The growing consumer preferences for sustainable products, technological advancements, regulatory actions, and environmental awareness are expected to drive the global sustainable aviation fuel market growth. In addition, the growing demand for sustainable aviation solutions, improvements in sustainable aviation fuel, and expanding economies of scale are all expected to contribute to the growth of the market in the years to come.
WESTFORD, Mass., Aug. 12, 2025 /PRNewswire/ -- SkyQuest Technology Consulting published a report, titled, Sustainable Aviation Fuel Market - Global Opportunity Analysis and Industry Forecast, 2025-2032", valued at USD 1.27 Billion in 2024. With a projected CAGR of 48% from 2025 to 2032, the market is expected to reach USD 45.70 Billion by the end of 2032. This growth is due to the demand from aviation industry to reduce carbon footprint with sustainable aviation fuel solutions.
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Sustainable Aviation Fuel Market Key Growth Drivers
There is growing pressure on the aviation industry to reduce its carbon footprint as demand for sustainable aviation fuel (SAF) solutions increases. For instance, the International Air Transport Association (IATA) states that the aviation sector aims to achieve net-zero carbon emissions by 2050. To achieve this goal, new technologies and sustainable aviation fuels (SAF), which are expected to reduce emissions by 80%, will be required. Additionally, air routes are being optimized, airport congestion is being decreased, and environmental impacts are being managed through noise and waste reduction.
As environmental awareness increases globally, eco-friendly alternatives to traditional jet fuels are gaining popularity among passengers and airlines. SAFs, which are derived from renewable resources like biomass, waste oils, and agricultural residues, significantly reduce greenhouse gas emissions when compared to conventional fossil fuels. Airlines are driving this demand to meet corporate sustainability goals, improve environmental ratings, and comply with international carbon-reduction commitments, like those set by the International Civil Aviation Organization (ICAO). The increasing demand for SAF is expected to increase production capacity, and investment in green aviation technologies.
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Recent Developments in Sustainable Aviation Fuel Market
- In May 2025, Infinium commenced construction of Project Roadrunner near Pecos, Texas, set to become the world's largest eFuels facility. Scheduled to be operational by 2027, the plant will produce 23,000 tonnes (7.6 million gallons) annually of SAF and other eFuel products for major customers such as American Airlines and IAG. The facility will utilize 150 megawatts of wind energy and on-site green hydrogen production, marking Infinium's second Texas venture following its 2023 Project Pathfinder in Corpus Christi.
- In May 2025, Qantas and Sydney Airport partnered with Ampol to import 1.7 million litres of SAF at Kurnell, marking Australia's largest SAF deal. This fuel, derived from organic sources like biowaste, will power up to 900 Boeing 737 flights between Sydney and Auckland when blended. The CEOs of Sydney Airport and Qantas are advocating for government support to establish a domestic canola-based SAF industry, highlighting New South Wales' existing role as a major canola producer.
- In February 2025, Boeing partnered with Hindustan Petroleum Corporation Limited (HPCL) to develop a sustainable aviation fuel ecosystem in India. The collaboration aims to scale SAF production, support certification of domestically produced SAF, and advocate for policies to develop a robust SAF ecosystem in the country. This initiative aligns with India's potential to be a key SAF producer by utilizing ethanol supplies and non-edible industrial oils.
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Competitive Landscape
Gevo Inc., Fulcrum BioEnergy, Alder Energy LLC, Cemvita, USA BioEnergy, Shell Aviation, and Neste are all contributing to the growth of the sustainable aviation fuel (SAF) sector. These companies produce SAF from renewable feedstocks like bio-based hydrocarbons, municipal solid waste, and agricultural waste using a range of technologies, such as gasification, bioengineering, and alcohol-to-jet conversion. They use innovative production methods and strategic alliances to meet the growing demand for low-carbon aviation solutions. This boosts the supply of sustainable fuels and assists the aviation sector in meeting its global emissions reduction goals.
The Major Players in the Sustainable Aviation Fuel Industry Include,
- Neste
- TotalEnergies
- World Energy, LLC
- Eni S.p.A.
- OMV Aktiengesellschaft
- Shell International B.V.
- LanzaTech
- Gevo
- Velocys Ltd.
- Northwest Advanced Bio-Fuels, LLC
- SkyNRG B.V.
- Topsoe A/S
- Aemetis, Inc.
- World Kinect Corporation
- Phillips 66 Company
- Alder Energy, LLC
- Moeve
- Preem AB
- BP p.l.c.
- Repsol
Major Challenges in Sustainable Aviation Fuel Industry
As SAF is still two to three times more expensive than regular jet fuel, operating an airline is more costly. Global output in 2025 will only cover about 0.7% of demand due to limited manufacturing capacity. Due to strict blending regulations like ReFuelEU, it will be difficult to get enough of the product. These factors increase the cost of tickets and prevent their widespread use.
In addition, regulations that are unclear or subject to change, such as China's postponing mandates, and the US's modifications to its ethanol credit models, are the source of market volatility. Additionally, the absence of production and blending infrastructure, such as refineries, storage facilities, and distribution networks, hinders growth and reduces the likelihood of investment from the public and private sectors.
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Sustainable Aviation Fuel Market Segmental Analysis
The global sustainable aviation fuel market is segmented into fuel type, biofuel conversion pathway, biofuel blending capacity, aircraft type, end user, and region.
- By fuel type, the biofuel category is the most widely used type of SAF in 2024 due to their compatibility with current airport fueling systems and aircraft engines. Commercial use of biofuels, which are made from spent oils and fats, is already permitted. They are therefore a good option for reducing aviation's carbon footprint soon.
- By biofuel conversion pathway, in 2024, the most common SAF conversion mechanism remained the hydroprocessed esters and fatty acids (HEFA-SPK) conversion pathway. A globally approved and commercially viable fuel, HEFA-SPK is derived from renewable lipids such as recycled cooking oil. With lower lifetime emissions and minimal infrastructure requirements, it is a dependable drop-in fuel choice for airlines.
- By biofuel blending capacity, in 2024, the sector with blending capacities below 30% is the most popular due to current technological and legal limitations. Within this range, the majority of commercial airlines use a blend of SAF and ordinary jet fuel. Without having to replace the engines or install new fueling systems, this keeps the aircraft operating efficiently and helps them meet their sustainability goals.
- By aircraft type, since major airlines like United and Lufthansa started using SAF on their regular flights, commercial aircraft used it the most in 2024. The rapid adoption of SAF in the aviation fuel industry can be attributed in large part to this market. This is a result of the desire for more environmentally friendly travel held by both the public and the government.
- By end user, airliner segment accounted for the majority of demand in 2024, they are the primary end users of SAF. As more people want to travel in an environmentally friendly manner, airlines are incorporating SAF into their fuel mix to reduce emissions, comply with regulations like CORSIA and ReFuelEU, and enhance their brand value.
Regional Outlook
- North America dominated the sustainable aviation fuel market by 2024, due to US initiatives like the SAF Grand Challenge and resolute pledges from United and Delta Airlines. Airlines and fuel producers can collaborate more easily and increase their output due to federal regulations and incentives, such as tax credits under the Inflation Reduction Act.
- SAF programs are expanding quickly throughout Asia-Pacific, particularly in Singapore and Japan. SAF is now being used on commercial flights operated by ANA and Japan Airlines. The largest SAF manufacturing facility in the world is in Singapore's Neste factory. In addition to meeting aggressive decarbonization targets for aviation hubs in 2025, it improved the local supply.
- Europe holds a significant share of the market due to its strict climate change regulations. The ReFuelEU program calls for a higher SAF composition beginning in 2025. Governments are supporting manufacturing initiatives with funding and partnerships to meet strict emissions reduction targets. Airline companies such as Lufthansa and Air France-KLM are also investing in SAF.
- The usage of SAF is on the rise in LAMEA and the two leaders in adoption currently are Brazil and the United Arab Emirates, and Etihad and Emirates have both been testing it on long-haul flights recently. Brazil is using its understanding of biofuels to investigate domestic SAF production, however, in too many locations it becomes difficult for others to pursue it due to infrastructure and regulatory challenges.
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