Sustainable Aviation Fuel Market Trends

Global Sustainable Aviation Fuel Market Overview

Sustainable Aviation Fuel Market Size was valued at USD 0.4 Billion in 2022. The Sustainable Aviation Fuel Market industry is projected to grow from USD 0.6 Billion in 2023 to USD 18.26 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 52.90% during the forecast period (2023 - 2032). Environmental concerns, regulatory support, corporate sustainability initiatives, technological advancements, investment and funding, partnerships and collaborations, price competitiveness, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

May 2024: Aemetis began producing SAF at its Keyes facility in California. The company plans to expand its production capacity to 50 million gallons annually by 2025.

Sustainable Aviation Fuel Market Trends

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  Environmental concerns is driving the market growth

  
  

One of the main factors influencing the market for sustainable aviation fuel (SAF) is environmental concerns. The aviation sector is under intense pressure to minimize its carbon footprint as public awareness of climate change and the damaging effects of greenhouse gas emissions rises. Carbon dioxide (CO2) is the main greenhouse gas emitted by the aviation industry, which has a considerable impact. SAF presents a viable option to reduce these emissions and take care of environmental issues.

SAF's capacity to considerably lower CO2 emissions when compared to conventional fossil fuels is one of its environmental benefits. SAF is made from renewable resources, which have a lower carbon intensity than fossil fuels, like biomass, used cooking oil, and agricultural wastes. Aircraft that adopt SAF can reduce their emissions significantly, especially their CO2 emissions significantly. SAF also has the ability to lessen the damaging pollutants nitrogen oxides (NOx) and sulfur dioxide (SO2) that are released by aircraft. These contaminants play a role in smog formation, air pollution, and negative health impacts. The aviation sector can help to improve air quality and lessen its detrimental effects on human health and the environment by substituting conventional jet fuel with SAF.

The adoption of SAF by the aviation sector is consistent with the larger international commitment to reducing climate change. Numerous nations have ratified the Paris Agreement, which seeks to keep global warming far below 2 degrees Celsius above pre-industrial levels. Reduced greenhouse gas emissions from all industries, including aviation, are essential to achieving this goal. SAF offers the aviation industry a practical and doable way to help meet these emission reduction goals.

Governments and regulatory authorities are putting laws and regulations in place to encourage the use of SAF in response to the urgency of climate change. A favorable market environment for SAF expansion has been created as a result of numerous nations setting targets for the percentage of SAF to be blended into aviation fuel. To promote the creation and adoption of SAF, these encouraging policies include tax breaks, subsidies, and financing schemes. Governments all over the world are boosting SAF market growth by coordinating regulatory frameworks with environmental objectives. Thus, driving the market revenue.

Sustainable Aviation Fuel Market Segment Insights

Sustainable Aviation Fuel Type Insights

The Market segmentation, based on fuel type, includes biofuel, power-to-liquid and gas-to-liquid. The biofuel segment dominated the market in 2022. Technologies for producing biofuels have been created and improved over time, becoming economically viable. The fact that biofuels rule the market in large part is due to the established infrastructure and production methods.

Figure 1: Sustainable Aviation Fuel Market, by Fuel Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Sustainable Aviation Fuel Technology Insights

The Sustainable Aviation Fuel Market segmentation, based on technology, includes HEFA-SPK, FT-SPK, HFS-SIP, and ATJ-SPK. The FT-SPK segment dominated the market in 2022. The FTSPK process has been used to gasify feedstocks such as coal, natural gas, or biomass into syngas composed of hydrogen and carbon monoxide. This syngas is enzymatically changed into a liquid hydrocarbon fuel mixing component in the FT reactor.

Sustainable Aviation Fuel Aircraft Type Insights

The Sustainable Aviation Fuel Market segmentation, based on aircraft type, includes fixed wings, rotorcraft and others. The fixed wings segment dominated the market in 2022. Fixed-wing aircraft have historically dominated the aviation sector, including commercial airliners, regional jets, business jets, and military aircraft. They have so significantly contributed to the adoption of sustainable aviation fuel.

Sustainable Aviation Fuel Biofuel Blending Capacity Insights

The Sustainable Aviation Fuel Market segmentation, based on biofuel blending capacity, includes above 50%, 30% to 50%, below 30%. The 30% to 50% segment dominated the market in 2022. In order to suit the needs of both commercial and military aviation, drop-in capability, moderate blend capacity, supply logistics transportation, and aircraft fleet enable lower overall costs.

Sustainable Aviation Fuel Platform Insights

The Sustainable Aviation Fuel Market segmentation, based on platform, includes commercial, regional transport aircraft, military aviation, business & general aviation, and unmanned aerial vehicles. The Military Aviation segment dominated the market in 2022. Governments have begun putting into practice rules and programs for integrating SAF into military aircraft, especially those that are concerned with sustainability and lowering carbon emissions. The segment's prospective dominance of the SAF market is aided by these initiatives.

Sustainable Aviation Fuel Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Sustainable Aviation Fuel Market dominated this market in 2022 (45.80%). In order to encourage the use of SAF, North American nations, especially the United States and Canada, have shown considerable government support and put rules in place. For instance, the U.S. Federal Aviation Administration (FAA) strongly promoted the use of SAF through programs like the Voluntary Airport Low Emissions (VALE) program and the Sustainable Aviation Fuel Grand Challenge. The domination of the market is the result of these programs' funding, incentives, and regulatory support for SAF adoption. Further, the U.S. Sustainable Aviation Fuel Market held the largest market share, and the Canada Sustainable Aviation Fuel Market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Sustainable Aviation Fuel Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Sustainable Aviation Fuel Market accounts for the second-largest market share. When it comes to environmental laws and sustainability programs, Europe has been at the forefront. In order to minimize greenhouse gas emissions, particularly those from the aviation industry, the European Union (EU) has established challenging goals. Specific goals for the use of renewable energy, including SAF, in aviation are included in the EU's Renewable Energy Directive (RED II). These strict guidelines and objectives have fostered the development and implementation of SAF in Europe. Further, the German Sustainable Aviation Fuel Market held the largest market share, and the UK Sustainable Aviation Fuel Market was the fastest growing market in the European region

The Asia-Pacific Sustainable Aviation Fuel Market is expected to grow at the fastest CAGR from 2023 to 2032. Due to reasons like population expansion, urbanization, rising incomes, and a growing middle class, the Asia-Pacific area has seen a major increase in demand for air travel. In order to lessen the negative effects on the environment of aircraft, there is a corresponding need for sustainable alternatives, such as SAF. The demand for SAF is anticipated to be driven by the expanding air travel sector in Asia-Pacific. Moreover, China’s Sustainable Aviation Fuel Market held the largest market share, and the Indian Sustainable Aviation Fuel Market was the fastest growing market in the Asia-Pacific region.

Sustainable Aviation Fuel Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Sustainable Aviation Fuel Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Sustainable aviation fuel industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Sustainable aviation fuel industry to benefit clients and increase the market sector. In recent years, the Sustainable aviation fuel industry has offered some of the most significant advantages to medicine. Major players in the Sustainable Aviation Fuel Market, including Northwest Advanced Biofuels, LLC., Red Rock Biofuels, Fulcrum BioEnergy, Inc., Aemetis, Inc., TotalEnergies SE, OMV Aktiengesellschaft, Neste Oyj, SKYNRG, Gevo Inc., Eni SPA, Avfuel Corporation, SG Preston Company, Sundrop Fuels Inc., Ballard Power Systems, Velocys, ZeroAvia, Inc and others, are attempting to increase market demand by investing in research and development operations.

The integrated worldwide multi-energy corporation TotalEnergies SE (TotalEnergies), formerly known as Total SE, produces energy from renewable sources, oil and biofuels, natural gas and green gases, and other sources. Drilling, oil and gas production, processing, shipping, refining, petrochemical manufacture, storage, and distribution of petroleum products and speciality chemicals are all done by this company. It works in the field of renewable energy and engages in gas trading and power generating. TotalEnergies trades on multiple derivative markets, charters ships, and provides feedstock to chemical factories. The business provides consumer services to the manufacturing, transportation, automotive, aerospace, energy, and housing sectors. It conducts business in North and South America as well as Asia-Pacific, Africa, Europe, and the Middle East. The headquarters of TotalEnergies are located in Paris, Ile de France, France.

Innovative renewable energy solutions are offered by Ballard Power Systems Inc (Ballard Power). Proton exchange membrane (PEM) fuel cell products are created, developed, produced, sold, and serviced by the business for the power, material handling, backup, and portable markets. Heavy-duty modules, fuel cell stacks, and backup power systems are some of its main offerings. Additionally, Ballard Power provides a range of technological solutions, including engineering and technology transfer services, among others. It provides products for a variety of industries, including the UAV, rail, truck, material handling, critical infrastructure, automotive, and transit bus markets. The company has locations for research and development, testing, sales, and manufacturing in Canada, the US, and Denmark. Customers from North America, Europe, and Asia Pacific are catered to buy it. Burnaby, British Columbia, Canada serves as the home office for Ballard Power.

Key Companies in the Sustainable Aviation Fuel Market include

• Northwest Advanced Biofuels, LLC.


• Red Rock Biofuels


• Fulcrum BioEnergy, Inc.


• Aemetis, Inc.


• TotalEnergies SE


• OMV Aktiengesellschaft


• Neste Oyj


• SKYNRG


• Gevo Inc.


• Eni SPA


• Avfuel Corporation


• SG Preston Company


• Sundrop Fuels Inc.


• Ballard Power Systems


• Velocys


• ZeroAvia, Inc

Sustainable Aviation Fuel Industry Developments

January 2022:Cepsa approved a contract with Iberia and Iberia Express for the development and mass production of sustainable aviation fuel. According to the agreement, SAF must be generated from waste, recovered oils, and second-generation plant-based biofeedstock.

March 2022:Neste Company and DHL Express unveiled the biggest SAF transactions ever. One of the most significant sustainable aviation fuel contracts in the aviation sector, this arrangement represents Neste's most noticeable SAF. Global connectivity from this partnership will improve Neste's current web.

Sustainable Aviation Fuel Market Segmentation

Sustainable aviation fuel Fuel Type Outlook

• Biofuel


• Power-to-Liquid


• Gas-to-Liquid

Sustainable aviation fuel Technology Outlook

• HEFA-SPK


• FT-SPK


• HFS-SIP


• ATJ-SPK

Sustainable aviation fuel Aircraft Type Outlook

• Fixed Wings


• Rotorcraft


• Others

Sustainable aviation fuel Biofuel Blending Capacity Outlook

• Above 50%


• 30% to 50%


• Below 30%

Sustainable aviation fuel Platform Outlook

• Commercial


• Regional Transport Aircraft


• Military Aviation


• Business & General Aviation


• Unmanned Aerial Vehicles

Sustainable aviation fuel Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America