Sustainable Aviation Fuel Market by Fuel Type, Blending Capacity (30% to 50%, Above 50%, Below 30%), Manufacturing Technology, Operation, End-Use

Description

List of Tables

[188 Pages Report] The Sustainable Aviation Fuel Market size was estimated at USD 3.88 billion in 2023 and expected to reach USD 5.01 billion in 2024, at a CAGR 32.24% to reach USD 27.45 billion by 2030.

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.

KEY MARKET STATISTICS
Base Year [2023]	USD 3.88 billion
Estimated Year [2024]	USD 5.01 billion
Forecast Year [2030]	USD 27.45 billion
CAGR (%)	32.24%

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.

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.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Sustainable Aviation Fuel Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis 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: 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 examination of the current state of vendors in the Sustainable Aviation Fuel Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. 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 this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

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

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Sustainable Aviation Fuel Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Sustainable Aviation Fuel Market?

3. What are the technology trends and regulatory frameworks in the Sustainable Aviation Fuel Market?

4. What is the market share of the leading vendors in the Sustainable Aviation Fuel Market?

5. Which modes and strategic moves are suitable for entering the Sustainable Aviation Fuel Market?

Product Code: MRR-4103B31E00FB

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing number of commercial and military aviation fleets globally
  - 5.1.1.2. Increasing government support for development and usage of sustainable aviation fuels
  - 5.1.1.3. Booming trade activities and proliferating e-commerce activities globally
- 5.1.2. Restraints
  - 5.1.2.1. High cost of development of sustainable aviation fuels
- 5.1.3. Opportunities
  - 5.1.3.1. Increasing research and development activities to develop novel raw materials for sustainable aviation fuels
  - 5.1.3.2. Rising investment activities by airlines in adopting sustainable aviation fuels
- 5.1.4. Challenges
  - 5.1.4.1. Feedstock availability barrier over development of sustainable fuels
5.2. Market Segmentation Analysis
- 5.2.1. Fuel Type: Growing adoption of biofuels to decarbonize the aviation sector
- 5.2.2. Blending Capacity: Expanding usage of sustainable aviation fuel with blending efficiency of 30% to 50% owing to its cost-effectiveness
- 5.2.3. Manufacturing Technology: Increasing usage of Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) that provides cleaner-burning fuel
- 5.2.4. End-Use: Emerging potential of SAFs across commercial aviation to reduce environmental impact
- 5.2.5. Operation: Increasing utilization of SAF in manned aerial vehicles carbon reduction
5.3. Market Trend Analysis
- 5.3.1. Significant SAF production and supportive initiatives and investment for the production of SAF in Americas
- 5.3.2. Growing deployment of SAFs across regional airlines with rising government support for sustainable aviation fuels in Asia-Pacific region
- 5.3.3. Increasing initiatives to combat carbon emission coupled with growing investment to bolster the production of sustainable aviation fuel in the EMEA region
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Sustainable Aviation Fuel Market, by Fuel Type

6.1. Introduction
6.2. Biofuel
6.3. Gas to Liquid Fuel
6.4. Hydrogen Fuel
6.5. Power to Liquid Fuel

7. Sustainable Aviation Fuel Market, by Blending Capacity

7.1. Introduction
7.2. 30% to 50%
7.3. Above 50%
7.4. Below 30%

8. Sustainable Aviation Fuel Market, by Manufacturing Technology

8.1. Introduction
8.2. Alcohol to Jet SPK
8.3. Catalytic Hydrothermolysis Jet
8.4. Fischer Tropsch Synthetic Paraffinic Kerosene
8.5. Hydroprocessed Fatty Acid Esters and Fatty Acids-Synthetic Paraffinic Kerosene
8.6. Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar

9. Sustainable Aviation Fuel Market, by Operation

9.1. Introduction
9.2. Manned Aerial Vehicle
9.3. Unmanned Aerial Vehicle

10. Sustainable Aviation Fuel Market, by End-Use

10.1. Introduction
10.2. Business & General Aviation
10.3. Commercial Aviation
10.4. Military Aviation

11. Americas Sustainable Aviation Fuel Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

12. Asia-Pacific Sustainable Aviation Fuel Market

12.1. Introduction
12.2. Australia
12.3. China
12.4. India
12.5. Indonesia
12.6. Japan
12.7. Malaysia
12.8. Philippines
12.9. Singapore
12.10. South Korea
12.11. Taiwan
12.12. Thailand
12.13. Vietnam

13. Europe, Middle East & Africa Sustainable Aviation Fuel Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. Boeing and U.S. Government Launch Initiative to Advance Sustainable Aviation Fuel among APEC Economies
- 14.3.2. Macquarie Invests USD 190 million in Green Sustainable Aviation Fuel Supplier SkyNRG
- 14.3.3. Neste and SQUAKE Enable Businesses to Opt For Sustainable Aviation Fuel in Flight Booking Systems to Reduce Their Air Travel Related Carbon Emissions
- 14.3.4. Airbus Partners With DG Fuels to Foster Sustainable Aviation Fuel Production in The United States
- 14.3.5. Lummus Launches Ethanol-based Sustainable Aviation Fuel Technology
- 14.3.6. Twelve Announces Plans to Scale Production of Sustainable Aviation Fuel Made From CO2 in Washington State
- 14.3.7. Honeywell introduces UOP eFining technology For New Class of Sustainable Aviation Fuel
- 14.3.8. Holland & Knight Advises Hawaiian Airlines in Sustainable Aviation Fuel Sales Agreement with Gevo
- 14.3.9. KBR Launches Sustainable Aviation Fuel Technology in Alliance with Swedish Biofuels
- 14.3.10. Neste Considers Establishing an Algae Pilot Facility in Spain

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio