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Global Aviation Fuel Market: Overview

Renewable aviation fuel derived from biomass offers the single largest opportunity to reduce emissions and at the same time ensure energy security for the sector. The airline industry is committed to curb greenhouse gas emissions and attain a set target of carbon-neutral growth in the near future. As per statistics of the Intergovernmental Panel on Climate Change, CO2 emissions from the airline industry account for 2% of global emissions due to anthropogenic activities.

In recent years, the aviation industry has invested significantly in improving the engine designs and fuel efficiency. Despite these improvements, emissions are still on the rise in the aviation industry. Moreover, with fluctuating prices of crude oil prices, airlines are striving to reduce dependency on conventional fuels that have an impact on their profit margins. This is because aviation fuel accounts for substantial operating costs for an airline company.

The use of renewable aviation fuel is an innovative solution to curb carbon emissions and reduce the dependency on conventional fuels. Therefore, the aviation fuel industry is investing heftily for the commercialization of alternative fuels. This is because the large-scale production of renewable aviation fuel would enable airline companies to diversify their fuel sources and devise new hedging strategies.

Global Aviation Fuel Market: Drivers and Restraints

The global aviation fuel market is expected to rise at a substantial rate post the large-scale production of alternative fuels over the next few years. Fluctuating crude oil prices and stringent environmental regulations are some of the major factors that are encouraging investments in the renewable aviation fuel market. Moreover, stringent regulations in place for curbing greenhouse gas emissions have compelled the aviation industry to invest in alternative fuels. The U.S. Federal Aviation Administration has specified a target for the U.S. aviation industry to curb carbon emissions and partially shift to renewable aviation fuel from 2018.

Investments from several governments for commercial production of renewable aviation fuel for their defense departments is aiding the growth of the renewable fuel aviation market. The U.S. department of defense displays the highest demand for aviation fuel, thus it is allocating huge sums of money for testing and adoption of renewable aviation fuels. The depletion of conventional fuels has also necessitated seeking alternative fuels, which is boosting the growth of this market. However, factors such as high production cost and lack of accurate information about the commercial production of alternative fuels can hamper the market’s growth.

Global Aviation Fuel Market: Regional Overview

The regional segments of the global renewable aviation market are North America, Europe, Asia Pacific, and Rest of the World. Currently, Europe is the largest market for renewable aviation fuel due to large investments made in the region. Several airline companies such as Air France and Lufthansa have tested this fuel for commercial passenger flights as well. Several companies in this region are adopting renewable aviation fuels to reduce dependency on crude oil and reduce operating costs in the long run.

North America is another major market that is making investments for renewable aviation fuel and several companies are producing alternative fuels in small quantities. Asia Pacific is expected to be a major market for renewable aviation fuel due to increasing airline traffic in this region.

Major Companies Mentioned in Report

Some of the top players that have a significant presence in the global renewable aviation fuel market are LanzaTech, Total S.A., Amyris Inc., and General Biomass Company.

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
  • Europe
  • 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.

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Renewable Aviation Fuel Market

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