Sustainable Aviation Fuel Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[239+ Pages Report] According to Facts and Factors,the global sustainable aviation fuel market was worth USD 72.40 million in 2021 and is estimated to grow to USD 1,498.55 million by 2028, with a compound annual growth rate (CAGR) of approximately 65.70% over the forecast period. The report analyzes the sustainable aviation fuel market's drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the sustainable aviation fuel market.

Sustainable Aviation Fuel Market- Overview

Global sustainable aviation fuel is a biofuel used to power aircraft with similar properties to conventional jet fuel but with similar carbon footprints. Depending on the feedstock and technologies used to produce it, sustainable aviation fuel can dramatically reduce life cycle greenhouse gas compared to conventional jet fuels. Sustainable aviation fuel offers a suitable alternative to fossil fuel. It achieves up to an 80 percent reduction in greenhouse gas emissions over the fuel lifecycle compared to conventional fossil jet fuel. It is also environment-friendly fuel that reduces carbon emissions; waste streams producing sustainable aviation fuel have benefited the environment.

Furthermore, an increase in the need for a reduction in green gas in the aviation industry is expected to drive market growth during the forecast period. However, inadequate availability of feedstock and refineries to meet sustainable aviation fuel production is anticipated to hamper the market growth during the forecast period. Whereas the drop in capability of sustainable aviation fuel increases its demand to reduce carbon footprints is expected to offer lucrative opportunities for market players during the forecast period.

COVID-19 Impact:

The covid-19 virus has spread worldwide, acknowledging borders. It has impacted all industries, sectors and all aspects of lives by destroying economic and financial losses with uncertainties. The global aviation industry is concerned with operations of all aircraft types and related services during transportation. Governments across the globe are canceling visas of foreign residents and locking down affected areas, which is also one of the major reasons behind the slowing down of the aviation industry. Aircraft manufacturing and other related service provider industries are also impacted by covid-19. In addition, less efficient airplanes parked as part of the contraction will not return to service. 

Key Insights

• As per the analysis shared by our research analyst, the global sustainable aviation fuel market value is expected to grow at a CAGR of 65.70 percent over the forecast period.
• In terms of revenue, the global sustainable aviation fuel market was valued at around USD 72.40 million in 2021 and is projected to reach USD 1,498.55 million by 2028.
• An increase in the need for a reduction in green gas in the aviation industry is expected to drive market growth during the forecast period.
• By technology, the synthetic paraffinic kerosene (HEFA- SPK) segment dominated the market in 2021.
• By blending capacity, the 30% to 50% category dominated the market in 2021.
• North America dominated the global sustainable aviation fuel market in 2021.

Growth Drivers

• An increase in the need for reduction in greenhouse gas emissions in the aviation industry

Sustainable aviation fuels are a key component in meeting the aviation industry's commitment to increase carbon from traffic growth. Sustainable aviation fuel reduces up to 80 percent in co2 over the lifecycle of the fuel compared to fossil jet fuel, depending on the sustainable feedstock used and supply chain to the airport. Sustainable aviation fuel will be suitable for aircraft operators to meet their obligation under carbon offsetting. Thus, these factors are expected to drive the sustainable aviation fuel market during the forecast period.

Restraints

• Insufficient availability of feedstock and factories to meet sustainable aviation fuel production

The biological and non-biological resources such as oil crops, sugar crops, and waste oil are the raw that plays an important role in the entire production chain of alternative aviation fuel such as synthetic fuel and e-fuels. Therefore, demand for sustainable aviation fuel can come to a standstill due to the inadequate supply of raw materials required for its production.

Opportunity

• Drop in the capability of sustainable aviation fuel increase its demand to reduce carbon footprints

Sustainable aviation fuel is fully fungible drop-in fuel. These fuels are also synthetic, renewable, green, and alternative jet, depending on the process and feedstock used in the production. These requirements are essential for safety and reducing carbon footprint in the aviation industry. Thus, these factors are expected to offer various opportunities for market players during the forecast period.  

Segmentation Analysis

The global sustainable aviation fuel market has been segmented into technology, type, and blending capacity.

Based on technology, the sustainable aviation fuel market is categorized into synthetic paraffinic kerosene (HEFA- SPK), fischer tropsch synthetic paraffinic kerosene (FT-SPK), synthetic iso-paraffin from fermented hydro processed sugar (HFS-SIP), alcohol to jet spk (ATJ-SPK), and catalytic hydrothermolysis jet (CHJ). Among these, the Synthetic Paraffinic Kerosene (HEFA- SPK) segment dominated the market in 2021. The benefits of paraffinic synthetic kerosene, such as reduced carbon emissions and other benefits, have supported the growth of this segment in 2021.

Based on type, the market is segmented into biofuel, hydrogen fuel, and power to liquid fuel. In addition, the biofuel segment leads the market during the forecast period due to the growing demand from aircraft operators to comply with international government regulations.

Based on blending capacity, the market is bifurcated into below 30%, 30% to 50%, and above 50%. Among these, the 30% to 50% blending capacity segment dominated the market in 2021 and is expected to continue to dominate over the forecast period. Profitability and improved supply chain efficiency have supported segment growth in recent years.

Recent Developments

• October 2020: Taipei Taiwan announced that its sky -8101d server would soon be verified as an upgraded Intel preferred solution for forwarding platform powered with 100gbe Intel Ethernet 800 series network adapters.

Report Scope

Regional Landscape

• The North American region dominated the market in 2021

North America is one of the largest markets for aviation and renewable aviation fuels. In 2020, North American air passenger transport carried more than 397 million air passengers, representing about 22.2% of global traffic. Countries such as the United States and Canada account for most air passengers in 2020. Moreover, the rapid adoption of advanced technologies and government initiatives to encourage sustainable aviation fuel adoption also helps drive the region's market growth. Therefore, these factors are expected to support the market expansion in the North American region.

Competitive Landscape

Key players within global Sustainable Aviation Fuel market include 

• Alphabet Inc. (Google Inc.) 
• arctic wolf network 
• Intel Corporation 
• GE Healthcare 
• General Vision 
• Microsoft Corporation 
• unchained carrot 
• Next IT Corp. 
• blue kite web solution

Global Sustainable Aviation Fuel Market is segmented as follows:

By Technology

• Synthetic Paraffinic Kerosene (HEFA- SPK)
• Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
• Synthetic Iso-Paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
• Alcohol To Jet SPK (ATJ-SPK)
• Catalytic Hydrothermolysis Jet (CHJ)

By Type

• Biofuel
• Hydrogen Fuel
• Power To Liquid Fuel

By Blending Capacity

• Below 30%
• 30% to 50%
• Above 50%

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America