The global Sustainable Aviation Fuel Market is projected to reach USD 19,950.26 million by 2031, at a CAGR of 57.74%, from USD 520.62 million in 2022. The sustainable aviation fuel market is expected to continue to grow in the coming years due to the increase in the use of synthetic lubricants and aviation industry’s demand to reduce CO2 emissions is growing.
The market for sustainable aviation fuel (SAF) has grown as a viable way to lessen the negative environmental effects of conventional aviation fuels. Sustainable aviation fuel (SAF) is a greener option to fossil fuels since it is produced from renewable resources such as biomass, leftover cooking oil, and agricultural residues. With its launch, the aviation sector has made a significant step in cutting its carbon emissions. A varied and flexible supply chain is ensured by the multiple paths involved in SAF manufacturing, including alcohol-to-jet, hydroprocessing, and Fischer-Tropsch synthesis.
In November 2023, Gulfstream Aerospace Corp. declared that it had successfully completed the first transatlantic flight in history on only sustainable aviation fuel (SAF). The Gulfstream G600 used for the journey took off from the company’s Savannah headquarters and landed at Farnborough Airport in England after 6 hours and 56 minutes.
Segment Analysis and Market Dynamics
Based on fuel type, the global sustainable aviation fuel market is divided into biofuel, hydrogen fuel, power to liquid fuel. Biofuel is derived from renewable sources such as agricultural waste, algae, or used cooking oil, biofuels are considered a frontrunner in the sustainable aviation fuel (SAF) market. They can directly replace traditional jet fuels without requiring modifications to existing aircraft or infrastructure. Biofuels significantly reduce greenhouse gas emissions compared to conventional aviation fuels and have gained traction due to their compatibility with existing aircraft engines. Where, Hydrogen is gaining attention as a potential zero-emission fuel for aviation. It can be produced through electrolysis using renewable electricity or derived from sources like natural gas with carbon capture and storage. Hydrogen fuel cells generate electricity by combining hydrogen with oxygen, producing only water as a byproduct. However, challenges remain in terms of infrastructure development, storage, and the need for aircraft modifications to accommodate hydrogen propulsion systems. PtL fuels involve the conversion of renewable electricity into liquid fuels like synthetic kerosene or diesel. This process typically involves electrolysis to produce hydrogen and subsequent conversion into liquid fuels through processes like Fischer-Tropsch synthesis. PtL fuels offer energy density similar to traditional jet fuels and can utilize excess renewable energy. However, production costs and scalability pose challenges for widespread adoption.
The global sustainable aviation fuel market is predicted to register a compound annual growth rate (CAGR) of 57.74% over the projected period of 2023-2031.
Asia Pacific will be the leading region of the global sustainable aviation fuel market during the forecast period of 2023-2031.
The major key players in the global sustainable aviation fuel market are: SkyNRG, Fulcrum Bioenergy, Sasol, Gevo, Avfuel Corporation, Neste, Preem AB, World Energy, LANZATECH, and Aemetis.
Econ Market Research has segmented the global sustainable aviation fuel market based on fuel type, platform, aircraft type, biofuel manufacturing technology and region:
Sustainable Aviation Fuel Market by Fuel Type (Revenue, USD Billion, 2023-2031)
Biofuel
Hydrogen Fuel
Power to Liquid Fuel
Sustainable Aviation Fuel Market by Platform (Revenue, USD Billion, 2023-2031)
Commercial Aviation
Military Aviation
Business and General Aviation
Unmanned Aerial Vehicle
Sustainable Aviation Fuel Market by Aircraft Type (Revenue, USD Billion, 2023-2031)
