Renewable Aviation Fuel Market Size, Analysis To 2022: Grand View Research, Inc.

Global renewable aviation fuel market is anticipated to witness significant growth over the next seven years owing to unstable prices and stringent regulations regarding environmental impacts of conventional fuel. Volatile conventional aviation fuel prices forced market participants to invest in developing sustainable fuel which is expected to bolster renewable aviation fuel market growth over the forecast period. Fuel price sensitivity affected profit margin for the aviation industry players that forced them to shift towards renewable aviation fuel market. Stringent regulations regarding greenhouse gas emission particularly owing to large amount of toxic gas emissions from aircrafts including carbon dioxide, carbon monoxide and hydrogen sulfide are further expected to positively affect market growth.

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The Federal Aviation Administration of U.S. has implied regulations which forced aviation industry market players to switch towards sustainable fuel. Companies such as SG Biofuels and Solazyme have developed renewable fuel which has been tested and certified by ASTM. Lanzatech, a New Zealand based company has also developed renewable aviation fuel and is planning to open new facilities worldwide which is expected to maintain sufficient supply which in turn assist aviation industry to switch towards renewable fuel. The U.S. Department of Defense (DoD) has supported development of renewable aviation fuel and invested heavily in R&D in several companies in order to reduce dependence on conventional synthetic fuels. Low commercial feasibility coupled with high manufacturing cost as compared to bulk prices is expected to hinder renewable aviation fuel market growth over next few years.

Based on applications, renewable fuel market has been classified into defense and commercial. Commercial sector was the dominant application segment in 2014 and is anticipated to be the fastest growing segment over the next seven years on account of high rate of adoption by various market players. Stringent regulations regarding environmental impact of burning fossil fuels by U.S. EPA is expected to boost the renewable aviation fuel market growth. Surging renewable aviation fuel demand from defense sector is also anticipated to foster the market growth over the foreseeable future.

Europe is anticipated to be the dominant renewable aviation fuel market over the next seven years owing to huge investments in product development. European Commission has imposed stringent regulations related to environmental impact particularly on aviation industry which is also expected to augment the market growth over the forecast period. Asia Pacific is anticipated to possess great potential for the market over the next seven years on account of growing commercial airline traffic especially in emerging economies such as China, India and South Korea. Key players in the global market include General Biomass Company, Lanzatech, Total S.A., Amyris Inc., and SG Biofuel Inc.

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About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.


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