Global Sustainable Aviation Fuel Market Size, Share Analysis Report By Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel, Gas-to-Liquid), By Technology (HEFA-SPK, FT-SPK, HFS-SIP, ATJ-SPK), By Aircraft Type (Fixed Wings, Rotorcraft, Others), By Platform (Commercial, Regional Transport Aircraft, Military Aviation, Business and General Aviation, Unmanned Aerial Vehicles) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Sustainable Aviation Fuel Market size is expected to be worth around USD 78.8 Billion by 2034, from USD 0.9 Billion in 2024, growing at a CAGR of 56.4% during the forecast period from 2025 to 2034. In 2024, Asia-Pacific (APAC) held a dominant market position, capturing more than a 38.2% share, holding USD 194.1 Million revenue.

Sustainable Aviation Fuel (SAF) has emerged as a pivotal component in the aviation sector’s strategy to achieve net-zero carbon emissions by 2050. SAF is produced from renewable or waste-derived feedstocks, offering a substantial reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel. The International Air Transport Association (IATA) estimates that SAF could contribute approximately 65% of the emissions reductions necessary for aviation to reach net-zero CO₂ emissions by 2050.

The Sustainable Aviation Fuel is experiencing significant transformation, driven by both policy initiatives and technological advancements. In the United States, the Department of Energy (DOE), Department of Transportation (DOT), and Department of Agriculture (USDA) have launched the Sustainable Aviation Fuel Grand Challenge. This initiative aims to scale up SAF production to 3 billion gallons per year by 2030 and to meet 100% of domestic commercial jet fuel demand by 2050.

In 2023, global SAF production reached 600 million liters, doubling the 300 million liters produced in 2022. This growth was primarily attributed to the expansion of SAF production facilities in the United States. In 2024, SAF production volumes reached 1 million tonnes (1.3 billion liters), double the 0.5 million tonnes (600 million liters) produced in 2023. SAF accounted for 0.3% of global jet fuel production and 11% of global renewable fuel.

Government policies play a crucial role in advancing SAF adoption. In the United States, the Inflation Reduction Act of 2022 introduced a tax credit for SAF producers, offering between $1.25 and $1.75 per gallon, depending on the fuel’s emission reduction compared to conventional jet fuel. This incentive aims to make SAF more competitive with traditional fuels and stimulate investment in SAF infrastructure.

Internationally, the European Union’s ReFuelEU Aviation initiative mandates a gradual increase in SAF blending, starting with a 2% minimum blend in 2025 and rising to 70% by 2050. This legislation is part of the EU’s broader ‘Fit for 55’ package, which seeks to reduce greenhouse gas emissions by 55% by 2030.

Key Takeaways

• The Sustainable Aviation Fuel (SAF) Market is projected to grow significantly from USD 0.9 billion in 2024 to approximately USD 78.8 billion by 2034, registering a robust CAGR of 56.4% over the forecast period.
• Biofuel emerged as the leading fuel type, accounting for over 71.9% of the total SAF market share.
• Among the production technologies, HEFA-SPK (Hydroprocessed Esters and Fatty Acids Synthetic Paraffinic Kerosene) held the dominant position, contributing more than 61.8% to the SAF market.
• The Fixed Wings aircraft category led the platform segment, capturing a substantial 87.3% share in the SAF market.
• In terms of end use, the Commercial aviation sector dominated the market, representing over 68.4% of total SAF consumption.
• North America emerged as the key regional market, holding a 45.9% share, valued at approximately USD 0.4 billion in 2024.

By Fuel Type Analysis

Biofuel dominates Sustainable Aviation Fuel Market with 71.9% in 2024 due to renewable sourcing and environmental benefits

In 2024, Biofuel held a dominant market position in the Sustainable Aviation Fuel (SAF) sector, capturing more than a 71.9% share. This growth is largely driven by biofuels’ renewable nature and their significant reduction in greenhouse gas emissions compared to conventional jet fuels. The adoption of biofuel-based SAF is further supported by government incentives and mandates aimed at reducing the aviation industry’s carbon footprint. As governments around the world ramp up their support for sustainable energy sources, biofuel continues to be the primary choice for SAF production due to its proven benefits in terms of sustainability and environmental impact.

In 2025, the market share of biofuels is expected to grow further as more production facilities are set up to scale the availability of SAF. Advancements in technology, such as improved feedstock processing and more efficient fuel conversion methods, are anticipated to make biofuel even more competitive. Moreover, with increasing pressure to meet global emission reduction targets, airlines and fuel producers are likely to continue investing in biofuels as a sustainable alternative to conventional aviation fuels.

By Technology Analysis

HEFA-SPK dominates Sustainable Aviation Fuel Market with 61.8% in 2024 due to efficiency and scalability

In 2024, HEFA-SPK (Hydroprocessed Esters and Fatty Acids Synthetic Paraffinic Kerosene) held a dominant market position, capturing more than a 61.8% share in the Sustainable Aviation Fuel (SAF) market. This technology remains the leading choice due to its efficiency in converting renewable feedstocks, such as used cooking oils and fats, into high-quality aviation fuel. The HEFA-SPK process offers significant advantages in terms of scalability, allowing for increased production to meet the growing demand for SAF. As airlines strive to reduce their carbon emissions and comply with sustainability regulations, HEFA-SPK has become a preferred technology.

Looking ahead to 2025, HEFA-SPK is expected to maintain its leadership position, with further investments in refining technologies likely to improve fuel yields and reduce production costs. This technology’s widespread adoption is expected to continue, supported by global regulatory frameworks, such as the European Union’s ReFuelEU initiative, which incentivizes the use of SAF. As SAF production ramps up, HEFA-SPK is anticipated to be central to the industry’s efforts to meet sustainability goals while ensuring fuel availability at competitive prices.

By Aircraft Type Analysis

Fixed Wings dominate Sustainable Aviation Fuel Market with 87.3% in 2024 due to large-scale adoption

In 2024, Fixed Wings held a dominant market position, capturing more than an 87.3% share of the Sustainable Aviation Fuel (SAF) market. This is largely attributed to the significant role of commercial aircraft, such as passenger planes, that rely heavily on jet fuel. Fixed-wing aircraft, due to their widespread usage in the aviation industry, have been the primary focus for SAF adoption, with airlines striving to reduce their carbon footprint and align with sustainability targets. The large-scale infrastructure and higher fuel consumption of fixed-wing aircraft make them ideal candidates for SAF utilization, especially as SAF becomes more readily available and cost-competitive.

Looking ahead to 2025, the share of fixed-wing aircraft in the SAF market is expected to remain strong, with continued focus on reducing emissions from long-haul flights and intercontinental travel. As airlines continue to prioritize sustainability, the demand for SAF in fixed-wing aircraft is anticipated to increase. Further technological advancements in SAF production and improved fuel efficiency will likely drive even greater adoption in the fixed-wing segment, helping the aviation industry reach its environmental goals.

By Platform Analysis

Commercial dominates Sustainable Aviation Fuel Market with 68.4% in 2024 due to large-scale fuel consumption

In 2024, Commercial held a dominant market position, capturing more than a 68.4% share of the Sustainable Aviation Fuel (SAF) market. This dominance is primarily driven by the large-scale consumption of fuel by commercial airlines, which account for the majority of global air travel. As sustainability becomes a key focus for the aviation sector, commercial platforms have been at the forefront of SAF adoption, driven by regulatory pressures and increasing consumer demand for environmentally-friendly travel options. The availability of SAF for commercial aircraft has been rapidly growing, and major airlines have made significant commitments to integrate SAF into their operations.

The commercial segment is expected to continue holding the majority share of the SAF market, with more airlines incorporating SAF into their fleets to meet global carbon reduction targets. Increased production capacity and better infrastructure to support SAF distribution will likely drive further growth in the commercial aviation sector. As the transition to SAF continues, the commercial aviation industry remains a key driver of SAF adoption, contributing significantly to the industry’s long-term sustainability goals.

Key Market Segments

By Fuel Type

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

By Technology

• HEFA-SPK
• FT-SPK
• HFS-SIP
• ATJ-SPK

By Aircraft Type

• Fixed Wings
• Rotorcraft
• Others

By Platform

• Commercial
• Regional Transport Aircraft
• Military Aviation
• Business & General Aviation
• Unmanned Aerial Vehicles

Emerging Trends

India’s Strategic Push for Sustainable Aviation Fuel (SAF)

India is actively advancing towards integrating Sustainable Aviation Fuel (SAF) into its aviation sector, aiming to reduce carbon emissions and enhance energy security. The government has set clear targets for SAF blending, with the goal of achieving 1% SAF blending in jet fuel by 2027 and 2% by 2028. To meet these objectives, India plans to require approximately 140 million liters of SAF annually for the 1% blend and 700 million liters for the 5% blend.

The Indian government has introduced several initiatives to support SAF development. The National Biofuels Coordination Committee has established blending targets, and the Ministry of Petroleum and Natural Gas is promoting SAF production using indigenous feedstocks such as sugarcane molasses. Additionally, Indian Oil Corporation (IOC) is upgrading its Panipat refinery to produce 30,000 metric tons of SAF annually from used cooking oil.

These efforts are expected to generate significant socio-economic benefits. The production of SAF using sugarcane molasses is anticipated to support over 500,000 farmers and create more than 100,000 green jobs, contributing to rural development and economic growth.

In summary, India’s strategic initiatives in SAF development reflect a commitment to sustainable aviation practices, energy security, and socio-economic development. Through targeted blending mandates, infrastructure investments, and support for indigenous feedstock utilization, India is positioning itself as a leader in the global transition to sustainable aviation fuels.

Drivers

Growing Demand for Sustainable Aviation Fuel Driven by Environmental Regulations

Sustainable aviation fuel (SAF) is becoming a critical factor in the aviation industry’s effort to reduce its carbon footprint and meet increasingly stringent environmental regulations. One of the primary driving forces behind the surge in SAF adoption is the growing global demand for cleaner, more sustainable fuel alternatives. Governments and international organizations are placing increasing pressure on the aviation sector to reduce its greenhouse gas emissions, with SAF offering a viable solution.

• According to the International Air Transport Association (IATA), the aviation sector accounts for around 2-3% of global CO2 emissions, making it one of the most significant contributors to climate change. To mitigate these impacts, the aviation industry is adopting SAF as part of its efforts to meet ambitious targets set by the Paris Agreement.

The adoption of SAF is also spurred by government initiatives and financial incentives aimed at reducing the carbon intensity of air travel. For example, the European Union has introduced the “Fit for 55” package, which sets a target of reducing carbon emissions by 55% by 2030. Part of this effort includes encouraging the use of SAF, with the EU planning to allocate substantial investments to SAF production and infrastructure. This shift is further supported by several state and federal funding programs, including tax incentives and subsidies for companies investing in SAF technologies.

• For instance, United Airlines has already committed to purchasing 3 billion gallons of SAF over the next 20 years. This commitment reflects the rising willingness within the industry to invest in cleaner fuel alternatives, driven by both regulatory requirements and the demand for sustainable aviation practices.

Restraints

High Production Costs and Limited Infrastructure

One of the significant restraining factors in the widespread adoption of Sustainable Aviation Fuel (SAF) is the high production cost and the limited infrastructure required for its large-scale production and distribution. Despite its environmental benefits, SAF remains considerably more expensive than traditional jet fuel.

• According to the U.S. Department of Energy, SAF costs are currently about 2-4 times higher than conventional jet fuel, primarily due to the complex production processes and the limited supply of raw materials like used cooking oils, animal fats, and certain agricultural residues.

The high cost of SAF has resulted in limited demand, as airlines are reluctant to pay a premium for fuel that is still considered a niche product. Although many governments are providing incentives to promote SAF usage, the price gap remains a major barrier. For example, the U.S. government has proposed a blending mandate for SAF, but the price difference still discourages widespread adoption. To bridge this gap, the industry requires continued financial support from both the private sector and government agencies.

Moreover, infrastructure to support SAF production, storage, and distribution is not yet adequately developed. Many airports and refineries still lack the capacity to handle SAF at a scale that would make it a competitive alternative to conventional jet fuel. Governments are beginning to address this issue by investing in infrastructure upgrades. In the European Union, for instance, the “ReFuelEU Aviation” initiative is setting targets for SAF production and ensuring that airports increase their capacity to handle sustainable fuel.

Opportunity

Expansion of SAF Production through Agricultural Waste Utilization

One of the most promising growth opportunities for Sustainable Aviation Fuel (SAF) lies in utilizing agricultural waste as a key feedstock for its production. As global demand for SAF continues to rise, the aviation industry is looking for ways to reduce production costs and improve the sustainability of SAF. Agricultural waste, such as corn stover, wheat straw, and rice husks, presents a significant untapped resource that can be converted into biofuels.

According to the U.S. Department of Agriculture (USDA), agricultural waste represents a large portion of the country’s annual biomass supply, with millions of tons of agricultural residues produced each year. By converting these residues into SAF, the industry can help reduce reliance on food-based crops, a key concern among environmental advocates. The USDA estimates that by 2040, the U.S. could produce over 1.3 billion tons of biomass annually, much of which could be used for biofuels like SAF.

Government initiatives are accelerating this shift. In the U.S., the Department of Energy’s Bioenergy Technologies Office is funding projects aimed at improving the conversion of agricultural waste into biofuels. Similarly, the European Union’s “Farm to Fork” strategy promotes sustainable agriculture and includes plans to enhance the use of organic waste for renewable energy production. The EU is targeting a 10% share of SAF in the aviation fuel mix by 2030, and utilizing agricultural waste is expected to play a major role in achieving this goal.

Regional Insights

North America Leads Sustainable Aviation Fuel Market with 45.9% Share in 2024

The North American region is a leading player in the global Sustainable Aviation Fuel (SAF) market, holding a significant share of 45.9%, with a market value estimated at USD 0.4 billion in 2024. This dominant position can be attributed to several key factors, including the region’s strong aviation infrastructure, substantial investments in green technologies, and progressive government policies aimed at reducing carbon emissions in the aviation industry.

The United States plays a pivotal role in driving the market in North America, thanks to its robust aviation sector, which includes major airline companies and airports committed to achieving sustainable fuel usage. The U.S. government has implemented policies such as the Blended Fuel Tax Credit and SAF incentives under the Inflation Reduction Act (IRA) to encourage SAF production and usage. Additionally, companies like United Airlines and Delta Air Lines are actively engaging in partnerships with fuel producers to increase SAF blending percentages in their operations, which directly boosts market demand.

North America’s leadership in SAF is further reinforced by substantial investments in SAF production infrastructure. The region is home to some of the world’s largest SAF production plants, such as World Energy’s refinery in California, which has become the first to produce SAF in large commercial quantities. Furthermore, the growing adoption of clean energy technologies and a focus on energy transition policies within the U.S. and Canada contribute to a positive growth trajectory for SAF in the region.

Key Regions and Countries Insights

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Aemetis Inc. is a key player in the Sustainable Aviation Fuel (SAF) market, focused on producing renewable fuels from sustainable feedstocks. The company operates a production facility in California, converting agricultural waste into low-carbon SAF. Aemetis has partnered with major airlines to supply SAF, contributing to the aviation industry’s decarbonization efforts. Their renewable diesel and SAF production capabilities aim to reduce carbon emissions significantly while meeting growing market demand for eco-friendly aviation fuels.

Eni SPA, an Italian multinational energy company, has ventured into the SAF market through its commitment to the sustainable production of biofuels. Eni’s SAF initiative focuses on leveraging renewable resources, including agricultural waste and non-food biomass, to produce cleaner aviation fuels. The company operates one of Europe’s first integrated bio-refineries dedicated to producing biojet fuel, aligning with the European Union’s ambitious targets for reducing emissions from the aviation sector.

Fulcrum BioEnergy, Inc. is a pioneer in the production of SAF from municipal solid waste (MSW). The company’s innovative approach involves converting waste materials into low-carbon aviation fuel, which offers a sustainable solution to reduce greenhouse gas emissions in the aviation industry. Fulcrum’s project pipeline includes large-scale SAF production facilities in the U.S., and its efforts are supported by strong partnerships with major airlines and industry stakeholders working towards a more sustainable aviation future.

Top Key Players Outlook

• Aemetis Inc.
• Avfuel Corporation
• Ballard Power Systems
• Eni SPA
• Fulcrum BioEnergy, Inc.
• Gevo Inc.
• LanzaTech
• Neste Oyj
• Northwest Advanced Biofuels, LLC.
• OMV Aktiengesellschaft
• Preem AB
• Sasol Limited
• SkyNRG B.V.
• TotalEnergies SE
• Velocys

Recent Industry Developments

In 2025, Enilive commenced SAF production at its Gela biorefinery in Sicily, with an initial capacity of 400,000 tonnes per year, representing nearly one-third of the expected European SAF demand for that year.

In 2024, Ballard partnered with the EU-funded TULIPS consortium to develop a hydrogen-powered tow tractor for Schiphol Airport in the Netherlands. This tractor integrates Ballard’s 100 kW FCmove®-HD+ hydrogen fuel cell engine, aiming to reduce emissions from airport ground operations.

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