Asia Pacific Sustainable Aviation Fuel Market: Current Analysis and Forecast (2024-2032)

Report Description

Asia Pacific Sustainable Aviation Fuel Market Size & Forecast

The Asia Pacific Sustainable Aviation Fuel Market was valued at USD 92.01 million in 2023 and is expected to grow at a robust CAGR of around 41.0% during the forecast period (2024-2032) owing to increased environmental regulations and emissions reduction targets and growing air traffic in the region.

Asia Pacific Sustainable Aviation Fuel Market Analysis

The transportation sector, including Asia Pacific, is a significant source of emissions worldwide. Aviation, encompassing domestic and global flights, constitutes a remarkable portion of transportation emissions, contributing to environmental challenges, weather change, and air pollution. In reaction, governments and regulatory bodies in the Asia Pacific region enforce guidelines and set targets to curb greenhouse gas emissions, improve air quality, and promote sustainable practices. For instance, in the 2023 report, “ASEAN transport sector CO2 Emissions,” the global transport forum stated that aviation accounts for 16% of transport-related CO2 emissions in the ASEAN region, higher than the worldwide average. The Asian Development Bank, in its June 2023 publication “Decarbonizing Asia’s Aviation Sector,” highlighted that Asia Pacific’s aviation emissions have grown by 150% since 2000, emphasizing the urgent need for sustainable solutions.

Asia Pacific Sustainable Aviation Fuel Market Trends

Bio Jet Fuel from Municipal Solid Waste

Due to its unique advantages, Biojet Fuel derived from Municipal Solid Waste (MSW) is the latest trend in the sustainable aviation fuel market. MSW is a renewable resource that can be converted into biofuel through various processes, including gasification, pyrolysis, and fermentation. This results in a high-quality biofuel that can be used as a substitute for fossil fuels in aviation applications.  One of the main advantages of MSW-derived biofuels is their decreased greenhouse gas (GHG) emissions compared to traditional fossil fuels. According to the International Council on Clean Transportation (ICCT), biofuels produced from MSW have GHG emissions that are 82-95% lower than those of fossil fuels. Moreover, MSW-derived biofuels can help reduce the amount of waste sent to landfills, as they utilize materials that would otherwise be discarded.  In addition, MSW-derived biofuels have the benefit of being produced locally, reducing transportation emissions, and stimulating local economic growth. Many municipal solid waste management authorities are considering the conversion of their waste streams into valuable products, such as biofuels, rather than simply disposing of them in landfills. This shift in mindset has led to increased investment in waste-to-energy infrastructure and the establishment of new business models that capitalize on the value of waste as a resource. 

China Dominated the Asia Pacific Sustainable Aviation Fuel Market

China dominated the market in 2023 and is expected to behave similarly in the forecast period. This dominance reflects China’s massive aviation market, its ambitious environmental targets, and its government’s strong support for technological innovation in sustainable aviation. Additionally, The Commercial Aircraft Corporation of China (COMAC), in its July 2023 press release, announced that its C919 narrow-body airliner, set to compete with Boeing and Airbus models, has been designed to be fully compatible with sustainable aviation fuels, showcasing China’s commitment to cleaner aviation technology. Furthermore, significant collaborations and partnerships in the country to produce SAF are also pushing the market positively and, hence, a foreseeable future. For instance, in March 2024, TotalEnergies and China Petroleum and Chemical Corporation (“SINOPEC”) signed a Heads of Agreement (HoA) to jointly develop a Sustainable Aviation Fuel (SAF) production unit at a SINOPEC refinery in China. The planned unit, jointly owned by SINOPEC and TotalEnergies, will have the capacity to produce 230,000 tons of SAF per year and will process local waste or residues from the circular economy (cooking oils and animal fats). SINOPEC has developed its own SAF production technology called SRJET. TotalEnergies, already one of Europe’s leading SAF producers, will bring its experience and expertise to the technical, operational, and distribution fields.

Asia Pacific Sustainable Aviation Fuel Industry Overview

The sustainable aviation fuel market is competitive as well as concentrated, with the presence of very few Asia Pacific and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Neste, Fulcrum BioEnergy, World Energy, LLC, TotalEnergies, Gevo, Avfuel Corporation, Aemetis, Inc., Preem AB, SkyNRG, Northwest Advanced Biofuels, LLC.

Asia Pacific Sustainable Aviation Fuel Market News

In April 2023, a Memorandum of Understanding for cooperation was signed between the U.S. industrial conglomerate Honeywell and China’s Tianjin Free Trade Zone to establish a flagship SAF production base in north China. The move aims to meet the growing market demand for SAF, said the U.S. company.

In January 2024, in India, the civil aviation ministry is developing a strategy for adopting sustainable aviation fuel (SAF) by Indian airlines, with recommendations expected to be provided in 2027. The ministry aims to propose a 1-5% usage of SAF starting in 2027, aligning with the second phase of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

In April 2023, Neste, ITOCHU Corporation, and Fuji Oil Company collaborated to supply sustainable aviation fuel (SAF), which was locally blended with conventional jet fuel, to the Japanese market as part of a demonstration project of the Civil Aviation Bureau of the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The initiative helps Japan prepare for the future when significantly larger quantities of SAF will be needed to help the aviation industry achieve its emissions reduction goals. MLIT has set the target to reach 10% SAF use in Japan by 2030.

Asia Pacific Sustainable Aviation Fuel Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The Asia Pacific 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. 

Frequently Asked Questions (FAQ)

Research Methodology

Research Methodology for the Asia Pacific Sustainable Aviation Fuel Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the Asia Pacific sustainable aviation fuel market were the three major steps undertaken to create and analyze the adoption of sustainable aviation fuel in major countries. 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 Asia Pacific 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:

Detail 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 such as fuel type, aircraft type, and platform. Further country-level analyses were conducted to evaluate the overall adoption 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 fuel type, aircraft type, and platform of the sustainable aviation fuel market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the sustainable aviation fuel market.

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 Asia Pacific 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 2032 for different segments and sub-segments across the major markets in Asia Pacific. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the sustainable aviation fuel market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Asia Pacific sustainable aviation fuel market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

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 Asia Pacific sustainable aviation fuel market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the fuel type, aircraft type, and platform in the Asia Pacific sustainable aviation fuel market.

The main objective of the Asia Pacific Sustainable Aviation Fuel Market Study

The current & future market trends of the Asia Pacific 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:

• Analyze the current and forecast market size of the sustainable aviation fuel market in terms of value (USD) and the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of the fuel type, aircraft type, and platform.
• Define and analysis of the regulatory framework for the sustainable aviation fuel
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the sustainable aviation fuel market for the major region.
• Major countries of Asia Pacific regions studied in the report include China, Japan, South Korea, India, and Rest of Asia Pacific.
• Company profiles of the sustainable aviation fuel market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive country-level analysis of the industry