Global Aviation Alternative Fuels Market 2016-2020

Global market outlook for aviation alternative fuels

The global aviation alternative fuels market is estimated to witness moderate growth during the next four years owing to the accelerated use of biofuels.  Over the last decade, major European countries such as Russia, Germany, France, and the UK, and the US have been investing in aviation biofuel products. However, since biofuels are still not commercially available at competitive prices, most airline companies do not purchase them in bulk quantities. Consequently, countries such as the US and the UK are using biofuels in the form of blended fuels, which are a combination of both biofuel and jet fuel in the ratio of 1:1, to power their airlines and achieve the minimum carbon emission targets. Extensive market analysis carried out by the analysts at Technavio has shown that the global aviation alternative fuels market will grow at a CAGR of over 4% by 2020. 

A key trend that spurs the prospects for market growth is the evolution of bio-ports. With the fluctuating ATF prices globally and the increasing pressure for GHG emissions reduction, biofuels have been considered as an appropriate substitute to achieve carbon-neutral growth. Although the present-day aircraft are 70% more fuel-efficient than the traditional ones, they consume approximately two billion barrels of jet fuel annually and result in high carbon emissions. Since aviation biofuels are both expensive and rare to find, their continued use is still a question.

Competitive landscape and key vendors

The global aviation alternative fuels market is characterized by the presence of many global, regional, and local vendors. Due to the presence of a large number of vendors, the market is highly competitive, and most vendors compete on the basis of factors like rapid advances in technology, frequent changes in government policies, and environmental regulations to gain an edge over their peers. In addition, factors like in-house manufacturing capabilities, global footprint network, product offerings, R&D investments, and strong client base also play a critical role in determining the market shares of vendors.

Leading vendors in this market are -

• GE Aviation
• Rolls-Royce
• SkyNRG
• Swedish Biofuels
• UOP

Other prominent vendors in this market space are Amyris, AltAir Fuels, Byogy Renewables, Fulcrum BioEnergy, and Gevo.

Geographical segmentation and analysis of the aviation alternative fuels market

• Americas
• APAC
• EMEA

During 2015, the Americas dominated this market but is anticipated to witness a slight decline in its market shares by the end of 2020. Much of this market’s growth in the region can be attributed to the high demand for alternative fuels from the US, where the military has been making significant investments for the development of biofuels for usage in the US Navy and the Air Force. In addition, the availability of a robust economic incentive in the region will also compel organizations to establish resources in such a way that it will decrease the use of conventional jet fuels.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global aviation alternative fuels market?
• What are the key market trends impacting the growth of the global aviation alternative fuels market?
• What are the challenges to market growth?
• Who are the key vendors in the global aviation alternative fuels market?
• What are the market opportunities and threats faced by the vendors in the global aviation alternative fuels market?
• What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
• What are the key outcomes of the five forces analysis of the global aviation alternative fuels market?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Aviation Fuel Market 2016-2020
• Global Aircraft Fuel Systems Market 2016-2020
• Global Biofuels Market 2016-2020