Market Trends of Europe Defense Aircraft Aviation Fuel Industry
This section covers the major market trends shaping the Europe Defense Aircraft Aviation Fuel Market according to our research experts:
Air Turbine Fuel (ATF) to Dominate the Market
- The government of Europe maintains separate specifications for jet fuel for military use. The reasons for separate specifications include the operational and logistical differences between the military and civilian systems.
- JP fuels are military designations of jet fuels or air turbine fuel based largely on commercial kerosene-based fuels. JP-8 is also known as JET F-34.
- JP-8 is the military equivalent of Jet A-1 with the addition of corrosion inhibitor and anti-icing additives. It is the dominant military jet fuel grade for NATO airforces. The United Kingdom also has a specification for this grade namely DEF STAN 91-87 AVTUR/FSII (formerly DERD 2453).
- In Europe, members of NATO are also increasing defense budgets to reach a defense spending target of 2% of GDP. Hence, the demand for military-grade jet fuels is expected to increase in the market.
- Germany has a total of 712 military aircraft as of 2019 and had the highest military spending in Europe that rose by 10% in 2019, to USD 49.3 billion. Therefore, new aircraft are expected to be instated, which would further promulgate aviation turbine fuel demand.
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The United Kingdom to Dominate the Market
- The jet fuel consumption in the country increased exponentially, reaching 267.46 thousand barrels per day in 2019. Part of it is supported by the United Kingdom defense sector.
- The total number of aircraft in the United Kingdom's air force was 601 as of April 2019. Further, 17 new F-35B aircraft are to be delivered between 2020 and 2022, with the country committed to procuring more than 138 aircraft in the coming year.
- Furthermore, the United Kingdom's government plans to invest in GBP2 billion on Tempest, a new fighter aircraft project (under development) by 2025.
- Hence, the dominancy of the defense sector in the country is expected to drive the European defense aircraft aviation fuel market during the forecast period.
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