At 10.0% CAGR, Asia Pacific Aviation Fuel Card Market is Projected to be Worth US$ 699.74 Million by 2030, says Business Market Insights

According to Business Market Insights' research, the Asia Pacific aviation fuel card market was valued at US$ 326.18 million in 2022 and is expected to reach US$ 699.74 million by 2030, recording a CAGR of 10.0% from 2022 to 2030. Growing demand for the cost optimization using fuel cards and growing adoption of sustainable aviation fuel are among the critical factors attributed to drive the Asia Pacific aviation fuel card market growth.

Fuel is considered one of the most expensive aspects of organizing a flight. Fuel price hikes have a significant impact on airlines. Aircraft use 3-3.5 liters of fuel per 100 passengers per kilometer. As a result, in the current market, fuel expenses account for 20-25% of overall costs and can occasionally surpass 30%. The fuel cost highly affects the overall profitability of the company positively or negatively depending on the overall fuel spends. The cost of gasoline per gallon in January 2023 was US$ 3.28, 4.3% more than in December 2022, which was US$ 3.14 and 71.7% higher than in January 2019. Total fuel expenditure in January 2023 reached US$ 4.63 billion, a 70.6% hike from pre-pandemic January 2019. Hence, aviation fuel consumption and volatility in prices are rapidly increasing. Thus, airlines across the globe concentrate on reducing their overall fuel consumption in order to achieve cost optimization.

Fuel card helps in fuel reduction practices such as flight planning, weight management, fleet maintenance, and eco-piloting, which include optimizing take-off and landing procedures, employing the best thrust and speed settings, and limiting the need for auxiliary power units are undertaken by airline companies Thus, identifying the need for a reduction in fuel consumption, many aviation fuel producers started offering aviation fuel card programs. Fuel cards make efficient fuel planning and routing achievable, assisting in the optimization of fleet operations. Fleet managers can find out the most fuel-efficient routes by examining fuel usage data; this reduces redundant deviations or delays. Fuel card data can aid in the scheduling of aircraft maintenance. Airlines always know when an aircraft is due for planned maintenance because they track efficiency, hours of use, and usage trends over time. Various merchant aviation fuel card providers and branded aviation fuel card providers offer lucrative programs to gain the attention of large and small airline operators. For instance, in 2021, Total Energies launched the tax-inclusive JET A-1 fuel card. For these cardholders, the company started providing special fuel rates program, under this program fuel producing company started providing the cardholders at the constant rate across the cardholder's country. Thus, the high requirement for fuel consumption reduction and the benefits offered by fuel cards, such as fuel consumption tracking, route optimization, and fixed fuel rates across the country, are driving the demand for aviation fuel cards.

On the contrary, presence of alternative payment methods hamper the growth of Asia Pacific aviation fuel card market.

Based on type, the Asia Pacific aviation fuel card market is bifurcated into merchant and branded. The Merchant segment held 72.3% Asia Pacific aviation fuel card market share in 2022, amassing US$ 235.93 million. It is projected to garner US$ 517.47 million by 2030 to register 10.3% CAGR during 2022-2030.

In terms of application, the Asia Pacific aviation fuel card market is bifurcated into commercial and private. The commercial segment held 82.9% share of Asia Pacific aviation fuel card market in 2022, amassing US$ 270.48 million. It is anticipated to garner US$ 593.75 million by 2030 to expand at 10.3% CAGR during 2022-2030.

Based on country, the Asia Pacific aviation fuel card market is categorized into Australia, India, China, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 45.5% share of Asia Pacific aviation fuel card market in 2022. It was assessed at US$ 148.41 million in 2022 and is likely to hit US$ 307.19 million by 2030, registering a CAGR of 9.5% during 2022-2030.

Key players operating in the Asia Pacific aviation fuel card market are Associated Energy Group LLC, Avfuel Corp, BP Plc, Shell Plc, TITAN Aviation Fuels Inc, TotalEnergies SE, and Viva Energy Group Ltd, among others.

• In September 2023, Viva Energy announced the launch of the Reddy Express brand, which will gradually replace the Coles Express brand across Australia and operate alongside the On The Run (OTR) offer as we roll out the store conversions.

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