Sustainable Aviation Fuel Market By Fuel Type (Biofuel, Hydrogen Fuel, Power-to-Liquid Fuel, Synthetic Fuel), By Raw Material (Used Cooking Oil, Agricultural Waste, Algae, Sugarcane, Others), By Aircraft Type (Commercial Aviation, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicles), By Blending Capacity (Below 30%, 30%–50%, Above 50%), By End-user (Airlines, Airport Operators, Military & Defense, Private Jet Operators, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape the Sustainable Aviation Fuel Market in the coming years?

The Sustainable Aviation Fuel Market accounted for USD 1.51 Billion in 2024 and USD 2.38 Billion in 2025 is expected to reach USD 225.1 Billion by 2035, growing at a CAGR of around 57.6% between 2025 and 2035. Sustainable Aviation Fuel (SAF) Market refers to the renewable fuel, which is a substitute for the conventional jet fuel and is manufactured through the use of sustainable feedstocks, e.g., used cooking oil, agricultural waste, and algae. It decreases greenhouse gas emissions by a significant percentage of percentages up to 80 percent over the long term of its lifecycle when compared to traditional fuels.

Global decarbonization objectives, the more rigid regulations on emissions, and an increase in the investments made by governments and airlines are some of the issues that are likely to help the market grow at a very fast pace. These market trends are related to an improvement in feedstock technology, the growth of the public-private partnership, and the requirements of the blending of SAF.

What do industry experts say about the Sustainable Aviation Fuel Market trends?

"Sustainable Aviation Fuels can reduce aviation emissions by up to 80% on a lifecycle basis, but production must scale up dramatically to meet climate goals. Stronger policy support and investment are needed."

• Fatih Birol, Executive Director, International Energy Agency

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Sustainable Aviation Fuel Market?

How are global emission targets accelerating SAF market demand growth?

The Sustainable Aviation Fuel Market is experiencing a very high rate of growth around the world as various countries adjust their industries, such as transport, to comply with their long-term climate pledges down the road. The governments and environmental authorities have set challenging net-zero emission rates, which are catalysing the adoption of cleaner aviation technologies. Such climate requirements are prompting oil refiners and airlines to increase the transition to low-carbon sources, such as SAF, faster. In 2024, Sustainable Aviation Fuel production reached 1 million tonnes (1.3 billion litres), doubling the 0.5 million tonnes (600 million litres) produced in 2023, now accounting for 0.3% of global jet fuel and 11% of renewable fuel production worldwide.

As an example, the regulation of the European Union named ReFuelEU Aviation will oblige the minimum share of SAF in the airlines starting in 2025, which will increase gradually up to 2050. On the same note, an example of another U.S. government launch is the Sustainable Aviation Fuel Grand Challenge, which is seeking to achieve 3 billion gallons of SAF per year by 2030. These policies provide stability in demand, incentives in R&D, and infrastructure growth. The SAF market is one of the main players able to support countries in ensuring that they fulfil their international climate commitments. With further tightening of emissions standards, the Sustainable Aviation Fuel Market should become a critical element in the aviation sustainability strategies going forward.

Will airline decarbonization strategies drive investments in SAF production capacity?

The decarbonization pledges on the part of commercial airlines and aviation companies are also playing an important role in driving the Sustainable Aviation Fuel Market. The world-leading carriers, including United Airlines, Delta, and Lufthansa, have declared ambitious net-zero carbon targets and committed to blending SAF into their fuel supply chain. It is also proven by organizations such an organization as IATA and ICAO, which are advancing the idea of cleaner skies and promoting the use of carbon offsetting and green fuels. This decarbonization has been putting a stiff downstream demand, and fuel suppliers and bio-refineries are increasing production.

Airlines are making long-term purchase commitments with SAF makers, and this is less risky and will invigorate investors in SAF plants. Simultaneously, airlines, energy, and technology firms will be partnering to jointly develop SAF projects. Such a strategic alignment within the aviation ecosystem is fast becoming catalyzed into actual investment flows. With more pressure being put on the aviation industry in the region to meet a strict sustainability agenda, there is likely to be a big win in the Sustainable Aviation Fuel Market as airlines undertake green transitions.

Is limited feedstock availability slowing down large-scale SAF deployment efforts?

The availability of sustainable feedstocks is one of the major problems that can stop the development of the Sustainable Aviation Fuel Market. SAF is largely differentiated by the production of raw material based on bio-based material, including used cooking oil, algae, agricultural waste, and other organic residues. Nonetheless, the world supply of these feedstocks is not, at this point, enough to fulfill the fuel-demand forecast of the commercial aviation industry. Most of these raw materials also have direct competition and resource limitations because of other renewable energy uses, including biodiesel or biogas.

The existing differences in where feedstock can be found geographically further exacerbate supply chain logistical issues and price stability. States with undeveloped agriculture industries are likely to have a weakness in developing a steady supply channel of feedstocks. The inability to upscale SAF production on a cost-effective and large scale reflects back on the accessibility to raw materials, since most areas cannot achieve economical operations. The bottleneck poses a major lever to the overall possible growth curve of the Sustainable Aviation Fuel Market, and this is the reason why there should be innovation of alternative feedstocks, and also global supply chain coordination.

Will next-gen technologies unlock cost-effective SAF production at scale?

Future opportunities in the Sustainable Aviation Fuel Market are likely to gain valuable advantages through the creation and implementation of next-generation fuel manufacturing technologies. More sophisticated synthesis routes, such as Fischer-Tropsch synthesis, alcohol-to-jet (ATJ) processing, and power-to-liquid (PtL), are transforming the SAF production landscape to support industrial-scale output. These innovations expand the variety of usable feedstocks, including municipal waste and CO₂-derived synthetic fuels, while enhancing energy efficiency and reducing production costs. Companies and research organizations are actively investing in pilot and full-scale demonstration projects to make SAF a cost-effective and scalable alternative.

As an example, electrofuels derived from renewable electricity and captured carbon offer a carbon-neutral fuel source with massive long-term promise. Additionally, policy incentives are further supporting these developments. In the U.S., SAF producers are eligible for a base tax credit of $1.25 per gallon if their fuel reduces greenhouse gas emissions by at least 50%. An extra $0.01 per gallon is awarded for each additional percent of GHG reduction beyond 50%, up to a maximum of $0.50 per gallon. Producers must also register with the IRS to qualify. Once these technologies mature and regulatory and financial incentives are fully realized, global SAF production capacity is expected to surge. As a result, the Sustainable Aviation Fuel Market is set to undergo a major transformation in terms of accessibility, scalability, and commercial viability in the years ahead.

Can international partnerships boost infrastructure and SAF refinery expansion?

The significant opportunity that the Sustainable Aviation Fuel Market can utilize is connected with the border and international co-operations that might lead to the widening of SAF infrastructure. Strategic alliances are gaining popularity as airlines, energy companies, as well as governments join in co-investing in SAF refinery plants, distribution facilities, and research hubs. These alliances not only combine technical and financial means but also facilitate the process of moving within complicated regulatory landscapes of various regions. One of the most successful global initiatives of closer cooperation between the governments and the private sectors is the Clean Skies for Tomorrow Coalition and the ICAO CORSIA program, which are two strong examples of united efforts geared toward aiding in scaling SAF.

Also, the technology can be transferred, local feed stocks developed, and the workforce trained through trade agreements and joint ventures between the developed and third world countries. Such endeavors will play a vital role in the elimination of centralization of SAF production and the creation of a strong intercontinental supply chain. The Sustainable Aviation Fuel Market will also transform with global involvement and direct responsibility, and it shall be a globalized sector well placed to support a sustainable rise in aviation needs.

What are the key market segments in the Sustainable Aviation Fuel industry?

Based on the Fuel Type, the Sustainable Aviation Fuel Market is classified into Biofuel, Hydrogen Fuel, Power-to-Liquid Fuel, and Synthetic Fuel. Biofuel takes the market share of these because it is highly technologically developed, has regulatory appraisals established, and it can interface with current aircraft engines and the system that is in operation.

To generate biofuels, materials such as used cooking oil, animal fats, and agricultural wastes are usually used, which provide an easier-to-adapt commercial aviation and a lower carbon footprint. Fuel types like hydrogen and PtL are becoming interesting as long-term decarbonization solutions, although today they require costly production and infrastructure integration.

Based on the Raw Materials, the Sustainable Aviation Fuel Market is classified into Used Cooking Oil, Agricultural Waste, Algae, Sugarcane, and Others. Used Cooking Oil is the strongest one, as it can be found almost everywhere, it is relatively cheap, and can be processed into a certified type of aviation fuel using existing methods such as HEFA (Hydroprocessed Esters and Fatty Acids).

Agricultural waste and algae also have potential since they can be renewable, but the scalability is a problem. The algae-based SAF could potentially be of high yield, and yet significant R&D investments are needed to develop commercially useful sources. Other raw materials can be expected to proliferate in the market share over an extended period, though used cooking oil will probably continue dominating at least short term, as the regulatory stimuli and feed stock diversification arise.

Which regions are leading the Sustainable Aviation Fuel Market, and why?

The North America Sustainable Aviation Fuel Market is dominating, which has surged in the past few years due to good government policies, developed biofuel facilities, and involvement of the airline industry. SAF production and uptake and SAF production and uptake-encouraging policies, such as the Sustainable Aviation Fuel Grand Challenge policy and the tax subsidies of the Inflation Reduction Act, lead in the region.

The U.S. companies, including World Energy, Gevo, and Fulcrum BioEnergy, are some of the large players and, hence, have a huge output capacity. Moreover, SAF producers signed long-term offtake agreements with such airlines as United and Delta, which creates stability. North America is likely to continue its dominance in the market of SAF since there is a good supply chain and innovation centers.

The European Sustainable Aviation Fuel Market is rising exponentially due to aggressive decarbonization targets and strict regulatory systems. The European Union, with the ReFuelEU Aviation initiative, plans to implement minimum blending percentages of SAF by 2025. A country such as the Netherlands, Germany, and the U.K. is fast advancing its production of SAF facilities and investing in different technologies of feedstock.

The collaboration of governments, fuel companies, and airline companies is very strong, and this is causing the region to shift towards low-emission aviation at an amazingly fast rate. Along with the growing number of policy pushes and financial incentive schemes, Europe will record the most significant SAF adoption rate in the forthcoming years.

What does the competitive landscape of the Sustainable Aviation Fuel Market look like?

Competitive dynamics of the Sustainable Aviation Fuel Market are defined by the combination of established energy players, as well as biofuel experts, and technological developers making their debut. Neste Corporation, World Energy, Gevo Inc., SkyNRG, LanzaJet, Fulcrum BioEnergy, and TotalEnergies are the key actors to manufacture and build a long-term supply agreement with large airlines. These companies are paying attention to strategic partnerships with aviation stakeholders, governments, and technology companies to expand SAF infrastructure and reduce the cost of production. Several players are also focusing on R&D in order to enhance fuel conversion efficiencies and access to a wide range of feedstocks, including algae, municipal solid wastes, among others, and synthetic fuels.

Big oil corporations such as BP and Shell, interested in expanding to capture the SAF market, are acquiring and partnering with players in the low-carbon portfolio. It is the case to say that some firms are eyeing world markets by setting up SAF facilities in North America, Europe, and the Asia-Pacific region. The process of vertical integration, including feedstock supply and ultimate delivery of the fuel, is increasingly becoming prevalent with the ultimate aim of having end-to-end control and cost effectiveness. In general, the market is relatively fragmented, and the competition is intense in the field of technological development, as well as regulatory conformance and scale-up production.

Sustainable Aviation Fuel Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Sustainable Aviation Fuel industry?

• In May 2024, Neste completed the expansion of its Singapore SAF refinery, increasing production capacity to 1 million tons annually. This strategic move strengthens its position as a global leader in renewable aviation fuel production.
• In April 2024, Boeing signed an agreement with U.S. SAF producers to buy 5.6 million gallons of SAF to support its commercial operations. This initiative highlights Boeing’s commitment to reducing carbon emissions across its supply chain and promoting sustainable aviation practices.

Report Coverage:

By Fuel Type

• Biofuel
• Hydrogen Fuel
• Power-to-Liquid Fuel
• Synthetic Fuel

By Raw Material

• Used Cooking Oil
• Agricultural Waste
• Algae
• Sugarcane
• Others

By Aircraft Type

• Commercial Aviation
• Military Aviation
• Business & General Aviation
• Unmanned Aerial Vehicles

By Blending Capacity

• Below 30%
• 30%–50%
• Above 50%

By End User

• Airlines
• Airport Operators
• Military & Defense
• Private Jet Operators
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Neste Corporation
• World Energy
• Gevo Inc.
• SkyNRG
• LanzaJet, Inc.
• Fulcrum BioEnergy, Inc.
• Velocys plc
• TotalEnergies SE
• BP plc
• Shell plc
• Aemetis, Inc.
• Red Rock Biofuels
• Honeywell International Inc.
• Alder Fuels
• Virent, Inc.

Frequently Asked Questions (FAQs)