Insights Into the Renewable Aviation Fuel (RAF) Industry, 2020-2025 - Introduction of CORSIA by ICAO is Encouraging Aircraft Operators to Switch to RAF
DUBLIN, March 11, 2020 /PRNewswire/ -- The "Renewable Aviation Fuel Market - Growth, Trends, and Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
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The market for renewable aviation fuel (RAF) is expected to witness a CAGR of more than 56.05% during the forecast period (2020-2025).
Government policies have been one of the major factors in driving the market studied. The introduction of CORSIA by ICAO is encouraging aircraft operators to switch to RAF. Several countries, like India, are planning to introduce policies to support the development of RAF. Sustainable aviation fuel (SAF) is more expensive than jet fuel and this cost premium is a key barrier to its wider use.
The renewable aviation fuel market is consolidated. The key players includes Total SA, Neste Oyj, Swedish Biofuels AB, Gevo Inc., and Honeywell International Inc.
Key Highlights
-- The defense sector is expected to be the fastest-growing segment among
the different applications, owing to the increasing government focus on
promoting bio-jet fuels in the defense/military sector, particularly in
the United States.
-- The renewable aviation fuel provides an opportunity for airlines to
invest in the future. The expected increase in demand for renewable
aviation fuel is not likely to be met, unless airline operators expand
their renewable aviation fuel commitments with bio-refineries, which
will consequently result in driving improvements in fuel cost and
availability. With the expected increase in the adoption of renewable
aviation fuels on a global scale, the investments in airport
infrastructure are expected to increase.
-- North America dominated the market in 2018, mainly driven by the
existing framework of fuel policies supporting renewable aviation fuel
production.
Market Trends
Defense Sector to be the Fastest-growing Segment
-- The defense sector consumes a large amount of aviation fuel. On average,
the US military burns about 4.8 billion gallons of jet fuel and diesel
each year. Nearly half of that goes to the Air Force and around
one-third to the Navy.
-- Besides, the military sector seeks to improve the environmental
performance of its aircraft fleets, as well as to reduce environmental
emissions. Biofuels are considered as a way to maintain secure sources
of fuel and reduce cost volatility while supporting the country's
environmental initiatives.
-- The defense sector is expected to be the fastest-growing market, owing
to the increasing government focus on promoting bio-jet fuels in the
defense/military sector, particularly in the United States.
-- Companies, such as Honeywell, use this renewable jet fuel process
technology for the US Navy and Air Force, as part of a joint program for
the US Defense Energy Support Center (DESC) for alternative fuel testing
and certification.
North America to Dominate the Market
-- North America is one of the largest markets for both, the aviation
industry and renewable aviation fuel. In 2017, the US commercial
aircraft fleet reached around 7,397, representing an increase of 2.79%
from the previous year's fleet. The United States airlines carried an
all-time high number of passengers in 2018 - 1,011.5 million system
worldwide. In the United States, robust growth in air travel resulted in
more than 9.2 million metric ton increase in aviation emissions, in
2018, and this number is expected to increase in the coming years as
well.
-- Switching to more energy-dense biofuel, to reach the goal of
decarbonizing the aviation sector, is expected to play an important role
in reducing GHG concentration across the region.
-- Waste, residual fats, and oil could supply as much as 7% of the total
jet fuel demand in the United States and Canada. In North America,
Diamond Green Diesel and AltAir (part of World Energy), the two largest
renewable diesel producers, are primarily making use of waste feedstock,
such as animal fats and used cooking oil, for their production.
-- Overall, with supportive policies to decarbonize the aviation emission,
the North American market is deemed to be one of the strong demand
centers for the renewable aviation fuel market.
Key Topics Covered
1 INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD million, till 2025
4.3 Government Policies and Regulations
4.4 Recent Trends and Developments
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
5 MARKET SEGMENTATION
5.1 Technology
5.1.1 Fischer-Tropsch (FT)
5.1.2 Hydroprocessed Esters and Fatty Acids (HEFA)
5.1.3 Synthesisized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT)
5.2 Application
5.2.1 Commercial
5.2.2 Defense
5.3 Geography
5.3.1 North America
5.3.2 Asia-Pacific
5.3.3 Europe
5.3.4 South America
5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Total S.A.
6.3.2 Neste Oyj
6.3.3 Swedish Biofuels AB
6.3.4 Red Rock Biofuels LLC
6.3.5 Gevo Inc.
6.3.6 Honeywell International Inc.
6.3.7 Fulcrum BioEnergy Inc.
6.3.8 SG Preston Company
6.3.9 LanzaTech Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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