Crude Oil Carrier Market Trends

Key Emerging Trends in the Crude Oil Carrier Market

On a global scale, there has been a significant increase in the number of people traveling by air over the past few years. This rise is influenced by factors such as decreasing airfares, growing disposable income, especially in developing nations, and an improvement in the standard of living. According to the International Air Transport Association (IATA), the global air travel is expected to double by the year 2035. Additionally, it predicts that China will likely surpass the United States and become the world's largest aviation market in terms of passenger traffic by 2024.

The increasing air passenger traffic globally is expected to drive the demand for new aircraft, leading to the expansion of commercial aircraft fleets. As of 2018, there were over 22,000 commercial aircraft worldwide, and the Federal Aviation Administration (FAA) anticipates that more than 40,000 new aircraft will replace the existing ones in the next two decades. This is projected to increase the overall fleet to 45,000 aircraft by the year 2036. Moreover, the growing demand for air travel in developing regions like Asia-Pacific, the Middle East, and Latin America is likely to result in a higher number of aircraft in these areas. However, according to the FAA, over 15,000 aircraft are expected to be delivered in North America and Europe by 2036. This expansion of commercial fleets is expected to generate an increased demand for aviation fuel, thereby driving the growth of the aviation fuel market.

The pie chart below illustrates the distribution of domestic and international aircraft passengers carried by airlines in various regions, including Asia-Pacific, Europe, North America, the Middle East, Africa, and Latin America. Among these regions, Asia-Pacific accounted for the largest share, comprising 34.50% of the total passengers carried in 2019. This showcases the substantial contribution of the Asia-Pacific region to the global air travel market.

In essence, the global increase in air passenger traffic, driven by factors like affordable airfares and improved economic conditions, is poised to impact the aviation industry positively. The surge in demand for new aircraft and the subsequent growth of commercial aircraft fleets are anticipated to propel the need for aviation fuel. As regions like Asia-Pacific take the lead in passenger numbers, the dynamics of the aviation fuel market are expected to evolve accordingly, making it a crucial factor in the industry's continued expansion.