Global Kerosene Market Size, Share, Type, Product Type, Grade, Distribution Channel, End-User, Demand & Supply, Application, Regional Demand, Company Share, 2025-2035

Global Kerosene Market Insights Forecasts to 2035

• The Global Kerosene Market Size Was Estimated at USD 49.50 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 5.11% from 2025 to 2035
• The Worldwide Kerosene Market Size is Expected to Reach USD 85.60 Billion by 2035
• North America is expected to grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, The Global Kerosene Market Size was worth around USD 49.50 Billion in 2024, Growing to USD 51.98 Billion in 2025, and is predicted to grow to around USD 85.60 billion by 2035 with a compound annual growth rate (CAGR) of 5.11% from 2025 to 2035. Opportunities in the kerosene market include increased energy access in underserved areas, growing domestic heating and cooking demand, the possibility of cleaner fuel substitutes, government subsidies, and an increase in industrial applications, all of which propel market growth and sustainable energy solutions on a global scale.

Global Kerosene Market Forecast and Revenue Size

• 2024 Market Size: USD 49.50 Billion
• 2025 Market Size: USD 51.98 Billion
• 2035 Projected Market Size: USD 85.60 Billion
• CAGR (2025-2035): 5.11%
• Asia Pacific: Largest market in 2024
• North America: Fastest growing market

Market Overview   

The global manufacturing, distribution, and trade of kerosene, a light petroleum distillate that is mostly obtained from the refining of crude oil but can also be obtained from coal, wood, or shale, are all included in the kerosene market. Kerosene is known for its versatility and is used in a wide range of applications, such as chemical feedstocks, airplane fuel (Type 1-K jet kerosene), home heating through cookstoves and lamps, and agricultural equipment. The aviation industry dominates this market due to increased air traffic and socioeconomic growth. According to Bharat Petroleum Corporation Limited (BPCL), a Fortune Global 500 and Maharatna company, it has announced the launch of Low Smoke Superior Kerosene Oil (SKO) for the Indian Army in Jammu, becoming the first OMC to supply LSLA grade SKO to improve high-altitude operational conditions. The expansion of the aviation industry and technological developments in fuel efficiency are major factors driving the growth of the kerosene market. The grade of kerosene used in the aviation sector is marginally higher than that of kerosene used in other applications. The need for kerosene has grown in tandem with the increase in air travel in recent years, propelling the kerosene market.    

Key Market Insights

• Asia Pacific is expected to account for the largest share in the kerosene market during the forecast period.     
• In terms of type, the type 1-K segment is projected to lead the kerosene market throughout the forecast period   
• In terms of application, the aviation segment captured the largest portion of the market       

Kerosene Market Trends

• Residential usage has decreased as a result of the availability of cleaner energy sources and rural electrification.
• Government subsidy cuts affect affordability, particularly in developing nations.
• Expansion of regional demand in regions of Africa and Asia where kerosene is still the predominant energy source.
• Price fluctuations for crude oil affect the stability of the market and the cost of producing kerosene.
• Long-term dependence on kerosene is being reduced by policy changes toward energy sustainability.

Report Coverage  

This research report categorizes the kerosene market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyzes the key growth drivers, opportunities, and challenges influencing the kerosene market. Recent market developments and competitive strategies, such as expansion, Type launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyzes their core competencies in each sub-segment of the kerosene market.     

Driving factors:

The growth of low-cost carriers and improved connections in emerging nations further support the kerosene market. The market has expanded as a result of technological developments in refining procedures. A number of industrial, sociopolitical, and economic factors supply and demand in the kerosene market. The demand from the aviation sector, where kerosene is a crucial part of jet fuel, is one of the main factors driving the kerosene market. Additionally, government subsidies and programs are important since they lower the cost of kerosene and increase its accessibility for low-income groups. Price fluctuations for kerosene on the market are directly driven by changes in the price of crude oil globally.  

Restraining Factors:  

The Market Size for Kerosene is restricted by a number of factors, including rising environmental standards, declining government subsidies, the growing use of cleaner energy sources, and fluctuating crude oil prices. These elements all work together to lower demand and pose long-term sustainability and growth challenges.

Market Segmentation    

The global kerosene market is divided into type and application.

Global Kerosene Market, By Type:   

What makes Type 1-K kerosene the preferred choice for portable stoves and indoor heating appliances?

The type 1-K segment led the kerosene market, generating the largest revenue share. The cleaner burn and reduced fragrance emissions of type 1-K kerosene, which has fewer contaminants like sulfur, make it the preferred choice for portable stoves and indoor heating appliances. The

Type 1-K segment is ascribed to its extensive household use, particularly in developing nations and colder climates, where kerosene heaters are still widely used.   

The type 2-K segment in the Kerosene market is expected to grow at the fastest CAGR over the forecast period. Type 2-K kerosene is used mostly for outdoor or industrial activities where ventilation is less of a problem, as it has slightly greater sulfur content. Growing demand for heating solutions for construction and industry, especially in emerging economies and remote operations, is driving this expansion.  

Global Kerosene Market, By Application:     

What factors have contributed to growth in the aviation industry recently?

The aviation segment held the largest market share in the kerosene market. Jet fuel's main ingredient, kerosene, is necessary for both military and commercial aviation. The post-pandemic comeback in global air travel, fleet expansions, and increased cargo transport contributed greatly to the aviation sector. The need for kerosene in aviation has been further fueled by the robust expansion of airline operations in major economies, including the US, China, and the Middle East.

The chemicals segment in the kerosene market is expected to grow at the fastest CAGR over the forecast period. Kerosene is a vital feedstock and solvent in the production of chemicals, especially in developing nations where industrial growth is quickening. The demand for kerosene in this industry is rising due to the expansion of petrochemicals, specialized chemicals, and synthetic lubricants.   

Regional Segment Analysis of the Global Kerosene Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific Kerosene Market Trends

Which countries in the Asia-Pacific region are fast-growing economies impacting kerosene demand?

Economic, industrial, and demographic variables all have a role in the region of the Asia-Pacific. China, India, Indonesia, and other Southeast Asian nations are among the fast-rising economies in this region, where kerosene remains a vital component of both domestic and commercial energy usage. The Yulong Petrochemical Complex and Huajin plant in China, the Panipat expansion in India, and the Barmer greenfield project are examples of recently started projects that are expected to increase Asia's refining capacity by 2.2 mb d, reaching 33.8 mb d by 2026. The aviation industry, which uses a lot of jet fuel based on kerosene, is also expanding significantly in the region.

China Kerosene Market Trends

Why is jet fuel demand increasing in China?

The growing industrial and aviation sectors in China are the main drivers of the kerosene market's importance in the Asia Pacific area. Jet fuel, a significant kerosene derivative, is in high demand due to rising domestic and international aviation travel. The opening of large facilities like Yulong and Huajin, which demonstrate the government's investment in refining capacity, is anticipated to greatly increase kerosene production.  

Japan Kerosene Market Trends

What factors contribute to the steady demand for kerosene in Japan?

The Market Size for Kerosene in Japan is characterized by steady demand, mostly for heating and aviation applications. With a well-established delivery network, kerosene continues to be a vital household heating fuel in colder climates, particularly during the winter.  Although there can be short-term stability in some industries, Japan's energy policies place a strong focus on lowering reliance on fossil fuels, which could affect long-term kerosene consumption.

North America Kerosene Market Trends

Why is kerosene-based jet fuel demand increasing in North America?

The strong growth of the aviation industry, especially in the US and Canada, where demand for air travel is still increasing after the pandemic, is a major factor in this expansion. Kerosene-based jet fuel accounts for a sizable portion of the region's total kerosene demand, and its consumption is directly increased by the growing number of domestic and international flights. Cenovus Energy has announced the Q2 2025 completion of maintenance at its Wood River and Borger refineries, enhancing kerosene output, while Phillips 66 announced its Rodeo facility will produce 800 billion gallons of renewable jet fuel annually from Q4 2025.  

U.S Kerosene Market Trends

What is the primary driver of the U.S. kerosene industry?

The demand for jet fuel, which continues to account for a sizable portion of total kerosene consumption, is the primary driver of the U.S. kerosene industry. The nation continues to invest in infrastructure and refining capacity to support the supply of jet fuel because it has one of the biggest commercial aviation sectors in the world. The use of kerosene in homes and businesses has decreased over time as cleaner energy sources have been used.

Canada Kerosene Market Trends

Which industries primarily rely on kerosene in Canada?

The Kerosene zarket in Canada is modest; it is essential to some industries, including remote area heating and aviation. Kerosene continues to be a reliable energy source in rural and northern regions because access to gas and electrical infrastructure is restricted. Jet fuel based on kerosene is also steadily in demand due to the aviation sector. Stable supply chains are supported by Canada's sophisticated refining capabilities and continuous infrastructural upgrades.

Competitive Analysis:     

The report offers the appropriate analysis of the key organizations/companies involved within the global kerosene market, along with a comparative evaluation primarily based on their Type of offerings, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes Type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Worldwide Top Key Players in The Kerosene Market Include

• BP
• Total
• Shell
• Rosneft
• Chevron
• Gazprom
• SINOPEC
• PetroChina
• ExxonMobil
• Allied Aviation Services
• Reliance Industries Limited
• China National Petroleum Corporation
• Bharat Petroleum Corporation Limited
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In January 2023, AIR COMPANY announced the launch of a new phase in its collaboration with NASA, backed by direct funding through a NASA Small Business Technology Transfer (STTR) award, advancing the development of carbon-negative rocket fuel for space applications on Earth, Mars, and beyond.
• In February 2020, Velocys launched a contract to deliver a technology package for waste-to-fuel projects, converting waste feedstocks into sustainable aviation and road transport fuels, including synthetic paraffinic kerosene (SPK) and diesel, supporting the shift toward greener, renewable energy solutions.

• In January 2020, the National Petroleum Corporation of Algeria launched the construction of its sixth oil refinery, signing contracts with Tecnicas Reunidas and Samsung Engineering. Expected to be completed by the end of 2024, the refinery will produce 100,000 barrels of crude oil per day.

Market Segment    

This study forecasts revenue at the global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the kerosene market based on the following segments:

Global Kerosene Market, By Type

• Type 1-K
• Type 2-K

Global Kerosene Market, By Application

• Aviation
• Chemicals
• Agriculture
• Others

Global Kerosene Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa