Asia Pacific Sustainable Aviation Fuels Market Research Report Information By Fuel Type (Bio Fuel, Hydrogen Fuel And Power To Liquid Fuel), By Manufacturing Technology (Hydroprocessed Fatty Acid Esters And Fatty Acids - Synthetic Paraffinic Kerosene (Hefa-Spk), Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK), Synthetic Iso-Paraffin From Fermented Hydroprocessed Sugar (Hfs-Sip), Fischer Tropsch (Ft) Synthetic Paraffinic Kerosene With Aromatics (FT-SPK/A), Alcohol To Jet Spk (ATJ-SPK) and Catalytic Hydrothermolysis Jet (CHJ)), By Blend

Asia Pacific Sustainable Aviation Fuels Market Overview

Asia Pacific Sustainable Aviation Fuels Market Size was valued at USD 0.69 Billion in 2022. The Sustainable Aviation Fuels market industry is projected to grow from USD 1.08 Billion in 2023 to USD 39.98 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 57.00% during the forecast period (2024 - 2032). The rise in the volume of airline passengers, accompanied by higher disposable income, an uptick in air travel, and an increase in the utilization of synthetic lubricants, are the main market drivers anticipated to propel the Sustainable Aviation Fuels market in the Asia Pacific.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Asia Pacific Sustainable Aviation Fuels Market Trends

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  Increasing need for reduction in GHG emissions in the aviation industry and increase in air transportation is driving the market growth

  
  

Human-induced emissions of greenhouse gases (GHGs) exacerbate the greenhouse effect, leading to climate change. Carbon dioxide is predominantly emitted through the combustion of fossil fuels like coal, oil, and natural gas. Among the major contributors to pollution in the Asia-Pacific region are China and Russia, largely attributed to coal, oil, and gas corporations affiliated with the OPEC (Organization of the Petroleum Exporting Countries). Over time, carbon dioxide levels in the atmosphere have surged by approximately 50% since the pre-industrial era due to these human-induced emissions. In 2022, Air China Limited emitted 15.04 million metric tons of carbon dioxide (CO₂), showing a slight decrease from the previous year. However, between 2014 and 2019, the Chinese flag carrier witnessed a notable increase in CO₂ emissions, with a peak of 23.5 million metric tons in 2018. In the global commercial aviation sector, the Intra-Asia/Pacific region accounted for the highest share of aviation CO₂ emissions in 2019, reaching 199 million metric tons of CO₂ that year.

Air travel plays a pivotal role in fostering economic growth and development on national, regional, and global scales. It facilitates integration into the Asia-Pacific economy and provides vital connectivity. According to the International Air Transport Association (IATA), Asia-Pacific airlines experienced a 98.5% surge in traffic in August 2023 compared to August 2022, maintaining their lead in the regions. Capacity increased by 85.5%, and the load factor rose by 5.5 percentage points to 84.2%, contributing to trade, tourism, and job opportunities. The COVID-19 pandemic, along with government support and technological advancements, particularly in sustainable aviation fuel (SAF) technology, has accelerated the aviation industry's shift towards sustainability. Thus, driving the Sustainable Aviation Fuels market revenue.

Asia Pacific Sustainable Aviation Fuels Market Segment Insights

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  Sustainable Aviation Fuels Fuel Type Insights

  
  

The Asia Pacific Sustainable Aviation Fuels market segmentation, based on Fuel Type, includes Bio Fuel, Hydrogen Fuel, and Power to Liquid Fuel. The bio fuel segment dominated the market. Renewable and sustainable feedstocks such as crops, algae, waste oils, and forest residues have been the primary areas of focus for research, development, and commercial production in the Sustainable Aviation Fuel (SAF) sector. Biofuels derived from these sources are categorized as drop-in fuels, indicating that they can directly substitute conventional jet fuel without necessitating significant modifications to aircraft engines or infrastructure. This quality has enhanced the appeal of biofuels to the aviation industry, facilitating their seamless integration into existing operations.

Figure 1: Asia Pacific Sustainable Aviation Fuels Market, by Fuel Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Sustainable Aviation Fuels Manufacturing Technology Insights

The Asia Pacific Sustainable Aviation Fuels market segmentation, based on Manufacturing Technology includes Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (Hefa-Spk), Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK), Synthetic Iso-Paraffin from Fermented Hydroprocessed Sugar (Hfs-Sip), Fischer Tropsch (Ft) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A), Alcohol to Jet Spk (ATJ-SPK) and Catalytic Hydrothermolysis Jet (CHJ). The Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (Hefa-Spk) segment dominated the market. Hydroprocessed Esters and Fatty Acids (HEFA), also known as Hydrogenated Vegetable Oil (HVO) or Hydroprocessed Renewable Jet (HRJ), is a hydrocarbon aviation fuel derived from animal or vegetable oils (triglycerides) through hydroprocessing. In 2011, HEFA technology obtained certification from the American Society for Testing and Materials (ASTM) for the production of bio-jet fuel. HEFA utilizes oleo-chemical feedstock, such as oils and fats, to produce renewable fuel.

Sustainable Aviation Fuels Blending Capacity Insights

The Asia Pacific Sustainable Aviation Fuels market segmentation, based on Blending Capacity, includes Below 30 %, 30 % To 50 %, and Above 50%. The 30 % To 50 % segment dominated the market. To cater to the requirements of both commercial and military aviation, features like drop-in capability, moderate blending capacity, efficient supply logistics transportation, and a versatile aircraft fleet help reduce overall costs.

Sustainable Aviation Fuels Blending Platform Insights

The Asia Pacific Sustainable Aviation Fuels market segmentation, based on the Blending Platform, includes Commercial Aviation, Military Aviation, Business & General Aviation, And Unmanned Aerial Vehicles. The Commercial Aviation segment dominated the market. Both passenger airlines and freight carriers conduct scheduled and non-scheduled flights to transport passengers and goods. Given the significant greenhouse gas emissions associated with the aviation industry, commercial airlines have become a primary target for the adoption and incorporation of sustainable aviation fuel (SAF). Major airlines worldwide are actively exploring and implementing sustainable aviation fuel in their operations as part of their efforts to reduce their carbon footprint and achieve environmental sustainability goals. This shift is driven by the industry's recognition of the imperative to address climate change and the growing demand from environmentally conscious passengers.

Sustainable Aviation Fuels Country Insights

Analysis published by the International Council on Clean Transportation (ICCT) indicates that Chinese flights emitted 103 million tonnes of CO2 in 2019, accounting for 13% of the global aviation total. Although aviation currently represents only 1% of the country's total emissions, its proportion is projected to increase as emissions from heavy industries like steel and cement decline over the next decade. A pre-pandemic research paper predicted that China's civil aviation emissions could soar to 516 million tonnes by 2050, a fivefold increase from the 2019 level. In 2022, Chinese state-owned companies invested 6 billion Malaysian Ringgit (approximately US$1.35 billion) to produce hydro-treated vegetable oil and sustainable aviation fuel (SAF) in Malaysia. A report from Peking University's Institute of Energy suggests that China can produce 150,000 tonnes of SAF annually through the hydroprocessed esters and fatty acids (HEFA) route. However, China's aviation fuel consumption in 2021 stood at 26.47 million tonnes. The International Air Transport Association (IATA) predicts that 65% of carbon reduction in the aviation sector by 2050 will be achieved through the use of SAF, highlighting the importance of technological advancements in SAF for the global aviation industry's low-carbon transition. Many oil enterprises worldwide are investing in SAF projects, emphasizing their significance in the energy supply sector. In April 2023, Honeywell and China's Tianjin Free Trade Zone signed a Memorandum of Understanding to establish a flagship SAF production facility in North China, aiming to meet the increasing market demand for SAF.

Figure 2: Asia Pacific Sustainable Aviation Fuels Market Share By Country 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Asia Pacific Sustainable Aviation Fuels Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Sustainable Aviation Fuels market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Sustainable Aviation Fuels industry must offer cost-effective items.

Major players in the Sustainable Aviation Fuels market are attempting to increase market demand by investing in research and development operations, including Neste, Gevo, VELOCYS, Fulcrum BioEnergy, SkyNRG, Prometheus Fuels, World Energy, Avfuel Corporation, and others.

Key Companies in the Asia Pacific Sustainable Aviation Fuels market include

• Neste


• Gevo


• VELOCYS


• Fulcrum BioEnergy


• SkyNRG


• Prometheus Fuels


• World Energy


• Avfuel Corporation

Asia Pacific Sustainable Aviation Fuels Industry Developments

July 2021: SF Express entered into an agreement with the Management Committee of the Manzhouli Comprehensive Bonded Area to explore opportunities for collaboration in various formats within the area. This contract contributed to enhancing the company's visibility and reputation.

Asia Pacific Sustainable Aviation Fuels Market Segmentation

Sustainable Aviation Fuels Fuel Type Outlook

• Biofuel


• Hydrogen fuel


• Power to liquid fuel

Sustainable Aviation Fuels Manufacturing Technology Outlook

• Hydroprocessing Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)


• Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)


• Synthetic Iso-Paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)


• Fischer Tropsch (Ft) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)


• Alcohol to Jet Spk (ATJ-SPK)


• Catalytic Hydrothermolysis Jet (CHJ)

Sustainable Aviation Fuels Blending Capacity Outlook

• Below 30%


• 30% To 50%


• Above 50%

Sustainable Aviation Fuels Blending Platform Outlook

• Commercial Aviation


• Military Aviation


• Business & General Aviation


• Unmanned Aerial Vehicle

Sustainable Aviation Fuels Regional Outlook

• Asia Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Indonesia
  
  
  • Thailand
  
  
  • Vietnam
  
  
  • Malaysia
  
  
  • Singapore
  
  
  • Rest of Asia-Pacific