Sustainable aviation fuel or biojet fuel is renewable, low-carbon aviation fuel that can be produced from various feedstocks, such as algae, camelina, and other plant and wastes oils and residues. It offers almost identical performance as conventional jet fuel for aircrafts. Sustainable aviation fuel has significant environmental advantages as it emits less carbon dioxide and particulate matter. The need for biojet fuel has increased with growing air traffic and stringent emission regulations worldwide aiming to curb carbon emissions from the aviation sector.
The global Sustainable Aviation Fuel Market is estimated to be valued at US$ 853.36 Bn in 2024 and is expected to exhibit a CAGR of 19.% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Lower carbon emissions present a major market opportunity for sustainable aviation fuel. As per International Air Transport Association, aviation currently contributes about 2% of the worldwide human-induced carbon dioxide emissions. With growing concerns regarding climate change, the aviation industry aims to achieve net-zero carbon emissions by 2050. Adopting sustainable aviation fuel on a large scale can significantly help reduce the sector's carbon footprint and meet stringent emission norms. Various countries and airlines have committed to use sustainable aviation fuels. For instance, Sweden has set a target of incorporating 1% sustainable aviation fuel blending by 2030. Thus, the need to lower carbon emissions from airplanes is estimated to drive the demand for sustainable aviation fuel during the forecast period.
Porter's Analysis
Threat of new entrants: The sustainable aviation fuel market requires high capital investment for research and production facilities, creating high entry barriers for new companies.
Bargaining power of buyers: Airlines have significant bargaining power as large buyers in this market. However, there is increasing pressure on them to use more sustainable fuels.
Bargaining power of suppliers: The sustainable fuel producers have some bargaining power due to the specialized nature of supply and limited number of existing producers.
Threat of new substitutes: There are few viable alternatives to jet fuel currently. Research in electric aircraft is a long term threat.
Competitive rivalry: The competition is intensifying as major oil companies are investing heavily in biofuels and sustainable aviation fuel projects.
SWOT Analysis
Strengths: Growing environmental concerns are driving increased demand for sustainable aviation fuels. Production technologies are improving to achieve commercial scale.
Weaknesses: Sustainable aviation fuels currently have significantly higher production costs than conventional jet fuel. Supply is limited due to the nascent stage of industry.
Opportunities: Supportive government policies and initiatives in countries are encouraging the growth of sustainable aviation fuel market. Technological advancements can help to reduce costs over time.
Threats: Additional research is needed to demonstrate the performance, efficiency, and long term impacts of some renewable fuels. Volatility in oil prices can affect the demand and margins.
Key Takeaways
The global Sustainable Aviation Fuel Market Share is expected to witness high growth over the forecast period of 2024 to 2030 stoked by growing environmental regulations. With a projected market size of US$ 853.36 Bn in 2024, this market is poised to provide new opportunities for producers and users of renewable jet fuels looking to reduce carbon footprint of air travel.
Regional analysis is expected to be dominated by North America and Europe over the forecast period. Stringent environmental norms regarding carbon emissions from aircraft in the EU and investments by US airlines to purchase sustainable fuel are driving growth in these developed markets.
Key players operating in the Sustainable Aviation Fuel market are Eisai Co., Ltd., Novartis AG, AbbVie Inc. (Allergan Plc.), Adamas Pharmaceuticals, Inc., H. Lundbeck A/S, Biogen, AC Immune, F. Hoffmann La Roche Ltd., Daiichi Sankyo Company, Limited, Johnson & Johnson Services, Inc., and TauRx Pharmaceuticals Ltd. Existing oil majors are also entering the sustainable fuel space through strategic partnerships and investments in biofuel production facilities.
Explore more related article on this topic: https://www.newswirestats.com/sustainable-aviation-fuel-market-share-analysis/
For More Insights On This Topic: https://captionssky.com/bottled-water-industry-in-united-states-an-ever-growing-segment/
