“This would lead to increased biofuel use as an alternative jet fuel, which will also boost the development of the demand for jet fuel additives.”
Jet Fuel Additives Market size is forecast to reach $3.25 billion by 2025, after growing at a CAGR of 6.8% during 2020-2025. In the aviation market, the growing demand for biofuels is one of the main factors driving growth prospects for this industry. The use of biofuels helps reduce dependence and also decreases emissions of carbon. Biofuel will be the main jet fuel after 2030 and more than 60 percent of the global jet fuel demand is expected to account. This would lead to increased biofuel use as an alternative jet fuel, which will also boost the development of the demand for jet fuel additives.
End-Use Industry – Segment Analysis
Commercial Aircraft sector has been the primary market for Jet Fuel Additives for many years at a CAGR of 4.99%. Increased passenger demand for air travel and increased cargo activities are the major factors that support the aerospace industry. The rise of large middle class populations, growing urbanizations and mega-cities enable people, for business or family reasons, to move from one location to another. Diverse aircraft manufacturers in China and India aim to strengthen their trade and industrial relations. Airbus predicts that over the next 20 years, demand for passenger and freight aircraft will hit 37,400. The total volume of deliveries is estimated at 42% for Asia Pacific. To Indian travelers, air travel also remains a luxury. It is, however, a privilege that the rising middle class is within control. In terms of air travel per capita over the long term, therefore, there is a significant potential for increased air traffic. The increase in air transportation and freight operation is therefore projected to jet fuel aviation demand. This is likely during the forecast period to increase the demand for jet fuel additives.
Geography – Segment Analysis
North America dominated the Jet Fuel Additives Market share with more than 38.61%, followed by Europe and APAC. Aeronautical demand in the United States, Canada and the United Kingdom is growing. Over the forecast period, high demand is expected to be generated for jet fuel additives.
In addition, an increase in passenger volumes in jet fuel additives operating in the region during the forecast period is anticipated in Asia Pacific developing countries such as China, India, Indonesia and Vietnam. Increased FDIs in the aviation industry in Asia-Pacific developing countries are expected to fuel the region’s demand in the timeframe foresaw.
Drivers – Jet Fuel Additives Market
Reducing carbon emissions is a significant challenge for the aviation industry; the industry works on alternative fuel production for aircraft. One choice is biofuels that have fewer carbon emissions during their manufacturing cycle. Firms capable of incorporating biofuels to their operations are able to exploit the development of the fuel additives for jet aviation.
Government Policies Regarding Aviation Growth to Offer Attractive Opportunities
Governments in various countries depend on open skies, visa and immigration policies. Countries like India and China have taken mainly government-driven measures to increase air travel. India’s regional connectivity scheme’ Ude Desh Ka Aam Nagrik’ or UDAN-RCS is a state initiative that aims to increase citizens ‘ domestic access. This aims to boost the quality and comfort of air travel. With this plan, the government is also aiming to promote economic development.
China’s Belt and Road initiative has increased air traffic between China and China. For example, from 2013 to 2017 traffic to and from China has increased in Kenya and Vietnam compared to the last five years. It is estimated that, with more than68 countries representing 65 per cent of global population and 30 percent of global GDP as of 2017, Belt and Road Initiative is considered one of the biggest infrastructure and investment ventures in history. The initiative is likely to improve the growth of air transport and thus improve the demand for jet fuel additives.
Challenges – Jet Fuel Additives Market
Aviation to market hampered enormous investments and risks
Aviation is the mode of transportation that saves most time. Operating costs are, however, too small. Air transport requires a high degree of investment in constructing and maintaining an aircraft. In addition, skilled, experienced and eligible workers are needed, which require significant investments. High construction costs for both airdromes and aircraft are expected. The carriage of air is seen as costlier than other types of transportation. Aircraft running costs are higher. Airfares are also large and middle class individuals cannot always afford it. In addition, this would likely restrict the global demand for jet fuel additives in the forecast era.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Jet Fuel Additives Market. In 2018, the market of Jet Fuel Additives has been consolidated by the top five players accounting for xx% of the share. Major players in the Jet Fuel Additives Market are Afton Chemical, BASF SE, Chevron Corporation, Baker Hughes (General Electric), Croda International PLC, Clariant, Eni SpA, Exxon Mobil Corporation, Evonik Industries AG, Innospec Inc., Royal Dutch Shell PLC, among others.
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