North America Sustainable Aviation Fuel Market: Current Analysis and Forecast (2024-2032)
Emphasis on Fuel Type (Biofuel and Power-to-Liquid); Aircraft Type (Fixed Wings and Rotorcrafts); Platform (Commercial Aviation and Military Aviation); and Country
North America Sustainable Aviation Fuel Market Size & Forecast
The North America Sustainable Aviation Fuel Market was valued at USD 844.50 million in 2023 and is expected to grow at a strong CAGR of around 32.8% during the forecast period (2024-2032) owing to increased environmental regulations and emissions reduction targets.
North America Sustainable Aviation Fuel Market Analysis
The transportation sector is a significant source of emissions worldwide, including in North America. Today, aviation (including all non-military movements within and outside the USA) accounts for 11% of US transportation emissions. These regulations and targets seek to inhibit greenhouse gas emissions, enhance air quality, and espouse sound environmental measures. Also, the world’s countries have defined concrete goals for reducing GHG emissions and the targets of reaching zero emissions. The United States has set to achieve net zero emissions by 2050, and adopting sustainable aviation fuel is one of the critical parts of this achievement. For instance, the Department of Energy (DOE), Department of Transportation (DOT), and U.S. Department of Agriculture (USDA) are launching a government-wide Sustainable Aviation Fuel Grand Challenge to meet the demand for sustainable aviation fuels by working with stakeholders to reduce costs, enhance sustainability, and expand production and use of sustainable aviation fuels (SAF) that achieves a minimum of a 50% reduction in life cycle GHGs compared to conventional fuel. In addition, the challenge will adopt the goal of supplying at least 3 billion gallons of SAF per year by 2030 and 2050, sufficient SAF to meet 100% of aviation fuel demand, which is currently projected to be around 35 billion gallons yearly. Therefore, with the increased environmental regulations and emissions reduction targets, the demand for sustainable aviation fuel has a foreseeable future.
North America 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.
North America Dominated the North America Sustainable Aviation Fuel Market
The United States holds a major market share within North America. The major factors boosting the market’s growth are the growing concern regarding environmental regulations, emission reduction targets, and volatility in conventional fuel prices. Additionally, technological advances in the sustainable aviation fuel sector have moved the market forward in the foreseeable future.
The North America sustainable aviation fuel market is valued at 844.50 million in 2023 and is expected to reach 13,794.21 million by 2032 at a CAGR of 32.8%. The major factors propelling the demand for the market include government initiatives and collaboration to increase R&D activities to demonstrate new technology to achieve at least a 30% improvement in aircraft fuel efficiency. For instance, the National Aeronautics and Space Administration (NASA) has launched the Sustainable Flight National Partnership to collaborate with the FAA and industry to accelerate the maturation of aircraft and engine technologies that enable a step-change reduction in fuel burn and carbon dioxide emissions. Additionally, the FAA introduced the Aviation Climate Research (ACR) program in 2022, a Presidential budget request for the FAA at a proposed USD 50M. The ACR program will invest in research that has a transformative impact potential to reduce greenhouse gas emissions from aviation in support of the U.S. climate change goals. Furthermore, civil aviation has played a significant role in accelerating the adoption of sustainable aviation fuel. For instance, United Airlines announced a new goal to reduce its carbon emissions intensity by 50% compared to 2019 by 2035. United Airlines and Honeywell also announced a new multi-million-dollar investment in Alder Fuels to produce carbon-negative sustainable aviation fuel at scale. Therefore, the continuous effort to achieve net zero emissions and improvement in aircraft fuel efficiency has propelled the demand for the market and is expected to have a foreseeable future in the forecast period.
North America Sustainable Aviation Fuel Industry Overview
The sustainable aviation fuel market is competitive as well as concentrated, with the presence of very few North America 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.
North America Sustainable Aviation Fuel Market News
- In 2023, Airbus used more than 11 million liters of SAF in its operations, two times the volume of 2022. This exceeded the 2023 target of 10% of the total fuel used across Airbus’ divisions by more than a million liters and accounted for 2% of all SAF produced worldwide. This achievement contributed to the reduction of CO2 emissions by 23,587 tons.
- Boeing is buying 9.4 million gallons (35.6 million liters) of blended sustainable aviation fuel (SAF) to support its 2024 U.S. commercial operations, reducing its carbon emissions, and working to help grow the supply of the fuel globally. This is the company’s most significant annual SAF purchase, more than 60% higher than its buy in 2023.
North America 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 North America 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.
Table of Contents
Research Methodology for the North America Sustainable Aviation Fuel Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the North America 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 North America 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 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 North America 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 of North America. 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 North America 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 North America 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 North America sustainable aviation fuel market.
The main objective of the North America Sustainable Aviation Fuel Market Study
The current & future market trends of the North America 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). Also, analyze 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 analyze 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 regions studied in the report include the United States, Canada, and Rest of North America.
- 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
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the North America Sustainable Aviation Fuel market?
Q2: What are the driving factors for the growth of the sustainable aviation fuel market?
Q3: Which segment has the largest share of the sustainable aviation fuel market by fuel type?
Q4: What are the emerging technologies and trends in the sustainable aviation fuel market?
Q5: Which country will dominate the sustainable aviation fuel market?
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