PUBLISHER: BIS Research | PRODUCT CODE: 1321518
PUBLISHER: BIS Research | PRODUCT CODE: 1321518
“Global Sustainable Aviation Fuel Market to Reach $131.12 Billion by 2033.”
The sustainable aviation fuel (SAF) market has emerged as a crucial and rapidly growing sector within the aviation industry, driven by the urgent need to reduce greenhouse gas emissions and mitigate the impact of aviation on climate change. SAF, also known as biojet fuel, is derived from sustainable feedstocks such as agricultural waste, algae, and renewable energy sources. It offers a viable alternative to conventional jet fuel by significantly reducing carbon dioxide emissions and other pollutants. The SAF market is witnessing increasing global attention and investment as governments, airlines, and industry stakeholders strive to achieve their sustainability goals. With its potential to revolutionize aviation and contribute to a greener future, the sustainable aviation fuel market presents significant opportunities for innovation, collaboration, and positive environmental impact.
KEY MARKET STATISTICS | |
---|---|
Start Year: | 2023 |
Forecast Year | 2033 |
Start Value | $1.29 Billion in 2023 |
Forecast Value | $131.12 Billion by 2033 |
CAGR % | 58.78% |
Sustainable aviation fuel (SAF) has a long history that dates back to the early 2000s when environmental and climate change concerns first gained popularity. The need for alternative fuels that may lower greenhouse gas emissions and dependency on fossil fuels was acknowledged by academics and industry professionals. The first focus was on biofuels made from plants such as sugarcane and soybeans. The first commercial flight powered by a mixture of biofuel and regular jet fuel took off in 2008. Since then, there has been a substantial advancement in the creation and acceptance of SAF, with improvements in the variety of feedstocks used, the refining procedures, and the certification criteria.
Sustainable aviation fuel (SAF) is now seeing a remarkable increase in attention and usage on a worldwide scale. Cleaner substitutes for conventional jet fuels are urgently needed in light of rising worries about climate change and the negative environmental effects of the aviation sector. Hence, a workable answer has been provided by SAF, which is produced from sustainable feedstocks such as biomass, used cooking oil, or hydrogen. Progress in the industry is being driven by cutting-edge technology and partnerships, which have boosted companies' SAF manufacturing capacity, improved supply chain logistics, and reduced prices. To encourage the implementation of SAF and provide a more sustainable future for air transport, issues including scalability, feedstock supply, and regulatory frameworks must be resolved.
The sustainable aviation fuel and technological advancements in the field are expected to have a positive impact on the global market for sustainable aviation fuel. Several organizations and government agencies are working to introduce newer manufacturing techniques into the global sustainable aviation fuel market. When compared to different sustainable aviation fuel products, such as different fuel types, the demand for biofuel stands out as the fuel that is currently in high demand.
In recent years, sustainable aviation fuel has registered an exponential surge in demand from the commercial aviation industry, with high demands for business and general aviation. Additionally, due to the increasing environmental concerns, sustainable aviation fuel has grown in significance during the past few years. For instance, in May 2023, Neste signed an agreement with ITOCHU, which extended its collaboration in order to represent Neste MY Renewable Diesel as an authorized distributor in Japan. Based on this arrangement, Neste MY Renewable Diesel's market reach would be increased, for instance, to the region around Osaka in order to supply the fuel for the 2025 Osaka-Kansai Japan Expo building site.
Based on application, the sustainable aviation fuel market is led by the commercial aviation segment, with a 78.64% share in 2023. Increasing environmental concerns and volatile jet fuel prices are expected to drive the growth of the sustainable aviation fuel market.
Given that commercial aviation contributes significantly to the world's greenhouse gas emissions, it is the greatest consumer of sustainable aviation fuel (SAF). The environmental effect of aviation has evolved into a critical issue as air travel continues to expand quickly. By lowering the carbon impact of airplanes, SAF provides a possible alternative. Commercial airlines have adopted SAF as a way to meet their sustainability objectives because they understand the urgent need to switch to greener fuels. The aviation industry is a great sector for promoting the demand for and supply of sustainable aviation fuel because it has the size and infrastructure to facilitate widespread SAF adoption. Commercial aviation contributes significantly to reducing climate change and promoting a more environment-friendly future by setting the standard for SAF usage.
Turbine Engine Segment to Lead the Global Sustainable Aviation Fuel Market (by Engine Type)
Based on fuel type, the sustainable aviation fuel market is expected to be dominated by the biofuel segment in 2023, with a 95.64% share in terms of revenue due to the high demand for sustainable aviation fuel in the aviation industry.
Additionally, the fuel type segment comprises hydrogen fuel, biofuel, power-to-liquid, and gas-to-liquid that make up the fuel type segment in sustainable aviation fuel. These fuels provide solutions for achieving net zero emissions and lowering carbon footprints. The capabilities and efficacy of sustainable aviation fuel are continually being enhanced via the development and integration of manufacturing technologies.
Hydroprocessed Esters and Fatty Acids-Synthetic Paraffinic Kerosene (HEFA-SPK) Segment to Lead the Global Sustainable Aviation Fuel Market (by Manufacturing Technology)
The hydroprocessed esters and fatty acids-synthetic paraffinic kerosene (HEFA-SPK) segment is expected to dominate the market, with a share of 32.24% in 2033.
The 30% to 50% blending capacity segment is expected to dominate the market, with a share of 50.1% in 2033.
North America accounted for the highest share of 48.09% in 2022 in the global sustainable aviation fuel market, owing to a significant number of companies based in the region. North America's growth is driven by various activities in the U.S. and Canada, as well as increased spending by commercial organizations such as Aemetis, Inc., Alder Fuels, Gevo, Inc., Fulcrum BioEnergy, Inc., and government key agencies.
Following are the drivers for the sustainable aviation fuel market:
Following are the challenges for the sustainable aviation fuel market:
Following are the opportunities for the sustainable aviation fuel market:
Data and validation have been taken into consideration from both primary sources as well as secondary sources.
The companies that are profiled have been selected based on thorough secondary research, which includes analyzing company coverage, product portfolio, market penetration, and insights, which are gathered from primary experts.
The market for sustainable aviation fuel is divided between the established players and the start-ups. As of 2022, the market for sustainable aviation fuel is dominated by established players who contribute toward 78% market share dominance, whereas start-ups have a share of 22% in the market. The start-ups' numbers are set to witness growth in the future as more and more airlines and the aviation industry as a whole look toward achieving net-zero carbon emission by 2050.
|
|