Latin America Renewable Aviation Fuel market Report Description:
Latin America renewable aviation fuel market report gives comprehensive outlook on renewable aviation fuel market across the different countries of Latin America such as Brazil, Mexico Argentina, Chile, and Rest of Latin America. The report on Latin America Renewable Aviation Fuel market gives historical, current, and future market sizes (US$ Mn) on the basis of product type, application and country. This report studies dynamics elaborately to identify the current market trends and drivers, future opportunities and possible challenges to the key stakeholders operating in the market. In addition, Latin America Renewable Aviation Fuel market report includes competition analysis with vividly illustrated the competition dashboard to assess the market competition. Moreover, PBI analyzed Latin America Renewable Aviation Fuel market to better equip clients with possible investment opportunities across the Countries (Country Investment Hot-Spots) and market unmet needs (Product Opportunities). Key stakeholders of the report include suppliers, manufacturers, marketers, policy makers, and recent market activities.
Latin America Renewable Aviation Fuel market:
New innovations and developments are undertaken by the major players in the market which strengthens its position. For instance, research is being done on alcohol-to-jet pathway, where alcohols such as ethanol or butanol are de-oxygenated and processed into jet fuels. Furthermore, various key players are focused towards increasing production bio jet fuels which propels the growth of renewable aviation market. However, a major challenge for the bio jet fuel market, is the lack of a viable source for the production of biofuels on a commercial scale which has resulted in the current high bio jet fuel prices, which is leading to the airline companies not buying bio jet fuel on a large scale. Despite the need and airline support for bio jet, producers struggle to make renewable fuel cost-competitive with fossil fuels. Currently, bio jet fuel is supplied through segregated logistics which leads to higher costs which may reduce its demand.
Expansion and Partnerships Play Vital Role in the Growth of Renewable Aviation Fuel Market
Players operating in the Latin America renewable aviation fuel market are adopting various growth strategies such as plant’s capacity expansion to cater to increasing demand for Bio Jet Fuel. For instance, In July 2018, Red Rock Biofuels started construction of a new bio refinery facility in Lakeview, Oregon for the project aiming to convert 136,000 tons of waste woody biomass into 15.1 million gallons/year of renewable fuels. Furthermore, various key players are focused towards increasing production bio jet fuels. For instance, In September 2018, Fulcrum Bioenergy, Inc. announced plans to enter into partnership with Marubeni Corporation, Japan Airlines Co. Ltd. (JAL), and the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). The strategic partnership aims at development of sustainable aviation fuels that will include a US$ 8 million investment by the airline in waste-to-jet fuel process of Fulcrum.
Increase in Demand for Aviation Fuel Upsurges the Growth of Renewable Aviation Fuel Market
Renewable fuels have gained in popularity due to their sustainability, low contributions to the carbon cycle, and in some cases lower amounts of greenhouse gases. The geo-political ramifications of these fuels are also of interest, particularly to industrialized economies which desire independence from Middle Eastern oil. Increase in the Air Passengers in the Emerging Economies Driving the Aviation Fuel Market. Demand for aviation fuel has increased significantly over the last two years owing to the rise in airline passenger traffic. As per the International Civil Aviation Organization (ICAO), 3.97 billion passengers flew on scheduled flights around the world in 2017. According to the International Air Transport Association, this passenger number represented a growth of XX% y-o-y, as measured by revenue passenger kilometers (RPKs). These factors contribute to the increasing demand for aviation fuel, which has been one of the strongest performers among transportation fuels in recent years. Expanding middle class in emerging countries, diverging demographic outlooks, and liberalization of aviation markets are some of the major factors to be considered for the increase in air passengers count every year.
Mexico Accounts for Larger Market Revenue Share
Latin American air travel is expected to double in the next two decades thanks to anticipated growth of the region’s middle class from 350 million people to 520 million by 2037, and evolving airline business models making travel more accessible. This has driven the demand for renewable aviation fuels market in Latin America. Moreover, according to the latest Airbus Global Market Forecast (GMF), Latin America and the Caribbean region will need 2,720 new passenger and freighter aircraft to meet this rising demand. Mexico is expected to lead the Latin America renewable aviation fuel market as it has represented nearly XX% of the airline’s international departing frequencies as of early Nov-2018.
- Gevo, Inc.
- Red Rock Biofuels LLC.
- Honeywell International Inc.
- Virent Inc.
- Fulcrum BioEnergy, Inc.
- Neste Oil Corporation,
- AltAir Paramount LLC
- G. Preston Company
- SkyNRG BV
- Eni SpA Total S.A
- BP PLC
Key players are adopting new strategy to establish their footprint worldwide thereby enhancing their product portfolio. Merger, acquisition, product development and collaborations are some of the market strategy the key players implement. In October 15 2018, Neste and BP Collaborate on Sustainable Aviation Fuel Development.
Key Findings of the Report:
Latin America renewable aviation fuel market expanding at significant CAGR over 2019 to 2025 to reach market value of US$ XX Mn by 2025 owing to increase in demand for aviation bio fuels.
- Based on application type defense segment accounted for larger market revenue share in 2018 and projected gain market revenue share over the forecast period
- Players focusing on mergers and acquisitions strategies to retain market position in Latin America renewable Aviation Fuel market
By Product Type
- Algal Biofuel
- Plant Biofuel
By Application Type
- Rest of Latin America
Key Features of the Report:
- The report provides granular level information about the market size, country market share, historic market (2014-2018) and forecast (2019-2025)
- The report covers in-detail insights about the competitor’s overview, key market developments, and their key strategies
- The report outlines drivers, restraints, unmet needs, and trends that are currently affecting the market
- The report tracks recent innovations, key developments and startup’s details that are actively working in the market
- The report provides plethora of information about market entry strategies, regulatory framework
- The report analyses the impact of socio-political environment through PESTLE Analysis and competition through Porter’s Five Force Analysis in addition to recent technology advancements and innovations in the market