Sustainable aviation fuel market to grow by USD 1,978 billion from 2022 to 2027 | Favorable government policies to boost market growth - Technavio

NEW YORK, Sept. 1, 2023 /PRNewswire/ -- The sustainable aviation fuel market size is forecast to increase by USD 1.978 billion and is estimated to grow at a CAGR of 59.08% between 2022 and 2027, according to Technavio. Favorable government policies are driving the market growth for sustainable aviation fuels. Environmental and energy security concerns are increasing demand for renewable fuels such as cellulosic ethanol and biodiesel. Governments of countries such as Germany and India are actively promoting its use through targets and incentives. Tax credits and subsidies will further facilitate adoption, leading to increased production and consumption of sustainable aviation fuel around the world. This trend is expected to further drive the market growth during the forecast period. View the new Sample Report within minutes!

Key Trend- 

Research on third-generation biofuels is the primary trend in the market. Specific biomass crops such as jatropha, camellia, and switchgrass have evolved further with the introduction of third-generation biofuels. Third-generation biofuels derived from algae offer many advantages over other sources in biofuel production. Furthermore, microalgae are becoming popular for biofuel production due to their high lipid content and ease of cultivation. The development of third-generation fuels has led to a diversification of feedstock options, the elimination of conventional food-related ingredients, and improved biofuel efficiency through advanced technology.

Significant Challenge- 

The higher cost of production compared to conventional fuels is a challenge that affects the growth of the market. Current technologies for sustainably producing aviation fuel are inefficient and uneconomical, so more sustainable and efficient processing technologies are needed. Electric vehicles are seen as a more economical and sustainable alternative, challenging sustainable aviation fuels in reducing CO2 emissions. An increasingly dynamic energy landscape and the high cost of sustainable aviation fuel hinder the growth of the market during the forecast period.

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Sustainable Aviation Fuel Market 2023-2027: Segmentation
Sustainable Aviation Fuel Market is segmented as below:

• 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
• The biofuel segment is estimated to witness significant growth during the forecast period. Regulatory agencies, such as classifying aircraft by carbon emissions and pollution, have focused on reducing emissions from the aviation industry. As a result, aircraft and aircraft component manufacturers are increasingly focusing on reducing aircraft emissions, which is likely to drive the growth of the sustainable aviation fuels (SAF) market. Additionally, increased government focus on targets and incentives is likely to drive the growth of the global aviation biofuels market during the forecast period.

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Sustainable Aviation Fuel Market 2023-2027: Company Analysis

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. 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 are some of the major market participants. Although favorable government policies will offer immense growth opportunities, the higher cost of production compared to conventional fuels will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

Company offerings: 

• Cummins Inc.: The company offers sustainable aviation fuels such as hydrogen fuel cells.
•  Eni SpA : The company offers sustainable aviation fuel such as Eni Biojet.
• Gevo Inc: The company offers sustainable aviation fuel such as Jet Synthetic Paraffinic Kerosene.

Sustainable Aviation Fuel Market 2023-2027: Key Highlights

• CAGR of the market during the forecast period 2023-2027
• Detailed information on factors that will assist sustainable aviation fuel market growth during the next five years
• Estimation of the sustainable aviation fuel market size and its contribution to the parent market
• Predictions on upcoming trends and changes in consumer behavior
• The growth of the sustainable aviation fuel market
• Analysis of the market's competitive landscape and detailed information on companies
• Comprehensive details of factors that will challenge the growth of sustainable aviation fuel market companies

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Table of Contents: 

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Type 

7 Market Segmentation by Application

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Company Landscape

12 Company Analysis

13 Appendix

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SOURCE Technavio