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.
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 Biofuel Blending Capacity:
By Biofuel Manufacturing Technology:
By Fuel Type:
By Region and Country:
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.
The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
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:
A list of some of the key suppliers present in the market are:
Report Coverage and Highlights
|Historical data available for||2017-2021|
|Market analysis||USD Million for Value and Tons for Volume, and CAGR from 2022 to 2032|
|Key regions covered||North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa|
|Key countries covered||US, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Saudi Arabia, Turkey, UAE, South Africa, Nigeria, Egypt|
|Key segments covered||By Platform, Biofuel Blending Capacity, Type, Biofuel Manufacturing Technology, Fuel Type, and Region|
|Customization scope||Available upon Request|
|Pricing and purchase options||Available upon Request|
Market Size Data
Value Chain Analysis
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific
Why Choose CVC Market Research?;
In the forecast period between 2022 and 2032, the market is expected to grow at a CAGR of 31.6%.
Increasing need for reduction in GHG emissions in the aviation industry.
Major global Sustainable Aviation Fuel Market players are Neste, Fulcrum BioEnergy, LanzaTech, World Energy, TotalEnergy
Inadequate availability of feedstock and refineries to meet SAF production demand.
North America is expected to account for the largest market revenue share in the Global Sustainable Aviation Fuel market.
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