Global Sustainable Aviation Fuel Market 2023-2030

Global Sustainable Aviation Fuel Market 2023-2030

Global Sustainable Aviation Fuel Market Size, Share & Trends Analysis Report by Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel, and Gas-to-Liquid), by Technology (Fischer-Tropsch (FT), Hydroprocessed Esters and Fatty Acids (HEFA), Synthesized Iso-Paraffinic (SIP), and Alcohol-to-Jet (AJT)), and by Application (Commercial and Military) Forecast Period (2023-2030)

The global sustainable aviation fuel (SAF) market is anticipated to grow at a considerable CAGR of 48.5% during the forecast period. The growing demand for greener and cleaner fuels along with cohesive government policies has driven the growth of the global sustainable aviation fuel market. SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel with a smaller carbon footprint. Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle GHG emissions dramatically compared to conventional jet fuel. Some emerging SAF pathways even have a net-negative GHG footprint. According to the US Environmental Protection Agency, SAFs lower carbon intensity makes it an important solution for reducing aviation GHGs, which make up 9.0%-12.0% of US transportation GHG emissions.

Many SAFs contain fewer aromatic components, which enables them to burn cleaner in aircraft engines. This means lower local emissions of harmful compounds around airports during take-off and landing. Aromatic components are also precursors to contrails, which can exacerbate the impacts of climate change. In October 2022, Honeywell, launched a new ethanol-to-jet fuel (ETJ) processing technology to convert corn-based, cellulosic, or sugar-based ethanol into sustainable aviation fuel (SAF). Based on the type of ethanol feedstock used, jet fuel produced from the company’s ETJ fuel process can reduce greenhouse gas (GHG). Such developments are further fueling the market growth. The high costs of SAF restrain the growth of the global SAF market. Nevertheless, increasing demand from emerging regions like southeast Asia is anticipated to create lucrative opportunities for the global SAF market during the forecast period.

Segmental Outlook

The global sustainable aviation fuel market is segmented based on fuel type, technology, and application. Based on fuel type, the market is segmented into biofuel, hydrogen fuel, power to liquid fuel, gas-to-liquid. Based on technology, the market is segmented into Fischer-Tropsch (FT), Hydroprocessed Esters and Fatty Acids (HEFA), Synthesized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT). Based on application, the market is sub-segmented into commercial and military.

Biofuel Held a Considerable Share in the Global Sustainable aviation fuel Market

The growing production of biofuels in coming decade due to rapid developments in technological pathways to commercialize the use of alternate jet fuel is a key contributor to the growth of this market segment. Countries such as UK, the Netherlands, and Norway are contributing significantly to the sustainability plans of biofuel by funding biofuel production infrastructure.

Regional Outlooks

The global sustainable aviation fuel market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Asia-Pacific is anticipated to exhibit considerable growth in the global sustainable aviation fuel market.

Global Sustainable Aviation Fuel Market Growth, by Region 2023-2030

Source: OMR Analysis

North America Region held Considerable Share in the Global Sustainable Aviation Fuel Market

The regional market is driven by the presence of key market players along with the growing funding for research related to SAF. For instance, in partnership with biorefiners, aviation companies, and farmers, Bioenergy Technologies Office (BETO)-funded researchers are developing novel pathways for producing SAFs from renewable and waste feedstocks that meet strict fuel specifications for use in existing airplanes and infrastructure. BETO is working with laboratory and industry partners to develop new SAF pathways and fuel formulations in order to enable testing and certification required to ensure these fuels are fully compatible with existing aircraft and infrastructure.

In June 2023, the Canadian Council for Sustainable Aviation Fuels (C-SAF) launched a roadmap detailing its policy framework, its priority actions, and the next steps to ensure that the Canadian aviation sector remains competitive as it transitions to a net-zero future by 2050. Such developments are further contributing to the regional market growth.

Market Players Outlook

The major companies serving the global sustainable aviation fuel market include Swedish Biofuels AB, TotalEnergies SE, Neste Oyj, SG Preston Company, Gevo Inc. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market.

For instance, in January 2023, Arcadia eFuels received investment from Swen Infrastructure Fund for Transition 2 “Swift 2”. The investment by SWEN Capital Partners will propel development and commence FEED (Front End Engineering Design) for eFuels production sites. With this investment, the parties aim at reaching FID expeditiously, leading to the construction of commercial eFuels facilities that will supply the much-needed lowest carbon emitter fuel (eKerosene) to the aviation industry.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global sustainable aviation fuel market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.