Sustainable Aviation Fuels Market Size, Share, Growth, And Industry Analysis, By Type (Used Cooking Oil, Jatropha, Halophytes, Algae and Others), By Application (Commercial Passenger Aircraft, Freight and Cargo Aircraft and Military Aircraft), Regional Insights, and Forecast To 2032

Updated On: 22 April 2024

Sustainable Aviation Fuels Market Report Overview

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global sustainable aviation fuels market size was USD 204.4 million in 2022 and market is projected to touch USD 16948.68 million by 2031 at CAGR 63.4% during the forecast period

Sustainable aviation fuels also known as alternative aviation fuels or biofuels for aviation, are fuels designed to reduce the carbon emissions and environmental impact associated with aviation. These fuels are produced from renewable and sustainable sources, unlike traditional jet fuels derived from fossil fuels.

A variety of feedstock sources, such as plant-based materials, algae, and waste products, can be used to create sustainable aviation fuels. Vegetable oils, animal fats, agricultural by products, non-food energy crops, and wood waste are examples of the feedstocks frequently used in the manufacturing of SAF. In comparison to traditional jet fuels, these feedstocks offer a renewable and low-carbon option.

COVID-19 Impact: Pandemic Hamper the Demand of Warehouse Partitioning Mesh to Market Growth

The COVID-19 pandemic has had a significant impact on the aviation industry as a whole, including the development and adoption of sustainable aviation fuels. Air travel significantly decreased as a result of the pandemic's global bans and lockdowns. The aviation sector had a significant decrease in fuel use, which included both conventional jet fuel and SAF, as a result of fewer flights and decreased passenger demand. SAF production and acceptance were hindered by the decreased demand for aviation fuels.  

Latest Trends

"Increasing Production Capacity Will Fuel Market Expansion "

An increasing number of investments are being made to increase the generation of sustainable aviation fuels. To meet the growing demand for SAF and the aviation industry's efforts to minimise its carbon footprint, businesses and governments are looking into new production facilities and technology. This covers both the development of specialised SAF production facilities and the expansion of already-existing biofuel refineries. 

Sustainable Aviation Fuels Market Segmentation

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• By Type Analysis

According to type, the sustainable aviation fuels market can be segmented into Used cooking oil, jatropha, halophytes, algae, and others.

In terms of type, the jatropha is anticipated to be the largest segment during the forecast period.  

• By Application Analysis

Based on application, the sustainable aviation fuels market can be divided into commercial passenger aircraft, freight and cargo aircraft and military aircraft.

In terms of application, the commercial passenger aircraft market is projected to hold the largest sustainable aviation fuels market share through 2028.  

Driving Factors

"Climate Change Mitigation Will Drive Market Growth "

 The aviation industry is a significant contributor to global greenhouse gas emissions. Sustainable aviation fuels offer a way to reduce aviation's carbon footprint by replacing conventional fossil-based jet fuels with low-carbon alternatives. SAF can help mitigate climate change by significantly reducing the lifecycle greenhouse gas emissions associated with aviation.

"Regulatory and Policy Initiatives Will Boost Market Growth  "

 Governments and regulatory bodies worldwide are implementing policies and regulations to support the use of sustainable aviation fuels. These initiatives include blending mandates, tax incentives, carbon pricing mechanisms, and sustainability certification schemes. Regulatory drivers provide a framework for the aviation industry to adopt SAF and create market demand for these fuels.

Restraining Factors

"Feedstock Availability and Cost Will Limit Market Expansion"

One of the primary challenges is the availability and cost of feedstocks used in the production of sustainable aviation fuels. The production of SAF requires significant quantities of feedstock, such as waste oils, biomass, or agricultural residues. Limited availability and competition with other industries, such as the food and chemical sectors, can impact the cost and availability of feedstocks, making SAF production economically challenging. 

Sustainable Aviation Fuels Market Regional Insights

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"The Europe Region will Dominate Market Due to Strong Demand of Sustainable Aviation Fuels"

Europe has been at the forefront of promoting sustainable aviation fuels. The European Union's Renewable Energy Directive (RED II) includes targets for advanced biofuels, which encompass sustainable aviation fuels. Several European countries, including the Netherlands, Sweden, and Finland, have implemented blending mandates for aviation fuels. Additionally, the EU's Sustainable Aviation initiative aims to accelerate the development and deployment of SAF through funding and regulatory measures.

United States have been actively working to promote sustainable aviation fuels. The United States has implemented various federal and state-level policies to support SAF, including tax incentives and grant programs. Several U.S. airlines have made long-term commitments to SAF, and airports like Los Angeles International Airport and Seattle-Tacoma International Airport have established supply agreements for SAF. In Canada, initiatives such as the Clean Fuel Standard aim to reduce the carbon intensity of transportation fuels, including aviation fuels.

Key Industry Players

"Adoption Recycling Services by Key Players Influencing Market Development"

The top key players in the sustainable aviation fuels market are British Petroleum, Chevron, Exxon Mobil, Fulcrum Bioenergy.  Most of the top players hold the sustainable aviation fuels market share. In addition, the strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the sustainable aviation fuels market growth in the competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession of market shares by the key players stimulates the sustainable aviation fuels market.  

List of Market Players Profiled

• British Petroleum (UK.)
• Chevron (U.S.)
• Exxon Mobil (U.S.)
• Fulcrum Bioenergy (U.S.)
• Gazprom (Russia)
• Saudi Arabia (Saudi Arabia)
• Shell (Netherlands)
• TOTAL (France)
• SkyNRG (Netherlands)

Report Coverage

This report examines an understanding of the sustainable aviation fuels market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.