Delray Beach, FL, Jan. 13, 2025 (GLOBE NEWSWIRE) -- The Global Aviation Fuel Market Size was valued at USD 249.9 billion in 2022 and is estimated to reach USD 696.2 billion by 2030, growing at a CAGR of 13.7% during the forecast period.
Demand to reduce emissions and rising initiatives by governments to adopt sustainable aviation fuel are expected to drive the growth of the market. The global demand and substantial challenges to reduce emissions of greenhouse gases and improve environmental sustainability in the face of rapid growth have led to the emergence of the SAF market significantly.
Top Aviation Fuel Companies Included:
- Exxon Mobil Corporation (US)
- Chevron Corporation (US)
- British Petroleum (UK)
- Shell (UK)
- TotalEnergies (France)
- Neste (Finland)
- Gazprom (Russia)
- World Fuel Service (US)
- Indian Oil Corporation (India)
- Valero Energy Corporation (US)
Key Growth Drivers of Aviation Fuel:
Sustainable aviation fuel (SAF) is a key component in meeting the aviation industry’s commitments to decouple increases in carbon emissions from traffic growth. SAF gives an impressive reduction of up to 80% in CO2 emissions over the lifecycle of the fuel compared to fossil jet fuel, depending on the sustainable feedstock used, production method, and the supply chain to the airport. According to the IATA fact sheet, SAF will be an eligible option for aircraft operators to meet their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Production of SAF using biomass, biological, and non-biological resources allows it to be approximately carbon-neutral over its lifecycle.
Opportunity: Growing need for alternative aviation fuel by airlines
The global demand and substantial challenges to reduce emissions of greenhouse gases and improve environmental sustainability in the face of rapid growth have led to the emergence of the SAF market significantly. Several agreements, contracts, partnerships, etc., have been made for a certain period of time by various stakeholders of the entire demand and supply chain of the SAF market. Several airlines have concluded long-term offtake agreements with biofuel suppliers, many of which are reported as commercially competitive.
Challenge: High investments for approval and certification of SAF
SAF requires strict technical certifications to be fully approved for utilization in aircraft engines. The entire value chain of the SAF market faces stringent approval procedures for the phases of SAF, for application purposes. However, the involvement of various stakeholders and the quantity of fuel required for the testing parameters add to the cost of the approval of SAF. For instance, the OEM-led ASTM D4054 approval and evaluation process is expensive and time-consuming, which is one of the major hurdles in the growth of the sustainable aviation fuel market.
Key Market Segmentation:
Based on aircraft type, the hybrid wing UAV segment is projected to grow at a higher CAGR during the forecast period.
Based on aircraft type, the hybrid wing UAV segment is projected to grow at a higher CAGR during the forecast period, from 2022 to 2030. Hybrid UAVs are widely used for long-range and heavy payload applications, such as SAR operations and crop management, and with some vehicles exceeding eight hours of flight time, they are often more practical and cost-efficient than traditional aircraft. The increasing number of long range applications of hybrid UAVs, is expected to lead to significant growth in this market in the coming years.
Based on fuel type, the Jet A-1 segment of the conventional fuel segment is expected to grow at the highest CAGR in the aviation fuel industry during the forecast period.
Based on fuel type, the Jet A-1 segment of the conventional fuel segment is expected to grow at the highest CAGR in the aviation fuel market from 2022 to 2030. Rising demand for Jet A-1 fuel outside US, to drive the overall demand in the aviation fuel market.
Aviation Fuel Market Region
North America is expected to account for the largest share of aviation fuel market in 2022
North America is estimated to account for the largest share of the aviation fuel market in 2022. North America is considered to have the largest aircraft fleet with a large number of passengers per year, leading to a substantial increase in aircraft emissions. To cater to the need for a reduction in carbon footprints due to increasing air traffic and air passengers, the US and Canada are focused on various initiatives to utilize sustainable aviation fuel. With supportive policies and initiatives to decarbonize aviation emissions, the North American market is deemed to be one of the strong demand centers for sustainable aviation fuel (SAF).
