Sustainable Aviation Fuel (SAF) Market is Projected to Reach $ 37.9 Billion by 2032

According to the new report titled “ Sustainable Aviation Fuel (SAF), By Fuel Type {Biofuel Hydrogen Fuel, Power to Liquid, Gas to Liquid}, By Manufacturing Technology {FT-spK ,HEFA-SPK, HFS-Slp, ATJ-SPK, CHJ, FT-SPK/A, HC-HEFA-SPK}, By Blending Capacity {Below 30%, 30% to 50%, Above 50%},By Platform {Commercial Aviation, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicles} Global Analysis to 2024″, the valuation of the Sustainable Aviation Fuel (SAF) Market was $1.39 Billion in 2024 and is projected to reach $ 37.9 Billion by 2032, at a CAGR of 51.14% from 2024 to 2032

SAF is a biofuel used to power aircraft with properties similar to natural gas but a smaller carbon footprint. SAF is a liquid fuel currently used in the aviation industry and can reduce CO2 emissions by up to 80%. It can be produced from a variety of sources (raw materials) including waste oils and fats, green and municipal waste, and non-food crops. It is estimated that the United States could store 1 billion dry tons of biomass annually, enough to produce 50-60 billion gallons of low carbon. These sources include: Corn, Oil seeds Seaweed Other fats, oils and fats Agricultural Residues Forestry Residues, Municipal solid waste Wet solid waste (manure, sewage treatment sludge) Special products. create low-carbon alternatives to transportation and create valuable bioproducts and recycled chemicals Depending on the food and production technology, SAF can reduce lifecycle greenhouse gas emissions compared to gas injection. Some SAF events even have negative greenhouse gas footprints. SAF’s low emissions make it an important solution for reducing aviation greenhouse gases, which account for 9% to 12% of U.S. transportation greenhouse gas emissions, according to the U.S. Environmental Protection Agency. Using renewable materials and waste to grow, deploy, and build SAF, just to reduce greenhouse gas emissions, can create new jobs for farming communities, improve the environment, and even improve aircraft performance. By growing biomass to produce SAF, American farmers can make more money by providing food to this new market during the holiday season, while also increasing the profitability of their farms by reducing food loss and improving soil quality. There are Environmental Benefits also, Biomass crops can control erosion and improve water quality and quantity. It also provides agricultural and environmental benefits nationwide by increasing biodiversity and storing carbon in the soil. Making SAF from wet waste such as manure and sewage can reduce water pollution while also keeping potent methane gas, a major climate change factor, out of the air. SAFs all have less aromatics, allowing them to burn cleanly in jet engines. This means fewer local emissions of harmful compounds around the airport during take-off and landing. Aromatic compounds are also precursors to contrails that could exacerbate the effects of climate change. Which resulted into the high demand, however current supply is inadequate and heavy investment will be required to address growing demand and fulfil regulatory targets. With a potential future demand of about 325 million tons of SAF to achieve net zero by 2050, roughly €1,000 billion in capital expenditure will be needed simply to establish SAF refineries The SAF ecosystem is still in its infancy. for instance, SAF production have exceed 600 million litres (0.5 metric tons) in 2023, double the 300 million litres (0.25 metric tons) produced in 2022, but still only 0.2% of all aviation fuel that year. The limitation means that SAF is still more expensive than fuel injection. In detail, SAF will be price competitive, but this is not guaranteed and will require cooperation from governments, businesses and international regulators.

By Platform for SAF Market, Commercial Aviation Dominates the Segment.

Based on the Platform, the market is segmented into Commercial Aviation, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicles. The Commercial aviation sector will account for around 74 percent of the market share by 2023. The popularity of sustainable fuel (SAF) in the Commercial aviation industry is driven by the industry’s commitment to mitigating climate change and achieving sustainability goals. SAF reduces greenhouse gas emissions compared to aviation emissions as part of global efforts to combat climate change. As environmental awareness increases, airlines are increasingly adopting green practices, and SAFs represent a solution. In addition, government support, incentives and implementation of carbon targets have made SAF adopted, making it a key driver of action work in the surrounding atmosphere. As air travel continues to develop rapidly, the environmental impact of aviation is also becoming an important issue. SAF has another option by reducing the carbon footprint of airlines. Commercial companies have embraced SAF as a way to achieve sustainability goals because they understand the urgent need to switch to green fuels. The aviation industry is important in supporting sustainable aviation fuel demand and supply as it has the scale and infrastructure to facilitate widespread use of SAFs. The aviation industry has made significant contributions to mitigating climate change and supporting a greener future by setting standards for the use of SAF.

North America to Dominate the Sustainable Aviation Fuel (SAF) Market in 2024.

North America dominates the market and has the largest Share in the region with over  40% share in aviation fuel by 2024. Due to regulatory support and efforts to reduce aviation emissions, significant growth is expected in commercial aviation fuel availability in North America. Ametis Corporation; Jevo Corporation; Alder Fuel; Major utilities in the country will be able to stabilize energy supply and thereby boost economic growth during the forecast period. Governments and regulatory bodies in many countries are encouraging sustainable practices, providing incentives and creating a conducive environment for the development of SAF. The increasing willingness of major companies in the region to reduce their carbon footprint is driving the demand for SAF. Additionally, increasing investor interest and strategic collaborations are injecting capital into the SAF project. As consumers become more aware of environmental issues, the aviation industry is increasingly accepting green alternatives, which is contributing to the growth of the North American SAF market. The growth rate is driven by the focus on sustainability, environmental issues, and the aviation industry commitment to reducing greenhouse gas emissions. The growth of low-cost airlines and rapid development in emerging markets are expected to boost sustainable fuel consumption in the aviation industry in the Asia Pacific region. Additionally, increasing public and private spending on airport construction in developing countries will support business growth during the forecast period.

Key market players operating in the market that are profiled in the report are Neste (Finland), World Energy (Ireland), Total Energies (France), LanzaTech (US), and Fulcrum BioEnergy (US), among others.