Global Sustainable Aviation Fuel Market Grows Tremendously at a CAGR of 61.02%

In comparison to conventional jet fuel, the use of sustainable aviation fuel reduces carbon emissions over the fuel's lifetime. Depending on the sustainable feedstock utilized, the production method, and the supply chain to the airport, sustainable aviation fuel can reduce carbon emissions by up to 80% relative to the traditional jet fuel it replaces over the fuel's lifetime. Any certified aircraft can use sustainable aviation fuel to use the current jet fuel specification. Market Dynamics Growing Efforts to Reduce Carbon Emission from Various Organizations and Governments Drive the Global Market Several governments and industry organizations across the globe are working to minimize carbon emissions. These entities have established goals for achieving lower or zero emissions in the coming years. In 2015, 196 countries committed to the Paris Accord to alter their development trajectories toward sustainability. These nations intended to reduce global warming to approximately 2°C above the pre-industrial average. In order to meet these goals, global carbon dioxide emissions must decrease by 45 percent from 2010 levels by 2030 and reach net-zero levels by 2050. In addition, more than 70 countries, 1,200 firms, 1,000 communities, 1,000 schools, and 400 financial institutions have pledged to take immediate, stringent action to halve global emissions by 2030. Government Initiatives to Promote the Adoption of sustainable aviation fuel Creates Tremendous Opportunities Various governments worldwide are developing new legislation to encourage using sustainable aviation fuel to reduce greenhouse gas emissions and meet emission objectives. The US government, for instance, enacted the Sustainable Aviation Fuel Act, which promotes the production, sale, and use of sustainable aviation fuels. The bill allocates USD 1 billion over five years for sustainable aviation fuel production, transport, blending, and storage initiatives in the United States. Similarly, in December 2020, the European Commission adopted the Sustainable and Smart Mobility Strategy to increase the acceptance of sustainable aviation fuels. To stimulate the use of sustainable aviation fuel, the EU also changed the Energy Taxes Regulation by introducing minimum tax rates. Regional Analysis North America is the most significant shareholder in the global sustainable aviation fuel market and is projected to grow at a CAGR of 60.94% over the forecast period. Demand from developed nations such as the United States and Canada drives North America's sustainable aviation fuel market. North America is home to several of the world's major airlines. American Airlines, United Airlines, Delta Air Lines, and Southwest Airlines all have regional headquarters in North America with a substantial regional presence. In addition, the existence of these enterprises in North America increases regional demand for sustainable aviation fuel. North America's national and local governments also assist in adopting sustainable aviation fuel. For instance, the Biden administration has set a goal of replacing all conventional jet fuel with sustainable aviation fuel by 2050, with a plan to increase sustainable aviation fuel production to 3 billion gallons yearly by 2030. On the other hand, San Francisco International Airport collaborated with the Commercial Aviation Alternative Fuels Initiative (CAAFI) to negotiate sustainable aviation fuel offtake agreements between airlines and producers. Europe is projected to grow at a CAGR of 59.88% over the forecast period. The expansion of the sustainable aviation fuel market in Europe is driven by the increasing number of passengers flying to Europe. Europe is one of the world's most popular tourist destinations, and each year a large number of travelers visit. According to the International Air Transport Association's Global Air Transport Statistics for 2021, Europe accounted for around 23.7% of the total scheduled passenger and cargo travel globally. In addition, Europe accounts for nearly 21 percent of worldwide scheduled international passenger traffic and 2.3 percent of domestic scheduled passenger traffic. Many nations, including France, Italy, Spain, and Austria, have some of the world's most popular tourist destinations. Many tourists go to Europe by air-fuel the region's aviation economy. This significantly increases the European demand for sustainable aviation fuel. Key Highlights The global sustainable aviation fuel market was valued at USD 340.23 million in 2022. It is estimated to grow at a CAGR of 61.02% during the forecast period (2023–2031). Based on fuel type, the global sustainable aviation fuel market is bifurcated into biofuel, hydrogen fuel, and power to liquid-fuel. The biofuel segment is the highest contributor to the market share and is estimated to grow at a CAGR of 61.47% during the forecast period. Based on aircraft type, the global sustainable aviation fuel market is bifurcated into fixed wings, rotorcraft, and others.The fixed wings segment owns the highest market share and is estimated to grow at a CAGR of 61.53% during the forecast period. Based on the platform, the global sustainable aviation fuel market is segmented into commercial aviation, military aviation, business and general aviation, and unmanned aerial vehicle. Commercial aviation is the highest contributor to the market and is anticipated to grow at a CAGR of 61.77% over the forecast period. North America is the most significant shareholder in the global sustainable aviation fuel market and is projected to grow at a CAGR of 60.94% over the forecast period. Competitive Players The key players in the global sustainable aviation fuel market are Neste, AEMETIS, Inc., Gevo, OMV Aktiengesellschaft, Shell PLC, BP PLC, LanzaJet, World Energy, Sasol, and SkyNRG. Market News February 2023- Frederic Combes, vice president of Airbus India and South Asia, stated that Airbus is willing to establish an ecosystem that promotes Sustainable Aviation Fuel (SAF) to decarbonize the aviation industry. February 2023- Boeing agreed to purchase 5.6 million gallons (21.2 million liters) of blended sustainable aviation fuel (SAF) from Neste, the world's largest SAF producer, to support its U.S. commercial operations through 2023. These contracts significantly increase the company's sustainable aviation fuel acquisitions over the prior year. Global Sustainable Aviation Fuel Market: Segmentation By Fuel Type Biofuel Hydrogen Fuel Power to Liquid Fuel By Aircraft Type Fixed Wings Rotorcraft Others By Platform Commercial Aviation Military Aviation Business and General Aviation Unmanned Aerial Vehicle By Regions North America Europe Asia-Pacific RoW