In response to the aviation industry, there is an increasing need for sustainable aviation fuel worldwide. Utilizing sustainable aviation fuel (SAF) helps cut CO2 emissions. As several governments encourage sustainable growth in various industrial sectors, it is projected that the use of sustainable fuels will rise over the coming years. The global market is expected to grow during the projected period due to increased investments in renewable energy and increased adoption of tougher energy laws. To boost their profitability, major manufacturers of sustainable aviation fuel are moving away from processing crude oil to creating renewable fuels. They are also investing in carbon-free jet fuel to boost their market share.
- According to Credence Research Inc., one major trend is that governments worldwide are increasingly utilizing carbon capture technologies and sustainable fuels to reduce CO2 emissions.
- Another trend that Credence Research Inc. predicts is that businesses in the aviation sector have committed to reducing their net CO2 emissions by 2050.
Economic Impact Analysis
Industries start to suffer when the economy slows down. The sustainable aviation fuel market report, 2022-30, consider the predicted consequences of the economic downturn on the pricing and accessibility of the products.
According to a research report by Credence Research Inc, the recession will have a significant impact on the market for sustainable aviation fuel. The sluggish global market growth is predicted to worsen as more countries go through recessions. The globe may be headed into a worldwide recession in 2023, as well as a string of financial crises in emerging markets and developing economies that would permanently harm them, according to a thorough new study by the Globe Bank. This is the outcome of central banks all over the world raising interest rates at the same time in response to inflation. In 2023, the global core inflation rate (excluding energy) may be about 5% due to these interest rate increases.
- Ukraine-Russia War Impact
Risk exposures in the world’s money flow, stock markets, and commodities markets have increased due to Russia’s invasion of Ukraine and the subsequent human catastrophe. The illegal and hostile confrontation between Russia and Ukraine has significantly reduced sales of aviation fuel throughout Europe. The EU’s member states are working closely together to tackle resource depletion and rising costs. In terms of export and import activities, the crisis between Ukraine and Russia has had a substantial influence on the sustainable aviation fuel sector in Asia and the Pacific. Additionally, as a result of rising energy costs, the price of oil supply has increased.
- China COVID Outburst December 2022
Similar to what happened in China in 2023, the COVID-19 scenario will hurt the market for sustainable aviation fuel. The global spread and persistence of the pandemic, the response of different governments worldwide, and the severity of the illness all influence the projected long-term impact of COVID-19 on the market. Due to the spread of COVID-19, the Chinese government has once more implemented restrictions, including lockdowns, temporary suspensions of foreign trade and travel, partial closures of production facilities, and restricted movement. The number of patients planning to use sustainable aviation fuel has dramatically fallen due to these restrictions. A labor shortage is also impacting the growth of the sector.
- Regional Analysis
Europe accounted for a large 56.2% of the worldwide market in 2022. The local market is expected to expand significantly throughout the predicted period. The European aircraft industry is encouraged to convert to sustainable fuels by adopting more stringent energy regulations. In the upcoming years, several obstacles will need to be addressed to increase the use of green aviation fuel in Europe. This is expected to be possible since the aviation industry receives considerable government support in contrast to other transportation sectors.
The rise in demand for lower carbon emission aviation fuels has made it interesting for our client to enter the sustainable aviation fuel market.
The customer intended to grow in the sustainable aviation fuel industry to increase its profits. The client also needed to comprehend the fuel type and biofuel blending capacity, market quantities, and growth rates.
The customer contacted Credence Research Inc., which helped the client expand its enterprise and boost sustainable aviation fuel industry sales. Fuel type and biofuel blending capacity in the sustainable aviation fuel market are completely analyzed in the study “Global Sustainable Aviation Fuel Market, 2023-2030,” released by Credence Research Inc. in 2023. The report also gave the client a thorough analysis of the major market trends for the following two to three years, as well as details on the business strategies of the leading companies in the industry, the effects of the economic downturn, significant product launches, SRC analysis, PESTEL analysis, Porter’s five forces analysis, and Value Chain analysis, among other things.
The customer was able to increase its income prospects in numerous economies thanks to the complete analysis report on the sustainable aviation fuel industry from Credence Research Inc. A detailed research of trends, competitor pricing, and product introductions also assisted the client in selecting the right product type and technology, which assisted the client in doubling the revenue of its business.