Sustainable Aviation Fuel Market Share

North American Market Forecast   

The market share of sustainable aviation fuel in North America, amongst the market in all the other regions, is projected to be the largest with a share of about 35% by the end of 2037. The growth of the market can be attributed majorly to the increased number of a passenger taking air routes for traveling. In 2021, US airlines carried 674 million passengers (not seasonally adjusted), an increase of 82.5% over 2020 (369 million, unadjusted). Moreover, according to the Bureau of Transportation Statistics, US airlines carried 68.1 million systemwide including both domestic and international scheduled service passengers in December 2021, seasonally adjusted. Besides this, the rising emission of CO2 from the aviation sector and higher adoption of SAF is also expected to drive North America’s market growth. The United States is the world's top source of aviation emissions. In 2019, commercial passenger flights departing from the United States produced 179 million metric tons of carbon dioxide emissions, with domestic flights emitting the vast majority. Furthermore, The Biden Administration has also prioritized SAF, with a production goal of 3 billion gallons per year by 2030 a significant increase from the 10-20 million gallons produced in the United States currently.

APAC Market Statistics

The Asia Pacific sustainable aviation fuel market is estimated to be the second largest, registering a share of about 28% by the end of 2037. The growth of the market can be attributed majorly to the rise in the number of military exercises. To strengthen bilateral air defense cooperation, India and Japan held the 'Veer Guardian-2023' joint air exercise comprising the Indian Air Force and the Japan Air Self Defence Force (JASDF) at Hyakuri Air Base in Japan from January 12 to January 26, 2023. The Indian presence featured four Su-30 MKI, two C-17, and one IL-78 aircraft, while the Japanese contribution included four F-2 and four F-15 aircraft. On the other hand, the rising initiative taken by private aviation companies to deploy more aircraft is also expected to drive market growth in Asia Pacific.

Europe Market Forecast

Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2037. The growth of the market can be attributed majorly to the rising initiatives put in by European Union to minimize greenhouse gas emissions. The EU has set a goal to achieve net-zero emissions by 2050, and aviation is a significant contributor to emissions in the transportation sector. In addition to this, the European Union has introduced incentives and policies to promote the use of SAF, it includes mandatory use of sustainable fuels in some amount and tax exemption for SAF manufacturers.