Press release
Top Factor Driving Sustainable Aviation Fuel Market Growth in 2025: Growth Of The Sustainable Aviation Fuel Market Fueled By Adoption Of Biofuels.
Sustainable Aviation Fuel Market Share
The growth of the sustainable aviation fuel market is expected to be driven by the increasing adoption of biofuels. Biofuels are renewable energy sources obtained from plant, algal, or animal biomass. The worldwide drive towards sustainable practices and the aviation industry's commitment to decrease greenhouse gas emissions motivate this adoption. The use of biofuels in aviation can assist airlines in minimizing their environmental influence and carbon footprint. For instance, Eurostat, a Luxembourg-based organization, reported in December 2023 that in 2022, 23.0% of total energy consumption in the European Union (EU) came from renewable sources, up from 21.9% in 2021. Additionally, the usage of renewable energy in transport rose to 9.6% in 2022, an increase from 9.1% in 2021. Thus, the uptick in biofuel usage fuels the expansion of the sustainable aviation fuel market.
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What is the future CAGR of the sustainable aviation fuel market, and how will it impact industry expansion?
The market for sustainable aviation fuel has seen a significant increase in size over the past few years. The market valuation is expected to surge from $0.79 billion in 2024 to $1.22 billion in 2025, representing a compound annual growth rate (CAGR) of 53.7%. This rapid expansion during the historic period can be ascribed to amplified concerns regarding climate change, which have stimulated the demand for sustainable aviation fuel, coupled with the escalating need for curtailing ghg emissions, intensifying focus on lessening carbon emissions, and rising worldwide initiatives to diminish carbon emissions.
In the forthcoming years, the sustainable aviation fuel market is projected to undergo remarkable expansion. The market, by 2029, is touted to be valued at $5.69 billion with a compound annual growth rate (CAGR) of 47.0%. Several factors such as prevalent deployment of sustainable aviation fuel, the global airlines' escalating demand for SAF, progressive efforts to upgrade supply chain processes and the existence of rigorous environmental norms can be credited for the growth forecasted for this period. Future trends entail developments in technology and strict governmental regulations, improvements in SAF production methodologies and feedstock variation, technological advancements, cooperational movements, and carbon offsetting plans.
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What are the most significant trends transforming the sustainable aviation fuel market today?
Key players in the sustainable aviation fuel industry are advancing through the creation of cutting-edge technology, like fuel process technology, in a bid to mitigate the environmental effects of aviation. This type of technology deals with processing and utilization of clean fuels and associated chemicals, including advanced carbon materials and by-products. For example, a state-of-the-art ethanol-based sustainable aviation fuel technology was unveiled by Lummus Technology, a US-based firm specializing in process technologies and energy solutions, in September 2023. This pioneering technology provides a proven and large-scale approach to cut down the aviation sector's greenhouse gas emissions. Through it's ethanol to SAF technology, Lummus integrates EtE, olefin oligomerization, and hydrogenation technologies in a setup that maximally increases the yield of SAF while ensuring minimal CAPEX, CO2-specific OPEX, and carbon emissions.
Which key market segments comprise the sustainable aviation fuel market and drive its revenue growth?
The sustainable aviation fuel market covered in this report is segmented -
1) By Fuel Type: Biofuel, Power-to-Liquid, Gas-to-Liquid
2) By Blending Capacity: Below 30%, 30% To 50%, Above 50%
3) By Platform: Commercial Aviation, Military Aviation, Business And General Aviation, Unmanned Aerial Vehicles
Subsegments:
1) By Biofuel: Biojet Fuel, Algae-based Biofuels, Vegetable Oil-based Biofuels, Waste Oil and Animal Fat-based Biofuels
2) By Power-to-Liquid: Electro-fuel (e-fuel) Production from Renewable Energy, Hydrogen-based Power-to-Liquid Fuels, CO2-to-fuel Technologies
3) By Gas-to-Liquid: Fischer-Tropsch Synthetic Fuels, Coal-to-Liquid (CTL) Fuels, Natural Gas-to-Liquid (GTL) Fuels
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North America was the largest region in the sustainable aviation fuel market in 2024. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable aviation fuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the leading players fueling growth in the sustainable aviation fuel market?
Major companies operating in the sustainable aviation fuel market are Shell plc, TotalEnergies SE, BP plc, Eni S.p.A., OMV Group, Neste Oyj, Preem AB, Sustainable Aviation, Aemetis Inc., REG Synthetic Fuels LLC, Ballard Power Systems, ZeroAvia Inc., AvFuel Corporation, LanzaTech Inc., Sundrop Fuels Inc., LanzaJet Inc., Fulcrum BioEnergy Inc., SkyNRG BV, Alder Fuels, Red Rock Biofuels, SG Preston Company, Velocys Plc, WasteFuel, World Energy, SAF+ International Group, Gevo Inc., Northwest Advanced Bio-Fuels LLC., AltAir Fuels, REG Geismar LLC
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What Is Covered In The Sustainable Aviation Fuel Global Market Report?
•Market Size Forecast: Examine the sustainable aviation fuel market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the sustainable aviation fuel market for a structured understanding.
•Key Players Overview: Analyze major players in the sustainable aviation fuel market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the sustainable aviation fuel market.
•Segment Contributions: Evaluate how different segments drive overall growth in the sustainable aviation fuel market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the sustainable aviation fuel market.
•Industry Challenges: Identify potential risks and obstacles affecting the sustainable aviation fuel market.
•Competitive Landscape: Review strategic developments in the sustainable aviation fuel market, including expansions, agreements, and new product launches.
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