The global sustainable aviation fuel market is estimated to be valued at US$ 460.1 million in 2022 and is expected to exhibit a CAGR of 61% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Sustainable aviation fuel (SAF) is a ‘drop-in’ substitute for conventional jet fuel derived from renewable sources such as vegetable oils, used cooking oil, and animal fats. SAF has significantly lower greenhouse gas emissions and better environmental performance than conventional jet fuel. The aviation industry is increasingly adopting sustainable aviation fuel to reduce its carbon footprint and meet emission norms.
Market key trends:
North America accounts for the dominant share in the global sustainable aviation fuel market, owing to supportive government policies and initiatives toward decarbonizing the aviation industry in the region. Major players like Neste, GEvo, and Shell have made significant investments toward developing sustainable aviation fuel production facilities across prominent airports in the US and Canada. The growing focus on lowering greenhouse gas emissions from air travel and government targets to blend SAF with conventional jet fuel are boosting the adoption of sustainable aviation fuels in the North American aviation industry.
Segment Analysis:
The sustainable aviation fuel market is dominated by biofuel segment. Biofuels are produced from biomass or organic waste products such as used cooking oil, animal fats, and agricultural residues. They emit lesser greenhouse gases and particulate matter compared to conventional jet fuel derived from petroleum. This makes biofuels more sustainable and environment-friendly option. With growing sustainability concerns in aviation industry, biofuel segment holds over 95% share of global sustainable aviation fuel market owing to its green attributes.
Key Takeaways:
The Global Sustainable Aviation Fuel Market Demand is expected to witness high growth, exhibiting CAGR of 61% over the forecast period 2023-2030, due to increasing environmental regulations to curb emissions from aviation industry.
The market size was valued at US$ 460.1 million in 2022. Stringent environmental norms by regulatory bodies are driving airlines and fuel suppliers to explore sustainable and low carbon alternatives to conventional jet fuel. Sustainable aviation fuel reduces greenhouse gas emissions by over 80% over the lifecycle as compared to conventional jet fuel.
Europe dominates the global sustainable aviation fuel market with over 40% share. The region has passed several mandates and policies mandating airlines and fuel suppliers to ensure certain mix of sustainable aviation fuels are supplied and consumed. Countries like France and Germany are actively supporting research and production of sustainable aviation fuels.
Key players operating in the sustainable aviation fuel market are Neste, AEMETIS INC., Gevo, Shell PLC, Lanza Jet, and Sky NRG. The players are investing aggressively in developing and scaling up production capacities of sustainable aviation fuel and associated technologies. Strategic partnerships with airlines are emerging as a key success strategy for industry players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it