PUBLISHER: The Business Research Company | PRODUCT CODE: 1465919
PUBLISHER: The Business Research Company | PRODUCT CODE: 1465919
Sustainable aviation fuel (SAF) is a type of fuel produced from renewable and sustainable feedstocks, including waste oils, agricultural residues, and non-food crops. It aims to reduce the carbon footprint of aviation by providing a more environmentally friendly alternative to conventional jet fuel. SAF can be blended with traditional jet fuel and used in existing aircraft without requiring any modifications, making it a promising solution for reducing greenhouse gas emissions in the aviation industry.
The primary types of sustainable aviation fuel are biofuel, power-to-liquid, and gas-to-liquid. Biofuel is derived from renewable biological resources, such as plant or animal materials, and serves as an alternative to conventional fossil fuels. Blending capacities typically include below 30%, 30% to 50%, and above 50%, and SAF is used across various platforms including commercial aviation, military aviation, business and general aviation, and unmanned aerial vehicles.
The sustainable aviation fuel market research report is one of a series of new reports from The Business Research Company that provides sustainable aviation fuel market statistics, including sustainable aviation fuel industry global market size, regional shares, competitors with a sustainable aviation fuel market share, detailed sustainable aviation fuel market segments, market trends and opportunities, and any further data you may need to thrive in the sustainable aviation fuel industry. This sustainable aviation fuel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The sustainable aviation fuel market size has grown exponentially in recent years. It will grow from $0.52 billion in 2023 to $0.79 billion in 2024 at a compound annual growth rate (CAGR) of 53.8%. The historical growth can be attributed to the rise in concerns regarding climate change, which has propelled the demand for sustainable aviation fuel. There has been an increasing need to reduce greenhouse gas (GHG) emissions, leading to a growing focus on reducing carbon emissions in the aviation sector. Additionally, there has been a surge in global initiatives aimed at reducing carbon emissions, further driving the adoption of sustainable aviation fuel.
The sustainable aviation fuel market size is expected to see exponential growth in the next few years. It will grow to $3.92 billion in 2028 at a compound annual growth rate (CAGR) of 49.1%. The anticipated growth in the forecast period can be attributed to several factors. Firstly, there is an increase in the deployment of sustainable aviation fuel (SAF), driven by a rising demand for SAF by airlines across the globe. Additionally, there are growing initiatives aimed at improving the supply chain process to foster market growth for SAF. Furthermore, the presence of stringent environmental regulations is also expected to contribute to the growth of the SAF market. Major trends in the forecast period include technological advancements aligned with stringent government laws, advancements in SAF production technologies and feedstock diversification, collaborative initiatives among stakeholders, and the implementation of carbon offsetting schemes to further promote the adoption of SAF.
The sustainable aviation fuel market is poised for growth due to the increasing adoption of biofuels. Biofuels are renewable energy sources derived from plant, algal, or animal biomass, driven by global sustainability efforts and the aviation industry's commitment to reducing greenhouse gas emissions. By incorporating biofuels into aviation, airlines can mitigate their carbon footprint and environmental impact. For example, Eurostat reported in December 2023 that renewable energy accounted for 23.0% of total energy consumption in the European Union (EU) in 2022, up from 21.9% in 2021. Additionally, the share of renewable energy used in transportation rose to 9.6% in 2022 from 9.1% in 2021. Therefore, the increasing adoption of biofuels is fueling the sustainable aviation fuel market's growth.
Key players in the sustainable aviation fuel market are focusing on developing innovative technologies such as fuel processing technology to minimize aviation's environmental impact. Fuel processing technology involves the scientific and technological aspects of processing and utilizing clean fuels, fuel-related chemicals, and advanced carbon materials and by-products. For instance, in September 2023, Lummus Technology introduced ethanol-based sustainable aviation fuel technology, offering a large-scale solution to reduce the aviation industry's greenhouse gas emissions. Lummus' ethanol to SAF technology integrates ethanol to ethylene (EtE), olefin oligomerization, and hydrogenation technologies to maximize SAF yield while minimizing capital costs (CAPEX), CO2-specific operational costs (OPEX), and carbon emissions.
In August 2022, Agility acquired Menzies Aviation Group PLC for $810.24 million (£763), enhancing its supply chain services. With this acquisition, Agility aims to provide customers with superior service, expanded product options, and industry-leading safety measures at airports worldwide. Menzies Aviation Group PLC is a UK-based provider of aviation fueling services operating in the aviation gasoline market.
Major companies operating in the sustainable aviation fuel market are Shell plc, TotalEnergies SE, BP plc, Eni S.p.A., OMV Group, Neste Oyj, Preem AB, Sustainable Aviation, Aemetis Inc., REG Synthetic Fuels LLC, Ballard Power Systems, ZeroAvia Inc., AvFuel Corporation, LanzaTech Inc., Sundrop Fuels Inc., LanzaJet Inc., Fulcrum BioEnergy Inc., SkyNRG BV, Alder Fuels, Red Rock Biofuels, SG Preston Company, Velocys Plc, WasteFuel, World Energy, SAF+ International Group, Gevo Inc., Northwest Advanced Bio-Fuels LLC., AltAir Fuels, REG Geismar LLC
North America was the largest region in the sustainable aviation fuel market in 2023. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable aviation fuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the sustainable aviation fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The sustainable aviation fuel market consists of revenues earned by entities by providing services such as cultivation, processing, and refining of feedstocks into biofuels, and distribution services involve the transportation of biofuels from production facilities to airports or blending facilities. The market value includes the value of related goods sold by the service provider or included within the service offering. The sustainable aviation fuel market also includes sales of biofuel refineries, blending facilities, and transportation infrastructure. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Sustainable Aviation Fuel Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on sustainable aviation fuel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for sustainable aviation fuel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The sustainable aviation fuel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.