Sustainable Aviation Fuel Market (By Fuel Type: Biofuel, Power-to-Liquid, Gas-to-Liquid; By Technology: HEFA-SPK, FT-SPK, HFS-SIP, ATJ-SPK; By Biofuel Blending Capacity: Above 50%, 30% to 50%, Below 30%; By Aircraft Type: Commercial, Regional Transport Aircraft, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicles) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global sustainable aviation fuel market size was exhibited at USD 434.96 million in 2022 and is projected to hit around USD 14,642.41 million by 2032, growing at a CAGR of 42.14% during the forecast period 2023 to 2032.

Key Pointers:

• North America generated maximum market share in 2022.
• Asia-Pacific will reach at a CAGR of 60.2% from 2023-2032.
• The biofuel type segment has captured the major share in 2022 which was 57.2%.
• The Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK) technology segment dominated the market in 2022.
• The military aviation technology aircraft type segment dominated the market in 2022. 
• The 30% to 50% biofuel blending capacity segment dominated the market in 2022.

The aviation industry is keen on bringing down the carbon footprints to achieve a sustainable environment and meet the stringent regulatory standards on emissions. The alternative solutions, such as improving aero-engine efficiency by design modifications, hybrid-electric and all-electric aircraft, renewable jet fuels, etc., are being adopted by various stakeholders of the aviation industry. However, out of these solutions, adoption of sustainable aviation fuels such as e-fuels, synthetic fuels, green jet fuels, biojet fuels, hydrogen fuels is one of the most feasible alternative solutions with respect to socio and economic benefits when compared to others, which contributes significantly to mitigating current and expected future environmental impacts of aviation. In addition, airlines across the entire aviation industry are expanding their commercial fleets, due to rise in air travel These large and growing fleets are propelling the demand for the SAF as a near to mid-term solution for reducing GHG emissions.

Sustainable Aviation Fuel Market Report Scope

COVID-19 impact on the Sustainable Aviation Fuel (SAF) Market

COVID-19 has taken a colossal toll on the world’s economic activity, with individuals, organizations, governments, and businesses having to adapt to the challenges of the crisis. Air travel restrictions across various regions for both domestic and international flights have led to inactive fleets across the globe. Like many other sectors, the sustainable aviation fuel market is also disproportionately impacted by the COVID-19 pandemic due to delays in the production activities across various industries. Like many other sectors, the SAF Market is also disproportionately impacted by the COVID-19 pandemic due to delays in the production activities across various industries. In addition, many older, less efficient airplanes that are parked as part of the contraction will not return to service. However, much of the industry will likely defer in acquiring new aircraft containing technology improvements until demand is stronger, the solvency of the carriers is assured, and the price of jet fuel exerts pressure to add fuel-saving evolutionary technologies to the fleet

Sustainable Aviation Fuel Market Dynamics:

Driver: Increasing need for reduction in GHG emissions in aviation industry

Sustainable aviation fuels are a key component in meeting the aviation industry’s commitments to decouple increases in carbon emissions from traffic growth. SAF gives an impressive reduction of up to 80% in CO2 emissions over the lifecycle of the fuel compared to fossil jet fuel, depending on the sustainable feedstock used, production method, and the supply chain to the airport. According to the IATA fact sheet, SAF will be an eligible option for aircraft operators to meet their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). In 2016, the UN’s International Civil Aviation Organization (ICAO) agreed on a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to reduce CO2 emissions from international aviation with a pilot phase from 2021–2023, followed by a first phase from 2024–2026.

Restraint: Inadequate availability of feedstock and refineries to meet SAF production demand

The biological and non-biological resources such as oil crops, sugar crops, algae, waste oil, etc., are the raw materials that play an important role in the entire production chain of alternative aviation fuels such as synthetic fuels, e-fuels, and biojet fuels. The demand for sustainable aviation fuel can come to a standstill due to the inadequate supply of raw materials required for its production. Also, limitations of refineries that play a major role in the proper utilization of these feedstocks add to the delay of the overall process of SAF production. The low availability of fuel also becomes a hurdle for the blending capacity of the fuel, leading to less efficiency.

Opportunity: Drop-in capability of SAF increases its demand to reduce carbon footprint

Sustainable aviation fuel, when blended with petroleum-based fuel, is fully fungible drop-in fuels. These fuels are also known as synthetic fuels, renewable jet fuels, e-fuels, green fuels, conventional biojet fuel, and alternative jet fuels depending on the processes, technological pathways and feedstocks used in the production. These fuels are not treated differently than current fuels from petroleum and can use the airport fuel storage and hydrant systems, saving money on infrastructure costs. The continuous efforts to use existing depreciated equipment and infrastructure or co-processing with other streams can potentially be an approach to reducing capital costs. A drop-in fuel is deemed to be equivalent to conventional jet fuel and can be used in current engines and infrastructure without any modifications. These requirements are essential for safety, general usage, and reduction of carbon footprint in the aviation industry.

Challenge: High cost of SAF increases operating cost of airlines

The airlines cannot meet their self-imposed targets for reducing GHG emissions based on engine and flight improvements alone—they need SAF. Fuel cost is a significant fraction of operating costs. SAF, even though made from the waste and the feedstocks that are available for very low cost, requires advanced and expensive technological pathways. SAF is more expensive than petro-jet, given that new production capacity has to be deployed. SAF will not be widely available because production capacity will be built to contracts, not as a commodity, at least in the first decade or so. New biofuel factories take time and money to build, driving up the price of their offtake once they get online and hampering their ability to reach the critical mass of profitability.

Recent Developments:

• The European Commission published a bundle of legislative proposals termed "Fit for 55" in July 2021. The ReFuelEU proposal, which aims to increase SAF production and uptake, is one component of the package.
• Cepsa approved a contract with Iberia and Iberia Express in January 2022 for the advancement and large manufacture of sustainable aviation fuel. The deal calls for SAF to be produced using recycled oils, waste, as well as plant-based second-generation bio feedstock.
• In partnership with DHL Express, Neste Company revealed the most significant SAF deals ever in March 2022. This agreement is Neste's most visible SAF and one of the aviation industry's most crucial sustainable aviation fuel contracts. This collaboration will enhance Neste's existing web by providing global connectivity.
• In May 2021, the United States Congress initiated the Sustainable Skies Act, which aims to increase incentives for the use of SAF.
• The 77th IATA Annual General Meeting in Boston adopted a resolution for the worldwide aviation industry to accomplish net-zero carbon dioxide emissions by 2050. The above commitment aligned with the Paris Agreement’s aim to limit global warming to 1.5°C. One possible scenario is that SAF will lessen 65% of this.
• Aramco has become an organizational partner of Aston Martin Racing (AMR) for the 2022 Formula 1® season, ushering in a new collaboration in motorsports.
• In 2020, ASTM approved two major specialized SAF certifications, bringing the total number of approved technical SAF production pathways to seven.

Some of the prominent players in the Sustainable Aviation Fuel Market include:

• Northwest Advanced Biofuels, LLC.
• Red Rock Biofuels
• Fulcrum BioEnergy, Inc.
• Aemetis, Inc.
• TotalEnergies SE
• OMV Aktiengesellschaft
• Neste Oyj
• SKYNRG
• Gevo Inc.
• Eni SPA
• Avfuel Corporation
• SG Preston Company
• Sundrop Fuels Inc.
• Ballard Power Systems
• Velocys
• ZeroAvia, Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Sustainable Aviation Fuel market.

By Fuel Type

• Biofuel
• Power-to-Liquid
• Gas-to-Liquid

By Technology

• HEFA-SPK
• FT-SPK
• HFS-SIP
• ATJ-SPK

By Aircraft Type

• Fixed Wings
• Rotorcraft
• Others

By Biofuel Blending Capacity

• Above 50%
• 30% to 50%
• Below 30% 

By Aircraft Type

• Commercial
• Regional Transport Aircraft
• Military Aviation
• Business & General Aviation
• Unmanned Aerial Vehicles

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)