Aviation Fuel Additives Market

Global Aviation Fuel Additives Market Forecast

• Market size of aviation fuel additives to see expansion at a healthy CAGR of 6.5% during 2023 - 2030
• Aviation fuel additives industry revenue poised to jump up from around US$860 Mn attained in 2022 to US$1.4 Bn by the end of 2030

Quick Report Digest

1. The main trend expected to drive the aviation fuel additives market is increased demand for fuel additives in commercial and military aircraft. Growing emphasis on reducing emissions, improve fuel efficiency, and engine efficacy will further support the demand of aviation fuel additives.
2. Rapid alternative fuel compatibility is another significant trend anticipated to drive aviation fuel additives growth. Aviation fuel additives are evolving to maintain compatibility, stability, and optimal performance with the advent of alternative aviation fuels, including biofuels and synthetic fuels.
3. The price of crude oil significantly impacts the cost of aviation fuel. Airlines may become more cost-conscious and less inclined to spend money on expensive aviation fuel additives when oil prices are high. On the other hand, when oil costs are low, airlines might put cost savings above performance improvements.
4. Dispersants dominated the aviation fuel additives market in 2022. Dispersants assist airlines in reducing maintenance costs by lowering deposits, clogs, and corrosion in the fuel system. This is especially helpful for preserving the dependability and affordability of aircraft operations.
5. In 2022, the jet fuel dominated the industry. Jet fuel is put through rigorous quality control and testing to satisfy tight industry and legal standards for safety, performance, and environmental effects.
6. Commercial aviation dominated the aviation fuel additives market in 2022. Commercial aircraft's safety and dependability are improved by aviation fuel additives, which stop problems including icing, corrosion, and fuel system clogs.
7. In the aviation fuel additives market, Asia Pacific is anticipated to grow at the fastest rate. This is due to the rising demand for aviation fuel additives to achieve contemporary airports' quality and performance standards.
8. North America region will dominate the aviation fuel additives market throughout the forecast period. Aviation fuel additives are greatly needed to maintain safe, effective, and legal aircraft operations due to the abundance of commercial airlines, cargo carriers, and military aviation activities.

A Look Back and a Look Forward – Comparative Analysis

The technological advancements, additives manufacturers may now provide solutions specifically for kinds of aviation fuel and aircraft engines. Customised additives can satisfy the specific needs of various aircraft and operational circumstances. The development of Avgas additives that support environmental sustainability depends heavily on technology. Additives are created to enhance the environmental performance of aviation fuels overall and cut emissions and carbon footprints.

The market witnessed staggered growth during the historical period 2018 – 2022. Military aircraft frequently operated in difficult weather, necessitating improved engine performance and fuel economy. Avgas additives increase combustion efficiency by increasing thrust, power, and fuel efficiency. For military forces, aviation fuel additives were strategically important because they improved military aircraft's overall effectiveness and usability.

Modern military aircraft need to have long-range and endurance abilities. Longer missions and fewer refuelling stops are made possible by the increased fuel efficiency of aviation fuel in the coming years. Additionally, alternative aviation fuels, including biofuels and synthetic fuels, are being developed, creating the potential for additives that guarantee compatibility, stability, and performance in these new fuel types. Furthermore, increased safety concerns in aircraft operations during the next five years will drive the demand for gasoline additives that prevent problems with icing, corrosion, and microbial contamination.

Key Growth Determinants

• Rising Demand for Aviation Fuel

The market for aviation fuel additives is growing due to the increasing demand for aviation fuel. Increasing disposable income, urbanisation, and a rising global middle class are some of the causes that have propelled the aviation industry's steady rise throughout the years.

The demand for air travel has increased because of this expansion, and this is directly related to the surge in demand for aviation fuel. As demand for air travel rises, airlines are continually growing their fleets to meet it. To maximize the quality and performance of the power, additives are added, resulting in the need for a bigger supply of Avgas.

Airlines are constantly seeking ways to increase fuel efficiency to cut down on expenses and the environmental impact of operations. By increasing the fuel's energy content, aviation fuel additives can be extremely important in helping to accomplish this.

• Increasing Efficiency of Jet Engines

Jet engine combustion can be improved by adding aviation fuel additives. These additives contribute to more complete and effective fuel combustion, which helps raise the engine's overall efficiency. Lower fuel consumption and emissions result from improved combustion efficiency. Extreme operating conditions, including parts moving quickly and at high temperatures, are present in jet engines.

Lubricity agents can be found in aviation fuel additives, which lessen friction and wear on engine parts. This increases the engine's lifespan and guarantees it runs as efficiently as possible. Fouling and deposits on engine parts can lower performance and raise fuel consumption. Detergents and dispersants are instances of fuel additives that assist in keeping the engine clean and prevent the buildup of deposits, which increases engine efficiency.

• Growing Advancements in Aircraft Technology

Modern aircraft engines, such as geared turbofan engines and high-bypass turbofan engines, are made to use less fuel. Aviation fuel additives are necessary to ensure the energy used in these engines is compatible with their sophisticated designs, resulting in better combustion efficiency and decreased fuel usage.

Higher compression ratios are common in advanced engine designs, requiring specialised aviation fuel compositions to avoid knocking and preserve engine performance. Fuel additives can aid by raising the fuel's octane rating and reducing engine damage to help with these issues.

Advanced digital engine control systems (FADEC) on modern airplanes require accurate fuel quality and performance. The stability and consistency of fuel qualities, essential for the dependability and effectiveness of FADEC systems, can be maintained using aviation fuel additives.

Major Growth Barriers

• Aircraft Fleet Age

Airlines with aging aircraft fleets can put cost savings ahead of improved performance. Airlines may be more concerned with limiting operating expenses than investing in high-end aviation fuel additives because older aircraft are frequently less fuel-efficient and have higher maintenance requirements. This may impede market expansion, particularly if airlines put off fleet modernisation.

Older aircraft could need maintenance and repairs more frequently, and using aviation fuel additives might not completely solve their performance difficulties. Instead of spending money on additives, airlines may prioritize maintenance and overhauls to increase the lifespan of their older aircraft. This may reduce market demand for additives.

• Alternative Fuel Development

The market for traditional aviation fuel additives made for conventional jet fuels may decline as the aviation industry adopts alternative fuels like Sustainable Aviation Fuel (SAF), which have distinct environmental qualities and advantages. SAFs frequently include benefits, such as lower greenhouse gas emissions and reduced sulfur content, which may eliminate the need for some additives.

Alternative aviation fuels may differ chemically and in terms of their physical and functional characteristics from conventional jet fuels. Conflicts with currently used Avgas additives may emerge from this. It can be technically challenging to create additives compatible with alternative fuels, and failing to do so could limit their use in SAFs or other alternative fuels.

Key Trends and Opportunities to Look at

1. Rising Focus on Environmental Sustainability

The aviation sector is aggressively investing in SAF because it has lower carbon emissions than conventional jet fuel and is made from renewable resources. Aviation fuel additives are essential for ensuring that SAF complies with strict quality and performance criteria, stimulating the market for specialised additives made specifically for SAF.

Sustainable aviation fuels frequently include less sulfur than regular jet fuel. The lower sulfur concentration may present certain potential problems, but aviation fuel additives may take care of them, ensuring that engines run smoothly and adhere to environmental regulations.

2. Rising Need for Anti-icing Additives

Aircraft safety during flights in chilly and icy conditions depends on anti-icing chemicals. Due to these additives, the gasoline system, fuel lines, and tanks are kept free of ice. By preventing ice buildup, they aid in maintaining continuous fuel flow to the engines, preventing engine failure, and guaranteeing the aircraft's and its occupants' safety.

Anti-icing additives help keep the overall dependability of the aircraft's fuel system and avoid ice creation. This lowers maintenance costs and ensures a great passenger experience while also assisting in the effective and safe functioning of the aircraft.

3. Increasing Collaboration with Airlines and OEMs

New aviation fuel additives must be validated and certified by OEMs and airlines. By working together, additive producers may conduct thorough testing and acquire the required certifications, proving the reliability and efficiency of their products. The market's reputation is increased by this certification, which promotes the use of these chemicals more widely.

How Does the Regulatory Scenario Shape this Industry?

Over the last three years, a strict regulatory structure has governed the aviation fuel additives market to guarantee the performance, quality, and safety of aviation fuels and additives. The Federal Aviation Administration (FAA) is an important regulatory body in the US that manages aviation safety and standards. They publish guidelines and standards for the nation's usage of aviation fuels and additives. Aviation fuel additive producers must adhere to Federal Aviation Administration (FAA) regulations to do business in the United States.

In the European Union, civil aviation safety is governed by the European Union Aviation Safety Agency (EASA). It establishes the rules and specifications for European aviation fuels and additives. Market access in European nations requires adherence to European Union Aviation Safety Agency (EASA) requirements. The International Air Transport Association (IATA) represents airlines globally and offers recommendations and criteria for aviation fuels.

 The choice and application of Avgas additives are influenced by the fact that many airlines operate by International Air Transport Association (IATA) guidelines. Aviation fuel additives' safety, quality, and environmental performance are crucially ensured by regulating organisations, including the FAA, EASA, and IATA. Their laws impact additives' creation, production, and application in the aviation fuel additives market.

Fairfield’s Ranking Board

Top Segments

1. Dispersants Additives Maintain Dominance over Antioxidants Additives

In 2022, the category of dispersants aviation fuel additives dominated the market. To ensure that aircraft engines burn fuel effectively, they must be clean. Dispersants assist in maintaining the fuel's cleanliness, ensuring that the energy contained in the power is effectively transformed into thrust, and enhancing engine performance and fuel efficiency.

Dispersants help airlines cut maintenance expenses by minimising corrosion, blockages, and deposits in the fuel system. This greatly helps the dependability and affordability of aircraft operations.

Furthermore, the antioxidants category is anticipated to grow significantly throughout the forecast period. Peroxides and other reactive substances may be created when aviation fuel oxidizes and oxidizes. Antioxidants prevent oxidation by dissipating oxygen radicals and lowering the likelihood of chemical reactions compromising the fuel's characteristics.

2. Jet Fuel Category Leads

The jet fuel category dominated the market in 2022. Jet fuel is a specialised aviation fuel specifically designed for use in jet engines, such as the turbofan and turbojet ones commonly found in commercial and military aircraft.

Due to its high energy density, jet fuel can supply the necessary power for long-distance flights and high-speed trips. To meet stringent industrial and governmental standards for safety, performance, and environmental effects, jet fuel is put through rigorous quality control and testing.

The Avgas category is expected to grow significantly during the forecast period. Avgas is a high-octane, leaded, or unleaded petrol, especially for airplanes with piston engines. General aviation and smaller private planes are among these aircraft.

3. The Commercial Aircraft Segment Spearheads

The commercial aircraft category dominated the market in 2022. Commercial aircraft are further segmented into passenger aircraft and cargo aircraft. Aviation fuel additives increase the dependability and safety of commercial aircraft by preventing issues, including icing, corrosion, and fuel system blockages. These additives lessen the possibility of operational delays while also improving flight safety overall.

Commercial airlines fly long- and ultra-long-distance routes, necessitating optimised fuel performance over considerable distances. These lengthy flights are more effective and reliable because of Avgas additives.

The military aircraft category is expected to grow the fastest. Military aircraft frequently need high-performance engines for manoeuvrability, speed, and operational efficiency. Aeronautical fuel additives enhance power output, combustion efficiency, and engine performance, guaranteeing that military aircraft can complete their missions.

Regional Frontrunners

North America Retains Dominance  

North America is expected to dominate the aviation fuel additives market during the forecast period. The aviation industry in North America is among the biggest and busiest in the world. Due to the large number of commercial airlines, cargo carriers, and military aviation activities, aviation fuel additives are crucial to maintaining safe, efficient, and legal aircraft operations.

Commercial and military jets, as well as more recent and technologically sophisticated aircraft, are all part of the US aviation fleet. Specialised aviation fuel additives made to fulfil the specific needs of these aircraft are required due to the usage of modern engines and fuel systems.

Asia Pacific All Set for the Fastest Growth

Asia Pacific is expected to be the fastest-growing aviation fuel additives market region. Investments have aided the growth of the aviation industry in airport infrastructure and the building of new airports throughout the Asia Pacific area.

Due to these advancements, the demand for aviation fuel additives is rising to achieve contemporary airports' quality and performance standards. In many Asia Pacific countries, the expansion of the middle class and rising disposable incomes have increased air travel.

The demand for aviation fuel additives to enhance aircraft performance and safety is fuelled by the growth of commercial aviation. India's military aviation industry is significant. The market for aviation fuel additives is expanding because they are essential for the security and readiness of military aircraft.

Fairfield’s Competitive Landscape Analysis

The global market for aviation fuel additives is concentrated and has several prominent players operating there. To improve their presence on a global scale, the big companies are introducing new products and enhancing their distribution networks. According to Fairfield Market Research, additional market consolidation is also anticipated in the upcoming years.

Who are the Leaders in the Global Aviation Fuel Additives Space?

• Afton Chemical Corporation
• BASF SE
• Dorf-Ketal Chemicals India Pvt., Ltd.
• Meridian Fuels
• Shell Chemicals LP
• Clariant AG
• Biobor Fuel Additives
• Innospec Chemical Company
• Albemarle Corporation
• QAFAC (Industries Qatar)
• Lubrizol Corporation
• TotalEnergies
• VeryOne SaS (EURENCO)
• Xinxiang Richful Lube Additive Co., Ltd.
• Croda International Plc

Significant Company Developments

New Product Launches

• April 2021: To increase fuel stability and combustion effectiveness, Innospec Inc. unveiled a new product called Trident for bunker fuel additive packages. Trident 100, 120, 200, and 290 are the different stability additives for the Trident brand.
• September 2021: Around 2 million tonnes of sustainable aviation fuel (SAF) will be produced yearly until 2025, according to projections announced by Royal Dutch Shell plc. According to its goal, at least 10% of the company's global aviation fuel sales must be SAF.
• September 2021: The Lubrizol Corporation has introduced a brand-new additive that is a part of the PV 1500 series designed to improve operating efficiency. By September 1, 2021, Dexos will be made available for initial licensing.

Distribution Agreements

• January 2021: To increase customer value and demonstrate their commitment to the ethanol yield sector, BASF Enzymes LLC and Innospec Fuel Specialties LLC created a distribution partnership.
• February 2021: The US-based company Emerald Kalama Chemical has agreed to be acquired by LANXESS AG. It is a top producer of specialised additives.

An Expert’s Eye

Demand and Future Growth

As per Fairfield’s Analysis, the need for additives that can lower hazardous emissions has increased due to the aviation industry's search for cleaner and more effective fuel solutions. Furthermore, aviation fuel additives are necessary to improve the compatibility, stability, and performance of alternative fuels being investigated by the aviation industry, such as biofuels. However, the aviation fuel additives market is expected to face considerable challenges because of fluctuating crude oil prices.

Supply Side of the Market

As per our analysis, Asia Pacific region dominates the supply of aviation fuel additives. China is one of the major producers and consumers of raw materials (hydrocarbons and metals) required to produce aviation fuel additives. With its larger airbase US is one of the major suppliers of aircrafts worldwide. The US is also one of the key suppliers of aviation fuel additives to the industry.

The aviation industry is the US is one of the largest across the globe and it is crucial to guarantee the efficacy and compliance of aviation fuel additives used in the process. Aviation fuel additives are crucial to lower the maintenance costs of the aircraft and maintain the efficiency of high-performance gas engines. In-depth testing is done in laboratories to ensure that additives adhere to the environmental and aviation industry requirements.

Global Aviation Fuel Additives Market is Segmented as Below:

By Additive Type:

• Dispersants
• Antioxidants
• Anti-icing
• Corrosion Inhibitors
• Antiknock
• Metal Deactivators
• Miscellaneous

By Fuel Type:

• Avgas
• Jet Fuel

By Application:

• Commercial Aircraft
• Military Aircraft
• Miscellaneous

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Rest of Middle East & Africa