Sustainable Aviation Fuel Market Growth Accelerated By Sustainable Flight Operations
Author : Ashish Thapa | Published On : 07 Feb 2024
Sustainable aviation fuel (SAF) is a type of biofuel used to power aircraft. SAF has the potential to significantly lower aviation's carbon footprint by reducing greenhouse gas emissions compared to conventional jet fuel. SAF can be produced from various feedstocks including used cooking oil, plant oils, animal fats, and Sugar cane residues. It offers an environmentally friendly alternative to jet fuel and can substantially cut emissions.
The global Sustainable Aviation Fuel Market is estimated to be valued at US$ 853.36 Bn in 2023 and is expected to exhibit a CAGR of 19.% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Strict emission regulations are driving the adoption of sustainable aviation fuels across major airports. Regulatory bodies like the International Civil Aviation Organization (ICAO) have mandated airlines and airports to replace at least 2% of conventional jet fuel with SAF by 2025 and increase it to 10% by 2050 to reduce aviation emissions. This regulatory push is a key factor propelling the sustainable aviation fuel market growth. SAF producers are expanding their production facilities to cater to the growing demand driven by emission compliance targets. Additionally, government incentives and subsidies on SAF production are encouraging investments in this market, thereby accelerating the shift towards sustainable flight operations.
Segment Analysis
The global sustainable aviation fuel market is dominated by the biofuel sub segment. Currently biofuel accounts for over 85% of the total sustainable aviation fuel supply worldwide. As biofuel can be produced from various feedstock such as used cooking oil, palm oil, sugarcane etc. and has almost similar energy density as conventional jet fuel, it is the most viable and adopted type of sustainable fuel in the aviation industry.
Key Takeaways
The global Sustainable Aviation Fuel Market Share is expected to witness high growth during the forecast period of 2024-2030. The market is projected to expand at a CAGR of 19.% and reach a valuation of US$ 853.36 Bn by 2030 from US$ 110 Bn in 2024.
The Asia Pacific region is currently dominating the sustainable aviation fuel market and is expected to maintain its leading position during the forecast period. Countries like India, China and Indonesia offer abundant feedstock for producing biofuel and have a rapidly growing aviation sector. Additionally, presence of key fuel producers in the region is further propelling the APAC market. North America is also expanding at a considerable pace owing to supportive government policies and initiatives for developing sustainable fuel in the US and Canada.
Key players operating in the sustainable aviation fuel market are Eisai Co., Ltd., Novartis AG, AbbVie Inc. (Allergan Plc.), Adamas Pharmaceuticals, Inc., H. Lundbeck A/S, Biogen, AC Immune, F. Hoffman-La Roche Ltd., Daiichi Sankyo Company, Limited, Johnson & Johnson Services, Inc., and TauRx Pharmaceuticals Ltd.
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