Global Sustainable Aviation Fuel Market (2020 to 2030) - Rising Demand for SAF by Airlines Presents Opportunities - ResearchAndMarkets.com

The "Sustainable Aviation Fuel Market by Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel), Biofuel Manufacturing Technology, Biofuel Blending Capacity, Platform, Region - Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.

The sustainable aviation fuel market is projected to grow from estimated USD 66 million in 2020 to USD 15,307 million by 2030, at a CAGR of 72.4% during the forecast period.

This growth can be attributed to factors, such as increasing need for reduction in GHG emissions in aviation industry, increasing air passenger traffic, high fuel efficiency of renewable jet fuel.

The sudden outbreak of COVID-19 has adversely impacted the aviation sector in 2020. The immediate lockdown in various nations across the globe, bans on domestic and international flights during the lockdown, air travel restrictions on non-essential travel, temporary halts in production and manufacturing activities, and limited workforce as per new government norms to prevent the spread of the disease have led to delays in the deliveries of aircraft in the first and second quarter of 2020 as well as delays in the research and development activities.

Based on fuel type, the biofuel segment is estimated to lead the sustainable aviation fuel market during the forecast period

Based on fuel type, the biofuel segment of the sustainable aviation fuel market accounts for the largest share during the forecast period. The greatest potential of biofuel lies in its ability to significantly reduce GHG emissions in the aviation sector and positively impact climate change. The strong and ongoing commitment of the aviation sector and the active involvement of an increasing numbers of stakeholders such as airlines and many aviation organizations to develop biofuel through voluntary initiatives has been a major driving force behind biofuel development and consumption. The production of biofuel is expected to scale up rapidly in the coming decade due to rapid developments in technological pathways to commercialize the use of alternative jet fuel.

Based on biofuel manufacturing technology, the hydro processed fatty acid esters and fatty acids - synthetic paraffinic kerosene (HEFA-SPK) segment is estimated to lead the sustainable aviation fuel market in 2020

Based on biofuel manufacturing technology, the hydro processed fatty acid esters and fatty acids - synthetic paraffinic kerosene (HEFA-SPK) segment of the sustainable aviation fuel market is expected to grow at the highest CAGR during the forecast period. The development and deployment of bio-jet fuels, primarily HEFA bio-jet, has progressed from single demonstration flights by airlines or equipment manufacturers to multi-stakeholder supply-chain initiatives including equipment manufacturers, airlines, fuel producers and airports. This growth can be attributed to the technology being most commercially available for the production of sustainable aviation fuel.

Based on biofuel blending capacity, the 30% to 50% segment is expected to grow at the highest CAGR during the forecast period

Based on biofuel blending capacity, the 30% to 50% segment of the sustainable aviation fuel market is expected to grow at the highest CAGR during the forecast period. The moderate blend capacity, drop-in facility in existing fuel systems, supply logistics infrastructure, and aircraft fleet allow to minimize the overall cost and cater to the volume demands from commercial and military aviation.

Based on platform, the commercial aviation segment is estimated to lead the sustainable aviation fuel market during the forecast period

Based on platform, the commercial aviation segment of the sustainable aviation fuel market accounts for the largest share during the forecast period. The growth of this segment can be attributed to the increase in the aircraft fleet of emerging economies in the commercial aviation sectors. The initiatives taken by the various commercial airlines, commercial airports, and aircraft manufacturers across the globe in adoption of renewable jet fuel is driving the growth of this segment in sustainable aviation fuel market.

Market Dynamics

• Increasing Need for Reduction in GHG Emissions in Aviation Industry
• Increasing Air Passenger Traffic
• High Fuel Efficiency of SAF

Restraints

• Inadequate Availability of Feedstock and Refineries to Meet SAF Production Demand
• Price Differential Between SAF and Conventional Jet Fuel

Opportunities

• Rising Demand for SAF by Airlines Across the Globe
• Drop-In Capability of SAF Increases Its Demand to Reduce Carbon Footprint
• Government Initiatives Such as Tax Reductions on Aviation Fuel and Set Standards
• Sustainable Marine Fuel

Challenges

• Increased Cost of SAF Increases Operating Cost of Airlines
• Techno-Economic Analysis (Tea) and Lifecycle Analyses Are Inconsistent
• Huge Investments Required for Approval and Certification of SAF
• Large Quantity of SAF Must be Produced to Increase Fuel Blends

Companies Mentioned

• Aemetis, Inc.
• Amyris
• Avfuel Corporation
• Ballard Power Systems
• BP P.L.C.
• Chevron Corporation
• ENI
• Exxon Mobil Corporation
• Fulcrum Bioenergy
• Gevo
• Honeywell International Inc.
• Hydrogenics
• Hypoint, Inc.
• Johnson Matthey
• Lanzatech
• Neste
• Petrixo Oil & Gas
• Preem Ab
• Red Rock Biofuels
• Sasol
• SG Preston Company
• Shell
• Skynrg
• Sundrop Fuels, Inc.
• Terravia Holdings Inc.
• Total Sa
• Velocys
• Virent Inc.
• World Energy
• Zeroavia, Inc.

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