[182 Pages Report] The Sustainable Aviation Fuel Market size was estimated at USD 3.88 billion in 2023 and expected to reach USD 5.01 billion in 2024, at a CAGR 32.24% to reach USD 27.45 billion by 2030.
Sustainable aviation fuels (SAF) are eco-friendly alternative fuels used in commercial and military aircraft. SAFs are made from renewable resources such as waste oils, agricultural residues, non-food crops, and advanced biofuel technologies, including algae-derived biofuels and synthetic paraffinic kerosene (SPK). The primary end-users include airlines, cargo carriers, governments, and defense organizations, aiming to reduce greenhouse gas emissions associated with conventional jet fuel. Stricter emission standards set by regulatory bodies to adopt green initiatives and the availability of incentives such as tax credits and grants encourage research and development in SAF technology, elevating the usage of sustainable aviation fuels. Rising air traffic globally and continuous upsurge in crude oil prices are increasing the need for cleaner alternatives across the aviation sector to mitigate environmental impacts. High production costs associated with sustainable aviation fuels hampers market growth. The growing development of novel pathways to convert waste materials into valuable fuels is expected to create opportunities for market growth.
Biofuels, derived from organic matter such as waste materials and plants, are a sustainable alternative to traditional jet fuels. They emit fewer greenhouse gases (GHGs) compared to fossil fuels and potentially contribute to the decarbonization of the aviation industry. Hydrogen fuel is another promising solution for achieving emissions-free air travel. Hydrogen used in a fuel cell or burned in an engine-generator set-up produces water as a byproduct, significantly reducing GHG emissions. Power-to-liquid (PtL) fuels involve synthesizing liquid hydrocarbon fuels such as jet fuel by using renewable electricity to convert water and carbon dioxide into liquid hydrocarbons. The advantage of PtL fuels lies in their compatibility with existing jet engines and fuel infrastructure, making them a feasible solution for reducing the carbon footprint of aviation. GTL fuel is chemically similar to conventional jet fuel but is produced from natural gas through a synthetic process. Its compatibility with existing aviation fuel infrastructure and engines makes it an attractive option for immediate implementation. Additionally, GTL fuel has a higher energy density, potentially offering better fuel efficiency than traditional jet fuel.
A blending efficiency range of 30% to 50% represents an optimal balance between environmental benefits and cost-effectiveness for several airlines. SAF, with this efficiency level, effectively reduces greenhouse gas emissions while maintaining compatibility with existing aircraft engines and fuel infrastructure. SAF, with a blending efficiency above 50%, offers substantial reductions in greenhouse gas emissions. However, it requires additional investment in engine modifications and advanced fuel infrastructure. Airlines focusing on rapid decarbonization prefer this category despite potential cost implications. SAF, with a blending efficiency below 30%, is ideal for airlines that are gradually transitioning toward sustainable aviation solutions or facing budget constraints. Moreover, this category offers limited environmental benefits compared to higher-efficiency options and represents progress in reducing emissions.
Alcohol to Jet SPK (ATJ-SPK) technology involves the utilization of various feedstocks, including agricultural residues, municipal solid waste, and dedicated energy crops. Catalytic hydrothermolysis jet (CHJ) converts lipids sourced from vegetable oils and waste fats into renewable jet fuel through catalytic hydrothermolysis, followed by hydrotreatment. Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) technology synthesizes fuel by converting carbon-based feedstocks, such as biomass and natural gas, into synthetic gas and then transforming it into liquid hydrocarbons. Hydroprocessed fatty acid esters and fatty acids - synthetic paraffinic kerosene (HEFA-SPK) is a prominent technology utilized in the production of SAF. The process involves converting bio-based feedstocks, primarily derived from waste oils, animal fats, and non-edible plant oils, into advanced biofuels suitable for use in aviation. The key advantage of HEFA-SPK fuels is their ability to lower greenhouse gas emissions compared to conventional jet fuel while maintaining high performance and compatibility with existing aircraft engines and infrastructure. Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP) involves fermenting sugar into farnesene and then converting it into iso-paraffin through hydroprocessing. The resulting fuel has high energy density and excellent cold-flow properties.
The business & general aviation sector encompasses private jet operators, charter flights, and smaller regional airlines. The need for sustainable aviation fuel (SAF) in this sector is driven by corporate social responsibility goals, environmental regulations, and customer demand for greener travel options. The commercial aviation sector started using SAFs to meet international emission reduction targets set by organizations such as the International Civil Aviation Organization (ICAO). Military aviation includes armed forces worldwide seeking to lower their carbon footprint and dependency on fossil fuels through the use of SAFs. Unmanned aerial vehicles (UAVs) are used across various industries for applications such as aerial photography, surveillance, agriculture, and transportation. The use of SAFs is increasing in UAVs to minimize their environmental impact.
Manned aerial vehicles (MAVs), including commercial and private aircraft, are the most significant aviation sector category. MAVs are the chief consumers of aviation fuel and are at the forefront when using SAF. Operators have started introducing SAF into their fuel mix, significantly reducing the carbon footprint and other emissions associated with aviation fuel. Internationally, airports and airlines have begun incorporating SAF into their supply chains. For instance, the aviation behemoth Boeing has committed to ensuring its commercial planes are capable and certified to fly on 100% SAF by 2030. Other industry players, such as United Airlines and Delta Air Lines, are taking progressive steps toward adopting SAF. UAVs, colloquially known as drones, are rising in popularity due to their diverse applications ranging from delivery to surveillance and entertainment. These devices have a lesser fuel demand than MAVs; however, incorporating SAF in UAVs is significant. These drones reduce their carbon footprint using SAF, aligning with global sustainability goals.
The United States has one of the largest air passenger and freight markets globally, and as per the International Trade Administration (ITA), over 58,000 tons of cargo are transported daily. According to the Federal Aviation Administration (FAA), the total commercial aircraft fleet is estimated to reach 8,270 in 2037, owing to a continuous increase in air cargo. The usage of aircraft for cargo transportation, last-mile delivery, medical emergencies, air shuttle, private transport, and other areas has been increasing in Brazil, Canada, the U.S., and Chile due to high congestion and the indirect nature of routes with higher circuity factors for ground-based vehicles, creating a demand for sustainable aviation fuels in Americas. The ongoing adoption of various sustainable aviation fuels by airlines across Asia-Pacific is expected to create a platform for the growth of the market in Asia-Pacific. In December 2021, Indigo Airlines, India, signed an agreement with the Dehradun-based Council of Scientific and Industrial Research-Indian Institute of Petroleum (CSIR-IIP) to develop and supply SAF at the global level. Japan Airlines (JAL), in June 2021, completed the test of a mixture of two different types of sustainable aviation fuel produced domestically in Japan. The rising availability of government support in terms of tax credits and grants to expand the manufacturing of SAFs is expected to create a platform for market growth in EMEA.
The FPNV Positioning Matrix is pivotal in evaluating the Sustainable Aviation Fuel Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Sustainable Aviation Fuel Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Boeing and U.S. Government Launch Initiative to Advance Sustainable Aviation Fuel among APEC Economies
The Boeing Company, in a collaborative effort with the United States Department of Transportation and the Federal Aviation Administration, is spearheading a project within the Asia-Pacific Economic Cooperation to foster the growth of Sustainable Aviation Fuel (SAF) across member countries. Boeing's investment in the field is evident through its procurement of 7.6 million gallons of SAF for U.S. operations, demonstrating the company's dedication to spearheading the transition toward a sustainable future in aviation. [Published On: 2023-11-16]
Macquarie Invests USD 190 million in Green Sustainable Aviation Fuel Supplier SkyNRG
Macquarie Group Ltd announced that its Macquarie Asset Management division will commit up to Euro 175 million (approximately USD 190 million) to SkyNRG, a pioneering company in the sustainable aviation fuel (SAF) sector based in the Netherlands. This significant capital infusion underlines the growing interest among investors in the burgeoning SAF market, which is surging as airlines pivot toward environmentally friendly alternatives to conventional jet fuel to slash carbon emissions and achieve sustainability objectives. [Published On: 2023-11-16]
Neste and SQUAKE Enable Businesses to Opt For Sustainable Aviation Fuel in Flight Booking Systems to Reduce Their Air Travel Related Carbon Emissions
Neste Oyj joined forces with SQUAKE to pioneer a strategic partnership that empowers businesses to integrate Neste MY Sustainable Aviation Fuel into their flight booking procedures. Through SQUAKE's advanced tech infrastructure, travel companies can offer clients the option to select sustainable aviation fuel, enhancing the sustainability of their journeys. [Published On: 2023-09-21]
The report delves into recent significant developments in the Sustainable Aviation Fuel Market, highlighting leading vendors and their innovative profiles. These include Abu Dhabi National Oil Company, Aemetis, Inc., Amyris, Inc., Axens SA, BP PLC, Chevron Corporation, China National Petroleum Corporation, CleanJoule, DGFuels, LLC, ENEOS Group, Enertrag SE, Eni S.p.A., Exxon Mobil Corporation, Fulcrum BioEnergy, Inc., Gevo, Inc., HIF Global, Honeywell International Inc., Indian Oil Corporation Limited, INERATEC GmbH, KBR, Inc., LanzaTech Global, Inc., Linde PLC, Lummus Technology LLC, Maire Tecnimont S.p.A., Mitsubishi Corporation, Montana Renewables, LLC by Calumet Specialty Products Partners, L.P., Neste Corporation, Norsk e-Fuel AS, Nova Pangaea Technologies Ltd, ORLEN S.A., OxCCU Tech Limited, Phillips 66, Praj industries Ltd., Preem Holdings AB, Raven SR Inc., Red Rock Biofuels Holdings, RWE AG, Sasol Limited, Saudi Arabian Oil Company, Shell PLC, Siemens Energy AG, SkyNRG B.V., Sumitomo Heavy Industries, Ltd., Sunfire GmbH, Swedish Biofuels AB, Synhelion SA, Technip Energies N.V., Topsoe A/S, TotalEnergies SE, Twelve Benefit Corporation, World Energy, LLC, Yokogawa Electric Corporation, and Zero Petroleum Limited.
This research report categorizes the Sustainable Aviation Fuel Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Fuel Type
- Biofuel
- Gas to Liquid Fuel
- Hydrogen Fuel
- Power to Liquid Fuel
- Sun to Liquid Fuel
- Wind to Liquid Fuel
- Blending Capacity
- 30% to 50%
- Above 50%
- Below 30%
- Manufacturing Technology
- Alcohol to Jet SPK
- Catalytic Hydrothermolysis Jet
- Fischer Tropsch Synthetic Paraffinic Kerosene
- Hydroprocessed Fatty Acid Esters and Fatty Acids-Synthetic Paraffinic Kerosene
- Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar
- Operation
- Manned Aerial Vehicle
- Unmanned Aerial Vehicle
- End-Use
- Business & General Aviation
- Commercial Aviation
- Military Aviation
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
- What is the market size and forecast of the Sustainable Aviation Fuel Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Sustainable Aviation Fuel Market?
- What are the technology trends and regulatory frameworks in the Sustainable Aviation Fuel Market?
- What is the market share of the leading vendors in the Sustainable Aviation Fuel Market?
- Which modes and strategic moves are suitable for entering the Sustainable Aviation Fuel Market?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Sustainable Aviation Fuel Market, by Fuel Type
- Sustainable Aviation Fuel Market, by Blending Capacity
- Sustainable Aviation Fuel Market, by Manufacturing Technology
- Sustainable Aviation Fuel Market, by Operation
- Sustainable Aviation Fuel Market, by End-Use
- Americas Sustainable Aviation Fuel Market
- Asia-Pacific Sustainable Aviation Fuel Market
- Europe, Middle East & Africa Sustainable Aviation Fuel Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 26]
- List of Tables [Total: 558]
- List of Companies Mentioned [Total: 53]
The industry increasingly turns to sustainable aviation fuel (SAF) to decrease its carbon footprint. Sustainable aviation fuel is derived from feedstocks such as waste oils, crop residues, and municipal solid waste, to name a few. The use of these feedstocks helps to reduce carbon emissions from aviation. Research and development activities are currently focused on developing new and sustainable raw materials that can be used to create SAF. The scope of sustainable aviation fuel is expanding, and researchers are exploring multiple options to create a carbon-neutral aviation industry.
One such raw material being investigated for SAF is algae. Algae is an excellent source of oil and can be grown in seawater, wastewater, or salt caves. Research is being conducted to investigate the viability of using algae as a feedstock for sustainable aviation fuel. Algae is rich in lipids and can yield more oil per acre of land than other crops, such as soybeans. The production of algae-based fuel requires fewer resources, saving costs and reducing environmental impact.
Another raw material being developed for sustainable aviation fuel is lignocellulosic biomass. Lignocellulosic biomass is abundant and includes forest residues, agricultural waste, and energy crops. Using lignocellulosic biomass for SAF can help reduce the use of fossil fuels, which will, in turn, reduce carbon emissions. Research is being conducted to optimize the efficient conversion of this biomass into sustainable aviation fuel.
Municipal solid waste (MSW) is also being studied as a feedstock for sustainable aviation fuel. MSW is a readily available source of feedstock and can be used as fuel through pyrolysis, gasification, and fermentation. MSW can be converted into sustainable aviation fuel at a lower cost than other feedstocks, making it a viable alternative.
The scope of sustainable aviation fuel is expanding, with novel raw materials being researched and developed to reduce carbon emissions from the aviation industry. There is a large focus on finding new and sustainable raw materials such as algae, lignocellulosic biomass, and municipal solid waste to create sustainable aviation fuel. Using these raw materials reduces carbon emissions and promotes a greener aviation industry. The aviation industry must continue to invest in research and development to increase the availability of sustainable aviation fuel, ensuring a carbon-neutral future.
- How big is the Sustainable Aviation Fuel Market?
- What is the Sustainable Aviation Fuel Market growth?
- When do I get the report?
- In what format does this report get delivered to me?
- How long has 360iResearch been around?
- What if I have a question about your reports?
- Can I share this report with my team?
- Can I use your research in my presentation?