The global sustainable aviation fuel market was valued at USD 2.1 billion in 2024, and is expected to reach USD 22.7 billion by 2030, recording a CAGR of 57.4%. The global sustainable aviation fuel market continues to increase because of rising environmental requirements for carbon reduction and international climate compliance. The global implementation of SAF promotion measures occurs through government mandates together with incentives and mixing regulations, which enable airline and corporate companies to achieve net-zero targets. The key solution to reduce air travel emissions is to reduce SAF because it delivers up to 80% lifecycle greenhouse gas reduction when compared to traditional jet fuel. The market growth is supported by technological development together with rising investment in production facilities and expanding feed stock sources.
Market Dynamics
Innovations in refining processes power sustainable aviation fuel expansion
The Sustainable Aviation Fuel (SAF) market experiences rapid expansion due to recent breakthroughs in feedstock processing and refining technologies. The combination of Hydroprocessed Esters and Fatty Acids (HEFA) and Fischer-Tropsch synthesis and Alcohol-to-Jet (ATJ) technologies provides efficient conversion of various feedstocks, including used cooking oil and municipal solid waste, along with agricultural residues and algae into superior aviation fuels. The new technologies have enhanced SAF production efficiency as well as broadened the range of economically feasible feedstock options. The development of improved pretreatment systems, together with advanced catalysts, now enables the processing of inexpensive non-edible feedstocks that were previously considered difficult to handle. Improvements in production methods have lowered overall manufacturing expenses, and this has made large-scale SAF production commercially possible. Technological advancements have become essential in establishing SAF as a viable sustainable substitute for standard jet fuels.
High production costs continue to hinder the widespread adoption of sustainable aviation fuel
Sustainable Aviation Fuel (SAF) maintains substantial cost-based obstacles that prevent its widespread implementation. The production of SAF depends on new emerging technologies that lack the cost advantages of established petroleum refining systems for conventional jet fuel. The biochemical and thermochemical conversion methods require substantial financial investment and process feedstocks such as biomass together with used cooking oil or captured carbon at high costs. The production expenses of SAF increase because of its limited scale operations and complicated processing methods and restricted feedstock supply.
SAF price premiums create financial burdens for airlines with limited margins, and this forces them to avoid using the fuel unless policy support becomes substantial. The absence of strong government incentives, together with subsidies and regulatory mandates, causes many stakeholders to avoid investing in SAF infrastructure and long-term usage commitments. In addition, lack of clear demand and unfavorable market conditions are some of the factors that prevent refiners from expanding production capacity, thus maintaining current cost barriers. Moreover, t there are only a limited number of SAF production facilities across the globe, and this prevents the industry from achieving cost savings through economies of scale.
The biofuel category is anticipated to hold the largest share in the Sustainable Aviation Fuel (SAF) market throughout the forecast period, primarily due to its advanced development stage, ease of adoption, and broad industry support. Biofuels offer a practical solution that aligns with existing aviation infrastructure as they are produced from renewable organic sources such as cooking oil waste, animal byproducts, agricultural leftovers, and dedicated energy crops. Airlines can use biofuels without needing to modify their aircraft or fueling systems, making them an attractive and low-disruption option for near-term decarbonization. The widespread availability of biomass across regions like North America, Europe, and Asia-Pacific also supports dependable and regionally diverse supply chains.
The sustainable aviation fuel market will dominate the North American region because of its strong governmental backing, combined with major industry investments and the presence of key players in the aviation and energy sectors in the region. The United States leads the region through its powerful federal programs, such as the SAF Grand Challenge that targets 3 billion gallons of sustainable aviation fuel yearly by 2030 and net-zero emissions for 2050. Financial incentives, such as tax credits from the Inflation Reduction Act, motivate producers and consumers to adopt SAF.
Key Market Players
Key players active in the sustainable aviation fuel market include Neste (Finland), Shell (UK), TotalEnergies (France), OMV Aktiengesellschaft (Austria), World Energy, LLC (UK), Lanzatech (US), Velocys Plc (US), Skynrg (Netherlands), Topsoe (Denmark), Aemetis, Inc (US).
Scope of the Report
| Market Size Estimation | 2024–2030 |
|---|---|
| Base Year Considered | 2024 |
| Forecast Period Considered | 2025–2030 |
| The Market Size Value In 2024 | USD 2.1 billion |
| Revenue Forecast In 2030 | USD 22.7 billion |
| Growth Rate | CAGR of 57.4% from 2025 to 2030 |
| Units Considered | Value (USD Million/Billion) and Volume (Million Litres) |
| Segments Covered | Feedstock, Type, Blending Capacity, Aircraft Type and Region |
| Regions Covered | North America, Latin America, Europe, APAC, and Middle East & Africa |
| Companies Studied | Neste (Finland), Shell (UK), TotalEnergies (France), OMV Aktiengesellschaft (Austria), World Energy, LLC (UK), Lanzatech (US), Velocys Plc (US), Skynrg (Netherlands), Topsoe (Denmark), Aemetis, Inc (US), World Kinect Corporation (US), Alder Energy LLC (Colorado), BP Plc (UK), Moeve (Spain), Repsol (Spain), Eni (Italy), Phillips 66 Company (US), Northwest Advanced Bio-Fuels, LLC. (US), Red Rock Biofuels (US), Fulcrum BioEnergy, Inc. (US), Aemetis, Inc. (US), Avfuel Corporation (US), Ballard Power Systems (US), Delta Air Lines (US), United Airlines (US) |
Segmentation
This research report categorizes the global sustainable aviation fuel market based on feedstock, type, blending capacity, aircraft type, and region.
By Feedstock
- Bio Fuel
- Alcohol-based Fuel
- Power to Liquid
- Gas to Liquid
By Type
- HEFA-SPK
- HFS-SIP
- ATJ-SPK
- FT-SPK
- Others (PtL/eSAF, CHJ)
By Blending Capacity
- Below 30%
- 30% to 50%
- Above 50%
By Aircraft Type
- Commercial
- Military Aviation
- Business & General Aviation
- Unmanned Aerial Vehicles
By Region
- North America
- Latin America
- Europe
- APAC
- Middle East and Africa
Recent Developments
February 2025 - DHL Group and Neste have strengthened their partnership to advance decarbonization in logistics by exploring the use of Neste’s renewable diesel (HVO100) and sustainable aviation fuel (SAF) across DHL’s global operations. The collaboration supports DHL’s goal of achieving net-zero emissions by 2050, with a 2030 interim target of using over 30% sustainable fuels. As part of the agreement, DHL plans to offtake up to 300,000 tons of neat SAF annually from Neste by 2030.
February 2025 - Gevo and Axens have formed a strategic alliance to accelerate the commercialization of Sustainable Aviation Fuel (SAF) using the Ethanol-to-Jet (ETJ) pathway, leveraging Axens’ proven Jetanol technology and Gevo’s process expertise. The partnership aims to deliver cost-effective, low-carbon SAF while also advancing Gevo’s next-generation Ethanol-to-Olefins (ETO) technology for further process optimization.
December 2024- Shell Catalysts & Technologies and Yilkins have partnered to commercialize an integrated version of the Shell XTL1 Process combined with Yilkins’ torrefaction technology. The collaboration aims to create a scalable, flexible solution for producing Sustainable Aviation Fuel (SAF) from various low-carbon feedstocks.
December 2024– Neste and Air New Zealand have signed their largest SAF agreement to date, with Neste supplying 23,000 tons (30 million liters) of unblended sustainable aviation fuel for use at Los Angeles (LAX) and San Francisco (SFO) airports through February 2026. This purchase will meet 1.6% of Air New Zealand’s total fuel needs for FY2025—four times more than the SAF used in FY2024—marking a significant step toward the airline’s decarbonization goals.
Table of Content
1.1. Objective of the Study
1.2. Market Definition
1.2.1. Target Product
1.2.2. Regions Covered
1.2.3. Base Year and Forecast Period Considered
2.1. Assumptions
2.2. Primary & Secondary Sources
2.3. Market Size Estimation
2.3.1. Supply Side Approach
2.3.2. Demand Side Approach
4.1. Market Share Analysis
4.2. Product Benchmarking
4.3. Right to Win (On-demand)
5.1. Market Dynamics
5.1.1. Market Drivers
5.1.2. Market Opportunities
5.1.3. Market Challenges
5.2. Porter’s Five Forces Analysis
5.2.1. Bargaining Power of Suppliers
5.2.2. Bargaining Power of Customers
5.2.3. Threat of New Entrants
5.2.4. Threat of Substitution
5.2.5. Degree of Competition
6.1. Value Chain Analysis
6.2. Pricing Analysis
6.3. Suppliers and Distributors
6.4. Impact of Regulations and Government Policies (On-demand)
7.1. Bio-Fuel
7.2. Alcohol-Based Fuel
7.3. Power to Liquid
7.4. Gas to Liquid
8.1. HEFA-SPK
8.2. HFS-SIP
8.3. ATJ-SPK
8.4. FT-SPK
8.5. Others (PtL/eSAF, CHJ)
9.1. Below 30%
9.2. 30% to 50%
9.3. Above 50%
10.1. Commercial
10.2. Military Aviation
10.3. Business & General Aviation
10.4. Unmanned Aerial Vehicles
11.1. Introduction
11.2. North America
11.2.1. U.S.
11.2.2. Canada
11.2.3. Mexico
11.3. Latin America
11.3.1. Brazil
11.3.2. Argentina
11.3.3. Chile
11.4. Europe
11.4.1. U.K.
11.4.2. France
11.4.3. Germany
11.4.4. Italy
11.4.5. Others
11.5. APAC
11.5.1. China
11.5.2. India
11.5.3. Japan
11.5.4. Indonesia
11.5.5. Others
11.6. Middle East and Africa
11.6.1. Saudi Arabia
11.6.2. Turkey
11.6.3. UAE
11.6.4. South Africa
11.6.5. Others
12.1. Introduction
12.1.1. New Product Launches
12.1.2. Key M&As, Collaborations, JVs and Partnerships
12.1.3. Operational Details – Production Capacity, Utilization Rate, Sales Volume, Revenue (On-demand)
12.2. Neste
12.2.1. Business Overview
12.2.2. Product Portfolio
12.2.3. Recent Developments
12.2.4. SWOT Analysis
12.3. Shell
12.4. TotalEnergies
12.5. OMV Aktiengesellschaft
12.6. World Energy, LLC
12.7. Lanzatech
12.8. Velocys Plc
12.9. Skynrg
12.10. Topsoe
12.11. Aemetis, Inc
12.12. World Kinect Corporation
12.13. Alder Energy LLC
12.14. BP Plc
12.15. Moeve
12.16. Repsol
12.17. Eni
12.18. Phillips 66 Company
12.19. Northwest Advanced BioFuels, LLC.
12.20. Red Rock Biofuels
12.21. Fulcrum BioEnergy, Inc.
12.22. Aemetis, Inc.
12.23. Avfuel Corporation
12.24. Ballard Power Systems
12.25. Delta Air Lines
12.26. United Airlines
13.1. Key Customers by Industry
13.2. Technical and Commercial Unmet Needs
13.3. Supplier Selection Criteria
14.1. Abbreviations
14.2. Compilation of Expert Insights
14.3. Disclaimer
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