U.S. Aviation Gasoline (AVGAS) Market Size, Share & COVID-19 Impact Analysis, End-user (Private, Commercial, and Military), and Country Forecast, 2023-2030

The U.S. aviation gasoline (AVGAS) market size was worth USD 1.22 billion in 2022 and is projected to grow at a CAGR of 5.52% over the forecast period.

The U.S. has observed an established consumer base for aviation gasoline (AVGAS). The fuel is used in aircraft training schools, private jets, and other areas.  Avgas is an aviation fuel used in aircraft with spark-ignited internal combustion engines. Avgas is distinguished from conventional gasoline used in motor vehicles, which is termed mogas in the aviation context. New technological development in AVGAS is propelling market growth.

For instance, in June 2022, the LIFT Academy flight training program strengthened its collaboration with Diamond Aircraft Industries with new aircraft orders. It took delivery of a Diamond training aircraft, reinforcing its Diamond Aircraft Industries fleet to 47 aircraft, including two DA20 aircraft. LIFT Academy is one of the biggest U.S. operators of Diamond aircraft, as it coaches around 300 flight students every year. In addition, it has one of the most technologically developed fleets in the U.S. Furthermore, it has an option for 50 additional aircraft. Such developments would propel the market during the forecast period.

The COVID-19 pandemic significantly impacted the aviation and aerospace industries, relying on commercial passenger travel. As the demand for air travel fell and stayed low throughout 2020, it affected various areas and stakeholders, including passenger airlines, airports, aviation manufacturers, and repair station owners in the U.S. This hampered the demand and market growth of aviation gasoline (AVGAS).

U.S. Aviation Gasoline (AVGAS) Market Trends

Technological Advancements in the Aviation Industry is Propelling the Aviation Gasoline Market

Advances in aircraft engine technology influence aviation gasoline consumption. More fuel-efficient engines or engines designed to run on alternative fuels could impact the need for traditional AVGAS. Research into hybrid electric and electric propulsion systems for aircraft is gaining traction. These systems could significantly reduce the reliance on AVGAS-powered engines as electric propulsion can be used during certain phases of flight, such as takeoff and landing, where maximum power is required. Technological advancement often leads to more compact, lightweight engines with improved power-to-weight ratios. These factors are promoting the product more and the adoption of the product.

For instance, in June 2023, the SOLiTHOR and Sonaca inked a memorandum of understanding to develop urban air mobility and regional aircraft electrification. This would enable the industry to make more effective utilization of smaller regional airports and go some way to address their under-utilization across the globe - especially in the U.S. and Europe.

U.S. Aviation Gasoline (AVGAS) Market Growth Factors

Increasing Demand for Private Jet Chartering Activity is Accelerating Market Growth

The demand for private jet chartering surges the product demand as these aircraft predominantly use aviation gasoline as their fuel type. As more individuals and businesses show interest in acquiring private jet chartering for personal use, the need for the product increases.

For instance, in May 2023, Chartright Air Group, Canada's largest private jet charter activity provider, opened their latest fixed base operator (FBO), Hangar 64, at the Waterloo International Airport in Canada. This advanced site marks a major accomplishment for Chartright as it would help reinforce its activities to better cater to the industry's rising demands.

RESTRAINING FACTORS

Aircraft Modernization May Restrain Market Growth

Aircraft modernization is restricting the U.S. AVGAS market growth primarily due to the shift toward more advanced and fuel-efficient propulsion technologies. Many modern aircraft models are designed to operate with jet fuel, which is more energy efficient and emits fewer pollutants than aviation gasoline. The preference for jet fuel-powered engines has reduced the demand for AVGAS-powered aircraft. Aircraft emissions are under increasing scrutiny due to environmental concerns.

As regulations become more stringent, aircraft manufacturers focus on developing engines that meet or exceed these standards. For instance, in April 2022, U.S. aviation company Textron Inc. claimed that it would speed up its electric fleet development, starting with the acquisition of a Slovenian electric aircraft company.

U.S. Aviation Gasoline (AVGAS) Market Segmentation Analysis

By End-user Analysis

Based on end-user, the market is segmented into private, commercial, and military.

The private segment held the largest U.S. aviation gasoline market share in 2022 owing to the wide range of small aircraft used for various purposes, such as personal travel, recreational flying, business aviation, and flight training.

Along with private, commercial is also one of the major segments in the market. Due to their vast usage and carbon free features this is widely used in the private and commercial sector.

      •    June 2023 - Verijet, one of the well-known companies and operators of Cirrus Vision Jets, has expanded its service footprint to Canada. After operating in the U.S. in 2019, the air-taxi company commenced providing service in parts of South and Central America and the Caribbean last year.

List of Key Companies in U.S. Aviation Gasoline Market

The U.S. AVGAS market is highly competitive. The major players operating in the market compete with a broad range of companies that produce aviation gasoline and related products. Many of these are the industry's largest, with a U.S. presence, longer operating histories, more significant financial, technical, and other resources, and greater visibility.

In addition, the market includes various small key players with high regional or national competitiveness, enabling them to adopt emerging or new technologies and changing customer demands. Other companies with a considerable presence in the U.S. market include ExxonMobil, Shell, Mestek, BP Plc, Total, and Vitol Group.

LIST OF KEY COMPANIES PROFILED:

• ExxonMobil (U.S.)


• Shell (U.K.)


• BP Plc (U.K.)


• Total (France)


• Vitol Group (Switzerland)


• Phillips 66 (U.S.)


• Chevron Corporation (U.S.)


• Repsol (Spain)


• Avfuel Corporation (U.S.)


• EPIC Fuels (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2022: Jet Luxe declared impressive growth in the Americas. The company claimed its major expansion in the U.S. and the rest of the world. Highlights comprise a supplementary addition of 8 jets to the global and U.S.-based fleet.


• February 2022: The FAA joined the petroleum and aviation sector participants to announce an inclusive public-private collaboration for transitioning to lead-free aviation fuels for piston-engine aircraft by 2030. The EAGLE (Eliminate Aviation Gasoline Lead Emissions) initiative would expand and speed up industry and government investments and actions and establish the essential activities and policies to license existing and new general aviation aircraft for lead-free operation without compromising general aviation's economic and broader public benefits and aviation safety.


• March 2021: NovaJet, one of the key companies in the aircraft charter business, reinforced its presence by opening its base in the Waterloo International Airport region.

REPORT COVERAGE

The report provides a detailed market analysis. It is focused on providing key information for products offered, leading segment information, key market developments, and leading product applications. Besides all the information, the report provides insights into the market trends and highlights key industry developments. The above factor will reflect the market growth.

Report Scope & Segmentation