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2021

Sustainable Aviation Fuel Market

Sustainable Aviation Fuel Market Size, Share, Competitive Landscape and Trend Analysis Report by Fuel Type (Biofuel, Hydrogen Fuel, and Power to Liquid Fuel), Aircraft Type (Fixed Wings, Rotorcraft, and Others) and Platform (Commercial Aviation, Military Aviation, Business & General Aviation, and Unmanned Aerial Vehicle): Global Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Abhay Singh | Sonia Mutreja
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Sustainable Aviation Fuel Market Statistics 2030 -

The global sustainable aviation fuel market was valued at $72.1 million in 2020, and is projected to reach $6,261.9 million by 2030, registering a CAGR of 56.4% from 2021 to 2030.

Sustainable aviation fuel is a special type of fuel designed to be used in aircrafts and at the same time increases the efficiency of aircrafts. Sustainable aviation fuels are derived from sustainable feedstocks and is very similar in its chemistry to traditional fossil jet fuel. Increase in application of sustainable aviation fuels result in reduction in carbon emissions compared to the traditional jet fuel as it replaces lifecycle of the fuel. The aviation industry is inclined toward bringing down carbon footprints to achieve a sustainable environment and meet stringent regulatory standards on emissions. Moreover, improving aero-engine efficiency by design modifications, hybrid-electric and all-electric aircraft, renewable jet fuels, are being adopted by various stakeholders of the aviation industry but the adoption of sustainable aviation fuel is considered the most reliable and 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.

Sustainable-Aviation-Fuel-Market

North America holds a significant market share, owing to presence of big market players in the U.S. and Canada. According to the General Aviation Manufacturers Association (GAMA) and International Trade Association (ITA), a total of 211,000 aircrafts are based in the U.S. Presence of strong market players of the sustainable aviation fuel industry and developed countries contribute largely to growth of the aviation fuel market in the region. Moreover, huge investments in R&D of various grades of fuel also drives the market growth for the region. In addition, increase in concerns regarding carbon emissions leading to strict rules and regulations for fuel production and consumption provides lucrative opportunities for growth of sustainable aviation fuel market across the region.

The U.S. market for sustainable aviation fuel is characterized by presence of big market players. The country also experiences incoming air traffic such as tourists and students. According to the Air Transport Action Group (ATAG) report, air travel in the U.S. is expected to grow at about 2.7% per year in the next two decades. This increase is expected to drive growth of the sustainable aviation fuel market.

In January 2020, World Energy and World Fuel Services launched a World Economic Forum (WEF) Sustainable Aviation Fuel (SAF) programme designed to increase SAF availability and supply chain efficiency within the aviation industry. In July 2021, SkyNRG and SkyNRG Americas announced a partnership focused on scaling the availability and use of sustainable aviation fuels (SAF) globally. Boeing will also invest in SkyNRG Americas’ SAF production project, for which Alaska Airlines is a previously announced partner.

Asia-Pacific includes China, Japan, India, South Korea, and rest of Asia-Pacific across which the global sustainable aviation fuel market has been studied. According to the Air Transport Action Group (ATAG), air travel in Asia-Pacific is expected to grow at about 5.5% per year in the next two decades. This is attributed to introduction of new airports and air travel routes, both international and domestic. In addition, rise in disposable income and air travelers drive demand for sustainable aviation fuel in the region.

China witnesses approximately 600 million air travelers every year and is experiencing rise in the tourism industry. Moreover, increase in fleet size and introduction of new air routes leads to increase in demand for sustainable aviation fuel, thus driving the market growth.

Factors such as rise in number of airline passengers, coupled with increased disposable income, increase in air transportation, and increase in consumption of synthetic lubricants supplement growth of the global sustainable aviation fuel market. However, fluctuations in crude oil prices and contamination of lubricants are the factors that are expected to hamper growth of the market during the forecast period. Moreover, development of ecofriendly and safe aviation lubricants and rise in demand for low density lubricants for reduced weight are the factors that are expected to create numerous opportunities for growth of the market during the forecast period.

The global sustainable aviation fuel market has been segmented into fuel type, aircraft type, platform, and region. On the basis of fuel type, the global market has been segmented into biofuel, hydrogen fuel, and power to liquid fuel. On the basis of aircraft type, it is segmented into fixed wings, rotorcraft, and others. On the basis of platform, it is segmented into commercial aviation, military aviation, business & general aviation, and unmanned aerial vehicle. By region, the market has been studied across North America, Europe, Asia-Pacific and LAMEA. 

Sustainable Aviation Fuel Market
By Fuel Type
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Power to liquid fuel is projected as the most lucrative segments

The key players profiled in global sustainable aviation fuel market includes Aemetis, Inc., Avfuel Corporation, Fulcrum Bioenergy, Gevo, Lanzatech, Neste, Preem AB, Sasol, SkyNRG, and World Energy. 

Rise in number of airline passengers, coupled with increased disposable income

Most passengers across the globe prefer to travel by air than other conventional modes of transportation such as road and sea as it is the safest and fastest mode of transportation with few cancelled flights. This makes air travel more reliable than other modes of transportation and offers comfortable experience during the journey. Though expensive, customers prefer air travel, owing to rise in disposable income followed by reduced travel time. Further, in accordance to data released by the International Civil Aviation Organization (ICAO), 4.3 billion passengers were carried by airlines in the year 2018. Moreover, number of airline passengers is expected to cross 10.0 billion by the year 2040, which creates need for additional aircrafts to transport passengers from point A to point B. This eventually results in increased aircraft fleet size as well as frequency of flights, which requires efficient fuels and in turn, boost growth of the global sustainable aviation fuel market.

Sustainable Aviation Fuel Market
By Aircraft Type
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Others is projected as the most lucrative segments

Increase in consumption of synthetic lubricants

Synthetic lubricants ensure thermal stability, increased energy efficiency, better performances in extreme conditions, and resistance to oxidation, which drives growth of the global sustainable aviation fuel market.

Moreover, synthetic lubricants also provide enhanced resistance to frictional wear of expensive aircraft components and higher lubricant service life, which propels the market toward a positive growth across the globe. Moreover, companies operating in developing sustainable aviation fuels have carried out developmental strategies to provide advanced and highly efficient lubricants, which supplements growth of sustainable aviation fuels in the global market.

Sustainable Aviation Fuel Market
By Platform
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Unmanned Aerial Vehicle is projected as the most lucrative segments

Fluctuations in crude oil prices

Fluctuations in crude oil prices directly impact production process for aviation fuels. Any rise or fall in the prices impact the market trends for aviation fuels. Any hike in crude oil prices directly increases production costs for manufacturers. Thus, hike in crude oil prices further impacts airliners as an aircraft uses 14 liters of fuel per kilometer on an average, which certainly increases operational costs. Thus, higher prices of aviation fuels, owing to rise in crude oil prices hampers the market growth.

Development of ecofriendly and safe aviation lubricants

Presently, most airlines such as KLM Royal Dutch Airlines and United Airlines make use of biofuels, which are formed from cooking oil that serves the purpose. In addition, used cooking oil is cheap and easy to refine. In addition, Aemetis is developing Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel bio-refineries in California from renewable oils and orchard & forest waste. Such developments in fields of aviation lubricants help curb pollution and are expected to create ample number of opportunities for key players operating in the global sustainable aviation fuel market. 

Sustainable Aviation Fuel Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit the highest CAGR of 60.9% during 2021-2030.

Covid-19 Impact Analysis

  • The COVID-19 virus has spread worldwide without acknowledging borders. It has impacted all industries, sectors and all aspects of lives with devastating economic and financial losses with significant uncertainties.
  • The global aviation industry is concerned with manufacturing and operations of all types of aircrafts and related services during transportation.
  • Governments across the globe are cancelling 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 the COVID situation. Major manufactures of planes such as Airbus and Boeing have found to receive cancellations of recent orders of planes.
  • From August 2020 in line with the relaxation in lockdown restriction, domestic & international travel and government directives, aviation operations resumed gradually across the globe.

Key Benefits For Stakeholders

  • This study presents analytical depiction of the global sustainable aviation fuel market analysis along with current trends and future estimations to depict imminent investment pockets.
  • The overall sustainable aviation fuel market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the global sustainable aviation fuel market with a detailed impact analysis.
  • The current sustainable aviation fuel market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Key Market Segments

By Fuel Type

  • Biofuel
  • Hydrogen Fuel
  • Power to Liquid Fuel

By Aircraft Type

  • Fixed Wings
  • Rotorcraft
  • Others

By Platform

  • Commercial Aviation
  • Military Aviation
  • Business & General Aviation
  • Unmanned Aerial Vehicle

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany 
    • France 
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan 
    • India
    • South Korea
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Players

  • Aemetis Inc.
  • Avfuel Corporation
  • Fulcrum Bioenergy
  • Gevo
  • Lanzatech
  • Neste
  • Preem AB
  • Sasol
  • SkyNRG
  • World Energy

Sustainable Aviation Fuel Market Report Highlights

Aspects Details
Sustainable Aviation Fuel Market By Fuel Type
By Fuel Type
  • Biofuel
  • Hydrogen Fuel
  • Power to Liquid Fuel
Sustainable Aviation Fuel Market By Aircraft Type
By Aircraft Type
  • Fixed Wings
  • Rotorcraft
  • Others
Sustainable Aviation Fuel Market By Platform Commercial Aviation
By Platform Commercial Aviation
  • Commercial Aviation
  • Military Aviation
  • Business & General Aviation
  • Unmanned Aerial Vehicle
Sustainable Aviation Fuel Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
Key Market Players
Key Market Players

Aemetis, World Energy, Avfuel Corporation, .SkyNRG, LANZATECH, Gevo, Neste, Preem AB, Sasol, Fulcrum Bioenergy

Analyst Review

Sustainable aviation fuel market is supplemented by numerous developments carried out by top sustainable aviation fuel manufacturers, which has led to growth of the market. Moreover, continuous developments toward introducing new sustainable aviation fuels also supplements growth of the market across the globe.

Companies have been continuously developing and introducing sustainable aviation fuels made from different processes, which has created lucrative opportunities for growth of the segment in the global market. For instance, in August 2021, Aemetis announced that it is developing the Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel biorefineries in California from renewable oils and orchard and forest waste. Similarly, in July 2021, Avfuel Corporation has collaborated with Million Air Burbank to provide its customers with a consistent supply of Neste MY Sustainable Aviation Fuel (SAF). Such developments supplement growth of the market across the globe.

Moreover, rise in number of airline passengers, coupled with increased disposable income, increase in air transportation, and increase in consumption of synthetic lubricants creates numerous opportunities for growth of the global sustainable aviation fuel market.

Factors such as rise in number of airline passengers, coupled with increased disposable income, increase in air transportation, and increase in consumption of synthetic lubricants supplements growth of the global sustainable aviation fuel market. However, fluctuations in crude oil prices and contamination of lubricants are the factors that are expected to hamper growth of the market during the forecast period. Moreover, development of ecofriendly & safe aviation lubricants and rise in demand for low density lubricants for reduced weight are the factors that are expected to create numerous opportunities for growth of the market during the forecast period.

Among the analyzed regions, North America is the highest revenue contributor, followed by Europe, Asia-Pacific and LAMEA. On the basis of forecast analysis, Asia-Pacific is expected to maintain its lead during the forecast period, owing to increased demand for advanced aviation fuel across the region.

Author Name(s) : Abhay Singh | Sonia Mutreja
Frequently Asked Questions?

Numerous companies are involved in the production of sustainable aviatoion fuel. The list of company profiles can be optained from AMR website on request.

A huge amount of sustainable aviation fuel is consumed each year and in the year 2020, it generated a revenue of $72.1 million.

The sample for global sustainable aviation fuel market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.

Developments in sustainable aviation fuel are the upcoming trends in sustainable aviation fuel industry

The sustainable aviation fuel industry is expected to grow at a CAGR of 56.4% during the forecast period.

Aviation fuel is made sustainable due to the features offered by them such as better engine life, longer consumption time of fuels.

Sustainable aviation fuel is made of degradable waste, feedstock and similar components available everywhere.

Use of sustaoinable aviation fuel increases the efficiency of the aircraft and at the same time reduces the emission by releasing least harmful gases.

China, U.S., Japan, Germany are the key matured markets growing in the sustainable aviation fuel industry

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Sustainable Aviation Fuel Market

Global Opportunity Analysis and Industry Forecast, 2021-2030