Sustainable Aviation Fuel Market a will Register CAGR of 60% through 2032
According to Future Market Insights (FMI), the sustainable aviation fuel market was worth US$ 220 Mn in 2021 and is expected to reach US$ 15 Bn by 2030, with a CAGR of 60% from 2022 to 2032.
The COVID-19 virus
has spread across the globe without regard for national boundaries. As a
result, it has had a severe economic and financial impact on all industries,
sectors, and facets of life, as well as tremendous uncertainty.
Governments all
over the world are canceling visas for foreign residents and closing down
damaged areas, which is one of the principal factors for the aviation industry’s
downturn.
The aviation
industry is dedicated to lowering carbon emissions to create a more sustainable
environment and comply with stringent emission laws. As a result,
sustainable alternative fuels are being adopted by various
participants in sustainable aviation fuel companies, such as
improving aero-engine efficiency through design changes, hybrid-electric and
all-electric aircraft, renewable jet fuels, sustainable
aircraft fuel, and so on.
Most military
aircraft and commercial airlines use sustainable aviation fuel to
enhance fuel efficiency and decrease operational costs.
The sustainable
aviation fuel market has grown significantly over the years, owing to
the growing trend of advanced fuels being employed in aircraft all over the
world.
The sustainable
aviation fuel market trends such as an increase in the number of
airline passengers combined with an increase in disposable income, an increase
in air travel, and an increase in synthetic lubricant use all contribute to the
worldwide sustainable aviation fuel market growth.
However, oscillations in crude oil prices and lubricant contamination are
anticipated to hamper sustainable aviation fuel market
growth during the forecast period.
Furthermore, the
developments of environmentally friendly and safe renewable jet fuel and
the rise in demand for low-density lubricants to reduce weight
are likely to provide various chances for market expansion throughout the
forecast period.
In terms of
revenue, North America leads the market, followed by Europe, Asia-Pacific, and
LAMEA. In 2020, the United States will dominate the sustainable
aviation fuel market. Due to an increase in demand for sustainable
aviation fuel across the country, Mexico is predicted to grow at a
high rate during the forecast period.
Sustainable aviation fuel offers airlines a chance to
invest in the future. The predicted growth in demand for sustainable
aviation fuel is unlikely to be reached unless airline operators boost
their renewable aviation fuel obligations with bio-refineries, resulting in
fuel cost and availability benefits.
With the predicted
rise in the adoption of sustainable aviation fuel on a global
scale, airport infrastructure investments are anticipated to grow.
Key Takeaways
·
On account of the increased government focus on promoting renewable
jet fuel in the defense/military sector, particularly in the United
States, the defense sector is expected to be the fastest-growing segment among
different applications.
·
In terms of revenue, the biofuel segment is likely to dominate the
global sustainable aviation fuel market due to significant
advances in technology approaches to commercializing the use of sustainable
jet fuel.
·
Based on technology, the FT-SPK segment is estimated to hold the largest
market share owing to the rising number of fuel varieties with different
feedstock compositions, thereby scaling up the sustainable aviation
fuel market size to a great extent.
·
In terms of end-use, the commercial airline sector is expected to be the
fastest-growing aviation segment, attributing to rapid economic development and
massive investment in improving the retail airline industry’s overall
infrastructure.
·
Based on blending capacity, the segment ranging from 30% to 50% is
predicted to witness the largest market share, and the same can be credited to
moderate blending capacity, among others.
·
Biofuel is gaining traction in the global aviation fuel market share to
reduce pollution and ensure sustainable air travel based on fuel type. As a
result, it is expected to hold a significant sustainable aviation fuel
market share.
“North America is projected to be at the forefront of
the sustainable aviation fuel market on account of rising demand from
various agencies to reduce their carbon footprint, as well as increased air
traffic and passengers in tandem with the initiatives undertaken by the United
States and Canada aimed at increasing use case scenarios for renewable aviation
fuel, combined with an increasing number of government policies, are expected
to increase the size of the market. Furthermore, rising air travel activity in
emerging economies, along with an increase in the number of key market
participants, will play a pivotal role in sustainable aviation fuel market
future trends.” points an FMI researcher.
Competitive Landscape
Total Energy (US),
Fulcrum BioEnergy (US), World Energy (US), Neste (Finland), and Lanza Tech (US)
are a few of the crucial sustainable aviation fuel companies.
Some of the recent
developments in the sustainable aviation fuel market are:
·
Rolls-Royce and Shell have signed a definitive long-term partnership
agreement to advance the use of sustainable aircraft fuel in engines
and support the aviation industry’s decarbonization efforts. According to the
agreement, the two companies will expand their collaboration, such as Rolls-new
Royce’s SAFinity service for the business aerospace industry, with Shell
serving as the exclusive supplier of sustainable aviation fuel.
·
Neste entered into an agreement with Boston Consulting Group (BCG) to
provide Neste MY Sustainable Aviation Fuel on all Finnair and SAS flights taken
by BCG employees in the Nordics for business trips. This is predicted to boost
the sustainable development aviation fuel market growth.
For more information:
https://www.futuremarketinsights.com/reports/sustainable-aviation-fuel-market
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