Aerospace and Defense Fuel Market – Global Industry Analysis, Size, Share, Trends, Analysis, Growth and Forecast 2014 – 2020


The global Aerospace & Defense industry has experienced rapid transformation in the last few months. Following a steep decline in the orders and backlogs in the year 2008 and 2009, aircraft manufacturing companies are witnessing phenomenal growth in the near future. This strong recovery is majorly driven by the commercial aviation segment as global passenger traffic is rising rapidly by 10% – 12% every year. Also contributing to the aviation industry’s growth are the overall improvement of the global economy, the entry of low-cost carriers and rising demand of aircrafts from developing economies especially India and China.

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The two major players have already increased their production plans: Airbus increased the rate to 36 per month of its plane A320 by the end of 2010 and expected to reach 46 per month by 2015. Boeing is also ramping up its manufacturing rate of its plane 737 to 42 per month by 2015 and in future it is expected to reach higher. Airbus and Boeing continues to dominate the commercial aircraft market whereas bombardier and embraer dominates the smaller aircraft segments which include business and regional jets.

However, inspite of the high manufacturing rate, aviation fuel prices still remain a major concern and is hampering the industry growth. In the year 2011, International Air Transport Association (IATA) has lower down its forecast for airline industry profits from USD 9.10 billion to USD 8.60 billion due to the increase in crude oil prices.

Global economic recovery has created the demand for oil across the globe thereby creating huge pressure on energy prices. Further, the political turmoil in the Middle East has also added to the surge in oil prices. In terms of geography, Latin American, Asia Pacific and African airlines are benefiting from the strong economic growth and are experiencing substantial gains in the traffic. For manufacturers, Asia Pacific is the largest source of order backlog. Weak domestic markets of Europe are affecting the airlines, although outbound freight business travel and look positive.

Aerospace & Defense industry contains manufacturers from military and civil aerospace and defense procurements. The defense procurement segment comprises revenues earned from military aerospace and defense electronics while civil aerospace segment involves revenues earned from civilian planes. The A&D industry can be segmented into regional aircraft, large commercial aircraft, helicopter and business jets. However, with the fluctuating dynamics of the industry these segments are gradually blending into one another.

Increasing investments and emerging economies are some of the key drivers of the aerospace and defense fuel market. However, rising aviation fuel prices can hinder the growth of the market in the coming future. Ample opportunities are there for aerospace and defense fuel market as passenger travel demand is increasing in Asia Pacific countries especially India and China.

Some of the key players in the Aerospace and defense fuel market include Bharat Oman Refineries Ltd, Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd, Essar Oil Ltd, Reliance Industries Ltd, Royal Dutch Shell Plc, Chennai Petroleum Corporation Limited, Kuwait Aviation Fuelling Company and Bahrain Petroleum Company among others.

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