USD 344.29 billion
Report ID:
SQMIG10D2031 |
Region:
Global |
Published Date: August, 2024
Pages:
178
|Tables:
90
|Figures:
78
Sustainable Aviation Fuel Market Size was valued at USD 656.96 million in 2022 and is poised to grow from USD 951.94 million in 2023 to USD 18499.26 million by 2031, growing at a CAGR of 44.9% during the forecast period (2024-2031).
Compared to the conventional jet fuel it replaces, the use of sustainable aviation fuel reduces carbon emissions over the fuel's lifetime. Compared to the traditional jet fuel it replaces, sustainable aviation fuel offers a tremendous reduction in carbon emissions of up to 80% over the fuel's lifetime, depending on the sustainable feedstock used, the production method, and the supply chain to the airport. Utilising sustainable aviation fuel is permitted for any aircraft qualified to use the current jet fuel specification. The SAF is predicted to increase sustainability by eliminating 100% of waste and residues, reducing emissions by 80% of its value. In addition, it enhances aircraft performance while reducing aviation emissions when compared to fossil jet fuel. Its high level of energy and improved aromatic and oxygen content. The achievement of the aviation sector's carbon reduction goals depends in large part on sustainable aviation fuel. The market for sustainable aviation fuel is being positively impacted by the increase in the adoption of alternative solutions by different aviation industry stakeholders, such as hybrid-electric and all-electric aircraft, improved aero-engine efficiency through design modifications, and growing demand due to high fuel efficiency.
US Sustainable Aviation Fuel Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 344.29 billion
Largest Segment
Biofuel
Fastest Growth
Biofuel
Growth Rate
62.02% CAGR
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Sustainable Aviation Fuel Market is segmented on the basis of type, aircraft type, platform, manufacturing technology and region. By type, the sustainable aviation fuel market is segmented into biofuel, hydrogen fuel, power to liquid fuel and Gas to liquid fuel. By aircraft type, market is segmented into fixed wings, rotorcraft, others. By platform, the market is segmented into commercial aviation, military aviation, business & general aviation, and unmanned aerial vehicle. By manufacturing technology it is segmented into FT-SPK, HEFA-SPK, HFS-SIP, ATJ-SPK, FT-SPK/A, HC-HEFA-SPK, CHJ and others. By blending capacity it is divided into below 30%, 30% to 50% and above 50%. Based on platform it is divided into Commercial aviation, military aviation, business & general aviation and Unmanned aerial vehicles. By region, the sustainable aviation fuel market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Sustainable Aviation Fuel Market Analysis by Aircraft Type
The segment with fixed wings has the largest market share and is anticipated to expand at a CAGR of 61.53% over the forecast period. Fixed-wing aircraft have wings that do not move and are powered by jet engines or propellers. Due to the difference in their lifting, fixed-wing aircraft are often significantly more efficient than rotary aircraft. An engine propels fixed-wing aircraft forward. Lift is produced by wind across the wings. Sustainable aviation fuels, mostly used by fixed-wing aircraft, can reduce the environmental impact of aircraft operations.
To fulfil global emissions targets, the rotorcraft sector and its operators have started to take action. For instance, Bell is the first rotorcraft client to purchase sustainable aviation petrol from Avfuel Corporation, the world's largest aviation fuel supplier. Despite the fact that helicopter operations may not be as heavily scrutinized for their decarbonization as much of the commercial airline industry is, in part due to the important role they play in maintaining public safety through law enforcement, air ambulance, and search-and-rescue operations, helicopter operators are starting to feel pressure from the government and regulatory bodies to meet emission targets, which is causing the segment to grow.
Sustainable Aviation Fuel Market Analysis by Platform
The market's largest contributor, commercial aviation, is predicted to expand at a CAGR of 61.77% over the forecast period. The two main aviation fuel grades utilized in the commercial sector are Jet A1 and Jet A. In the United States, commercial aviation typically uses Jet A, although in the rest of the globe, Jet A-1 is more frequently utilized. On certain of their commercial flights, a few airlines, like United and Japan Airlines, employ sustainable aviation fuel. Additionally, 403,384 commercial flights have used sustainable aviation fuel. The first passenger flight ever was conducted by United Airlines utilizing only sustainable aviation fuel.
With 23 business jets using sustainable aviation fuel mixes to fly to EBACE, business jets are also embracing these fuels. With a track record of successes in lowering carbon emissions, the business aviation community has long been committed to lowering greenhouse gas (GHG) emissions from aircraft. The business aviation industry is stepping up its efforts to use sustainable aviation fuels (SAF) and take other measures to keep its ambitious climate commitments as a result of the epidemic. Due to commitments made by business and commercial aviation, the market for sustainable aviation fuel is growing more quickly as air travel recovers and sustainability becomes a more pressing worldwide priority.
Sustainable Aviation Fuel Market Analysis by Manufacturing Technology
FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene): The team in question is as smooth-functioning as a well-oiled engine; thus, we can speak about FT-SPK. This existing technology is quite old in the SAF game it converts jet fuel from sustainable sources such as biomass or CO2 sequestration. The process transform these feedstocks into a fuel which is as close in every way to conventional JP-8 jet fuel and can be used directly in all aircrafts. Moreover, FT-SPK has the advantage of high production capacity that would help respond to the increasing needs of sustainable aviation solutions.
HEFA-SPK (Hydrotreated Esters and Fatty Acids - Synthetic Kerosene): HEFA-SPK takes a more resource-conscious approach to it. Think recycled cooking oil! This one can use processed vegetable oils or animal fats as its feedstock, which can be perhaps even more sustainable than the FTSPK one derived from virgin biomass. HEFA-SPK’s total emissions over the life of the product are also lower, which reduces the environmental impact during its manufacture.
CHJ (Catalytic Hydrothermal Jet fuel): While CHJ is still relatively young and using British actress Gemma Arterton as the face of the Company, it is not half bad. This new conversion technology employs water and heat, to pyrolyze biomass and produce jet fuel, a preferable technique compared to FT-SPK. Nevertheless, the concept of CHJ technology that underlines the given design idea is still rather emergent. Let me state a case of a prototype aircraft – it is not yet fully refined and ready for use in the society.
Others: Therefore, the future of SAF is replete with one opportunity after the other. The “Others” segment is a hangar full of technologies such as direct fermentation and alcohol-to-jet processes which are yet to take off fully. These promise yet more sustainable feedstocks and production processes, but are still in the departure lounge: waiting to fly.
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The sustainable aviation fuels market is dominated by North America, which is anticipated to expand at a CAGR of 60.94% during the forecast period. The North American sustainable aviation fuel market is driven by demand from industrialized nations. The aviation industries in these nations are among the biggest in the world. Some of the world's top airlines are based in North America. All have their main offices in North America and are well-known in their respective regions, including American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines. Additionally, the existence of these businesses in North America increases the region's need for environmentally friendly aviation fuel.
Over the course of the forecast, Europe is expected to expand at a CAGR of 59.88%. The growing need for sustainable aviation fuel in Europe is being driven by the growth in air travel to and from Europe. Europe is also a popular tourism destination, receiving a large number of visitors each year. Europe accounted for over 23.7% of the world's scheduled passenger and freight traffic, according to the International Air Transport Association's World Air Transport Statistics. Additionally, Europe is responsible for 2.3% of domestic scheduled passenger traffic and over 21% of the world's scheduled international passenger traffic. Due to a large number of passengers, there are more flights to and from Europe. The European sustainable aviation fuel market is growing as a result of this.
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Sustainable Aviation Fuel Market Drivers
Aviation Industry’s Pressure to reduce GHG Emissions to Bring Lucrative Growth Opportunities
Sustainable Aviation Fuel Market Restraints
Inadequate Supply of Feedstock and Refineries to Hinder Market Growth
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The global sustainable aviation fuel (SAF) market features a dynamic competitive landscape characterized by a mix of established energy companies, renewable fuel producers, aviation industry players, and startups focused on sustainable aviation solutions. These market participants are engaged in various strategies and collaborations to advance the adoption of SAF and address the aviation industry's sustainability challenges. Leading players in the competitive landscape of the global SAF market are leveraging their expertise in energy production and distribution to invest in SAF production and distribution. Their substantial resources and global reach make them key players in the development of SAF infrastructure. Airlines themselves are also entering the SAF market. Companies like Delta Air Lines and United Airlines have committed to investing in SAF production and are actively seeking to reduce their carbon emissions through the increased use of sustainable aviation fuel. Their commitment to sustainable practices is shaping the industry landscape.
Startups and innovative companies like Fulcrum BioEnergy and Velocys are contributing to the competitive landscape by introducing novel technologies and production methods, including the conversion of waste materials into SAF. These innovative players are driving advancements in SAF production processes and opening new possibilities for sustainable feedstock sources. Furthermore, collaborations and partnerships are a defining feature of the competitive landscape. Airlines often partner with SAF producers and research institutions to develop and deploy new sustainable aviation fuels. Government incentives, regulations, and sustainability goals also play a significant role in shaping the competitive landscape, as they can drive or hinder investment in SAF production.
Sustainable Aviation Fuel Industry Top Player’s Company Profiles
Recent Developments in Sustainable Aviation Fuel Industry
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global sustainable aviation fuel market has been experiencing significant growth in recent years, driven by increasing demand for more sustainable and environmentally friendly aviation fuel options. Sustainable aviation fuel (SAF) is a renewable alternative to traditional jet fuel that can significantly reduce carbon emissions from the aviation sector. The market for sustainable aviation fuel is primarily driven by the aviation industry's increasing focus on reducing carbon emissions and achieving sustainability goals. Additionally, governments and regulatory bodies are implementing policies and incentives to promote the use of SAF, further driving market growth. The market is still in its early stages and faces challenges such as limited production capacity, high production costs, and lack of infrastructure. The global sustainable aviation fuel market is growing rapidly and presents a significant opportunity for companies and investors looking to enter the renewable energy sector. However, the market still faces challenges, and further investment and innovation are needed to fully realize the potential of sustainable aviation fuel.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 656.96 million |
Market size value in 2031 | USD 18499.26 million |
Growth Rate | 44.9% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Million |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Sustainable Aviation Fuel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Sustainable Aviation Fuel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Sustainable Aviation Fuel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Report ID: SQMIG10D2031
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