Europe Renewable Aviation Fuel Market Size (2024 - 2029)

The Europe renewable aviation fuel market is poised for substantial growth, driven by supportive government policies and increasing demand in the aviation sector. Despite the challenges posed by the high costs of renewable fuels, the market has rebounded to pre-pandemic levels, with initiatives like CORSIA enhancing its expansion prospects. The focus on reducing airline emissions presents significant opportunities, particularly in developed economies. Germany is anticipated to experience notable demand due to proactive government measures supporting sustainable aviation fuel development.

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Market Size of Europe Renewable Aviation Fuel Industry

Europe Renewable Aviation Fuel Market Summary
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

Europe Renewable Aviation Fuel Market 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 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
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Europe Renewable Aviation Fuel Market Size Summary

The European renewable aviation fuel market is poised for substantial growth, driven by supportive government policies and initiatives aimed at reducing emissions from the aviation sector. The introduction of schemes like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) by the International Civil Aviation Organization (ICAO) is expected to significantly bolster market expansion. The aviation industry's long-term growth, characterized by an increasing number of air passengers and improved economic conditions, further supports this upward trajectory. However, the high cost of renewable aviation fuels presents a challenge to market growth. Despite this, the market is anticipated to benefit from increasing concerns over emissions and government initiatives in developed economies, providing lucrative opportunities for renewable aviation fuels.

Germany is expected to be a key player in the renewable aviation fuel market, driven by government initiatives and the efforts of organizations like the Aviation Initiative for Renewable Energy in Germany (AIREG). The country aims to achieve a significant blend of sustainable aviation fuel by 2025, reflecting its commitment to reducing carbon emissions. The European region is a leader in biofuel production technologies, with several production plants operational, contributing to the market's potential. Major industry players, including Total Energies SA, Neste Oyj, and Honeywell International Inc., are actively involved in the market, with significant agreements and initiatives underway to promote the use of sustainable aviation fuels. These developments underscore the commercial sector's role in driving the market's growth during the forecast period.

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Europe Renewable Aviation Fuel Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 Fischer-Tropsch (FT)

      2. 2.1.2 Hydroprocessed Esters and Fatty Acids (HEFA)

      3. 2.1.3 Synthesisized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT)

    2. 2.2 Application

      1. 2.2.1 Commercial

      2. 2.2.2 Defense

    3. 2.3 Geography

      1. 2.3.1 Germany

      2. 2.3.2 France

      3. 2.3.3 United Kingdom

      4. 2.3.4 Rest of Europe

Europe Renewable Aviation Fuel Market Size FAQs

The Europe Renewable Aviation Fuel Market is projected to register a CAGR of greater than 55% during the forecast period (2024-2029)

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.

Europe Renewable Aviation Fuel Market Report Snapshots

Europe Renewable Aviation Fuel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)