1h Free Analyst Time
The Sustainable Aviation Fuel Market size was estimated at USD 3.88 billion in 2023, USD 5.01 billion in 2024, and is expected to grow at a CAGR of 32.24% to reach USD 27.45 billion by 2030 . Speak directly to the analyst to clarify any post sales queries you may have.
Sustainable aviation fuels (SAF) are eco-friendly alternative fuels used in commercial and military aircraft. SAFs are made from renewable resources such as waste oils, agricultural residues, non-food crops, and advanced biofuel technologies, including algae-derived biofuels and synthetic paraffinic kerosene (SPK). The primary end-users include airlines, cargo carriers, governments, and defense organizations, aiming to reduce greenhouse gas emissions associated with conventional jet fuel. Stricter emission standards set by regulatory bodies to adopt green initiatives and the availability of incentives such as tax credits and grants encourage research and development in SAF technology, elevating the usage of sustainable aviation fuels. Rising air traffic globally and continuous upsurge in crude oil prices are increasing the need for cleaner alternatives across the aviation sector to mitigate environmental impacts. High production costs associated with sustainable aviation fuels hampers market growth. The growing development of novel pathways to convert waste materials into valuable fuels is expected to create opportunities for market growth.
Regional Insights
The United States has one of the largest air passenger and freight markets globally, and as per the International Trade Administration (ITA), over 58,000 tons of cargo are transported daily. According to the Federal Aviation Administration (FAA), the total commercial aircraft fleet is estimated to reach 8,270 in 2037, owing to a continuous increase in air cargo. The usage of aircraft for cargo transportation, last-mile delivery, medical emergencies, air shuttle, private transport, and other areas has been increasing in Brazil, Canada, the U.S., and Chile due to high congestion and the indirect nature of routes with higher circuity factors for ground-based vehicles, creating a demand for sustainable aviation fuels in Americas. The ongoing adoption of various sustainable aviation fuels by airlines across Asia-Pacific is expected to create a platform for the growth of the market in Asia-Pacific. In December 2021, Indigo Airlines, India, signed an agreement with the Dehradun-based Council of Scientific and Industrial Research-Indian Institute of Petroleum (CSIR-IIP) to develop and supply SAF at the global level. Japan Airlines (JAL), in June 2021, completed the test of a mixture of two different types of sustainable aviation fuel produced domestically in Japan. The rising availability of government support in terms of tax credits and grants to expand the manufacturing of SAFs is expected to create a platform for market growth in EMEA.Fuel Type: Growing adoption of biofuels to decarbonize the aviation sector
Biofuels, derived from organic matter such as waste materials and plants, are a sustainable alternative to traditional jet fuels. They emit fewer greenhouse gases (GHGs) compared to fossil fuels and potentially contribute to the decarbonization of the aviation industry. Hydrogen fuel is another promising solution for achieving emissions-free air travel. Hydrogen used in a fuel cell or burned in an engine-generator set-up produces water as a byproduct, significantly reducing GHG emissions. Power-to-liquid (PtL) fuels involve synthesizing liquid hydrocarbon fuels such as jet fuel by using renewable electricity to convert water and carbon dioxide into liquid hydrocarbons. The advantage of PtL fuels lies in their compatibility with existing jet engines and fuel infrastructure, making them a feasible solution for reducing the carbon footprint of aviation. GTL fuel is chemically similar to conventional jet fuel but is produced from natural gas through a synthetic process. Its compatibility with existing aviation fuel infrastructure and engines makes it an attractive option for immediate implementation. Additionally, GTL fuel has a higher energy density, potentially offering better fuel efficiency than traditional jet fuel.Blending Capacity: Expanding usage of sustainable aviation fuel with blending efficiency of 30% to 50% owing to its cost-effectiveness
A blending efficiency range of 30% to 50% represents an optimal balance between environmental benefits and cost-effectiveness for several airlines. SAF, with this efficiency level, effectively reduces greenhouse gas emissions while maintaining compatibility with existing aircraft engines and fuel infrastructure. SAF, with a blending efficiency above 50%, offers substantial reductions in greenhouse gas emissions. However, it requires additional investment in engine modifications and advanced fuel infrastructure. Airlines focusing on rapid decarbonization prefer this category despite potential cost implications. SAF, with a blending efficiency below 30%, is ideal for airlines that are gradually transitioning toward sustainable aviation solutions or facing budget constraints. Moreover, this category offers limited environmental benefits compared to higher-efficiency options and represents progress in reducing emissions.Manufacturing Technology: Increasing usage of Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) that provides cleaner-burning fuel
Alcohol to Jet SPK (ATJ-SPK) technology involves the utilization of various feedstocks, including agricultural residues, municipal solid waste, and dedicated energy crops. Catalytic hydrothermolysis jet (CHJ) converts lipids sourced from vegetable oils and waste fats into renewable jet fuel through catalytic hydrothermolysis, followed by hydrotreatment. Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) technology synthesizes fuel by converting carbon-based feedstocks, such as biomass and natural gas, into synthetic gas and then transforming it into liquid hydrocarbons. Hydroprocessed fatty acid esters and fatty acids - synthetic paraffinic kerosene (HEFA-SPK) is a prominent technology utilized in the production of SAF. The process involves converting bio-based feedstocks, primarily derived from waste oils, animal fats, and non-edible plant oils, into advanced biofuels suitable for use in aviation. The key advantage of HEFA-SPK fuels is their ability to lower greenhouse gas emissions compared to conventional jet fuel while maintaining high performance and compatibility with existing aircraft engines and infrastructure. Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP) involves fermenting sugar into farnesene and then converting it into iso-paraffin through hydroprocessing. The resulting fuel has high energy density and excellent cold-flow properties.End-Use: Emerging potential of SAFs across commercial aviation to reduce environmental impact
The business & general aviation sector encompasses private jet operators, charter flights, and smaller regional airlines. The need for sustainable aviation fuel (SAF) in this sector is driven by corporate social responsibility goals, environmental regulations, and customer demand for greener travel options. The commercial aviation sector started using SAFs to meet international emission reduction targets set by organizations such as the International Civil Aviation Organization (ICAO). Military aviation includes armed forces worldwide seeking to lower their carbon footprint and dependency on fossil fuels through the use of SAFs. Unmanned aerial vehicles (UAVs) are used across various industries for applications such as aerial photography, surveillance, agriculture, and transportation. The use of SAFs is increasing in UAVs to minimize their environmental impact.Operation: Increasing utilization of SAF in manned aerial vehicles carbon reduction
Manned aerial vehicles (MAVs), including commercial and private aircraft, are the most significant aviation sector category. MAVs are the chief consumers of aviation fuel and are at the forefront when using SAF. Operators have started introducing SAF into their fuel mix, significantly reducing the carbon footprint and other emissions associated with aviation fuel. Internationally, airports and airlines have begun incorporating SAF into their supply chains. For instance, the aviation behemoth Boeing has committed to ensuring its commercial planes are capable and certified to fly on 100% SAF by 2030. Other industry players, such as United Airlines and Delta Air Lines, are taking progressive steps toward adopting SAF. UAVs, colloquially known as drones, are rising in popularity due to their diverse applications ranging from delivery to surveillance and entertainment. These devices have a lesser fuel demand than MAVs; however, incorporating SAF in UAVs is significant. These drones reduce their carbon footprint using SAF, aligning with global sustainability goals.Market Dynamics
The market dynamics represent an ever-changing landscape of the Sustainable Aviation Fuel Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.Market Disruption Analysis
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Sustainable Aviation Fuel Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Sustainable Aviation Fuel Market.Porter’s Five Forces Analysis
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Sustainable Aviation Fuel Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.Value Chain & Critical Path Analysis
The value chain of the Sustainable Aviation Fuel Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.Pricing Analysis
The pricing analysis comprehensively evaluates how a product or service is priced within the Sustainable Aviation Fuel Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Sustainable Aviation Fuel Market.Technology Analysis
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Sustainable Aviation Fuel Market.Patent Analysis
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Sustainable Aviation Fuel Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.Trade Analysis
The trade analysis of the Sustainable Aviation Fuel Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.Regulatory Framework Analysis
The regulatory framework analysis for the Sustainable Aviation Fuel Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.FPNV Positioning Matrix
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Sustainable Aviation Fuel Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Sustainable Aviation Fuel Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.Recent Developments
Boeing and U.S. Government Launch Initiative to Advance Sustainable Aviation Fuel among APEC Economies
The Boeing Company, in a collaborative effort with the United States Department of Transportation and the Federal Aviation Administration, is spearheading a project within the Asia-Pacific Economic Cooperation to foster the growth of Sustainable Aviation Fuel (SAF) across member countries. Boeing's investment in the field is evident through its procurement of 7.6 million gallons of SAF for U.S. operations, demonstrating the company's dedication to spearheading the transition toward a sustainable future in aviation.Macquarie Invests USD 190 million in Green Sustainable Aviation Fuel Supplier SkyNRG
Macquarie Group Ltd announced that its Macquarie Asset Management division will commit up to Euro 175 million (approximately USD 190 million) to SkyNRG, a pioneering company in the sustainable aviation fuel (SAF) sector based in the Netherlands. This significant capital infusion underlines the growing interest among investors in the burgeoning SAF market, which is surging as airlines pivot toward environmentally friendly alternatives to conventional jet fuel to slash carbon emissions and achieve sustainability objectives.Neste and SQUAKE Enable Businesses to Opt For Sustainable Aviation Fuel in Flight Booking Systems to Reduce Their Air Travel Related Carbon Emissions
Neste Oyj joined forces with SQUAKE to pioneer a strategic partnership that empowers businesses to integrate Neste MY Sustainable Aviation Fuel into their flight booking procedures. Through SQUAKE's advanced tech infrastructure, travel companies can offer clients the option to select sustainable aviation fuel, enhancing the sustainability of their journeys.Strategy Analysis & Recommendation
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Sustainable Aviation Fuel Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.Key Company Profiles
The report delves into recent significant developments in the Sustainable Aviation Fuel Market, highlighting leading vendors and their innovative profiles. These include Abu Dhabi National Oil Company, Aemetis, Inc., Amyris, Inc., Axens SA, BP PLC, Chevron Corporation, China National Petroleum Corporation, CleanJoule, DGFuels, LLC, ENEOS Group, Enertrag SE, Eni S.p.A., Exxon Mobil Corporation, Fulcrum BioEnergy, Inc., Gevo, Inc., HIF Global, Honeywell International Inc., Indian Oil Corporation Limited, INERATEC GmbH, KBR, Inc., LanzaTech Global, Inc., Linde PLC, Lummus Technology LLC, Maire Tecnimont S.p.A., Mitsubishi Corporation, Montana Renewables, LLC by Calumet Specialty Products Partners, L.P., Neste Corporation, Norsk e-Fuel AS, Nova Pangaea Technologies Ltd, ORLEN S.A., OxCCU Tech Limited, Phillips 66, Praj industries Ltd., Preem Holdings AB, Raven SR Inc., Red Rock Biofuels Holdings, RWE AG, Sasol Limited, Saudi Arabian Oil Company, Shell PLC, Siemens Energy AG, SkyNRG B.V., Sumitomo Heavy Industries, Ltd., Sunfire GmbH, Swedish Biofuels AB, Synhelion SA, Technip Energies N.V., Topsoe A/S, TotalEnergies SE, Twelve Benefit Corporation, World Energy, LLC, Yokogawa Electric Corporation, and Zero Petroleum Limited.Market Segmentation & Coverage
This research report categorizes the Sustainable Aviation Fuel Market to forecast the revenues and analyze trends in each of the following sub-markets:- Fuel Type
- Biofuel
- Gas to Liquid Fuel
- Hydrogen Fuel
- Power to Liquid Fuel
- Sun to Liquid Fuel
- Wind to Liquid Fuel
- Blending Capacity
- 30% to 50%
- Above 50%
- Below 30%
- Manufacturing Technology
- Alcohol to Jet SPK
- Catalytic Hydrothermolysis Jet
- Fischer Tropsch Synthetic Paraffinic Kerosene
- Hydroprocessed Fatty Acid Esters and Fatty Acids-Synthetic Paraffinic Kerosene
- Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar
- Operation
- Manned Aerial Vehicle
- Unmanned Aerial Vehicle
- End-Use
- Business & General Aviation
- Commercial Aviation
- Military Aviation
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
This research report offers invaluable insights into various crucial aspects of the Sustainable Aviation Fuel Market:
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
Additionally, the report addresses key questions to assist stakeholders in making informed decisions:
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
Please note: For this report, the purchase of an Enterprise license allows up to ten worldwide users of an organization access to the report
Please note: This report can be updated on request. Please contact our Customer Experience team using the Ask a Question widget on our website.
With the purchase of this report at the Multi-user License or greater level, you will have access to one hour with an expert analyst who will help you link key findings in the report to the business issues you're addressing. This will need to be used within three months of purchase.
This report also includes a complimentary Excel file with data from the report for purchasers at the Site License or greater level.
Table of Contents
1. Preface
2. Research Methodology
5. Market Insights
6. Sustainable Aviation Fuel Market, by Fuel Type
7. Sustainable Aviation Fuel Market, by Blending Capacity
8. Sustainable Aviation Fuel Market, by Manufacturing Technology
9. Sustainable Aviation Fuel Market, by Operation
10. Sustainable Aviation Fuel Market, by End-Use
11. Americas Sustainable Aviation Fuel Market
12. Asia-Pacific Sustainable Aviation Fuel Market
13. Europe, Middle East & Africa Sustainable Aviation Fuel Market
14. Competitive Landscape
15. Competitive Portfolio
List of Figures
List of Tables
Companies Mentioned
- Abu Dhabi National Oil Company
- Aemetis, Inc.
- Amyris, Inc.
- Axens SA
- BP PLC
- Chevron Corporation
- China National Petroleum Corporation
- CleanJoule
- DGFuels, LLC
- ENEOS Group
- Enertrag SE
- Eni S.p.A.
- Exxon Mobil Corporation
- Fulcrum BioEnergy, Inc.
- Gevo, Inc.
- HIF Global
- Honeywell International Inc.
- Indian Oil Corporation Limited
- INERATEC GmbH
- KBR, Inc.
- LanzaTech Global, Inc.
- Linde PLC
- Lummus Technology LLC
- Maire Tecnimont S.p.A.
- Mitsubishi Corporation
- Montana Renewables, LLC by Calumet Specialty Products Partners, L.P.
- Neste Corporation
- Norsk e-Fuel AS
- Nova Pangaea Technologies Ltd
- ORLEN S.A.
- OxCCU Tech Limited
- Phillips 66
- Praj industries Ltd.
- Preem Holdings AB
- Raven SR Inc.
- Red Rock Biofuels Holdings
- RWE AG
- Sasol Limited
- Saudi Arabian Oil Company
- Shell PLC
- Siemens Energy AG
- SkyNRG B.V.
- Sumitomo Heavy Industries, Ltd.
- Sunfire GmbH
- Swedish Biofuels AB
- Synhelion SA
- Technip Energies N.V.
- Topsoe A/S
- TotalEnergies SE
- Twelve Benefit Corporation
- World Energy, LLC
- Yokogawa Electric Corporation
- Zero Petroleum Limited
Methodology
LOADING...
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 193 |
| Published | May 2024 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 5.01 Billion |
| Forecasted Market Value ( USD | $ 27.45 Billion |
| Compound Annual Growth Rate | 32.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 53 |
