What Is The Current and Historic Market Size Analysis Of The Sustainable Aviation Fuel Market?
The sustainable aviation fuel market has seen considerable growth due to a variety of factors.
• In recent years, the market size for sustainable aviation fuel has seen a significant and exponential escalation. The market, which is projected to be $0.79 billion strong in 2024, is set to rise to $1.22 billion by 2025, reflecting a yearly compound growth rate (CAGR) of 53.7%.
The phenomenal growth during this historic period is driven primarily by the increased concern over climate change, which has boosted the demand for sustainable aviation fuel. This growth is further fuelled by the increasing global pressure to reduce greenhouse gas emissions and a heightened emphasis on curbing carbon emissions, alongside global initiatives aimed at carbon emission reduction.
What Are The Predictions for The Sustainable Aviation Fuel Market in the Coming Years?
The sustainable aviation fuel market is expected to maintain its strong growth trajectory in upcoming years.
• The market for sustainable aviation fuel is predicted to undergo dramatic expansion in the forthcoming years, eventually reaching a valuation of $5.69 billion in 2029, with a compound annual growth rate (CAGR) of 47.0%.
This upward trend during the forecast period can be owed to the escalated use of sustainable aviation fuel, increased global airline demand for SAF, expanding efforts to enhance supply chain processes to stimulate market growth, and the existence of rigorous environmental legislation. Noteworthy trends projected over the forecast period include the tightening of government regulations alongside technological advancement, improvements in SAF production technologies and diversification of feedstock, technological progress, collaborative measures, and carbon compensation plans.
Which Drivers Are Accelerating Growth In The Sustainable Aviation Fuel Market?
The sustainable aviation fuel market is poised for growth, driven by increasing biofuels adoption. Biofuels are renewable energy alternatives obtained from biomass such as plants, algae, or animals. This rise is propelled by global initiatives for sustainability and the aviation sector's pledge to abate greenhouse gas emissions. Airline companies can decrease their environmental imprint through the use of biofuels. For example, the Eurostat, a Luxembourg-based organization, indicated in December 2023 that renewable energy made up 23.0% of the total energy consumption in the European Union (EU) in 2022, a rise from 21.9% in 2021. The proportion of renewable energy used in transport also saw a rise from 9.1% in 2021 to 9.6% the following year. As such, it can be inferred that the increase in utilization of biofuels is steering the expansion of the sustainable aviation fuel market.
What Are The Core Segments Of The Global Sustainable Aviation Fuel Market?
The sustainable aviation fuel market covered in this report is segmented –
1) By Fuel Type: Biofuel, Power-to-Liquid, Gas-to-Liquid
2) By Blending Capacity: Below 30%, 30% To 50%, Above 50%
3) By Platform: Commercial Aviation, Military Aviation, Business And General Aviation, Unmanned Aerial Vehicles
Subsegments:
1) By Biofuel: Biojet Fuel, Algae-based Biofuels, Vegetable Oil-based Biofuels, Waste Oil and Animal Fat-based Biofuels
2) By Power-to-Liquid: Electro-fuel (e-fuel) Production from Renewable Energy, Hydrogen-based Power-to-Liquid Fuels, CO2-to-fuel Technologies
3) By Gas-to-Liquid: Fischer-Tropsch Synthetic Fuels, Coal-to-Liquid (CTL) Fuels, Natural Gas-to-Liquid (GTL) Fuels
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What Trends Are Shaping The Sustainable Aviation Fuel Market?
Key players in the sustainable aviation fuel market have been driving innovation with energy processing technologies to lessen the environmental footprint of the aviation industry. This energy processing technology involves the scientific and technical elements of creating and using clean energies, as well as associated chemicals, progressive carbon materials, and by-products. An example is Lummus Technology, an American firm offering process technologies and energy solution with added value, which in September 2023 unveiled an ethanol-based sustainable aviation fuel technology. This technology offers a scalable, commercially demonstrated solution for curbing the greenhouse gas emissions of the aviation sector. Lummus' move from ethanol to sustainable aviation fuel (SAF) technology offers a dependable and safe solution that combines ethanol-ethylene (EtE), olefin oligomerization, and hydrogenation technologies in a process alignment that optimises the final output to SAF, consequently minimising capital costs (CAPEX), CO2-specific operational costs (OPEX), and carbon emissions.
Who Are the Key Players In The Sustainable Aviation Fuel Market?
Major companies operating in the sustainable aviation fuel market are:
• Shell plc
• TotalEnergies SE
• BP plc
• Eni S.p.A.
• OMV Group
• Neste Oyj
• Preem AB
• Sustainable Aviation
• Aemetis Inc.
• REG Synthetic Fuels LLC
• Ballard Power Systems
• ZeroAvia Inc.
• AvFuel Corporation
• LanzaTech Inc.
• Sundrop Fuels Inc.
• LanzaJet Inc.
• Fulcrum BioEnergy Inc.
• SkyNRG BV
• Alder Fuels
• Red Rock Biofuels
• SG Preston Company
• Velocys Plc
• WasteFuel
• World Energy
• SAF+ International Group
• Gevo Inc.
• Northwest Advanced Bio-Fuels LLC.
• AltAir Fuels
• REG Geismar LLC
What Are The Regional Insights Into The Sustainable Aviation Fuel Market?
North America was the largest region in the sustainable aviation fuel market in 2024. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable aviation fuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
