Sustainable Aviation Fuel Market by Fuel Type (Biofuel, Gas to Liquid Fuel, Hydrogen Fuel), Blending Capacity (30% to 50%, Above 50%, Below 30%), Manufacturing Technology, Operation, End-Use - Global Forecast 2024-2030

Sustainable Aviation Fuel Market by Fuel Type (Biofuel, Gas to Liquid Fuel, Hydrogen Fuel), Blending Capacity (30% to 50%, Above 50%, Below 30%), Manufacturing Technology, Operation, End-Use - Global Forecast 2024-2030

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.

Regional Insights

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.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Sustainable Aviation Fuel Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Growing number of commercial and military aviation fleets globally
    • Increasing government support for development and usage of sustainable aviation fuels
    • Booming trade activities and proliferating e-commerce activities globally
    • Market Restraints
      • High cost of development of sustainable aviation fuels
      • Market Opportunities
        • Increasing research and development activities to develop novel raw materials for sustainable aviation fuels
        • Rising investment activities by airlines in adopting sustainable aviation fuels
        • Market Challenges
          • Feedstock availability barrier over development of sustainable fuels
          • Market Segmentation Analysis
            • Fuel Type: Growing adoption of biofuels to decarbonize the aviation sector
            • Blending Capacity: Expanding usage of sustainable aviation fuel with blending efficiency of 30% to 50% owing to its cost-effectiveness
            • Manufacturing Technology: Increasing usage of Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) that provides cleaner-burning fuel
            • End-Use: Emerging potential of SAFs across commercial aviation to reduce environmental impact
            • Operation: Increasing utilization of SAF in manned aerial vehicles carbon reduction
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Sustainable Aviation Fuel Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment 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, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Sustainable Aviation Fuel Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. 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 these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • 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.
              
              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.
              
              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.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Sustainable Aviation Fuel Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            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.
            
            Market Segmentation & Coverage
            
            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
                                  
                                  
                                  Please Note: PDF & Excel + Online Access - 1 Year