Global Aviation Gasoline (Avgas) Market Report and Forecast 2024-2032

Global Aviation Gasoline (Avgas) Market Outlook

The global aviation gasoline (avgas) market size reached a value of nearly USD 2.34 billion in 2023. It is projected to grow at a CAGR of 4.3% between 2024 and 2032 to attain around USD 3.45 billion by 2032.

Key Takeaways

• The General Aviation Manufacturers Association (GAMA) reported an increase in sales of piston-engine aircraft from 1,503 in 2019 to 1,718 in 2022.

• Royal Dutch Shell Plc, TotalEnergies, and Exxon Mobil Corporation are a few of the major companies in the market.

• The demand for aviation gasoline will be driven by the increased need for small piston aircraft for various sporting activities, such as aerobatics, air racing, gliding, and other activities.

Aviation fuel, an exclusive type of fuel, is generally used to energise an aircraft. This fuel is petroleum-based and is of higher quality than the regular fuels used in rail transport and road transport, among others.

The increase in investment by governments, the introduction of new flight routes, increased fleet sizes, and high demand for gasoline from emerging economies are likely to augment the market growth. In 2022, the U.S. as a whole produced 4,051 thousand barrels of aviation gasoline, with specific quantities produced in the Midwest, Indiana-Illinois-Kentucky refining district, and the Minnesota-Wisconsin-North Dakota-South Dakota refining district.

Some of the factors driving the aviation gasoline (avgas) market growth are the growing demand for business aviation aircraft by a growing number of high-net-worth individuals and increasing interest in sustainable aviation fuels due to stricter environmental regulations regarding air quality and greenhouse gas emissions.

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Key Trends and Developments

Increasing government investments in aircraft infrastructure; new flight routes; advances in engine technology; increased fleet sizes; and growing demand for sustainable aviation fuel support the aviation gasoline (avgas) market growth.

Global Aviation Gasoline (Avgas) Market Trends

By 2036, the aviation sector is projected to contribute USD 1.5 trillion GDP to the world economy. Over 200,000 aircraft a day are anticipated to take off and land worldwide by the middle of the 2030s.  Such factors are expected to boost the demand for aviation fuel.

Furthermore, in the forecast period, the demand for aviation gasoline is likely to be driven by the increased need for small-piston aircraft for various sporting activities, such as aerobatics, air racing, gliding, and other activities. Stricter emissions standards to reduce emissions of greenhouse gases and improve sustainability are anticipated to drive the development and adoption of cleaner fuel alternatives like unleaded avgas in the forecast period.

Figure: Total Number of Air Passengers Globally (in Billion), 2018-2023

Market Segmentation

Global Aviation Gasoline (Avgas) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

By end use, the commercial sector is expected to dominate the aviation gasoline (avgas) market share in the coming years

The commercial sector accounts for the largest market share. The growth in the number of piston-engine aircraft, including new purchases and fleet expansions, drives the demand for avgas.

It can be anticipated that emerging markets like China will witness an exponential growth rate of approximately 145% in the Chinese fleet by 2041. This signifies a substantial increase in the demand for aircraft across various segments, including piston planes.

Aviation growth in established markets such as Europe and the USA is expected to grow by 79% & 42% respectively by 2041. Private aircraft are gaining popularity due to the trend of individuals opting for private planes for personal and recreational purposes rather than business travel. Notably, July 2021 recorded the highest number of private flights, totalling 12,345 flights. North America dominates the private aircraft market with around 60% market share.

Competitive Landscape

Major players in the aviation gasoline (avgas) market are increasing their collaboration, partnership, and research and development activities to gain a competitive edge

Other key players in the aviation gasoline (avgas) market include Phillips 66 COMPANY, and Repsol.

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Global Aviation Gasoline (Avgas) Market Analysis by Region

North America is anticipated to hold a dominant position in the aviation gasoline (avgas) market due to the presence of significant players in the region. The growth of the defence sector in the US and Canada, fuelled by increased government investments, has significantly contributed to the demand for small aircraft and helicopters in the defence sector in the region. In FY 2023, the U.S. government allocated USD 816.7 billion to the defence sector.

The Europe aviation gasoline (avgas) market is being driven by the growing demand for small piston aircraft due to the flourishing tourism sector. As more visitors from different countries flock to Europe for sightseeing and other leisure activities, there is a noticeable uptick in the number of small planes being used for such purposes. The European Union (EU) has proposed a mandate for the use of Sustainable Aviation Fuel to increase from 2% in 2025 to 63% in 2050. Such measures are likely to lead to significant developments in achieving sustainable aviation biofuels during the forecast period.

The Asia Pacific also holds a significant aviation gasoline (avgas) market share. The region, which includes China, India, and others is currently experiencing significant economic growth. This growth has led to a rise in air travel and tourism demand, which, in turn, has resulted in higher consumption of aviation gasoline. In 2022, the total number of air passengers reached 3.4 billion and the number is expected to increase significantly by 2035.

Key Highlights of the Report

Aviation Gasoline (Avgas) Market Report Snapshots

Aviation Gasoline (Avgas) Market Size

Aviation Gasoline (Avgas) Market Trends

Aviation Gasoline (Avgas) Market Regional Analysis

Aviation Gasoline (Avgas) Companies