NEW
YORK, June 27, 2024 /PRNewswire/ -- The global
sustainable aviation fuel (SAF) market size is estimated to
grow by USD 5.29 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of about 75.62% during the forecast
period. Favorable government policies is driving
market growth, with a trend towards research on
third-generation biofuels. However, higher cost of production
compared to conventional fuels poses a challenge. Key market
players include Aemetis Inc., Alder Energy LLC, Chevron Corp.,
Cummins Inc., Deutsche Lufthansa AG, Eni SpA, Fulcrum BioEnergy
Inc., Gevo Inc., LanzaTech Global Inc., Neste Corp., OMV
Aktiengesellschaft, Pan Oleo Energy Ltd., Preem Holdings AB, Sasol
Ltd., Shell plc, SkyNRG BV, SYNHELION SA, TotalEnergies SE, Velocys
Plc, and World Energy LLC.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Type (Biofuel, Hydrogen
fuel, and Power to liquid fuel), Application (Commercial aviation,
Business and general aviation, Military aviation, and Unmanned
aerial aviation), and Geography (North America, APAC, Europe,
Middle East and Africa, and South America)
|
Region
Covered
|
North America, APAC,
Europe, Middle East and Africa, and South America
|
Key companies
profiled
|
Aemetis Inc., Alder
Energy LLC, Chevron Corp., Cummins Inc., Deutsche Lufthansa AG, Eni
SpA, Fulcrum BioEnergy Inc., Gevo Inc., LanzaTech Global Inc.,
Neste Corp., OMV Aktiengesellschaft, Pan Oleo Energy Ltd., Preem
Holdings AB, Sasol Ltd., Shell plc, SkyNRG BV, SYNHELION SA,
TotalEnergies SE, Velocys Plc, and World Energy LLC
|
Key Market Trends Fueling Growth
The Sustainable Aviation Fuel (SAF) market is experiencing
significant growth with the advancement of biofuel technology.
Second and third-generation biofuels, particularly SAF, are derived
from non-food feedstocks such as wood, organic waste, and algae.
Algae fuels offer numerous advantages, including high-quality
diverse fuels like biodiesel, butanol, and jet fuel, and greater
yield with up to ten times the fuel production per acre compared to
traditional fuels. Micro-algae, with their high lipid content and
ease of cultivation, are popular candidates for SAF production.
This evolution in biofuel technology is diversifying feedstock
options and enhancing fuel performance through advanced
technology.
The Sustainable Aviation Fuel (SAF) market is experiencing
significant growth due to increasing demand for eco-friendly
alternatives in the aviation industry. Components such as vegetable
oils, animal fats, and waste cooking oil are commonly used to
produce SAF. Technologies like hydroprocessing and fermentation are
employed to convert these feedstocks into jet fuel. Companies are
investing in research and development to improve the efficiency and
sustainability of SAF production. The use of SAF reduces carbon
emissions and contributes to the aviation industry's efforts
towards becoming more environmentally friendly. The adoption of SAF
is a trend that is gaining momentum in the aviation sector, with
many airlines and governments supporting its
implementation.
Research report provides comprehensive data on
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Market Challenges
- The sustainable aviation fuel (SAF) market faces challenges in
terms of inefficient production technology and high feedstock
costs. Advanced biofuel processing is complex, leading to higher
operational costs for SAF compared to conventional fuels. Electric
and hybrid vehicles, which are more economical and sustainable
alternatives, may hinder SAF market growth due to their increasing
demand and lower carbon emissions.
- The Sustainable Aviation Fuel (SAF) market faces several
challenges in its implementation and adoption. One challenge is the
high cost of SAF compared to traditional jet fuel. Another
challenge is the limited supply of SAF, as it is currently produced
from feedstocks like algae and waste vegetable oils. Additionally,
the infrastructure for producing and distributing SAF is not yet
widely available. Technological advancements and government
incentives are necessary to make SAF production cost-effective and
scalable. Furthermore, the aviation industry must work towards
reducing its carbon footprint and meeting emission reduction
targets, making SAF a crucial solution for sustainable
aviation.
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challenges - Download a Sample Report
Segment Overview
This sustainable aviation fuel (saf) market report extensively
covers market segmentation by
- Type
- 1.1 Biofuel
- 1.2 Hydrogen fuel
- 1.3 Power to liquid fuel
- Application
- 2.1 Commercial aviation
- 2.2 Business and general aviation
- 2.3 Military aviation
- 2.4 Unmanned aerial aviation
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 Biofuel- The Sustainable Aviation Fuel
(SAF) market is experiencing significant growth due to increasing
demand for eco-friendly alternatives in the aviation industry.
Companies are investing in SAF production, driven by government
incentives and customer preference. SAF reduces carbon emissions by
up to 80% compared to traditional jet fuel. Major airlines have set
ambitious targets to use SAF in a substantial percentage of their
fuel mix by 2030. This trend is expected to continue, making SAF a
promising business opportunity.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Sustainable Aviation Fuel (SAF) market represents a
significant advancement in the aviation industry's efforts to
reduce carbon emissions. SAF, also known as renewable jet fuel, is
derived from various sources such as biofuels and hydrogen fuel
cells. Its adoption in commercial and military aviation sectors is
gaining momentum due to its economic viability and environmental
benefits. SAF is a crucial component in the aviation industry's
strategy to decrease emissions from air transportation. The
market's growth is driven by the increasing demand for sustainable
alternatives to traditional jet fuels and government initiatives to
promote the use of cleaner fuels in the aviation sector. The
aviation industry's transition to SAF is essential to mitigate the
sector's significant carbon footprint and contribute to a more
sustainable future for air travel.
Learn and explore more about Technavio's in-depth research
reports
Biofuels are renewable fuels derived from organic materials like
plants and algae, offering a sustainable alternative to traditional
fossil fuels. The global biofuels market is driven by increasing
environmental concerns and the need for energy security. Key
players in this market include ethanol and biodiesel producers,
with significant growth anticipated due to government incentives
and advancing technology. As the world seeks cleaner energy
solutions, biofuels play a crucial role in reducing greenhouse gas
emissions and diversifying energy sources.
Market Research Overview
The Sustainable Aviation Fuel (SAF) market refers to the
production and use of alternative jet fuels derived from renewable
sources, such as vegetable oils, agricultural waste, and algae.
These fuels offer significant reductions in carbon emissions
compared to traditional jet fuel, making them a crucial component
in the aviation industry's efforts to reduce its carbon footprint.
The global SAF market is experiencing steady growth, driven by
increasing government regulations, industry initiatives, and
technological advancements. Various types of SAFs are under
development, including hydroprocessed esters and fatty acids
(HEFA), alcohol-to-jet (ATJ), and biomass-based jet fuel. The
market is expected to continue expanding as the demand for more
sustainable aviation solutions increases.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Biofuel
- Hydrogen Fuel
- Power To Liquid Fuel
- Application
-
- Commercial Aviation
- Business And General Aviation
- Military Aviation
- Unmanned Aerial Aviation
- Geography
-
- North America
- APAC
- Europe
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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and potential markets and assess their competitive positions within
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Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio