Sustainable Aviation Fuel Market (2025 - 2030) Size, Share & Trends Analysis Report By Fuel Type (Biofuel, Hydrogen Fuel), By Technology, By Aircraft Type, By Platform, By Region, And Segment Forecasts

Sustainable Aviation Fuel Market Summary

The global sustainable aviation fuel market size was estimated at USD 1.04 billion in 2024 and is projected to reach USD 15.85 billion by 2030, growing at a CAGR of 57.5% from 2025 to 2030. The rise in environmental concerns, regulatory support and increasing demand for clean.

Sustainable fuels in the commercial and military aviation industries are projected to fuel the sustainable aviation fuel market growth in the coming years. The sustainable aviation fuel market in the U.S. is predicted to expand due to the awareness regarding environmental concerns, technological improvements, regulatory measures, and the shift in consumer preferences for sustainable products. Sustainable fuel offers high viscosity, and high density in the aviation industry. Sustainable fuels comprise of a wide range of energy sources and carriers derived from renewable or low-carbon feedstocks. 

The growing demand for sustainable aviation solutions, together with sustainable aviation fuel improvements and improving economies of scale, is likely to fuel the expansion of the SAF market in the coming years. Moreover, various firms and government agencies are actively pioneering innovative manufacturing procedures in the global sustainable aviation fuel market.

The increasing intervention of the U.S. Department of Energy’s Bioenergy Technologies and other organizations, are projected to fuel the growth of the sustainable aviation fuel market in the U.S. over the forecast period. For instance, the U.S. Department of Agriculture (USDA) merged with the sustainable aviation fuels grand challenge by the government to promote the production of sustainable aviation fuels to around 3 billion gallons per annum by 2030.

The rise in continued research, development, demonstration, and deployment of technologies to eliminate impediments to the widespread use of low-carbon sustainable aviation fuel (SAF) in the country are likely to drive the sustainable aviation fuels market growth in the forecast period.

Drivers, Opportunities & Restraints

The SAF market is experiencing significant growth, driven by a confluence of environmental, technological, and regulatory factors. Airlines are increasingly adopting SAF to meet stringent emissions reduction targets and respond to consumer demand for greener travel options. Advancements in feedstock processing and refining technologies, such as Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol-to-Jet (AtJ), have enhanced the efficiency and scalability of SAF production, making it a more viable alternative to conventional jet fuel. These developments are complemented by supportive policies and mandates in regions like North America and Europe, where governments are incentivizing SAF adoption through subsidies and regulatory frameworks. For instance, the U.S. Department of Energy's SAF Grand Challenge aims to increase emissions reductions and de-risk technology and supply chains through demonstration, funding, and policy analysis.

Despite these positive drivers, the SAF market faces several challenges that could impede its widespread adoption. One of the primary restraints is the high production cost of SAF, which is currently three to five times more expensive than traditional jet fuel. This cost disparity is largely due to the nascent stage of SAF technologies and the limited availability of cost-effective feedstocks. Additionally, infrastructural limitations, such as the need for specialized storage and distribution systems, pose logistical challenges. The integration of SAF into existing fuel supply chains requires significant investment and coordination among stakeholders. Moreover, the limited adoption of certain SAF types, such as hydrogen-based fuels, is hindered by challenges in production, storage, and distribution infrastructure.

Nevertheless, the SAF market presents substantial opportunities for growth and innovation. The increasing focus on reducing greenhouse gas emissions has created a favorable environment for SAF development. Governments and industries are investing in research and development to improve SAF technologies and reduce production costs. Collaborations between airlines, fuel producers, and technology companies are fostering the development of new SAF pathways and feedstock options. For example, Brazil's recent $1 billion investment in SAF production from sugarcane highlights the potential for bio-based SAF in emerging markets. As the industry continues to innovate and scale up production, SAF is poised to play a critical role in the decarbonization of the aviation sector.

Technology Insights

The FT-SPK type dominated the technology segment and accounted for the largest market share of over 44.0% in terms of revenue in 2024. The Fischer-Tropsch (FT) Synthetic Paraffinic Kerosene (SPK) technology plays a vital role in the market for sustainable aviation fuel (SAF). It is a process that converts diverse feedstocks into synthetic aviation fuels, such as natural gas, coal, biomass, and municipal solid waste. Due to its adaptability and potential to reduce greenhouse gas emissions, FT-SPK is seen as a promising technology for manufacturing SAF.

The FT-SPK system is used in a variety of feedstocks, including biomass, trash, and natural gas. The Fischer-Tropsch Synthetic Paraffinic Kerosene technique provides a potential route to creating sustainable aviation fuel. Its adaptability, lower emissions, compatibility with existing infrastructure, and government and industry stakeholder support all contribute to its rise in the sustainable aviation fuel market.

HEFA-SPK is another type with a significant market penetration and growth rate as it produces the majority of commercially accessible biofuels. To degrade the lipid molecules into hydrocarbons, the HEFA-SPK sector uses vegetable oil that is first oxygenated and then hydrogenated. Furthermore, continued R&D initiatives to improve the efficiency of HEFA-SPK production processes, reduce costs, and extend feedstock possibilities are projected to drive market expansion.

Fuel Type Insights

The biofuel dominated the fuel type segment and accounted for the largest revenue share of over 71.0% in 2024. The biomass, including plant matter and animal waste, is used to make biofuels either directly or indirectly. The majority of the raw materials utilized in the production of biofuels are traditional natural biomass, including fuelwood, charcoal, and animal manure. Growing emphasis on renewable energy sources, environmental sustainability, and the goal to lower greenhouse gas emissions are some of the causes driving the rise of the biofuels market.

Moreover, the growing number of ecologically conscious consumers are predicted to propel the adoption of biofuel-powered vehicles and products. This demand stimulates the use and expansion of biofuel production. The biofuels industry is predicted to grow as a result of technological advancements and a shift in consumer behavior toward sustainable energy alternatives. These development factors are projected to drive additional expansion of the biofuels industry in the future years.

Aircraft Type Insights

The fixed wings dominated the aircraft type segment and accounted for the largest revenue share of over 42.0% in 2024. Several dynamic factors impact the growth trajectory of the sustainable aviation fuel market for fixed-wing aircraft. As the general population becomes more conscious of climate change and the environmental impact of aviation, is expected to boost the demand for more environmentally friendly air travel options.

The market for sustainable aviation fuel for rotorcraft (helicopters) is expected to grow significantly over the forecast period. Rotorcraft are utilized for a variety of activities such as emergency services, tourism, and cargo transportation. SAF manufacturing process advancements, such as the use of alternate feedstocks and synthetic fuels, can improve sustainability and lower costs, making SAF more appealing to rotorcraft operators.

Platform Insights

The commercial dominated the platform segment and accounted for the largest revenue share of over 33.0% in 2024. The market for sustainable aviation fuel (SAF) in the commercial aviation sector has been steadily rising, driven by a combination of environmental concerns, regulatory demands, and industry initiatives. Increased public awareness of climate change and environmental issues is projected to increase the adoption of sustainable practices.

Several growth drivers influence the regional transport aircraft sector's sustainable aviation fuel (SAF) market, which includes smaller passenger planes and turboprop aircraft utilized for shorter itineraries. Environmental restrictions and emissions reduction targets set by governments and international aviation organizations are projected to boost the industry in the future years.

Regional Insights

The North America dominated the market with the largest revenue share of 46.44% in 2024, driven by robust regulatory support, technological advancements, and increasing airline commitments to decarbonization. The U.S. government's initiatives, such as the Inflation Reduction Act and the Sustainable Skies Act, provide tax credits and subsidies that incentivize SAF production and adoption. State-level programs such as California's Low Carbon Fuel Standard further bolster these efforts. Major airlines, including United, Delta, and American Airlines, have entered into long-term agreements with SAF producers such as Neste, World Energy, and LanzaJet to secure sustainable fuel supplies. Technologies such as Hydroprocessed Esters and Fatty Acids (HEFA), Alcohol-to-Jet (AtJ), and Fischer-Tropsch synthesis are being employed to convert various feedstocks into SAF, enhancing production capabilities.

Asia Pacific Sustainable Aviation Fuel Market Trends

Asia Pacific accounted for a market revenue share of more than 15.0% in 2024. The Asia Pacific (APAC) region is emerging as a significant player in the SAF market, driven by a combination of environmental policies, abundant feedstock availability, and a rapidly expanding aviation sector. Countries such as China, Japan, and Singapore are investing heavily in SAF production and infrastructure. For instance, Singapore plans to mandate SAF usage for all flights from 2026, starting with a 1% blend, aiming to increase this to 3%-5% by 2030. Similarly, Malaysia intends to commence SAF production in 2027, targeting an initial capacity of one million metric tons annually. These initiatives are bolstered by collaborations between governments and private entities, aiming to position APAC as a leading SAF producer and exporter.

Europe Sustainable Aviation Fuel Market Trends

The European Sustainable Aviation Fuel (SAF) market is experiencing significant growth, driven by stringent environmental regulations and ambitious decarbonization targets set by the European Union. The ReFuelEU Aviation initiative mandates a progressive increase in SAF blending, starting at 2% in 2025 and aiming for 70% by 2050, to reduce greenhouse gas emissions in the aviation sector. This regulatory framework is complemented by national policies and incentives across member states, fostering investments in SAF production and infrastructure.

Latin America Sustainable Aviation Fuel Market Trends

The SAF market in Latin America is gaining momentum, propelled by the region's abundant biomass resources, supportive policy frameworks, and increasing international investments. Countries like Brazil, Colombia, and Chile are leading the charge. Brazil, for instance, has attracted a USD 1 billion investment from China's Envision Energy to produce SAF from sugarcane. Brazil's development bank, BNDES, and funding agency FINEP have also committed another USD 1 billion to SAF projects, focusing on research and technological development. Chile aims to establish its first large-scale SAF plant by 2030, targeting to meet half of its aviation fuel demand with SAF by 2050. Colombia is also making strides, with state-owned energy company Ecopetrol planning to invest up to $700 million in a new SAF production facility.

Middle East & Africa Sustainable Aviation Fuel Market Trends

The Middle East & Africa is increasingly positioning itself as a pivotal player in the SAF market, propelled by its strategic location, robust aviation sector, and ambitious sustainability goals. Countries such as the UAE and Saudi Arabia are integrating SAF into their broader decarbonization strategies, such as the UAE's Net Zero 2050 and Saudi Arabia's Vision 2030. These initiatives are complemented by investments in renewable energy infrastructure, including solar and wind projects, which can supply the necessary power for SAF production processes such as Power-to-Liquid (PtL) and Electrofuels (eFuels). Major regional carriers, including Emirates, Qatar Airways, and Etihad, are actively exploring SAF adoption, evidenced by Emirates' successful test flight of a Boeing 777 powered by SAF in January 2023. This growing momentum underscores the region's commitment to reducing aviation-related carbon emissions and fostering sustainable growth in the aviation sector.

Key Sustainable Aviation Fuel Company Insights

The global sustainable aviation fuel market is a highly competitive market due to the presence of major industries across the region as these companies are comparatively concentrated and fiercely competitive along with acquisitions, mergers, and collaborations. For Instance, In April 2023, Shell and Delta signed a two-year agreement with Los Angeles International Airport (LAX) serving as the hub to purchase 10 million gallons of sustainable aviation fuel (SAF) from Shell Aviation, the international airline plans to fulfil its target of utilizing 35% of sustainable aviation fuel by 2035 and meet its goal of consuming 10% SAF per year by 2030 with over 200 million gallons of SAF committed.

Sustainable Aviation Fuel Market Report Scope

Global Sustainable Aviation Fuel Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global sustainable aviation fuel market report based on fuel type, technology, aircraft type, platform, and region:

• Fuel Type Outlook (Volume, Million Liters; Revenue, USD Million, 2018 - 2030)

  • Biofuel

  • Hydrogen Fuel

  • Power to Liquid Fuel

  • Gas-to-Liquid

• Technology Outlook (Volume, Million Liters; Revenue, USD Million, 2018 - 2030)

  • HEFA-SPK

  • FT-SPK

  • HFS-SIP

  • ATJ-SPK

• Aircraft Type Outlook (Volume, Million Liters; Revenue, USD Million, 2018 - 2030)

  • Fixed Wings

  • Rotorcraft

  • Others

• Platform Outlook (Volume, Million Liters; Revenue, USD Million, 2018 - 2030)

  • Commercial

  • Regional Transport Aircraft

  • Military Aviation

  • Business & General Aviation

  • Unmanned Aerial Vehicles

• Regional Outlook (Volume, Million Liters; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Malaysia

    • Singapore

    • Thailand

    • Vietnam

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • UAE

    • South Africa