Europe Renewable Aviation Fuel Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 55.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Renewable Aviation Fuel Market Analysis
The market for renewable aviation fuel in Europe is expected to grow at a CAGR of over 55% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market has now reached pre-pandemic levels.
- Supportive government policies, such as the introduction of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) by the ICAO (International Civil Aviation Organization), are expected to boost the market. Additionally, potential economic advantages along with the long-term growth in the aviation industry, such as the increasing number of air passengers, on account of cheaper airfare, and stronger economic conditions with increasing disposable income, are the significant factors that are expected to drive the market during the forecast period.
- On the other hand, the high cost of renewable aviation fuels is expected to hinder market growth.
- Increasing concerns over emissions from the airline industry and government initiatives in developed economies to reduce airline emissions are expected to provide significant opportunities for renewable aviation fuel in the future.
- Germany is expected to witness significant demand during the forecast period, owing to the aviation initiatives taken by the government for the development of SAF (Sustainable Aviation Fuel).
Europe Renewable Aviation Fuel Market Trends
This section covers the major market trends shaping the Europe Renewable Aviation Fuel Market according to our research experts:
Commercial Sector to be the Largest Segment
- In the first half of 2022, air passenger transport in the European Union (EU) carried more than 338 million air passengers. Countries such as the United Kingdom, Germany, Spain, France, and Italy, accounted for a major share of air passenger count in 2021.
- Owing to the air passenger traffic growth in 2021, the greenhouse gas emissions from the region's aviation sector are considered one of the fastest-growing sources of emissions that contribute to climate change. As of 2021, Europe is one of the leading regions in biofuel production technologies, with a significant number of production plants under operation. The production capacity of bio-based aviation fuel in the region depends on a small number of plants, accounting for a maximum potential output of approximately 2.3 million metric tons per year.
- The European Commission (EC), in coordination with Airbus, leading European airlines, such as Lufthansa, Air France, and British Airways, and key biofuel fuel producers, such as Neste and Biomass Technology Group, launched an initiative in 2011 called the European Advanced Biofuels Flight Path, to speed up the commercialization of aviation biofuels in Europe.
- As of 2021, the industry mainly focuses on reducing overall fuel usage and improving fuel efficiency. However, further reduction of greenhouse gas emissions, particularly in the face of new regulations, is set to come online in the next few years and is expected to lead the industry in taking the next step, embracing renewable jet fuels.
- To address the increasing concerns regarding rising aviation emissions, IATA has urged all major players in the industry to work on the development of sustainable solutions, which has led to the identification of renewable jet fuel as one of the most promising strategies to reduce greenhouse gas emissions. This has paved the way for companies, such as Nestle, to gain an increasingly substantial role in the aviation sector.
- In January 2022, ExxonMobil and Neste announced a supply agreement for commercial-scale distribution of Neste MY Sustainable Aviation Fuel at the largest airports in France. The Neste MY Sustainable Aviation Fuel is produced from sustainably-sourced, 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste, and when used at 100% concentration, the Sustainable Aviation Fuel use results in up to 80% lower greenhouse gas emissions as compared to fossil jet fuel use. This step is taken to match the 1% SAF mandate introduced by the French government effective from January 1, 2022
- Therefore, based on the factors mentioned above, the commercial sector is expected to drive the Europe Renewable Aviation Fuel Market during the forecast period.
Germany to Witness Significant Demand
- Founded in 2011, the Aviation Initiative for Renewable Energy in Germany (AIREG) aims to promote the country's research, production, and usage of sustainable aviation fuels. Members of AIREG include universities, research institutions, plant manufacturers and operators, petroleum companies, engine and aircraft manufacturers, airports, and airlines.
- The usage of sustainable aviation fuels in Germany is expected to be huge, and hence, the AIREG has set targets of reaching a 10% blend for SAF implementation by 2025.
- In December 2021, British Airways announced that it had signed a multi-year agreement with the Phillips 66 Company to supply sustainable aviation fuel to the airlines by 2022. The initiative is in line with the aircraft operator's goal of achieving zero carbon emissions by 2022.
- As of 2021, Europe is one of the leading regions in terms of biofuel production technologies, with a significant number of production plants under operation. The production capacity of bio-based aviation fuel in the region depends on a small number of plants, accounting for a maximum potential output of approximately 2.3 million metric tons per year.
- In June 2022, Germany carried 16265 thousand of passengers. There is an increase of 2.14% as compared to June 2021 carried 5165 thousand passengers.
- Therefore, based on the above-mentioned factors, Germany is expected to witness significant demand in the renewable aviation fuel market during the forecast period.
Europe Renewable Aviation Fuel Industry Overview
The Europe Renewable Aviation Fuel Market is consolidated. Some of the major players (not in particular order) include Total Energies SA, Neste Oyj, Honeywell International Inc., Swedish Biofuels AB, and Fulcrum BioEnergy Inc.
Europe Renewable Aviation Fuel Market Leaders
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Total SA
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Neste Oyj
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Honeywell International Inc.
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Swedish Biofuels AB
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Fulcrum BioEnergy Inc.
*Disclaimer: Major Players sorted in no particular order
Europe Renewable Aviation Fuel Market News
- December 2022: TotalEnergies signed a memorandum of understanding to deliver more than one million cubic meters/800,000 tonnes of sustainable aviation fuel to Air France-KLM Group airlines over the ten years from 2023 to 2033.
- January 2022: Cepsa signed an agreement with Iberia and Iberia Express for the development and large-scale production of sustainable aviation fuel. The agreement contemplates SAF production from waste, recycled oils, and second-generation plant-based bio feedstock.
Europe Renewable Aviation Fuel Market Report - Table of Contents
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 billion, till 2027
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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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)
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5.2 Application
- 5.2.1 Commercial
- 5.2.2 Defense
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5.3 Geography
- 5.3.1 Germany
- 5.3.2 France
- 5.3.3 United Kingdom
- 5.3.4 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Total Energies SA
- 6.3.2 Neste Oyj
- 6.3.3 Swedish Biofuels AB
- 6.3.4 Honeywell International Inc.
- 6.3.5 Gevo Inc.
- 6.3.6 Fulcrum BioEnergy Inc.
- 6.3.7 LanzaTech Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityEurope Renewable Aviation Fuel Industry Segmentation
The Renewable Aviation Fuel (RAF) market studied in the report includes the production of renewable aviation fuel. RAF is produced by blending conventional kerosene with renewable hydrocarbon. RAFs are being produced through technologies certified by the American Society for Testing and Materials (ASTM) for reducing emissions in the aviation sector.
Europe Renewable Aviation Fuel Market is segmented by technology, application, and geography. By technology, the market is segmented into fischer-tropsch (FT), hydro-processed esters and fatty Acids (HEFA), and synthesized iso-paraffinic (SIP) and alcohol-to-jet (AJT). By application, the market is segmented by commercial and defense. The report also covers the market size and forecasts for the Europe renewable aviation fuel market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion).
| Technology | Fischer-Tropsch (FT) |
| Hydroprocessed Esters and Fatty Acids (HEFA) | |
| Synthesisized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT) | |
| Application | Commercial |
| Defense | |
| Geography | Germany |
| France | |
| United Kingdom | |
| Rest of Europe |
Europe Renewable Aviation Fuel Market Research FAQs
What is the current Europe Renewable Aviation Fuel Market size?
The Europe Renewable Aviation Fuel Market is projected to register a CAGR of greater than 55% during the forecast period (2024-2029)
Who are the key players in Europe Renewable Aviation Fuel Market?
Total SA, Neste Oyj, Honeywell International Inc., Swedish Biofuels AB and Fulcrum BioEnergy Inc. are the major companies operating in the Europe Renewable Aviation Fuel Market.
What years does this Europe Renewable Aviation Fuel Market cover?
The report covers the Europe Renewable Aviation Fuel Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Europe Renewable Aviation Fuel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Renewable Aviation Fuel Industry Report
Statistics for the 2024 Europe Renewable Aviation Fuel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Renewable Aviation Fuel analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
