Business Aviation News

SAF Market Worth USD$10 Billion by 2029, Study Predicts

SAF Market Worth USD$10 Billion by 2029, Study Predicts

The sustainable aviation fuel (SAF) industry is projected to grow immensely and be worth approximately USD$10 billion by 2029, according to a study. 

The Exactitude Consultancy said the SAF sector was worth USD$85 million in 2022 and predicted a compound annual growth rate (CAGR) of 60.8%. 

As one of the aviation industry’s decarbonization pillars, SAF has been in the spotlight as an answer to the high carbon emissions of traditional aviation fuel. But, the higher price tag and limited supply have restricted the adoption and overall usage of SAF. 

This has spurred governments to launch initiatives that provide incentives for using SAF. The United States launched the Sustainable Aviation Fuel Act to propel the usage of SAF, while the European Union aims to do the same through the Sustainable and Smart Mobility Strategy.

Currently, only SAF that comprises up to a 50 percent blend with conventional Jet-A has been approved. SAF on its own, however, could reduce carbon emissions by approximately 80% and further reduce dangerous particulates and sulfur. 

The SAF market can be split into three categories – biofuel, power-to-liquid, and gas-to-liquid. In 2021, biofuel dominated the market share, representing 95.7%. The study conducted by Exactitude Consultancy indicated that this trend will continue until 2029. 

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