Global Sustainable Aviation Fuel Market Size, Share, Growth & Trend Analysis Report, 2032

Summary
Market Landscape
Methodology
Table of Contents

Global Sustainable Aviation Fuel Market Size, Share, Growth & Trend Analysis Report, by Fuel Type (Biofuel, Hydrogen Fuel, Power to Liquid Fuel, Gas-to-Liquid), By Technology, By Aircraft Type, By Platform, By Region, And Segment Forecasts, 2024 – 2032

Sustainable Aviation Fuel (SAF) is a renewable alternative to traditional jet fuel, produced from sustainable sources such as biomass, waste oils, and synthetic processes. It significantly reduces carbon emissions, making air travel more environmentally friendly.

The Global Sustainable Aviation Fuel Market was valued at approximately USD 1 billion in 2024 and is projected to reach USD XX billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of XX% during the forecast period from 2025 to 2032.

Industry Trends

The Sustainable Aviation Fuel (SAF) Market is experiencing rapid growth as airlines and policymakers focus on reducing aviation emissions. According to the U.S. Department of Energy’s Alternative Fuels Data Center (AFDC), SAF can reduce lifecycle greenhouse gas emissions by up to 94% compared to conventional jet fuel.

SAF adoption is critical for the aviation industry to meet its net-zero carbon targets by 2050. Increasing investments in SAF production and commitments from major airlines indicate a strong shift toward sustainable alternatives. Government policies and corporate sustainability goals are the primary drivers of SAF adoption.

According to the International Air Transport Association (IATA), achieving net-zero emissions by 2050 will require a significant increase in SAF production and usage. Additionally, advancements in power-to-liquid (PtL) and hydro-processed esters and fatty acids (HEFA) technologies are improving SAF scalability and cost efficiency.

However, SAF faces several challenges, including high production costs, feedstock limitations, and infrastructure constraints. SAF is currently two to five times more expensive than conventional jet fuel, making widespread adoption difficult without government subsidies and incentives. The AFDC also reports that SAF production is limited due to feedstock shortages and the need for new refineries and supply chains. Overcoming these hurdles will require policy support, increased private investments, and technological advancements to make SAF a viable and scalable solution for the aviation sector.

Industry Expert’s Opinion

Yuriy Román-Leshkov, the Robert T. Haslam Professor of Chemical Engineering

“This is a subclass of fuels that has very specific requirements in terms of the chemistry and the physical properties of the fuel, because you can’t risk something going wrong in an airplane engine, If you’re flying at 30,000 feet, it’s very cold outside, and you don’t want the fuel to thicken or freeze. That’s why the formulation is very specific.”

Sergey Paltsev, Lead author, MIT CS3 deputy director, Senior research scientist, MIT Energy Initiative

“Our findings show that SAF offers a significant decarbonization pathway, which must be combined with an economy-wide emissions mitigation policy that uses market-based mechanisms to offset the remaining emissions”

TT Consultants’ Perspective

The Global Sustainable Aviation Fuel (SAF) Market is experiencing rapid growth, driven by increasing demand for low-carbon alternatives in the aviation sector. Advancements in fuel production technologies and government policies supporting emission reduction are accelerating adoption.

SAF's ability to significantly lower greenhouse gas emissions while being compatible with existing aircraft infrastructure makes it a key solution for sustainable air travel. As airlines and regulatory bodies push for net-zero emissions, the market is expected to expand further, with increased investments and scaling of production capacity.

Market Segmentation

1. By Fuel Type (Biofuel, Hydrogen Fuel, Power-to-Liquid Fuel, Gas-to-Liquid Fuel)

The sustainable aviation fuel market is evolving with various fuel types catering to different aviation needs. Biofuels, derived from biomass sources like plant matter and animal waste, are widely adopted due to their lower carbon footprint and compatibility with existing aviation infrastructure. The SAF market is witnessing increased investments in sustainable aviation fuel producers to enhance biofuel production and efficiency.

Hydrogen-powered aviation is in its early stages but holds great potential as a zero-emission alternative. Industry leaders, including sustainable aviation fuel companies, are focusing on advancing hydrogen storage and fuel cell technologies to drive market growth.

Power-to-liquid fuel (PtL) is gaining traction as a synthetic fuel produced using renewable electricity, CO₂, and water, offering a sustainable alternative to conventional jet fuel. Investments in SAF trading models and SAF global production and usage are accelerating PtL fuel adoption.

Gas-to-liquid fuel (GTL), derived from natural gas through chemical conversion processes, is valued for its high energy density and cleaner combustion. Although currently limited in adoption, the SAF market outlook suggests that technological advancements will play a pivotal role in its expansion.

2. By Technology (HEFA-SPK, FT-SPK)

Fischer-Tropsch synthetic paraffinic kerosene (FT-SPK) is a leading SAF technology that converts biomass, municipal waste, or natural gas into synthetic aviation fuel, significantly reducing greenhouse gas emissions. The McKinsey SAF trading model has emphasized FT-SPK’s potential in shaping the future of the jet fuel market sustainability.

Hydroprocessed esters and fatty acids synthetic paraffinic kerosene (HEFA-SPK) is the most commercially viable method, leveraging vegetable oils and animal fats to create low-emission jet fuel. The presence of major sustainable aviation fuel producers in the HEFA-SPK domain highlights its scalability.

Other emerging technologies, such as alcohol-to-jet (AtJ) and catalytic hydrothermolysis, are drawing interest from sustainable aviation fuel companies due to their feedstock flexibility and sustainability improvements.

3. By Aircraft Type (Fixed-Wing Aircraft, Rotorcraft)

Fixed-wing aircraft leads SAF market adoption, driven by commercial airliners and cargo carriers integrating sustainable aviation fuel stocks to meet net-zero emission targets.

The growing SAF adoption in rotorcraft (helicopters) is fueled by its application in emergency services, tourism, and cargo transport. The sustainable aviation fuel price remains a determining factor for increased adoption, with research aimed at making SAF prices more competitive with traditional jet fuels.

4. By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)

North America dominates the sustainable aviation fuel market, with the U.S. and Canada spearheading initiatives through government policies, corporate investments, and expanding SAF production facilities.

Europe follows closely, propelled by stringent emissions regulations and ambitious sustainability targets set by the EU, fostering sustainable aviation fuel airports ‘commodities trading’.

Asia Pacific is witnessing high SAF growth, supported by aviation activities, sustainability initiatives, and infrastructure development in China, India, and Japan.

Latin America is progressing with SAF adoption, led by airline sustainability commitments and government-backed biofuel initiatives, with Brazil being a key player.

The Middle East and Africa (MEA) are investing in SAF production, with a focus on diversifying the energy sector and forming partnerships with global aviation stakeholders.

Competitive Scenario

The key competitors in the global sustainable aviation fuel market include, among others, Aemetis Inc., Avfuel Corporation, Fulcrum BioEnergy, Gevo, TotalEnergies, LanzaTech, Neste, Preem AB, Sasol Limited, SkyNRG B.V., and World Energy LLC.

Strategic Activities

In December 2024, Air New Zealand has entered into an agreement with Neste for the supply of around 23,000 tons of Sustainable Aviation Fuel. This marks the airline's most significant SAF procurement, with deliveries scheduled through February 2026 at Los Angeles and San Francisco airports.
In December 2024, Illinois Governor J.B. Pritzker announced up to USD 820 million investment in Sustainable Aviation Fuel production in Southwest Illinois. The initiative, led by Avina Clean Hydrogen, is expected to create 150 new full-time jobs and bolster the state's position in the sustainable energy sector.
In November 2024, the Asia Sustainable Aviation Fuel Association (ASAFA) was established in Singapore. The organization aims to accelerate SAF production and usage across Asia, addressing regional challenges and promoting collaboration among stakeholders.
In October 2024, Delta Air Lines has introduced Sustainable Aviation Fuel at its Minneapolis-St. Paul International Airport (MSP) and Detroit Metropolitan Airport (DTW) hubs. This initiative marks the first time SAF has been delivered via pipeline to these airports, underscoring Delta's commitment to reducing its carbon footprint.