Military Jet Fuel Market Size
| Study Period | 2018- 2028 |
| Base Year For Estimation | 2022 |
| CAGR | > 3.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Military Jet Fuel Market Analysis
The global military jet fuel market is expected to register a CAGR of over 3% during the forecast period.
The outbreak of COVID-19 had a negative effect on the market. Currently, the market has rebounded to pre-pandemic levels.
- Factors such as the growing expenditure in the defense sector as the security threats intensified, requiring governments around the world to continue increasing their defense budgets, in turn, are expected to drive the military jet fuel market. Moreover, countries such as China, the United States, India, and other countries increasing the fleet of their air force planes are further expected to promulgate the market during the forecast period.
- However, the high costs associated with jet fuel and renewable fuel are expected to hinder the growth of the military jet fuel market.
- Moreover, the military sector seeks to improve the environmental performance of its aircraft fleets and reduce environmental emissions. Biofuels are considered a way to maintain secure sources of fuel and reduce cost volatility, creating several opportunities for market study.
- North America is expected to be the largest and fastest-growing region during the forecast period, bolstered by the highest defense sector budget and the largest fleet of air force and navy planes, mainly in the United States.
Military Jet Fuel Market Trends
Renewable Aviation Fuel to be the Fastest Growing Market
- According to IATA, the global airline industry’s fuel bill is estimated to reach a total of USD 192 billion in 2022 (accounting for around 24% of operating expenses at an average price of USD 101.2 per barrel Brent), an increase of 28% over the USD 103 billion fuel bill for 2021, which accounted for 19% of operating expenses at USD 70.7 per barrel Brent.
- Due to the impact of the Russia-Ukraine conflict, which started in February 2022, international oil prices spiked significantly, which is expected to translate into higher jet fuel prices.
- The defense sector consumes a large amount of aviation fuel. For instance, on average, the United States military burns about 4.8 billion gallons of jet fuel and diesel each year. Nearly half of that goes to the Air Force, and around one-third goes to the Navy.
- In Asia-Pacific, higher defense spending by major regional powers such as India, China, and Japan will likely contribute to the increase in defense aircraft and the total flying time. Therefore, with an increase in aircraft and more stringent carbon emission rules in hindsight, the demand for renewable aviation fuel is expected to increase in upcoming years.
- Hence, such increasing development in the aviation fuel sector and the need to cut carbon emissions are expected to drive the renewable aviation fuel market in the defense sector during the forecast period.
North America to Dominate the Market
- North America has emerged as one of the largest military jet fuel markets in recent years, with a rise in energy demand from the Air Force and Navy, which in turn increased the demand for cable accessories in this region.
- The BioEnergy Technologies Office (BETO) of the United States and the Department of Energy (DOE), supported by Energy Efficiency and Renewable Energy (EEREnd), are making efforts to expand the adoption of sustainable, domestically produced alternative fuels for transportation and aviation to stimulate the growth of the renewable fuel industry.
- In North America, the primary policy incentive for renewable aviation fuel production is the United States Renewable Fuel Standard (RFS), which provides credits to refiners and importers of fuel who blend renewable fuel into transportation fuel to meet Renewable Volume Obligation standards.
- In the United States, the demand for jet fuel has increased at a steady pace, and the fleet is expanding exponentially with an increase in the defense budget. As of 2022, the United States had the highest defense budget of over USD 773 billion, which in turn aided market growth.
- As part of the United States Air Force’s goal of achieving half of its domestic fuel needs from alternative sources, the military and commercial airlines tested alcohol-to-jet (ATJ) fuel on A-10 ground attack aircraft.
- Under the Defense Protection Act 2014, the United States Department of Energy (DOE) co-funded the construction of three integrated biorefineries with the capacity to produce hydrocarbon fuels that meet military specifications for JP-5 (jet fuel used primarily by the US Navy), JP-8 (jet fuel used mostly by the US Air Force), or F-76 (diesel).
- Further, companies, such as Honeywell, Shell, and Chevron, use air turbine fuel and renewable jet fuel to fuel the United States Navy and Air Force as part of a joint program for the US Defense Energy Support Center (DESC) for alternative fuel testing and certification.
Therefore, owing to the above factors, North America, and in particular the United States, is expected to be the largest market during the forecast period.
Military Jet Fuel Industry Overview
The military jet fuel market is moderately consolidated. Some of the key players (in no particular order) are Shell PLC, BP PLC, Honeywell International Inc., Repsol SA, and GS Caltex Corporation.
Military Jet Fuel Market Leaders
BP PLC
Honeywell International Inc
Repsol SA
GS Caltex Corporation
Shell PLC
*Disclaimer: Major Players sorted in no particular order
Military Jet Fuel Market News
- January 2022: Cepsa signed an agreement with Iberia and Iberia Express for the development and large-scale production of sustainable aviation fuel. The agreement contemplates SAF production from waste, recycled oils, and second-generation plant-based biofeedstock.
- January 2022: ExxonMobil acquired a 49.9% stake in Biojet AS, which produces biofuels from forestry and wood-based construction waste. The deal is expected to allow ExxonMobil to buy as much as three million barrels of biofuels every year.
Military Jet Fuel Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Fuel Type
5.1.1 Air Turbine Fuel
5.1.2 Renewable Avaition Fuel
5.2 Geography
5.2.1 North America
5.2.2 Europe
5.2.3 Asia-Pacific
5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Shell PLC
6.3.2 BP PLC
6.3.3 Honeywell International Inc.
6.3.4 Repsol SA
6.3.5 GS Caltex Corporation
6.3.6 Chevron Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Military Jet Fuel Industry Segmentation
Jet fuel, or aviation fuel, is a type of highly volatile fuel used in aircraft gas turbine engines. The airline and defense industries are the world's largest consumers of jet fuel. The military jet fuel market is segmented by fuel type and geography. By fuel type, the market is segmented into air turbine fuel and renewable aviation fuel. The report also covers the size and forecasts of the military jet fuel market across the regions. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Fuel Type | |
| Air Turbine Fuel | |
| Renewable Avaition Fuel |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Military Jet Fuel Market Research FAQs
What is the current Military Jet Fuel Market size?
The Military Jet Fuel Market is projected to register a CAGR of greater than 3% during the forecast period (2023-2028).
Who are the key players in Military Jet Fuel Market?
BP PLC, Honeywell International Inc, Repsol SA, GS Caltex Corporation and Shell PLC are the major companies operating in the Military Jet Fuel Market.
Which is the fastest growing region in Military Jet Fuel Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Military Jet Fuel Market?
In 2023, the North America accounts for the largest market share in the Military Jet Fuel Market.
Military Jet Fuel Industry Report
Statistics for the 2023 Military Jet Fuel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Military Jet Fuel analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
