Sustainable Aviation Fuel Market Size
Sustainable Aviation Fuel Market size was at USD 952.6 Billion in 2023 and is expected to grow to USD 32.9 Billion by 2032 at a CAGR of 45% from the forecast period 2024-2032.
Aviation companies are becoming increasingly concerned about sustainability. This emphasis on sustainability is pushing the use of sustainable aviation fuel (SAF), which is viewed as a central means of achieving the target of net-zero carbon emissions by 2050. Over the past few years, the Sustainable Aviation Fuel Market has expanded significantly, and it’s anticipated to continue expanding at more than 45% from 2024 to 2032. This expansion is attributed to the growing number of airlines and other aviation organizations that are prioritizing sustainability. For instance, GE Aerospace has been conducting tests of SAF in its engines since 2016. Emirates performed a test flight on an A380 using pure SAF in one of its four engines in 2023. The test indicated that SAF can be applied in commercial aviation without significant issues.
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To obtain important market trends
Sustainability projects, such as the use of sustainable aviation fuel, assist such companies in becoming aligned with increasing consumer demand for environmentally friendly operations. With an increasing number of companies pledging to sustainability and working towards becoming carbon neutral, the demand for sustainable aviation fuel is likely to increase.
Sustainable Aviation Fuel Market Report Attributes
Report Attribute Details
Base Year 2023
Sustainable Aviation Fuel Market Size in 2023 USD 952.6 Million
Forecast Period 2024 to 2032
Forecast Period 2024 to 2032 CAGR 45%
2032 Value Projection
USD 32.9 Billion
Historical Data for
2018 – 2023
No. of Pages
300
Tables, Charts & Figures
347
Segments covered
Fuel Type, Technology, Blending Capacity, and Aircraft Type
Growth Drivers
Rising global efforts to cut down carbon emissions
Existence of strict environmental norms
Economic growth and increase in air travel demand
Deployment of sustainable aviation fuel growth
Pitfalls & Challenges
Sustainable aviation fuel production high cost
Competition and feedstock availability
The future of sustainable aviation fuel (SAF) is also heavily dependent on technological advancements and investment. Businesses and scientists are investing heavily in research and development, which is yielding significant progress in this area. For instance, in 2023, a Swiss firm known as Metafuels raised $8 million to develop green fuels that are compatible with current planes. Their product, known as “aerobrew,” is produced using sustainable materials such as methanol. This fuel can potentially make flying cleaner without a need to change existing aircraft technology.
Financial incentives, tax credits, and policy mechanisms to motivate the aviation industry to invest in sustainable activities will likely spur rising demand for SAF. These kinds of policies can serve as drivers, spurring innovation and pushing the sector to move towards a cleaner and more sustainable aviation industry.
Yet, the difference in cost between SAF and traditional jet fuels might heavily influence the SAF business. The production of SAF may be more costly based on feedstock prices, production technology, and economies of scale. The aviation sector has been reluctant to adopt SAF on a mass scale mainly because of issues regarding economic feasibility and the possibility of raising ticket prices.
Sustainable Aviation Fuel Market Trends
Governments are stepping in to ensure sustainable aviation fuel (SAF) becomes a reality. While the world attempts to reduce carbon emissions, numerous governments are setting policies to help make and consume SAF. As an example, in late 2023, the Biden administration in the United States unveiled an ambitious plan for making air transport greener. They’re going to provide funds to firms that produce SAF from crops, such as soybean-based biofuels, animal fat-based diesel, and even plain old ethanol. It’s all part of an effort to get airlines to switch to cleaner fuels.
Technological advancements in feedstock procurement, refining technologies, and production scalability have made sustainable aviation fuels economically competitive. As technology evolves, the cost-effectiveness of sustainable aviation fuels may rise, further appealing the aviation sector.
Sustainable Aviation Fuel Market Analysis
Discover more about the prominent segments defining this market
When it comes to powering airplanes, there are a number of various optionsbiofuel, power-to-liquid, gas-to-liquid, and hydrogen fuel. Currently, biofuel is the most sought-after option, occupying more than 80% of the market. Why biofuel? Because flying green is what it’s all about. Instead of fossil fuels, biofuel is produced using plants or waste products. This minimizes carbon emissions and conserves the environment. And governments and airlines are also urging the use of biofuels. They’re concerned about global warming and would like to discover ways to make air travel greener. As the technology for making biofuels becomes more advanced and individuals continue to be more environmentally aware, the flight industry is looking towards using biofuels in order to meet its own carbon reduction goals.
Discover more about the major segments influencing this market
Consider the aviation sector to be a big sky, filled with various categories of aircraft. We have large commercial airliners, transporting passengers and freight across borders. Next, we have military planes, securing our skies and undertaking special tasks. Business and general aviation include everything from private planes to small aircraft employed for touring and leisure. And finally, we have unmanned aerial vehicles, or drones, taking over more and more for multiple uses. In 2023, the commercial aviation industry was the largest in this sky, occupying roughly 74% of the market. Why? Because of increased awareness of climate change and the necessity to be more environmentally friendly. Airlines are being forced to reduce their greenhouse gas emissions, and that is where Sustainable Aviation Fuel, or SAF, enters the scene. SAF is a cleaner fuel than the conventional jet fuel, and it cuts down drastically on those greenhouse gas emissions. It’s the aviation world’s green superhero, and it is assisting us in combating climate change. Governments and airlines are behind the use of SAF with incentives and carbon-neutral targets, which makes it a major solution to greener flying.
North America is the leader in the production and consumption of sustainable jet fuel, with the almost full world market share in 2023. This expansion is due to a mix of positive government policies, innovative companies, and progressive airlines. Governments have enacted incentives and laws that support the use of sustainable jet fuel. This increases its appeal to airlines to invest in this cleaner source of energy. Airlines are also beginning to appreciate that it is a better way to decrease their carbon emissions and attract green customers. Investors are also catching on to the value of sustainable jet fuel, and they’re investing in projects that are creating and producing the new fuel. This creates a virtuous cycle where more investment results in more development, which results in more demand from carriers. All of this is occurring as consumers are becoming increasingly conscious of the environmental footprint of flying. This is pushing the airline industry to seek solutions to cut its emissions, which is in turn accelerating the development of sustainable jet fuel in North America.
Sustainable Aviation Fuel Market Share
Neste and Shell PLC hold a significant market share in the sustainable aviation fuel market. Neste emphasizes the use of renewable feedstocks, such as waste and residues, for the production of sustainable aviation fuel. This strategy aligns with environmental goals and contributes to the circular economy.
Shell PLC adopts an integrated energy company approach, focusing on a diverse energy portfolio that includes sustainable aviation fuel. This strategy positions Shell to meet the evolving energy needs of the aviation sector.
Sustainable Aviation Fuel Market Companies
Major players operating in the sustainable aviation fuel industry are
- Aemetis, Inc.
- Alder Fuels
- Fulcrum BioEnergy Inc.
- Gevo Inc.
- LanzaJet
- Neste
- Northwest Advanced Bio-Fuels, LLC
- Preem AB
- Red Rock Biofuels
- Shell PLC
- SkyNRG BV
- World Energy
