Emphasis on Fuel Type (Biofuel and Power-to-Liquid); Aircraft Type (Fixed Wings and Rotorcrafts); Platform (Commercial Aviation and Military Aviation); and Region/Country
The Sustainable Aviation Fuel Market Globally is expected to reach USD 20,088.69 Million in 2030 by growing at a CAGR of 46.07%. The demand for sustainable aviation fuel (SAF) has increased significantly in recent years, driven by government policies and regulations to reduce carbon emissions, cost competitiveness, increased production capacity of manufacturers, and accessibility worldwide. The heightened awareness of the environmental impacts of aviation has driven the demand for Sustainable Aviation Fuels (SAF). To mitigate the sector’s contribution to climate change, various governments have adopted certain measures, with SAF being an essential factor in these efforts. For instance, the European Union has set the goal of achieving net-zero emissions from international aviation by 2050, and many nations have implemented carbon pricing models to encourage the uptake of low-carbon technologies. Several major airlines have committed to the purchase of Sustainable Aviation Fuel (SAF) and have entered partnerships with producers such as Emirates Airlines and BP-Qantas joint venture in order to facilitate the production of SAF from waste cooking oil.
Some of the major players operating in the market include Neste, Fulcrum BioEnergy, World Energy, LLC, TotalEnergies, Gevo, Avfuel Corporation, Aemetis, Inc., Preem AB, SkyNRG, Northwest Advanced Biofuels, LLC. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst fuel types, the biofuel segment dominated the market in 2022.”
Based on fuel type, the market is divided into biofuel, hydrogen fuel, and power-to-liquid. The biofuel segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. Biofuels are created from renewable biomass sources such as agricultural waste, algae, or even garbage. These fuels emit significantly fewer greenhouse gases during combustion than traditional fossil fuels, thereby helping to reduce the adverse environmental effects of aviation. Additionally, biofuels can be blended with traditional fossil fuels in various proportions, allowing operators to reduce their reliance on fossil fuels incrementally without causing significant operational disturbances. Many countries have established ambitious goals to reduce greenhouse gas emissions from the aviation sector, and biofuels are seen as a crucial part of this endeavor. For instance, the European Union has mandated that all commercial flights must solely use sustainable aviation fuels (SAF) by the year 2020. In addition, the California Air Resources Board has implemented a target of 10% SAF usage in California by 2020. These regulations are providing a compelling impetus for airlines and other aviation stakeholders to incorporate biofuels into their practices.
“Amongst aircraft types, the fixed wings segment holds a significant market share in 2022.”
Based on aircraft type, the market is bifurcated into fixed wings and rotorcrafts. The fixed wings hold a significant market share in 2022 and are expected to showcase the same trend in the forecast period due to fixed-wing aircraft being more commonly used for long-haul flights, which require more fuel and therefore more SAF. Furthermore, the development of more efficient and environmentally friendly fixed-wing aircraft, such as the Airbus A220 and the Boeing 787 Dreamliner, is also expected to drive the demand for SAF in the fixed-wing market. Additionally, the regulatory environment for SAF is also more favorable for fixed-wing aircraft. For instance, the Federal Aviation Administration (FAA) has set a goal of reducing greenhouse gas emissions from aviation to 80% below 2005 levels by 2050. Additionally, regulatory environments favor fixed-wing aircraft, such as the FAA’s goal to reduce greenhouse gas emissions and the EU’s 10% jet fuel target from sustainable sources by 2030, likely driving more adoption of SAF in fixed-wing aircraft.
“North America was the largest market for sustainable aviation fuels market in 2022.”
The North American sustainable aviation fuel market dominates the market and is expected to behave in the same fashion due to the early adoption of the SAF. Over the past couple of years, demand for Sustainable Aviation Fuel (SAF) has seen a rapid increase in North America due to regulatory requirements and the desire to reduce greenhouse gas emissions from the aviation sector. In 2020, the United States Environmental Protection Agency (EPA) issued a final rule requiring airports to provide Self-Serve Aviation Fuel (SAF) to general aviation aircraft operators by August 2023. Similarly, in 2017, the Canadian Air Transport Security Authority (CATSA) introduced new regulations requiring airports to offer SAF to commercial operators by December 2020. These regulations have created a mandate for airports to install SAF pumps and attract suppliers to establish themselves in the region. Moreover, reducing greenhouse gas emissions is a crucial step, aviation contributes 2.5% to global CO2 emissions, making it instrumental in fighting climate change. Sustainable Aviation Fuel (SAF) reduces emissions without compromising performance and is gaining support from airlines and airports to become more sustainable.
Q1: What is the current market size and growth potential of the global sustainable aviation fuel market?
Ans: The global sustainable aviation fuel market was valued at USD 806 Million in 2022 and is expected to grow at a CAGR of 46.07% during the forecast period (2023-2030).
Q2: What are the driving factors for the growth of the global sustainable aviation fuel Market?
Ans: The major factors contributing to the growth of the market include government policies and regulations to reduce carbon emissions, cost competitiveness, increased production capacity of the manufacturers, and accessibility worldwide.
Q3: Which segment has the largest share of the global sustainable aviation fuel market by Fuel Type?
Ans: The Biofuel segment has the largest share of the global sustainable aviation fuel market.
Q4: What are the emerging technologies and trends in the global sustainable aviation fuel market?
Ans: Advance Blending Techniques is the emerging technologies and trends in the global sustainable aviation fuel market.
Q5: Which region will dominate the global sustainable aviation fuel market?
Ans: North America is expected to dominate the market during the forecast period.
Q6: Who are the key players operating in the global sustainable aviation fuel market?
Ans: Neste, Fulcrum BioEnergy, World Energy, LLC, TotalEnergies, Gevo, Avfuel Corporation, Aemetis, Inc., Preem AB, SkyNRG, Northwest Advanced Biofuels, LLC.
Sustainable Aviation Fuel Market Report Coverage
Reasons to buy this report:
Customization Options:
The global sustainable aviation fuel market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
1. Market Introduction
2. Research Methodology Or Assumption
3. Market Synopsis
4. Executive Summary
5. Global Sustainable Aviation Fuel Revenue, 2020-2030f
6. Market Insights By Fuel Type
7. Market Insights By Aircraft Type
8. Market Insights By Platform
9. Market Insights By Region
10. Sustainable Aviation Fuel Dynamics
11. Sustainable Aviation Fuel Opportunities
12. Sustainable Aviation Fuel Trends
13. Demand And Supply-side Analysis
14. Value Chain Analysis
15. Pricing Analysis
16. Competitive Scenario
17. Company Profiled
18. Disclaimer
Research Methodology for the Sustainable Aviation Fuel Market Analysis (2023-2030)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global sustainable aviation fuel market were the three major steps undertaken to create and analyze the adoption of sustainable aviation fuels in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global sustainable aviation fuel market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the sustainable aviation fuel market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the sustainable aviation fuel market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as fuel type, aircraft type, and platform. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the sustainable aviation fuel market. Further, we conducted factor analysis using dependent and independent variables such as the fuel type, aircraft type, and platform of the sustainable aviation fuel market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the sustainable aviation fuel market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global sustainable aviation fuel market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global sustainable aviation fuel market, data was split into several segments & sub-segments after studying various parameters and trends in the areas of fuel type, aircraft type, and platform in the global sustainable aviation fuel market.
The main objective of the Sustainable Aviation Fuel Market Study
The current & future market trends of the global sustainable aviation fuel market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
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February 11, 2025
