| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 4.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Defense Aircraft Aviation Fuel Market Analysis
The South America Defense Aircraft Aviation Fuel Market is expected to register a CAGR of greater than 4% during the forecast period.
The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns. Currently, the market has reached pre-pandemic levels.
- Factors such as the security threats from a neighboring country and local or regional terror groups intensified, requiring governments around South America to continue increasing their defense budgets. Moreover, in recent decades, South America has witnessed an increasing number of aircraft fleets for the air force as well as for the navy, which is likely to drive the defense aircraft aviation fuel market.
- However, the government is reducing defense expenditure, which is likely to hinder the South American defense aircraft aviation fuel market in the coming future.
- Increasing concerns over emissions from aircraft and initiatives by governments to adopt modern engines and bio-fuel blended aviation fuel to reduce emissions are expected to provide significant opportunities for the defense aircraft aviation fuel market in the future.
- Brazil is likely to dominate the South American defense aviation fuel market owing to its growing defense budget.
South America Defense Aircraft Aviation Fuel Market Trends
Air Turbine Fuel to Dominate the Market
- Defense expenditure was expected to grow between 3 and 4% in 2022 as governments in the region continued to modernize and recapitalize their militaries. Subsequently, the defense aviation sector is also expected to increase, paving the way for the addition of new aircraft in the defense sector.
- The governments of many countries maintain separate specifications for jet fuel for military use. The reasons for different specifications include the operational and logistical differences between the military and civilian systems and the additional demands high-performance jet fighter engines place on the fuel.
- In 2022, Brazil was expected to have the highest number of military aircraft (679 units), followed by Columbia (454 units) and Chile (290). However, the United States, Europe, or Russia all produce a lot of aircraft for South American nations.These aircraft are using air turbine fuel (majorly jet A-1 fuel) and, therefore, are likely to drive the South American defense aviation fuel market during the forecast period.
- On September 22, 2021, the Argentinian Ministry of Defense (MoD) announced that, by means of a Public Credit Operations Authorization Note, it requested the inclusion in the 2022 Budget of the authorization to manage credit for up to USD 664 million for the acquisition of multipurpose fighter aircraft for the surveillance and control of the air space. All the aforementioned points are likely to increase and strengthen the region's air force capacity, thus increasing the demand for aviation fuel from the new aircraft.
- In turn, factors such as operating technology and government regulation are driving air turbine fuel, which is expected to drive the South American defense aviation fuel market.
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Brazil to Dominate the Market
- Brazil is the largest consumer of aviation fuel in South America. The products specified for use in aircraft in the country are aviation kerosene (QAV), aviation gasoline, and alternative aviation kerosene (alternative QAV). The country has the most significant air force and navy in the region, with a total of 679 military aircraft.
- The sales of total aviation fuels remained stable in the past few years, with 5.14 billion liters of aviation diesel sold in 2021 and 40.5 billion liters of aviation gasoline sold in the same year, of which only 6% to 8% were used for defense purposes.
- Further, in South America, Brazil is expected to pioneer the development of renewable fuels from sugarcane, which are expected to replace traditional jet fuel. Currently, although there are no specific federal policies in place for sustainable aviation fuel (SAF), initiatives are in place at the state level.
- Over the years, many organizations, such as The Boeing Company, have been working aggressively to initiate the supply of sustainable aviation biofuels while reducing Brazil's carbon emissions.
- This, in turn, is likely to boost the defense aviation fuel market in the country, which is expected to support the growth of the South American defense aircraft aviation fuel market during the forecast period.
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South America Defense Aircraft Aviation Fuel Industry Overview
The South America defense aircraft aviation fuel market is moderately concentrated. Some of the key players in this market (in no particular order) include Petróleo Brasileiro S.A., Shell PLC, BP plc, TotalEnergies SE, Repsol S.A., and others.
South America Defense Aircraft Aviation Fuel Market Leaders
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Petróleo Brasileiro S.A.
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BP PLC
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Repsol S.A.
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TotalEnergies SE
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Shell PLC
- *Disclaimer: Major Players sorted in no particular order
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South America Defense Aircraft Aviation Fuel Market News
- March 2022: United Airlines, through its corporate venture capital fund, United Airlines Ventures (UAV), and Oxy Low Carbon Ventures (a subsidiary of Occidental), announced a collaboration with Houston-based biotech firm Comvita Factory to commercialize the production of sustainable aviation fuel (SAF) developed through a new process using carbon dioxide (CO2) and synthetic microbes.
- December 2022: The Brazilian Air Force (FAB) announced the start of operational activities for its Gripen E fighter aircraft at the Anápolis Air Base (BAAN) in the country.
South America Defense Aircraft Aviation Fuel Industry Segmentation
Aviation fuels are petroleum-based fuels used to power aircraft. These fuels must meet strict requirements for flying characteristics such as flashpoint and freezing point. The South American defense aviation fuel market is segmented into fuel type and geography. By fuel type, it is segmented into air turbine fuel and other fuel types. The report also covers the market size and forecasts for the defense aircraft aviation fuel market across major countries in the region. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Fuel Type | Air Turbine Fuel |
| Other Fuel Types | |
| Geography | Brazil |
| Venezuela | |
| Chile | |
| Rest of South America |
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South America Defense Aircraft Aviation Fuel Market Research FAQs
What is the current South America Defense Aircraft Aviation Fuel Market size?
The South America Defense Aircraft Aviation Fuel Market is projected to register a CAGR of greater than 4% during the forecast period (2025-2030)
Who are the key players in South America Defense Aircraft Aviation Fuel Market?
Petróleo Brasileiro S.A., BP PLC, Repsol S.A., TotalEnergies SE and Shell PLC are the major companies operating in the South America Defense Aircraft Aviation Fuel Market.
What years does this South America Defense Aircraft Aviation Fuel Market cover?
The report covers the South America Defense Aircraft Aviation Fuel Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Defense Aircraft Aviation Fuel Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America Defense Aircraft Aviation Fuel Industry Report
Statistics for the 2025 South America Defense Aircraft Aviation Fuel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Defense Aircraft Aviation Fuel analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
