Jet fuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type (Jet A, Jet A1, and Jet B), By Application (Commercial, Defense, General Aviation, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 174.20 Billion
CAGR (2026-2031)	8.39%
Fastest Growing Segment	Jet A1
Largest Market	North America
Market Size (2031)	USD 282.48 Billion

Market Overview

The Global Jet fuel Market will grow from USD 174.20 Billion in 2025 to USD 282.48 Billion by 2031 at a 8.39% CAGR. Global jet fuel, technically defined as aviation turbine fuel, is a specialized petroleum-based product engineered to power aircraft gas-turbine engines. The primary driver supporting market growth is the sustained resurgence in global air passenger traffic alongside the expansion of international trade which necessitates robust air cargo networks. These fundamental economic factors create a consistent demand for energy-dense liquid fuels to facilitate increasing flight frequencies and global connectivity. According to the International Air Transport Association, the global airline industry's fuel bill was projected to reach $291 billion in 2024, representing approximately 31% of total operating costs.

A significant challenge impeding market expansion is the inherent volatility of crude oil prices which creates unpredictable operational expenses for airlines. Sudden spikes in energy costs can severely erode profit margins and force carriers to increase ticket prices, which may subsequently reduce passenger demand in price-sensitive markets and delay investments in fleet growth.

Key Market Drivers

The sustained resurgence of global air passenger traffic and flight frequencies stands as the primary catalyst propelling the jet fuel market. As travel restrictions have fully abated, airlines are expanding route networks to accommodate pent-up demand, particularly in fuel-intensive long-haul sectors. This recovery necessitates a parallel expansion in aviation infrastructure and fuel logistics to maintain operational continuity. Quantifying this trajectory, according to Boeing, June 2025, in the 'Commercial Market Outlook', passenger traffic is forecast to grow 4.2% annually over the next two decades. Consequently, carriers are aggressively procuring new vessels to service this volume; according to Airbus, June 2025, in the 'Global Market Forecast', the aviation industry will require 43,420 new passenger and freighter aircraft between 2025 and 2044, creating a long-term structural increase in fuel consumption.

Simultaneously, the implementation of government mandates and incentives for Sustainable Aviation Fuel (SAF) is fundamentally altering the market's composition. Regulatory bodies are enforcing blending mandates and providing fiscal support to accelerate the transition from conventional kerosene to renewable alternatives. This legislative pressure forces energy producers to scale refining capacity and diversify feedstocks to ensure compliance with decarbonization targets. Highlighting this shift, according to the International Air Transport Association, December 2024, in the 'Updated SAF Production Estimates', SAF production was projected to reach 2.1 million tonnes in 2025. This rapid scaling reflects how policy interventions are converting SAF into a requisite component of the global fuel supply chain.

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Key Market Challenges

The inherent volatility of crude oil prices creates a highly unpredictable operational environment that directly hampers the growth of the Global Jet fuel Market. Since aviation turbine fuel constitutes a substantial portion of airline operating expenses, sudden price surges destabilize financial planning and reduce the capital available for network expansion. Airlines often struggle to pass these immediate cost increases to passengers without suppressing travel demand, leading to reduced flight frequencies and a cautious approach to adding new routes. This hesitation limits the overall volume of fuel required by the industry and discourages the long-term investments necessary for market expansion.

Consequently, carriers are forced to prioritize operational efficiency and cost containment rather than aggressive fleet growth. According to the International Air Transport Association, in 2024, the average price of jet fuel stood at $99 per barrel. This elevated cost burden compels airlines to accelerate the retirement of older aircraft and delay capacity increases in lower-yield regions to preserve liquidity. As airlines minimize fuel consumption to protect their margins from fluctuating energy costs, the total market demand for jet fuel experiences slower growth rates, directly impeding the broader development of the sector.

Key Market Trends

The rise of long-term offtake agreements for green aviation fuel is reshaping procurement strategies as airlines seek to secure future supply amidst production uncertainties. Carriers are moving beyond spot market purchases to enter binding multi-year contracts with energy producers, ensuring price stability and guaranteed volumes of renewable kerosene. This commercial shift is critical for financing new production facilities, as these agreements provide the revenue certainty required by investors to sanction capital-intensive refinery projects. Highlighting this commercial momentum, according to the International Air Transport Association, August 2025, in the 'Growing airline engagement in SAF agreements' report, 81 airlines worldwide have publicly announced a cumulative total of 170 Sustainable Aviation Fuel offtake deals to secure their future energy requirements.

Simultaneously, the adoption of digital fuel management and electronic ticketing systems is optimizing operational efficiency by replacing manual tracking with real-time data integration. Airlines and ground handlers are deploying cloud-based platforms to automate fueling operations, reduce invoicing errors, and enhance inventory visibility across global airport networks. These technologies allow carriers to precisely monitor uplift quantities and tankering strategies, directly addressing cost leakage in a high-expense environment. Validating this technological uptake, according to i6 Group, November 2025, in the 'Shell Aviation and i6 Complete Global Rollout of Digital Fuel Management Technology' announcement, their digital fuel management platform has been fully deployed across more than 70 airports worldwide to automate data sharing and refueling operations.

Segmental Insights

The Jet A1 segment is projected to be the fastest-growing category in the global jet fuel market due to its nearly universal adoption for international civil aviation. Its preference stems from a lower freezing point compared to alternatives, making it indispensable for long-haul transcontinental routes. This specification aligns with the rigorous safety and operational standards set by ASTM International and the International Air Transport Association. As global air connectivity expands, airlines prioritize Jet A1 to ensure consistent supply chain logistics and operational compatibility across diverse geographical regions.

Regional Insights

North America holds the leading position in the global jet fuel market, driven by high commercial air traffic volumes and a dense network of airport hubs. The United States contributes significantly to regional consumption through a comprehensive domestic aviation sector and frequent international operations. Additionally, substantial fuel requirements from the defense sector further support market demand. The regulatory framework maintained by the Federal Aviation Administration ensures consistent operational standards, fostering a stable environment for industry activities. Consequently, the combination of extensive commercial activity and defense needs secures North America’s status as the dominant regional market.

Recent Developments

• In December 2025, Qatar Airways collaborated with national government bodies and academic institutions to launch five new research projects focused on sustainable aviation fuel. These initiatives were established to accelerate the development and commercial viability of cleaner aviation fuels, directly aligning with the region's broader climate strategy. The research aimed to utilize combined academic expertise and operational experience to pioneer technologies capable of reducing carbon emissions by up to 80 percent compared to traditional jet fuel. This partnership underscored a significant commitment to addressing the environmental challenges facing the rapidly growing global aviation sector through scientific innovation.
• In April 2025, Neste commenced the production of sustainable aviation fuel at its newly modified renewable products refinery in Rotterdam, the Netherlands. Following substantial infrastructure modifications, the facility achieved the capability to produce up to 500,000 tons of sustainable aviation fuel per year. This development increased the company's global production capacity for this specialized fuel to approximately 1.5 million tons annually. The expansion was part of a strategic effort to support the aviation industry's transition to lower-carbon energy sources and to meet the growing demand driven by regulatory mandates such as the ReFuelEU Aviation Regulation.
• In September 2024, TotalEnergies and Air France-KLM solidified their long-standing partnership by signing a major agreement for the supply of sustainable aviation fuel. Under this contract, TotalEnergies committed to delivering up to 1.5 million tons of sustainable fuel to the airline group over a ten-year period extending until 2035. This deal represented one of the largest purchase contracts for sustainable aviation fuel signed by the airline group to date. The fuel, produced at biorefineries in France and Europe from circular economy waste, was intended to help the airlines significantly reduce their carbon dioxide emissions and meet rigorous environmental targets.
• In January 2024, LanzaJet inaugurated its Freedom Pines Fuels facility in Soperton, Georgia, establishing the world's first commercial-scale alcohol-to-jet sustainable aviation fuel plant. The facility was designed to produce 10 million gallons of sustainable aviation fuel and renewable diesel annually, utilizing ethanol derived from varied waste and low-carbon sources. This launch marked a significant technological advancement in the global jet fuel market, offering a scalable solution to reduce aviation emissions. The company highlighted that this project would serve as a blueprint for future alcohol-to-jet facilities globally, playing a vital role in the industry's efforts to achieve net-zero carbon goals.

Key Market Players

• Exxon Mobil Corporation
• Shell Plc
• Chevron Corporation
• BP p.l.c
• China Petroleum Corporation
• China National Petroleum Corporation
• Saudi Arabian Oil Company
• Indian Oil Corporation Ltd
• PetroChina Company Limited
• TotalEnergies SE

By Fuel Type	By Application	By Region
Jet A Jet A1 Jet B	Commercial Defense General Aviation Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Jet fuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Jet fuel Market, By Fuel Type:

• Jet A
• Jet A1
• Jet B

• Jet fuel Market, By Application:

• Commercial
• Defense
• General Aviation
• Others

• Jet fuel Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE