India Aviation Fuel Market Overview, 2029

India's aviation fuel business plays a pivotal role in powering the country's rapidly growing aviation sector. As one of the fastest-growing aviation markets globally, India has witnessed a surge in air travel demand, leading to increased consumption of aviation fuel, also known as jet fuel or ATF (Aviation Turbine Fuel). The aviation fuel business in India encompasses a complex network of suppliers, distributors, airports, airlines, and regulatory authorities, all working together to ensure the efficient supply and management of fuel for the aviation industry. India's aviation fuel business is governed by the Directorate General of Civil Aviation (DGCA) and the Petroleum and Natural Gas Regulatory Board (PNGRB), which oversee safety standards, pricing mechanisms, quality control, and licensing requirements for aviation fuel operations. The introduction of dynamic pricing mechanisms based on international crude oil prices has brought greater transparency and efficiency to the aviation fuel market in India. The pricing of aviation fuel in India is influenced by several factors, including international crude oil prices, exchange rates, taxes, and government policies. The introduction of dynamic pricing mechanisms has brought greater transparency and efficiency to fuel pricing, aligning it with global market trends. India has a vast network of airports, ranging from major international hubs to smaller regional airports. Each airport has dedicated facilities for storing and handling aviation fuel, including fuel farms, hydrant systems, and fueling stations. Challenges facing India's aviation fuel business include fluctuating fuel prices, supply chain disruptions, infrastructure constraints, environmental concerns, and the need for sustainable fuel alternatives. The industry is also exploring initiatives such as biofuels, fuel hedging, and fuel efficiency measures to mitigate risks and enhance sustainability. Stringent quality control measures are implemented to ensure the purity and compliance of aviation fuel with international standards. Safety protocols, inspections, and audits are conducted regularly to prevent fuel contamination, spills, and other hazards. Continuous monitoring and analysis of market trends, fuel demand, consumption patterns, and global fuel prices help stakeholders make informed decisions regarding fuel procurement, storage, pricing, and distribution strategies. India is increasingly focusing on sustainability initiatives in the aviation sector, including the promotion of biofuels, renewable energy sources, and fuel efficiency measures. Efforts are made to reduce carbon emissions, improve fuel efficiency, and minimize the environmental impact of aviation fuel usage. According to the research report "India Aviation Fuel Market Overview, 2029," published by Bonafide Research, the India Aviation Fuel market is anticipated to grow with more than 10.50% CAGR from 2024 to 2029. Several factors contribute to the dynamics of India's aviation fuel market. One key factor is the global crude oil prices, which directly impact the cost of aviation fuel. Another significant factor is the growth of air travel demand in India, driven by factors such as economic growth, rising disposable incomes, tourism trends, and increasing connectivity. This growing demand for air travel translates to higher consumption of aviation fuel in the country. The aviation fuel market in India is heavily influenced by factors such as economic growth, airline fleet expansion, tourism trends, fuel prices, infrastructure development, and regulatory policies. Major oil companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) are key players in the aviation fuel business, operating refineries, fuel storage facilities, and distribution networks across the country. Infrastructure development is another factor, as India continues to invest in airport infrastructure, fuel storage facilities, fueling stations, and distribution networks to meet the growing demand for aviation fuel efficiently. With a growing population and rising disposable incomes, more people are opting for air travel for both business and leisure purposes, leading to a surge in domestic and international passenger traffic. This rise in air passenger demand has directly translated into a higher consumption of aviation fuel across the country's airports. Furthermore, the emergence of low-cost carriers (LCCs) has democratized air travel, making it more affordable and accessible to a wider segment of the population. The expansion of airline fleets, the development of new airports, and improved connectivity to smaller cities and towns have also contributed to the escalating demand for aviation fuel in India.

Based on the report, the types of fuels are segmented into Conventional fuel, Sustainable fuel, and AVGAS. In terms of Conventional, Aviation Turbine Fuel (ATF) or Jet A-1 is the standard fuel used in turbine engines of commercial airliners, business jets, and military aircraft. It is a refined kerosene-based fuel that meets international standards such as ASTM D1655 and DEF STAN 91-91. It has specific properties like a high flash point, low freezing point, and good combustion characteristics, making it suitable for a wide range of operating conditions. It is supplied by major oil companies in India and is widely available at airports across the country. Sustainable Aviation Fuels (SAF), alternative fuels produced from renewable feedstocks such as biomass, waste oils, agricultural residues, and synthetic processes powered by renewable energy sources. SAF is gaining traction globally as a way to reduce aviation's carbon footprint and lower greenhouse gas emissions. In India, initiatives and research are underway to explore the production and adoption of SAF in the aviation sector. Aviation Spirit, commonly known as Avgas, is a specialized type of aviation gasoline used for piston-engine aircraft, including small planes, helicopters, and vintage aircraft. Avgas has different specifications and properties compared to turbine fuels like Jet A-1. It typically has higher octane ratings to meet the needs of piston engines in these aircraft. Based on the report, the types of End-users are segmented into Commercial, Military, and Private User. Commercial airlines operating scheduled passenger and cargo flights are among the largest users of aviation fuel in India. These airlines include both domestic carriers like IndiGo, SpiceJet, Vistara, Air India, and GoAir, as well as international airlines serving Indian airports. They use aviation fuel (such as Jet A-1 or ATF) to power their fleet of aircraft for transporting passengers and cargo domestically and internationally. Private and business aviation users in India include individuals, corporations, charter operators, and business jet owners. These users often operate smaller aircraft, business jets, turboprops, and helicopters for various purposes, including executive travel, leisure flights, air charters, aerial surveys, medical evacuations, and more. They also rely on aviation fuel, including Jet A-1 and Avgas, depending on the type of aircraft they operate. The military and defense forces in India, including the Indian Air Force (IAF), Navy, and Army Aviation Corps, use aviation fuel for their fleet of military aircraft and helicopters. These aircraft are used for defense operations, training exercises, reconnaissance missions, transport, air support, and other strategic purposes. They require specialized fuels meeting military specifications for their operations. Based on the report, the types of Aircrafts are segmented by Fixed-wing, Rotorcraft and others. In terms, fixed wing aircrafts are large, passenger-carrying aircraft operated by airlines for scheduled passenger and cargo flights. Business jets cater to executive travel needs, offering private, efficient, and flexible air transportation for corporate executives, business leaders, and high-net-worth individuals. General Aviation Aircraft includes single-engine and multi-engine piston aircraft, turboprops, and light jets used for personal flying, flight training, aerial photography, recreational flights, and air charter services. Fixed-wing special mission aircraft are employed for aerial surveillance, reconnaissance, border patrol, environmental monitoring, aerial fire-fighting, and scientific research purposes. Civil helicopters are used for VIP transport, offshore operations, emergency medical services (EMS), search and rescue (SAR) missions, law enforcement, aerial surveys, tourism, and corporate shuttle services. Military rotorcraft are utilized by the Indian Armed Forces for troop transport, combat support, reconnaissance, anti-submarine warfare (ASW), special operations, disaster relief, and logistical support. training Aircraft used for pilot training, including single-engine trainers, multi-engine trainers, flight simulators, and training aircraft for commercial pilot programs. Aerial Survey and Monitoring Aircraft are specialized aircraft equipped with sensors and equipment for aerial mapping, geospatial surveys, environmental monitoring, wildlife conservation, and agricultural assessments.

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Prashant Tiwari

Research Analyst

The extraction method of aviation fuel in India primarily involves refining crude oil through a complex process to obtain the desired aviation-grade fuel, such as Jet A-1 and Aviation Turbine Fuel (ATF). The process begins with the sourcing of crude oil from domestic production or imports. Once the crude oil is obtained, it undergoes a refining process at petroleum refineries, where it is subjected to various processes like distillation, cracking, and hydrodesulfurization (HDS). Hydrodesulfurization is particularly crucial as it removes sulfur compounds from the refined kerosene fraction, ensuring compliance with international quality standards and reducing environmental impact. The refined kerosene is then further fractionated and blended with additives to meet specific requirements such as flash point, freezing point, viscosity, and stability for aviation fuel. Quality control measures are rigorously applied throughout the extraction and refining process to ensure that the aviation fuel produced meets the stringent standards set by regulatory authorities and industry organizations. Once the aviation fuel is refined and quality-checked, it is distributed through a well-established network of pipelines, tanker trucks, and storage facilities to airports across India, where it is then made available for use by airlines, private operators, and other aviation stakeholders. Major oil companies play a vital role in the production, distribution, and supply of aviation fuel in India, contributing to the safe and efficient operation of aircraft in the country. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Aviation Fuel market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Fuel Type • Conventional Fuel • Sustainable Fuel • AVGAS

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By End User • Commercial • Private • Military By Aircraft Type • Fixed Wing • Rotorcraft • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Aviation Fuel industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.