The report forecasts the global aviation alternative fuels market to grow at a CAGR of 4.29% during the period 2016-2020.
The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
One of latest trends in the market is evolution of bio-ports. With the fluctuating global ATF prices along with the increasing pressures 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, the aviation biofuels are both expensive and rare to find, their continued use is still a question.
According to the report, one of the primary drivers in the market is growing GHG emissions. CO2 emissions are significantly increasing year-over-year. Combustion of fossil fuels (such as natural gas, coal, and oil) for energy, transportation, and certain industrial processes are some prominent examples that generate CO2 emissions. In 2014, the US in particular, emitted 5,406 million metric tons of CO2 into the atmosphere. The primary source of CO2 emissions in the US, China, and the EU-countries are the electricity and transportation industries. It is estimated that if the world adopts the smart energy (biofuels, solar, water, and wind energies) technologies, then CO2 emissions could be reduced by 15% globally by 2020.
Further, the report states that one major challenge in the market is sparse availability of feedstock for biofuels. Biofuel can be synthesized from different feedstocks. Also, the quality of the biofuel is very much dependent on the feedstock used in the making of the fuel. A primary concern for the market is the scant availability of the required feedstock and the time required for the processing of biofuels.