Sustainable Aviation Fuel Market by Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel, and Gas to Liquid Fuel), Platform (Commercial Aircraft, Military Aircraft, General Aviation, and UAVs): Global Market Size Estimates and Forecast (2019-2030)
The market is expected to cross US$ 325.92 million in 2022 and is projected to hit US$ 5,099.65 million by 2030, recording a CAGR of 41.0% during the forecast period.
Vendors Collaboration to Achieve Net-Zero Carbon Emissions Target by 2050 to Drive the Market Growth.
The vendors across the aviation industry have been adopting collaboration strategies that will help them to achieve the aviation industry’s target of net-zero carbon emissions by 2050. Several vendors are focusing on the development of hybrid propulsion-based aviation industry products, hydrogen propulsion-based products, electric propulsion-based products, etc. Also, several airlines are majorly focusing on increasing the overall usage of sustainable aviation fuel products to reduce the carbon emission to some extent and contribute their support in reducing some amount of carbon emissions from the aviation industry. For instance, recently in September 2022, Cathay Pacific airways announced their plans to increase their usage of sustainable aviation fuel (SAF) to 10 percent of their total annual consumption by 2030. Such developments are likely to generate huge market opportunities for market vendors during the forecast period.
UAVs segment is likely to generate huge opportunities for market vendors during the forecast period, also, its is expected to be the fastest growing segment in the sustainable aviation fuel market during the forecast period. The growing deployment of UAVs across military forces worldwide is likely to generate huge opportunities for market vendors during the forecast period.
Within the report, the sustainable aviation fuel market is segmented into fuel type, platform, and geography. By fuel type, the sustainable aviation fuel market is segmented into biofuel, hydrogen fuel, power to liquid fuel, and gas to liquid. Based on platform, the sustainable aviation fuel market is segmented into commercial aircraft, military aircraft, general aviation, and UAVs. Geographically, the sustainable aviation fuel market is sub-segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.
Power-to-Liquid Aviation Fuel is Likely to Provide Future Opportunities for Market Vendors During the Forecast Period.
The growing demand for synthetic power-to-liquid fuels provides greenhouse emissions reduction by around 99%. Such fuel entails the conversion of renewable energy into fuels through electrolysis process and provides clean almost combustion to the aircraft engine to generate power. The growing demand for such sustainable fuels is likely to drive the market in the near future.
Introduction of Electric Aircraft to Restrain the Sustainable Aviation Fuel Market Growth.
The introduction of electric propulsion-based aircraft models is one of the major factors likely to hamper the market growth during the forecast period. Several aircraft industry vendors have been constantly focusing on the development of different types of electric aircraft (also with eVTOL capabilities) with the help of several companies’ and end users’ funds to transform the industry operations with low-emission technologies which is likely to hamper the growth of sustainable aviation fuel market during the forecast period. Several aircraft manufacturers are taking sheer interest in the development of eVTOL aircraft that is expected to reduce the volume of SAF used for smaller aircraft. However, this factor is not likely to hamper much on the market growth as eVTOL aircraft are expected to commercialize in the market by 2024.
Recent Strategic Developments in Sustainable Aviation Fuel Market
The sustainable aviation fuel market has undergone several significant developments, and a few of these have been mentioned below:
- In September 2022, Cathay Pacific Airways Limited awarded a contract to Aemetis Inc. for the supply of 38 million gallons of sustainable aviation fuel for the period of seven years.
- In July 2022, American Airlines Inc., awarded a contract worth US$ 2.5 billion to Gevo, Inc. for the supply of 100 million gallons of sustainable aviation fuel per year for the period of five years.
- In March 2021, Air bp signed an agreement with Rolls-Royce plc to provide the fuel for the very first run of the Rolls-Royce UltraFan demonstrator engine, which will be carried out entirely on 100% SAF later this year
The sustainable aviation fuel market is driven by several players by implementing strategic activities such as investments, new launches, mergers & acquisitions, and partnerships. Aemetis Inc., Avfuel Corporation, Fulcrum Bioenergy, Gevo Inc., Lanzatech, Neste, Preem AB, Sasol, SkyNRG, and World Energy are among the prominent players operating in the sustainable aviation fuel market.
Target audience for the report:
- Aviation biofuel manufacturers
- Aviation hydrogen fuel manufacturers
- Aviation power-to-liquid fuel manufacturers
- Aviation gas-to-liquid fuel manufacturers
- Commercial & military aviation and environmental fuel related associations, organizations, forums, and alliances
- Government bodies, such as regulating authorities and policy makers
- Venture capitalists, private equity firms, and start-up companies
- Research institutes, organizations, and consulting companies
Scope of the report:
In this report, the sustainable aviation fuel market has been segmented on the basis of:
- Fuel Type:
- Biofuel
- Hydrogen Fuel
- Power to Liquid Fuel
- Gas to Liquid
- Platform:
- Commercial Aircraft
- Military Aircraft
- General Aviation
- UAVs
- Region
- North America
- US
- Canada
- Mexico
- Europe
- Asia Pacific (APAC)
- Middle East & Africa
- South America
- North America
- Companies profiled
- Aemetis Inc.
- Avfuel Corporation
- Fulcrum Bioenergy
- Gevo Inc.
- Lanzatech
Companies profiled
- Aemetis Inc.
- Avfuel Corporation
- Fulcrum Bioenergy
- Gevo Inc.
- Lanzatech