Global Sustainable Aviation Fuel Market Analysis (2021-2026)

Global Sustainable Aviation Fuel Market Analysis (2021-2026)

By Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel), By Manufacturing Technology ((Fischer-Tropsch Synthetic Paraffinic Kerosene with aromatics (FT-SPK/A), Hydroprocessed Esters and Fatty Acid Read more

  • Aerospace & Defense
  • Apr 2021
  • 202
  • AD77007

Market Definition

Sustainable Aviation Fuels, a clean alternative to fossil fuels, are produced from renewable resources like biologically originated waste oil, agricultural residues, & biomass, among others. Since the aviation industry is the prime contributor to the massive Green House Gas (GHG) & carbon emissions, it is keen on bringing down the levels & meeting the regulatory standards.

Hence, with constant research & developments, fuel alternatives like sustainable aviation fuels shall address these concerns & increase the operational efficiency of the aircraft. These fuels perform similar to conventional fuels but with the advantage of lower environmental impact.

Market Insights

The Global Sustainable Aviation Fuel Market is projected to grow at a CAGR of around 35% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the burgeoning concerns over the rapidly increasing carbon & Green House Gas (GHG) emissions, especially through the aviation sector and the surging need to address these issues by seeking sustainable fuels, like hydrogen fuel, biofuel, & power-to-liquid fuel, etc. These fuel alternatives are anticipated to come as a feasible solution with several socio-economic benefits & contribute significantly in mitigating the existing & future environmental effects by the aviation sector. 

Report Coverage Details
Study Period Historical Data: 2016-19
Base Year: 2020
Forecast Period: 2021-26
CAGR 35%
Regions Covered North America: USA, Canada, Mexico
Europe: Germany, The UK, France, Italy, Spain
Asia-Pacific: China, India, Japan, South Korea, Australia and Others
South America: Brazil
Middle East & Africa: GCC, South Africa
Key Companies Profiled Gevo Inc., Eni SPA, Neste Oyj, Fulcrum Bioenergy, SKYNRG, Avfuel Corporation, Velocys, SG Preston Company, Red Rock Biofuels, Aemetis, Inc, Sundrop Fuels Inc., ZeroAvia, Inc., Aemetis, Inc., Ballard Power Systems, SG Preston Company
Unit Denominations USD Million/Billion

 

Additionally, numerous airline companies worldwide are swiftly expanding their commercial aircraft fleet due to the exponentially rising passenger traffic. It, in turn, is instigating the need for curbing carbon emissions and infusing the inclination of airlines toward sustainable aviation fuels as a solution.

Among all end-users, the defense sector is expected to contribute substantially to the overall market growth owing to their massive budgets to procure technologically advanced equipment and the rising government focus on restraining emissions. It is, therefore, propelling the adoption & utilization of sustainable aviation fuels in defense aircraft. 

Besides, since the aviation industry is the largest producer of carbon emissions, sustainable aviation fuels are projected to generate remunerative growth opportunities for the leading market players over the forecast years.

Key Trends in the Market

  • Increasing support from the governments of different countries is playing a crucial role in amplifying the growth of the Global Sustainable Aviation Fuel Market. In November 2020, the International Air Transport Association (IATA) sought support from the governments of different countries worldwide to back the development of Sustainable Aviation Fuel & reach the target to net-zero emission levels. Such support through stimulus packages includes direct investments, incentives for the private sector, load guarantees, & regulations for feedstock, among others.
  • Increasing the production of sustainable aviation fuel from wet waste is another prominent trend in the Global Sustainable Aviation Fuel Market. It is principally due to cheap & widely available food waste, animal manure, and other waste with high water content.

Impact of Covid-19 on the Global Sustainable Aviation Fuel Market

The Covid-19 pandemic in 2020 had a decelerating effect on most industries worldwide, where the aviation industry was severely affected. The governments of different countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease, which further restricted both domestic & international travel bans in response to the pandemic.

Consequently, several airlines had to reduce their operations and observed massive financial losses. Similarly, the Global Sustainable Aviation Fuel Market declined with temporary disruption & delays in numerous production activities for the development & generation of sustainable aviation fuels.

On the other hand, the pandemic travel restrictions enabled the airlines to refocus their initiatives associated with environmental conservation & sustainability. Hence, several governments laid out favorable policies, initiatives, and incentives, aiding the industry to stay afloat before uplifting travel bans.

With the gradual improvement in the pandemic situation and significantly reduced number of Covid-19 cases, the governments of different countries uplifted the restrictions and allowed the recommencement of business operations. It enabled the resumption of numerous development projects associated with sustainable aviation fuels & further instigated the leading players to invest substantially & augment the overall market growth in the coming years.

Market Segmentation

Based on Fuel Type:

  • Hydrogen Fuel
  • Biofuel
  • Power to Liquid Fuel

Of them all, Biofuel is anticipated to continue dominating the Global Sustainable Aviation Fuel Market with the largest share during the forecast period. It owes to the growing focus of governments of different countries worldwide to address the alarming levels of carbon emissions generated by the aviation sector and increasing demand for sustainable aviation fuel by prominent airlines, soaring the need for biofuel to produce sustainable aviation fuels. This, in turn, is expected to contribute significantly to the conservation of the environment. Recently, prominent companies have actively participated in the market, for instance: 

  • In January 2019, the Challenger 350 aircraft of a prominent manufacturer Bombardier, completed its successful biofuel-powered flight, using biofuels from World Energy & AEG Fuels. 
  • In August 2018, Bombardier Q400 aircraft used by Spicejet operated India's first biofuel-powered flight from Dehradun to Delhi, making the country amongst the few developing countries to use biofuel for flying planes.

On the other hand, Hydrogen-based aviation fuel has immense potential to substitute conventional aviation fuels, i.e., due to the exceptional qualities of hydrogen, such as lightweight, minimum pollution, extensive availability, & safety. However, the current & big price difference between hydrogen fuels & conventional jet fuels, coupled with issues related to hydrogen storage & passenger perceptions on its safety, are the primary aspects challenging its commercialization globally.

Nevertheless, the aviation industry is actively working on developing the world's first zero-emission commercial aircraft by 2035. Green hydrogen, one of the most recent developments in aviation fuel and a prominent aspect of net-zero climate strategies, is projected to play a significant role in the world of sustainable aircraft, owing to which aviation authorities worldwide are increasingly investing in it.

Based on the Blending Capacity:

  • Below 30%
  • 30% to 50%
  • Above 50%

Of them all, the demand for sustainable aviation fuels with 30% to 50% blending capacity is anticipated to grow at the fastest pace during the forecast period. The maximum blending limit mandated by ASTM International for SAF is 50%, with conventional jet fuel. It means that up to 50% bio-jet fuel, produced either by the Hydro-generated Esters & Fatty Acids (HEFA) process or Synthesized Iso-Paraffins (SIP) and blended with conventional petroleum, can be used as aviation fuel.

HEFA is nearly 40% costlier than petro jet, while SAFs produced using other methods are around 60-70% more expensive than conventional jet fuels. As a result, biofuels produced using HEFA are more cost-effective than other methods, and their demand (30 - 50% blending capacity) is rapidly growing worldwide.

However, leading OEMs like Boeing and Airbus are all actively working on developing new engines that can support 100% blending. For instance:

  • In March 2021, the first test flight using 100% SAF was conducted with an Airbus A350 plane.
  • In June 2019, United Airlines conducted a flight from Chicago O’Hare to Los Angeles with a 30% blend of sustainable aviation fuel that delivered the same specifications & greater environmental benefits than jet fuels.

Regional Landscape

Geographically, the Global Sustainable Aviation Fuel Market expands across:

  • North America
  • South America
  • Europe
  • Middle East & Arica
  • Asia-Pacific

Of them all, North America is anticipated to display the fastest market growth during the forecast period. The region has the largest aircraft fleet & passenger traffic worldwide, owing to which it contributes substantially to carbon emission generation. It, in turn, is compelling governments of different countries like the US & Canada to seek ways to reduce these emissions through various initiatives for the adoption & utilization of sustainable aviation fuels.

Besides, the region has a massive aviation industry & is prevalent in generating sustainable aviation fuels, where prominent energy-producing companies like Diamond Green Diesel & AltAir are using waste feedstock for fuel production and, consequently, fueling the regional market growth. Moreover, with favorable policies & initiatives like Midwest Aviation Sustainable Biofuels Initiative (MASBI), Commercial Aviation Alternative Fuel Initiative (CAAFI), & Canada’s Biojet Supply Chain Initiative, etc., across the region, North America would witness a strong foothold of sustainable aviation fuels in the coming years.

Across the US, the Department of Energy is collaborating with the Department of Transportation, the Department of Agriculture, and other federal government agencies to devise advanced technologies for producing sustainable aviation fuels on commercial scales.

Recent Developments by Leading Companies

  • In October 2021, leading player Neste Oyj planned to produce 515 million gallons of sustainable aviation fuel by the end of 2023, collaborating with Delta & JetBlue. The leader, using agricultural waste & animal fats as a step toward reducing Green House Gas (GHG) emissions, developed its blended fuel.
  • The same year, in June, Neste signed an agreement with Boston Consulting Group (BCG) to deliver Neste MY Sustainable Aviation Fuel to all the flights of Finnair & SAS airlines carrying employees of the BCG.
  • In June 2019, Boeing, the largest aircraft manufacturer, collaborated with World Wide Fund for Nature and Roundtable on Sustainable Biomaterials (RSB) to determine small communities of Brazilian farmers with the most fortunate potential to provide biomass for the production of sustainable aviation fuels.

Market Dynamics:

Key Driver: Escalating Need to Curb GHG Emissions by the Aviation Sector

Since sustainable aviation fuels are a prominent way to reduce carbon emissions produced by the aviation industry, several leading companies are actively participating in the global market. Additionally, with the alarming levels of Green House Gas (GHG) emissions, several governments are also supporting the development & production of sustainable aviation fuels and addressing these environmental concerns. As a result, it would drive the Global Sustainable Aviation Fuel Market during 2021-26.

Possible Restraint: High Cost of Sustainable Aviation Fuel than Existing Fuel

The need for massive investments in the approval & certification of sustainable aviation fuels, coupled with the inadequate availability of feedstock to produce these fuels, might restrain the growth of the Global Sustainable Aviation Fuel Market in the coming years. Additionally, sustainable aviation fuel is more expensive than conventional fuels, which challenges the planning & budgeting for operational efficiencies in the aviation sector, and might hinder the global market growth during 2021-26.

Growth Opportunity: Growing Biomass Crops to Increase the Production of Sustainable Aviation Fuel

The rising inclination toward the production of fuel alternatives like sustainable aviation fuels is enabling farmers to grow biomass crops as an extra source of income during off-seasons & provide feedstock to the market. Additionally, this increased production is benefiting the soil by reducing the loss of nutrients & enhancing its quality. Hence, the leading players in the Global Sustainable Aviation Fuel Market can witness profitable opportunities from the growth, procurement, and production of sustainable aviation fuels in the coming years.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Sustainable Aviation Fuel Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Sustainable Aviation Fuel Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Sustainable Aviation Fuel Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Global Sustainable Aviation Fuel Market study?

Frequently Asked Questions

A. The Global Sustainable Aviation Fuel Market is projected to grow at a CAGR of around 35% during 2021-26.

A. Biofuel is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Sustainable Aviation Fuel Market during 2021-26.

A. The mounting GHG emissions by the aviation sector entwined with the rising production of biomass crops to augment sustainable aviation fuel generation shall drive the Global Sustainable Market & generate lucrative growth opportunities for the leading market players through 2026.

A. In the coming years, the leading market players & governments of many countries worldwide are anticipated to swiftly increase numerous development projects associated with the development & production of sustainable aviation fuels & augment the global sustainable aviation fuel market growth.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Market Segmentation
    4. Assumptions
  2. Preface
  3. Executive Summary
  4. Impact of COVID-19 on Global Sustainable Aviation Fuel Market
  5. Global Sustainable Aviation Fuel Market Trends & Insights
  6. Global Sustainable Aviation Fuel Market Dynamics
    1. Drivers
    2. Challenges
    3. Impact Analysis
  7. Global Sustainable Aviation Fuel Market Hotspots & Opportunities
  8. Global Sustainable Aviation Fuel Market Value Chain Analysis
  9. Global Sustainable Aviation Fuel Market Regulations & Policy
  10. Global Sustainable Aviation Fuel Market Outlook, 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Fuel Type
        1. Hydrogen Fuel
        2. Biofuel
        3. Power to Liquid Fuel
      2. By Manufacturing Method
        1. Fischer-Tropsch Synthetic Paraffinic Kerosene with aromatics (FT-SPK/A)
        2. Hydroprocessed Esters and Fatty Acids (HEFA-SPK)
        3. Hydroprocessed Fermented Sugars to Synthetic Isoparaffins (HFS-SIP)
        4. FT-SPK with aromatics (FT-SPK/A)
        5. Alcohol-to-Jet Synthetic Paraffinic Kerosene (ATJ-SPK) 
        6.  Catalytic hydrothermolysis synthetic jet fuel (CHJ)
      3. By End Users
        1. Military Aviation
        2. Business and General Aviation
        3. Commercial Aviation
      4. By Blending Capacity
        1. Below 30%
        2. 30% to 50%
        3. Above 50%
      5. By Region
        1. North America
        2. South America
        3. Europe
        4. Asia Pacific
        5. Middle East & Africa
      6. By Company
        1. Competition Characteristics
        2. Market Share & Analysis
        3. Competitive Matrix
  11. North America Sustainable Aviation Fuel Market Outlook, 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Fuel Type
      2. By Manufacturing Method
      3. By Application
      4. By Blending Capacity
      5. By Country
        1. US
        2. Canada
        3. Mexico
    3. US Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    4. Canada Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    5. Mexico Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
  12. South America Sustainable Aviation Fuel Market Outlook, 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Fuel Type
      2. By Manufacturing Method
      3. By Application
      4. By Blending Capacity
      5. By Country
        1. Brazil
        2. Others
    3. Brazil Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
  13. Europe Sustainable Aviation Fuel Market Outlook, 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Fuel Type
      2. By Manufacturing Method
      3. By Application
      4. By Blending Capacity
      5. By Country
        1. Germany
        2. France
        3. The UK
        4. Spain
        5. Italy
        6. Others
    3. Germany Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    4. France Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    5. The UK Sustainable Aviation Fuel Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    6. Spain Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    7. Italy Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
  14. Asia-Pacific Sustainable Aviation Fuel Market Outlook, 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Fuel Type
      2. By Manufacturing Method
      3. By Application
      4. By Blending Capacity
      5. By Country
        1. China
        2. India
        3. Japan
        4. South Korea
        5. Others
    3. China Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    4. India Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    5. Japan Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    6. South Korea Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
  15. Middle East & Africa Sustainable Aviation Fuel Market Outlook, 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Fuel Type
      2. By Manufacturing Method
      3. By Application
      4. By Blending Capacity
      5. By Country
        1. GCC
        2. South Africa
        3. Others
    3. GCC Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
    4. South Africa Sustainable Aviation Fuel Market Outlook, 2016-2026F
      1. Market Size & Analysis
        1. By Revenues
  16. Key Strategic Imperatives for Success and Growth
  17. Competition Outlook
    1. Competition Matrix
      1. Product/Solution Portfolio
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles
      1. Gevo Inc.
      2. Eni SPA
      3. Neste Oyj
      4. Fulcrum Bioenergy
      5. SKYNRG
      6. Avfuel Corporation
      7. Velocys
      8. SG Preston Company
      9. Red Rock Biofuels
      10. Aemetis, Inc
      11. Sundrop Fuels Inc.
      12. ZeroAvia, Inc.
      13. Aemetis, Inc.
      14. Ballard Power Systems
      15. SG Preston Company
  18. Disclaimer
Global Sustainable Aviation Fuel Market Segmentation