A new report from SkyQuest Technology Consulting predicts the global jet fuel market will more than double over the next seven years. Valued at $351 billion at the end of 2024, the company forecasts this market to exceed $750 billion annually by 2033 due to new joint ventures and large-scale production activities in the sector.
According to SkyQuest’s analysts, the advances in fuel efficiency driven by innovations in aircraft design and engineering will ultimately benefit the aviation fuel market by bringing down costs, which is “beneficial given the rising demand for fuel with lower-carbon emissions.”
As part of their global sustainability goals, airlines and other operators are using sustainable aviation fuel (SAF) to lower their overall emissions. This raises the demand for SAF considerably, in addition to bringing more infrastructure and investment opportunities. Use of renewable feedstocks in SAF production has created new opportunities for neat unblended SAF’s competitive advantages since these resources have been widely marketed, the report added.
The primary hurdle in the expansion of the market is expected to be high fuel cost due to higher crude oil prices, which is rising due to the mismatch between supply and demand, the report said. Because of the weakening global economy and rising interest rates in some Western countries, Saudi Arabia recently curtailed its crude oil production equivalent to 2% of the global supply.