Sustainable Aviation Fuel Market

Sustainable Aviation Fuel Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Sustainable Aviation Fuel Market grew at a CAGR of 14.6% between 2017-2021 and is estimated to be US$ 274.6Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 31.6% and is expected to reach a valuation of US$ 4,278.2Mn by 2032 end.

The aviation sector is committed to reducing carbon footprints to create a sustainable environment and meet strict regulatory limits on emissions. Various aviation sector stakeholders are implementing alternative solutions, such as enhancing aero-engine efficiency through design changes, hybrid-electric, and all-electric aircraft, renewable jet fuels, etc.

Market Dynamic

INCREASING NEED FOR REDUCTION IN GHG EMISSIONS IN THE AVIATION INDUSTRY

Sustainable aviation fuels are crucial to fulfilling the aviation industry’s promises to uncouple rising carbon emissions from increased traffic. Depending on the sustainable feedstock utilized, the production process, and the supply chain to the airport, SAF offers a remarkable decrease in CO2 emissions of up to 80% over the fuel’s lifecycle compared to fossil jet fuel.

SAF will be a viable option for aircraft operators to fulfill their commitments under the Carbon Offsetting and Reduction Scheme for International Aviation, according to the IATA fact sheet (CORSIA). An agreement on a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to reduce CO2 emissions from international aviation with a pilot phase from 2021–2023 was made by the UN’s International Civil Aviation Organization (ICAO) in 2016.

INADEQUATE AVAILABILITY OF FEEDSTOCK AND REFINERIES TO MEET SAF PRODUCTION DEMAND

The raw materials that play a significant part in the entire production chain of alternative aviation fuels, like synthetic fuels, e-fuels, and biojet fuels, include biological and non-biological resources, including oil crops, sugar crops, algae, waste oil, etc. Due to a lack of available raw materials for its manufacture, demand for sustainable aviation fuel may become inexistent.

The process of producing SAF is also delayed due to refineries’ constraints, which are crucial to the appropriate exploitation of these feedstocks. Additionally, the limited fuel supply makes it difficult for the fuel to combine, which reduces efficiency.

THE DROP-IN CAPABILITY OF SAF INCREASES ITS DEMAND TO REDUCE CARBON FOOTPRINT

Sustainable aviation fuel is fully fungible drop-in fuel when combined with petroleum-based fuel. Depending on the methods, technological frameworks, and raw materials employed in their manufacture, these fuels are sometimes referred to as synthetic fuels, renewable jet fuels, e-fuels, green fuels, conventional bio jet fuels, and alternative jet fuels. These fuels can use the airport’s fuel storage and hydrant systems, saving money on infrastructure costs, and they are handled the same as current petroleum-based fuels.

Co-processing with other streams or ongoing attempts to utilize depreciated infrastructure and equipment could reduce capital expenditures. A drop-in fuel can be used in existing engines and infrastructure without needing to be modified and is thought to be equivalent to regular jet fuel. These conditions are necessary for safety, general usage, and carbon footprint reduction in the aviation industry.

Market Segments Covered in Report

By Platform:

• Commercial Aviation
• Military Aviation
• Business & General Aviation
• Unmanned Aerial Vehicle

By Biofuel Blending Capacity:

• Below 30%
• 30% to 50%
• Above 50%

By Type:

• Total Stations
• Global Navigation Satellite Systems (GNSS)
• Laser Scanners
• Sensors
• Others

By Biofuel Manufacturing Technology:

• Hydro processed Fatty Acid Esters and Fatty Acids – Synthetic Paraffinic Kerosene (HEFA-
• Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
• Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
• Alcohol to Jet SPK (ATJ-SPK)
• Catalytic Hydrothermolysis Jet (CHJ)

By Fuel Type:

• Biofuel
• Hydrogen Fuel
• Power to Liquid Fuel
• Gas-to-Liquid

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

What segment dominates the sustainable aviation fuel market based on fuel type?

As a substitute for jet fuel, biofuel is employed in commercial and technological channels, making it the largest segment of the global market for sustainable aviation fuel. Rich nations like Norway, the Netherlands, and the UK make significant investments in constructing these infrastructures.

Based on biofuel blending capacity, which segment leads the sustainable aviation fuel market?

Compared to other segments in this category, the 30% to 50% segment performs best. The existence of moderate blend capacity, drop-in-facility in current fuel systems, and supply logistics infrastructure are the driving forces behind the expansion of this market. Technology-based channels are the other factor that promotes the growth of research and development.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With a market share of 57.8%, North America is anticipated to grow at the highest CAGR over the projection period. Countries like the US and Canada in North America are concentrating on various programs to use renewable aviation fuel to address the demand for a decrease in carbon footprints due to increased air traffic and air passengers.

Competition Analysis

The industry leaders offer a range of goods and services, such as biofuel, synthetic fuel, e-fuels, green fuel, and hydrogen fuel, to reduce greenhouse gas emissions from the aviation industry and other industrial sectors, the automobile, marine, and chemical industries.

The key developments in the Global Sustainable Aviation Fuel Market:

• In August 2020, Gevo, Inc. and Trafigura Trading LLC, a fully-owned subsidiary of Trafigura Group Pte Ltd, entered into a legally binding agreement to acquire and sell renewable hydrocarbons. The deal will allow Trafigura to provide SAF to customers in the US and abroad, whose demand for low-carbon jet fuel is growing.
• In June 2020, Urban Aeronautics, Inc., a pioneer in VTOL aircraft, contracted with Hypoint, Inc. to supply zero-carbon hydrogen fuel cell technology for the CityHawk eVTOL aircraft.

A list of some of the key suppliers present in the market are:

• Neste
• Fulcrum BioEnergy
• LanzaTech
• World Energy
• TotalEnergy

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.