected to dominate the market.

Spain to Dominate the Market

• Spain is one of the largest Western Europe domestic air markets by seats and has registered growth in terms of air passenger traffic over the past five years, reaching a total of 228 million in 2019.
• However, in 2020 the number of passengers traveling fell to 57.79 million in 2020 due to a strict travel ban from the Spanish government. But as the situation improved, the figures for 2021 grew by more than 59%, reaching a total of 91.89 million.
• The aviation fuel market in the country is expected to witness significant growth during the forecast period, mainly driven by increasing tourism and domestic air traffic.
• Moreover, the increasing number of passengers in the country is directly contributing to the demand for jet fuel consumption in the country. The trend is expected to change, especially due to the increasing number of tourists from European countries such as France and the United Kingdom.
• Therefore, due to the aforementioned factors, Spain is expected to dominate the market during the forecast period.

Europe Aviation Fuel Industry Overview

The Europe aviation fuel market is moderately fragmented. Some of the major companies (in no particular order)include PJSC Gazprom, BP PLC, Shell PLC, TotalEnergies SE, Neste Oyj, and others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support