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North America Renewable Aviation Fuel Market Size (2024 - 2029)

The North America renewable aviation fuel market is poised for significant expansion, driven by supportive government policies and the long-term growth of the aviation industry. Despite the challenges posed by the high cost of renewable fuels, the market has rebounded to pre-pandemic levels and is expected to benefit from initiatives aimed at reducing airline emissions. The United States is anticipated to dominate the market due to its numerous production facilities.

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Market Size of North America Renewable Aviation Fuel Industry

North America 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 > 60.00 %
Market Concentration High

Major Players

North America Renewable Aviation Fuel Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Renewable Aviation Fuel Market Analysis

The market for renewable aviation fuel in North America is expected to grow at a CAGR of over 60% during the forecast period of 2022 - 2027.

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 carbon offsetting and reduction scheme for international aviation (CORSIA), by ICAO (International Civil Aviation Organization) and potential economic advantages along with the long-term growth in the aviation industry such as increasing number of air passengers, on account of the cheaper airfare and more robust economic conditions with increasing disposable income are the major 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.
  • United States is expected to be the largest market during the forecast period, owing to the vast number of production facilities like Fulcrum Sierra Biofuels of gasification, FT technology, etc., present in the country.

North America 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) to reduce aviation emissions. Europe's 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 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
United States
Canada
Rest of North America
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North America Renewable Aviation Fuel Market Size Summary

The North America renewable aviation fuel market is poised for significant growth, driven by supportive government policies and the long-term expansion of the aviation industry. Initiatives like the carbon offsetting and reduction scheme for international aviation by ICAO are pivotal in promoting market growth. The increasing number of air passengers, fueled by affordable airfare and rising disposable incomes, further bolsters the market. However, the high cost of renewable aviation fuels presents a challenge to market expansion. The United States is anticipated to lead the market, supported by numerous production facilities and federal agencies' efforts to commercialize renewable fuel production. The defense sector's substantial fuel consumption and its push for environmentally friendly alternatives also contribute to the market's growth trajectory.

The military sector, particularly in the United States, plays a crucial role in the renewable aviation fuel market's development. With significant fuel consumption, the military's initiatives to blend biofuels with conventional fuels and the construction of bio-refineries underscore the sector's commitment to reducing emissions. Collaborations with companies like Honeywell and projects such as the conversion of carbon dioxide into jet fuel highlight the sector's innovative approaches. Additionally, agreements like the one between Aemetis and Qantas Airways to supply blended renewable aviation fuel further illustrate the market's potential. The existing framework of fuel policies in North America, along with strategic partnerships and technological advancements, is expected to enhance opportunities for renewable aviation fuel production, particularly hydro-processed esters and fatty acids (HEFA) fuels, in the region.

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North America 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 Five Forces

      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 United States

      2. 2.3.2 Canada

      3. 2.3.3 Rest of North America

North America Renewable Aviation Fuel Market Size FAQs

The North America Renewable Aviation Fuel Market is projected to register a CAGR of greater than 60% during the forecast period (2024-2029)

Neste Oyj , Honeywell International Inc., Gevo Inc., Fulcrum BioEnergy Inc. and Total Energies SA are the major companies operating in the North America Renewable Aviation Fuel Market.

North America Renewable Aviation Fuel Report Snapshots

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