Aviation Fuel Terminals Market in India

Aviation Fuel Terminals Market Outlook in India 2034

• The industry was valued at US$ 141.2 Mn in 2023
• It is estimated to grow at a CAGR of 2.7% from 2024 to 2034 and reach US$ 189.5 Mn by the end of 2034

Analyst Viewpoint

Rise in air travel is augmenting the aviation fuel terminals market value in India. Domestic and international air traffic is growing at a rapid pace in the country due to a rise in the middle-class population.

Surge in investment in aviation infrastructure is also propelling the aviation fuel terminals market statistics in India. The privatization of airports has provided a significant boost to the aviation sector, with huge investments being made in airport infrastructure.

Key players operating in the Indian aviation fuel terminals market are focused on self-reliance and de-carbonization of the aviation sector in line with their commitment to achieving Net Zero in the near future. They are emphasizing energy transition and the use of alternative fuels such as Sustainable Aviation Fuel (SAF).

Market Introduction

Reliable fuel supply significantly impacts the financial and operational viability of flights. Aviation fuel terminal forms a vital part of the fuel supply chain. It generally includes a tanker berth facility for fuel unloading, a fuel transfer pipeline, a fuel storage tank, and a delivery pump with hydrant piping.

Insufficient fuel capacity could lead to canceled flights, diversions, or payload limitations. Thus, stakeholders in the aviation sector are investing heavily in airport fuel terminals, thereby contributing to the aviation fuel terminals market demand in India.

Growth in Air Travel Boosting Aviation Fuel Terminals Market Size in India

The aviation sector in India has been growing at a rapid pace in the recent past. According to the ICRA, a rating agency, domestic air passenger traffic is estimated to grow at 8-13% to rise further to 165-170 million in FY2025.

Moreover, the international passenger traffic for Indian carriers exceeded the pre-COVID levels in the financial year 2023. Such growth in air traffic is augmenting the aviation fuel terminals market dynamics in India.

Surge in Investment in Aviation Infrastructure Driving Market Expansion

As the airline business is booming in India, the government is significantly investing to build new airports and refurbish existing ones. The government is expected to spend US$ 11.88 Bn by 2025 to construct airports and modernize existing ones.

Moreover, private companies in the aviation sector are also investing to boost regional connectivity, which is projected to spur the aviation fuel terminals market growth in India in the near future.

In February 2024, Air India and Tata Advanced Systems Limited (TASL) signed a memorandum of understanding (MoU) with the Government of Karnataka for setting up various aviation manufacturing and R&D facilities in Karnataka.

Aviation Fuel Terminals Market Trends in India

Major airports in India are offering technical landings for refueling aircraft flying on international routes. The fuel crisis in Sri Lanka has boosted aviation turbine fuel (ATF) sales in South Indian airports such as Thiruvananthapuram, Cochin, and Chennai.

In 2022, Cochin International Airport started facilitating technical landing for airplanes flying on international routes.

Airlines bound to Colombo from the Middle East or flying out from Colombo to the Middle East/European destinations have started using the Cochin airport refueling facility post the Sri Lankan fuel crisis. This, in turn, is propelling the aviation fuel terminals market development in India.

Major vendors in the market are investing in Sustainable Aviation Fuel (SAF) to reduce lifecycle carbon emissions. In 2023, Indian Oil Corporation announced plans to establish a joint venture with LanzaJet Inc., a US-based clean energy technology company, and multiple domestic airlines, for SAF production.

The Government of India is increasingly promoting the use of alternative and sustainable fuel in the aviation sector. Unlike traditional jet fuels, SAF is produced from non-petroleum-based renewable feedstocks such as used cooking oil and animal fat waste.

It has the potential to reduce greenhouse gas emissions. Hence, surge in investment in SAF is driving the aviation fuel terminals market revenue in India.

Analysis of Key Players

Key players operating in the aviation fuel terminals market landscape in India are investing in fleet safety in high-activity environments such as airports. They are leveraging real-time advanced analytics and driver alerts to ensure the safety standards set by the Directorate General of Civil Aviation (DGCA), a government organization that regulates civil aviation in India.

They are also deploying multi-camera functionality to boost driver visibility. This is expected to minimize risks in high-activity areas around aircraft during refueling.

Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), Reliance Industries Limited (RIL), Essar Oil Limited, Adani Enterprises Limited, Nayara Energy Limited, Shell India Markets Private Limited, GMR Hyderabad Aviation SEZ Limited, and Airports Authority of India (AAI) are major players operating in the aviation fuel terminals industry in India.

These companies have been profiled in the aviation fuel terminals market report in India based on various parameters including company overview, business segments, product portfolio, recent developments, business strategies, and financial overview.

Key Developments

• In February 2024, Netradyne, a provider of AI technology for fleet and driver safety, collaborated with IndianOil Skytanking, an aviation fuel management and airline fueling service provider, to offer its flagship platform, Driver•i, an advanced fleet safety camera platform that uses vision-based technologies to enhance driver safety, mitigate risks, and improve overall fleet management at airports across India.
• In February 2024, Cochin International Airport Limited (CIAL) partnered with BPCL Kochi Refinery to set up a 1000-kilowatt green hydrogen plant on the airport premises. The fuel generated from the plant will be used for operating vehicles owned by CIAL.

Aviation Fuel Terminals Industry Snapshot in India