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

Report Description

Europe Sustainable Aviation Fuel Market Size & Forecast

The Europe Sustainable Aviation Fuel Market was valued at USD 351.36 million in 2023 and is expected to grow at a robust CAGR of around 32.1% during the forecast period (2024-2032) owing to increased environmental regulations and emissions reduction targets.

Europe Sustainable Aviation Fuel Market Analysis

Transportation is one of the biggest contributors to emissions globally and applies to Europe. Aviation (including all the movements within and outside the EU, excluding the military) contributes 13 percent of the total emissions today, accounting for 9% of EU transport emissions. It has thus become the second highest after road transport. These regulations and targets aim to restrain greenhouse gas emissions, improve air quality, and promote exemplary environmental practices. Also, the world’s countries set specific objectives to limit GHG emissions and targets to get to zero emissions.

The European Union has aimed at net-zero emissions by 2050, and making sustainable aviation fuel is the key to this success. For example, the EC has presented the ReFuelEU Aviation strategy, which focuses on increasing the share of sustainable fuels in the EU. This proposal sets mandatory blending obligations for fuel suppliers to ensure that all aviation fuel available to EU airports contains a growing share of sustainable aviation fuels: 2% by 2025, 5% by 2030, and 63% by 2050.

Similarly, the package of measures called “Fit for 55” within the framework of the European Green Deal intends to achieve emissions reductions of at least 55% by 2030. Within this package, the EU ETS (Emissions Trading System) has been amended and will eliminate the allocation of free emission allowances for aviation starting from 2026 and include all flights leaving the EU. Also, the EU has planned that at least 5% of SAF should be incorporated by 2030 while raising it to 63% by 2050. The target for e-fuels has been set at 0. respectively, to 7% in 2030 and 28% in 2050.

Europe Sustainable Aviation Fuel Market Trends

Bio Jet Fuel from Municipal Solid Waste

Biojet Fuel derived from Municipal Solid Waste (MSW) is the latest trend in the sustainable aviation fuel market due to its unique advantages. 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 now 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. For instance, in 2022, American Airlines announced plans to use MSW-derived biofuels in its operations. The airline partnered with Gevo, Inc., to produce biofuels from corn stalks and sugarcane bagasse, two non-food-based feedstocks.

Russia Dominated the Europe Sustainable Aviation Fuel Market

Russia has dominated the market in 2023 and is expected to behave similarly in the forecast period. The primary driving forces encouraging the more considerable growth of the market in Russia are the government and partnerships to raise the number of R&D projects demonstrating new technologies to enhance aircraft fuel efficiency and minimize impact on the environment. For example, in late 2022, the government of Russia approved a new state program, the “Development of the Aviation Industry until 2030,” which references increased attention to the creation of more fuel-efficient and environment-friendly aviation technologies and vehicles. Also, starting from early 2023, the Russian Ministry of Industrial Development and Trade has presented what they call ‘Green Aviation’ with a proposed budget of 50 billion rubles or the equivalent of USD 650 million. By funding research in this area, this program aims to find ways to lower emissions from aviation, a field necessary to support Russia’s participation in the Paris Agreement despite tensions worldwide.

Europe Sustainable Aviation Fuel Industry Overview

The sustainable aviation fuel market is competitive as well as concentrated, with the presence of very few Europe 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.

Europe Sustainable Aviation Fuel Market News

In May 2024, Frankfurt am Main and Berlin joined hands for reducing the aviation climate. The association impact (impact on Sustainable Aviation e.V.) and the aviation initiative aireg (Aviation Initiative for Renewable Energy in Germany) have signed a cooperation agreement to work together to accelerate the market ramp-up of Sustainable Aviation Fuels (SAF).

In 2022, Russia’s state-owned nuclear energy corporation, Rosatom, is also entering the SAF field. The company announced plans to use its high-temperature gas-cooled reactors to produce hydrogen, which can then be used to create synthetic aviation fuel. This project, still in its early stages, aims to leverage Russia’s nuclear expertise to contribute to the aviation sector’s decarbonization.

In April 2024, the UK government unveiled plans for a world-leading sustainable aviation fuel mandate, with 10% of all jet fuel set to go green by 2030. The SAF industry is estimated to boost the economy by £1.8 billion and create more than 10,000 jobs across the UK by 2030. The government has confirmed new targets today (25 April 2024) to ensure 10% of all jet fuel in flights taking off from the UK comes from sustainable sources by 2030 through its Sustainable aviation fuel mandate. The UK’s SAF mandate, subject to parliamentary approval, which will come into force in January 2025, will be one of the first in the world to be put into law, once again putting the UK at the forefront of decarbonizing air travel. It follows the world’s first commercial 100% SAF transatlantic flight taking off from Heathrow in November – backed by up to £1 million in government investment.

Europe 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 Europe 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.

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Research Methodology

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

Analyzing the historical market, estimating the current market, and forecasting the future market of the Europe 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 Europe 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 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 Europe 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 Europe. 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 Europe 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

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 Europe 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 Europe sustainable aviation fuel market.

The main objective of the Europe Sustainable Aviation Fuel Market Study

The current & future market trends of the Europe 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 significant region.
• The report studies major countries and regions, including Germany, The UK, France, Italy, Spain, Russia, and the Rest of Europe.
• 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

You can also purchase parts of this report. Do you want to check out a section wise
price list?

Get in touch with team