On an average, the aviation sector consumes 10% of the total energy required in the transportation segment per annum. Aviation transport produces significant amount of carbon emissions per annum; up to 781 million tons of CO2 was pumped into the atmosphere in 2015. Thus, replacements for aviation fuels by ecofriendly and alternative fuels are largely promoted across the globe. Aviation alternative fuels are fuels are environmentally friendly and sustainable, however, these fuels are better than petroleum based fuels with regard to the impression on air quality post combustion only. Advanced biofuels are strong contenders for replacing petroleum based aviation fuels in the near future, as these fuels are equally safe and offer better performance.
Rise in concerns about environmental protection, global warming, and climate changes is driving the aviation alternative fuels market. Various companies, organizations, and governments are investing in research, development, and commercialization of alternative fuels for aviation. Evolution of technologies has substantially reduced the cost of manufacturing these fuels, resulting in economical alternatives for fossil fuels. Moreover, rapid growth in the aviation industry, which is expanding at a CAGR of 5% per annum, is likely to propel the demand for aviation alternative fuels during the forecast period. Increase in trade, which results in rise in logistics, is also expected to boost the aviation alternative fuels market. However, several challenges and concerns are hampering the market growth. Storage of biodiesel for long time can be challenging; if stored for longer period of time at lower temperature, these fuels tend to oxidize resulting in jellification. These fuels have the potential to curb the rising pollution and carbon emissions; however, biofuels directly compete with agriculture and food production for resources, resulting in straining the natural resources. Furthermore, the high quality standards for fuels and their safe transportation during flights is also expected to impact the demand for these fuels.
Based on fuel type, the aviation alternative fuels market can be divided into biofuels, CNG, LNG, and others. Biofuels can further be divided into Hydrogenated Easters & Fatty Acids (HEFA), Hydrogenated Pyrolysis Oil (HPO), Fischer-Tropsch (FT) based on biomass, and renewable Synthesized Iso-paraffin fuels (SIP), and others. Among these, the biofuels sub-segment is anticipated to expand substantially, as it is in a rapid development phase. Biofuels are primarily made from vegetable oils such as camellia and jatropha, sugar crops, cereals, and algae. Thus, the feedstock is available in abundance.
In terms of geography, the market for aviation alternative fuels can be divided into Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Developed regions such as North America and Europe are the key markets for aviation alternative fuels. Implementation of stringent government regulations, increase in awareness regarding environmental protection, robust technological developments, and sufficient finances are some of the factors propelling the growth of alternative fuels for aviation in these region. Asia Pacific is also slated to be a significant market for aviation alternative fuels; China, India, and ASEAN are expected to witness substantial increase in number of passengers commuting via air transport per annum during the forecast period. The market in Latin America, especially in Brazil, is also expected to expand significantly in the near future.
Major players operating in the global aviation alternative fuels market include Solazyme, Honeywell UOP, Imperium Renewables, Renewable Energy Group, and Aquaflow Bionomic Corporation.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.