The global sustainable aviation fuel market size is expected to reach USD 15.85 billion by 2030, according to a new study by Grand View Research, Inc. The market is expected to expand at a compound annual growth rate (CAGR) of 57.50% from 2023 to 2030. Environmental concerns, regulatory approval, corporate sustainability initiatives, technology developments, investment and finance, partnerships and collaborations, and pricing competitiveness are the key market drivers boosting global growth.
Biofuels are made from a variety of sources, including oil seeds, corn grain, algae, forestry residues, agricultural residues, municipal solid waste, and others. The increased desire for creative solutions aids the governments in lowering carbon footprints. Biofuels provide significant environmental benefits as well as economic livelihood by reducing lifecycle greenhouse gas (GHG) emissions.
The growth of the aviation industry mainly in North American countries, including Canada and Mexico, is expected to propel demand for sustainable aviation fuel in the industry. Moreover, the availability of sustainable feedstocks for SAF production is expected to boost the market growth in the coming years.
Gather more insights about the market drivers, restrains and growth of the Global Sustainable Aviation Fuel Market
However, airlines are unable to meet their self-imposed targets for decreasing GHG emissions alone with engine and flight upgrades; they require SAF. Fuel prices contribute a sizable portion of operating expenses. SAF, despite the fact that it is created from waste and low-cost feedstocks, necessitates extensive and costly technological methods. This is projected to hamper the market growth.
Sustainable aviation fuel offers drop-in capability which is expected to raise its demand to lower its carbon footprint. Sustainable aviation fuel has grown to prominence as a response to our times' growing environmental concerns, with commercial aviation driving demand for sustainable fuels. Various firms and government agencies are actively pioneering innovative manufacturing procedures in the global sustainable aviation fuel market.
Sustainable Aviation Fuel Market Report Highlights
- North America dominated the overall sustainable aviation fuel industry in terms of revenue in 2022. The increase in airline passengers, disposable income, air transportation, and synthetic lubricant usage contribute to the growth
- Biofuel dominated the type segment in 2022 and is expected to grow further due to several factors, including an increased emphasis on renewable energy sources, environmental sustainability, and concerns related to the reduction in GHG emissions
- FT-SPK dominated the end-use segment accounting for over 34.0% in terms of revenue. The Fischer-Tropsch (FT) Synthetic Paraffinic Kerosene (SPK) technology is used due to its ability to manufacture high-quality, drop-in aviation fuel from a variety of feedstocks
- In May 2023, Neste agreed to renew its collaboration with ITOCHU to act as an authorized distributor for Neste MY Renewable Diesel in Japan. This agreement will expand the reach of the Neste MY Renewable Diesels market to the region surrounding Osaka in order to supply the fuel for the 2025 Osaka-Kansai Japan Expo building site
Key Companies & Market Share Insights
The global sustainable aviation fuel market is highly competitive due to the presence of major industries across the globe. These companies are comparatively concentrated and fiercely competitive and engage in acquisitions, mergers, and collaborations, among other business strategies.For Instance, Shell and Delta signed a two-year agreement with Los Angeles International Airport (LAX) in April 2023, serving as the hub to purchase 10 million gallons of sustainable aviation fuel (SAF) from Shell Aviation. The international airline plans to fulfill its target of utilizing 35% of sustainable aviation fuel by 2035 and meet its goal of consuming 10% SAF per year by 2030 with over 200 million gallons of SAF committed.
List of Key Players in the Sustainable Aviation Fuel Market
- Aemetis Inc.
- AVFUEL CORPORATION
- Fulcrum BioEnergy
- Gevo
- TotalEnergies
- LanzaTech
- Neste
- Preem AB
- Sasol Limited
- SkyNRG B.V.
- World Energy, LLC
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