The global Sustainable Aviation Fuel Market is estimated to be valued at US$ 740.76 Mn in 2023 and is expected to exhibit a CAGR of 61.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Sustainable aviation fuel or biojet fuel is a type of biofuel used to power aircraft. It is produced from sustainable non-fossilized carbon sources, such as sugarcane ethanol and natural oils and fats, and is considered a renewable fuel with significantly lower carbon emissions than conventional jet fuel from fossil oil sources. This has helped reduce the carbon footprint of air travel.
Market key trends:
One of the major trends in the sustainable aviation fuel market is the shift towards electric aviation. Companies are developing electric aircraft that run on electric motors powered by batteries instead of jet fuel to significantly reduce emissions from air travel. While electric planes can only function in short-haul flights currently due to limitation of battery capacity, ongoing research and development is expected to improve battery technologies, allowing for longer flight ranges over the forecast period.
Segment Analysis
The global sustainable aviation fuel market is segmented based on raw material and application. Based on raw material, the market is segmented into lignocellulosic biomass feedstock, jatropha, sugarcane, camelina, algae, and others. Among these, lignocellulosic biomass feedstock dominated the sustainable aviation fuel market in 2023 and is expected to continue its dominance over the forecast period. Lignocellulosic biomass is the largest and most abundant source of renewable carbon on earth, making it a sustainable raw material for fuel production.
Key Takeaways
The global Sustainable Aviation Fuel Market Is expected to witness high growth, exhibiting a CAGR of 61% over the forecast period, due to increasing awareness about reducing carbon emissions from aviation activities through sustainable fuel alternatives.
Regional analysis
In terms of region, North America dominated the sustainable aviation fuel market in 2023, accounting for over 30% of global revenue. Stringent emission norms and supportive policies from governments are encouraging the adoption of sustainable fuels in the region. Asia Pacific is projected to be the fastest growing market over the forecast period, driven by initiatives aimed at decreasing carbon footprint from aviation activities in nations like China and India.
Key players
Key players operating in the sustainable aviation fuel market are Neste, AEMETIS INC., Gevo, Shell PLC, Lanza Jet, and Sky NRG. Neste Corporation is the global leader in sustainable aviation fuels and operates one of the world's largest renewable products refineries located at the Port of Rotterdam. The company is well positioned to benefit from the growing demand for carbon-neutral fuels.
