Sustainable aviation fuel, also known as biofuel, is an alternative to jet fuel that is produced from sustainable feedstocks such as used cooking oil, animal fats, and plant-based oils. Key advantages of sustainable aviation fuel are significant reduction of greenhouse gas emissions and fossil fuel dependency of the aviation sector. With growing air traffic and need to achieve carbon emission targets, sustainable aviation fuels are increasingly gaining traction.
The global Sustainable Aviation Fuel Market is estimated to be valued at US$ 853.36 Bn in 2023 and is expected to exhibit a CAGR of 19.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Increased government support through policies and investments is a major trend spurring growth of the sustainable aviation fuel market. Many countries and international agencies are offering incentives and funds for research, production and use of sustainable aviation fuels. For instance, the US Department of Energy recently announced a funding of $40 million for four sustainable aviation fuel research and development projects. The European Commission also aims to facilitate incorporation of 2 million tons of sustainable aviation fuels annually by 2030 through its ReFuelEU initiative. Growing government support is encouraging private sector investments and ramping up production capacities of sustainable aviation fuels across major economies. This is expected to significantly boost market growth over the forecast period.
Strength: Sustainable aviation fuel reduces carbon emissions by upto 80% compared to conventional jet fuel, helping airlines meet their sustainability goals.
Weakness: Higher production costs of sustainable aviation fuels compared to conventional jet fuel is a major challenge for wider adoption.
Opportunity: Growing focus of governments and aviation industry on reducing carbon footprint through use of alternative fuels presents lucrative opportunities.
Threats: Limited availability of sustainable aviation fuel supply due to nascent production infrastructure poses a threat.
The global Sustainable Aviation Fuel Market Share is expected to witness high growth.
Regional analysis: The North America region currently dominates the market due to supportive government policies and presence of leading sustainable aviation fuel producers such as Neste US and World Energy in the US.)
Key players operating in the sustainable aviation fuel market are Eisai Co., Ltd., Novartis AG, AbbVie Inc. (Allergan Plc.), Adamas Pharmaceuticals, Inc., H. Lundbeck A/S, Biogen, AC Immune, F. Hoffmann La Roche Ltd., Daiichi Sankyo Company, Limited, Johnson & Johnson Services, Inc., TauRx Pharmaceuticals Ltd.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it