The Sustainable Aviation Fuel Market size is projected to grow from an estimated USD XX million in 2020 to USD 15,307 million by 2027, at a CAGR of 72.4% during the forecast period.
Latest added Sustainable Aviation Fuel Market research study by MarketDigits offers detailed product outlook and elaborates market review till 2027. The market Study is segmented by key regions that is accelerating the marketization. At present, the market is sharping its presence and some of the key players in the study are Neste, Gevo, World Energy, Eni, SkyNRG, Fulcrum BioEnergy, Velocys, Royal Dutch Shell. The study is a perfect mix of qualitative and quantitative Market data collected and validated majorly through primary data and secondary sources.
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This report studies the Sustainable Aviation Fuel Market size, industry status and forecast, competition landscape and growth opportunity. This research report categorizes the Sustainable Aviation Fuel Market by companies, region, type and end-use industry.
Scroll down 100s of data Tables, charts and graphs spread through Pages and in-depth Table of Content on “Sustainable Aviation Fuel Market, By Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel), Biofuel Manufacturing Technology (Hydroprocessed Fatty Acid Esters and Fatty Acids – Synthetic Paraffinic Kerosene (HEFA-SPK),Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK),Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP), Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A), Alcohol to Jet SPK (ATJ-SPK), Catalytic Hydrothermolysis Jet (CHJ)), Biofuel Blending Capacity (Below 30%, 30% to 50%, Above 50%), Platform ( Commercial Aviation, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicle) and Geography – Global Forecast to 2027”. Early buyers will get 10% customization on study.
To Avail deep insights of Sustainable Aviation Fuel Market Size, competition landscape is provided i.e. Revenue Analysis (M $US) by Company (2018-2020), Segment Revenue Market Share (%) by Players (2018-2020) and further a qualitative analysis is made towards market concentration rate, product/service differences, new entrants and the technological trends in future.
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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 sustainable aviation fuel as a near to mid-term solution for reducing GHG emissions.
COVID-19 impact on the Sustainable Aviation Fuel 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 sustainable aviation fuel 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 alternatve 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.
Sustainable Aviation Fuel Market Ecosystem
Prominent companies that provide sustainable aviation fuel, private and small enterprises, technology providers, distributors/suppliers/retailers, and end customers (airlines and airports) are the key stakeholders in the sustainable aviation fuel market ecosystem. Investors, funders, academic researchers, distributors, service providers, and airport and aerodrome authorities serve as major influencers in the sustainable aviation fuel market.
The biofuel segment is estimated to lead the sustainable aviation fuel market in 2020
Typically, biofuel, hydrogen fuel and power to liquid fuel are the sustainable aviation fuel types. Based on fuel type, the biofuel segment of the sustainable aviation fuel market is accounted for the largest share during the forecast period. The production of biojet fuel 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. Countries such as Norway, the Netherlands, and the UK are contributing significantly to the long-term sustainability plans by funding biojet fuel infrastructure.
The 30% to 50% segment is expected to grow at the highest CAGR during the forecast period
Based on biofuel blending capacity, the sustainable aviation fuel is segmented into below 30%, 30% to 50%, and above 50%. 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. In addition, with the growing research & development in the technological pathways, helps to improve the blending capacity of the renewable aviation fuel with the traditional aviation fuel.
North America is expected to grow at the highest CAGR during the forecast period
North America is expected to grow at the highest CAGR during the forecast period. To cater to the need for of reduction in carbon footprints due to increasing air traffic and air passengers, the countries such as the US and Canada in North America are focused on various initiatives to utilize the renewable aviation fuel. With supportive policies and initiatives to decarbonize aviation emissions, the North American market is deemed to be one of the strong demand centers for sustainable aviation fuel. The number of sustainable aviation fuel initiatives taken by countries within the region such as US and Canada are Commercial Aviation Alternative Fuel Initiative (CAAFI), Midwest Aviation Sustainable Biofuels Initiative (MASBI), and Canada’s Biojet Supply Chain Initiative, among others.
Key Market Players
Major players operating in the renewable jet fuel market include Neste (Finland), Gevo (US), World Energy (US), Eni (Italy), SkyNRG (Netherlands), Fulcrum BioEnergy (US), Velocys (UK), and Aemetis, Inc. (US), among others. These key players offer various products and services such as biofuel, synthetic fuel, efuels, green fuel, and hydrogen fuel, in order to curb the GHG emissions from the aviation and other industrial sectors such as automotive, marine, chemical etc. The startup companies in the sustainable aviation fuel market include Red Rock Biofuels (US), SG Preston Company (US), Sundrop Fuels, Inc. (US), Hypoint, Inc. (US), and ZeroAvia, Inc. (US).
Scope of the Report
This research report categorizes the sustainable aviation fuel based on fuel type, biofuel manufacturing technology, biofuel blending capacity, platform, and region.
By fuel type
- Hydrogen Fuel
- Power to Liquid Fuel
By Biofuel Manufacturing Technology
- Hydroprocessed Fatty Acid Esters and Fatty Acids – Synthetic Paraffinic Kerosene (HEFA-SPK)
- Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
- Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
- Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)
- Alcohol to Jet SPK (ATJ-SPK)
- Catalytic Hydrothermolysis Jet (CHJ
By Biofuel Blending Capacity
- Below 30%
- 30% to 50%
- Above 50%
- Commercial Aviation
- Military Aviation
- Business & General Aviation
- Unmanned Aerial Vehicle
- North America
- Asia Pacific
- Middle East
- Latin America
- In August 2020, Gevo, Inc. entered into a binding renewable hydrocarbons purchase and sale agreement with Trafigura Trading LLC, a wholly-owned subsidiary of Trafigura Group Pte Ltd. The contract will enable Trafigura to supply SAF to both the US and international customers whose interest is growing in low-carbon jet fuel.
- In June 2020, Hypoint, Inc. was awarded a contract by Urban Aeronautics, Inc., a leader in VTOL aircraft, to provide zero-carbon hydrogen fuel cell technology for the CityHawk eVTOL aircraft.
- In June 2020, Amazon Air secured up to 6 million gallons of sustainable aviation fuel supplied by Shell Aviation and produced by World Energy.
- In December 2019, Neste signed an agreement with KLM to supply its SAF for the flights from Amsterdam Airport Schiphol. Ths agreement allowed Neste to join KLM’s corporate biofuel program that aims to reduce CO2 emissions of business travel on KLM flights by 100%.
- In December 2019, World Energy collaborated with Shell and Air France to supply its SAF for the flights from San Francisco. This collaboration between Air France, World Energy, and Shell exemplifies the rise in demand for SAF.
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