Sustainable Aviation Fuel Market Size, Research Report and Insights 2025–2032

The global sustainable aviation fuel market size was valued at USD 1,845.2 million in 2024 and is projected to expand from USD 2,723.8 million in 2025 to USD 28,636.36 million by 2032, registering an impressive CAGR of 39.9% during the forecast period. North America led the market in 2024 with a 46% share, driven by strong policy support, airline commitments to net-zero targets, and significant investments in SAF production capacity.

Key Players:

• Neste (Finland)
• World Energy (U.S.)
• Gevo, Inc. (U.S.)
• Alder Fuels (U.S.)
• SkyNRG (Netherlands)
• Air BP (U.K.)
• Shell Aviation (Netherlands)
• TotalEnergies (France)
• Vitol Aviation (Switzerland)
• LanzaTech (U.S.)
• Fulcrum Bioenergy (U.S.)

Information Source:

https://www.fortunebusinessinsights.com/sustainable-aviation-fuel-saf-market-111563

Segmentation: Sustainable Aviation Fuel Market

The sustainable aviation fuel market is segmented by type, technology, blending capacity, end use, application, and region. By type, the market is classified into biofuel and synthetic fuel. Based on technology, it includes HEFA-SPK (Hydroprocessed Esters and Fatty Acids Synthetic Paraffinic Kerosene), FT-SPK (Fischer-Tropsch Synthetic Paraffinic Kerosene), ATJ-SPK (Alcohol-to-Jet Synthetic Paraffinic Kerosene), and others. By blending capacity, the market is divided into 5–30%, 30–50%, and above 50%. In terms of end use, SAF is applied in commercial aviation, military aviation, and others, while by application it is used in fixed-wing and rotary-wing aircraft. Regionally, the market is segmented into North America (U.S. and Canada), Europe (UK, Germany, France, Russia, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, and Rest of Asia Pacific), and Rest of the World, which further includes Latin America and the Middle East & Africa.

Global Sustainable Aviation Fuel Market Key Takeaways:

• Market Size & Forecast
  The global sustainable aviation fuel (SAF) market was valued at USD 1,845.2 million in 2024 and is projected to grow from USD 2,723.8 million in 2025 to USD 28,636.36 million by 2032, at a robust CAGR of 9% during 2025–2032.
• Market Share
  In 2024, North America dominated the market with a 46% share, supported by strong policy frameworks, tax incentives, and initiatives such as the U.S. SAF Grand Challenge. By type, biofuel led the market due to its compatibility with current aircraft engines and fueling infrastructure. By technology, HEFA-SPK remained the leading pathway thanks to its maturity and flexibility in feedstock usage. By blending capacity, the 30–50% blend segment led in 2024 as airlines moved toward higher SAF utilization to meet sustainability targets. By end use, commercial aviation accounted for the largest share, driven by airline commitments to net-zero emissions. By application, fixed-wing aircraft dominated, supported by OEM adoption initiatives and favorable government subsidies.
• Key Country Highlights
  United States: Expansion supported by tax credits, ethanol-based SAF subsidies, and the SAF Grand Challenge targeting 3 billion gallons annually by 2030.
  Canada: Air Canada signed a 60,000-ton SAF supply deal with Neste in 2024 to meet its 1% SAF blending goal by 2025.
  United Kingdom: Announced a 2% SAF blending mandate from 2025 under its decarbonization roadmap.
  Germany: Deutsche Aircraft successfully tested a 100% Fischer-Tropsch synthetic fuel flight, advancing certification efforts.
  France: TotalEnergies secured a 5 million ton SAF supply agreement with Air France-KLM through 2035.
  China: Completed its first 40% SAF blend helicopter flight in 2023, underscoring Asia’s growing adoption.
  Brazil: Enacted the “Fuel of the Future” law in 2024 to promote SAF use and strengthen its role in aviation decarbonization.
  South Africa: IATA identified potential production capacity of 3.2–4.5 billion liters annually from biomass and sugarcane residues.

Report Coverage:

The report has conducted a detailed study of the market and highlighted several critical areas, such as leading types, technologies, applications, and prominent market players. It has also focused on the latest market trends and the key industry developments. Apart from the aforementioned factors, the report has given information on many other factors that have helped the market grow.

Drivers and Restraints:

Increasing Demand for Alternative Fuels to Boost Product Adoption

Industries across the world, including aviation, are becoming aware of the harmful effects of using fossil fuels on the environment, such as global warming and climate change. This factor has prompted them to take various measures to reduce their greenhouse gas emissions and make their business operations eco-friendlier. This is expected to fuel the adoption of Sustainable Aviation Fuel (SAF) in the aviation sector as this fuel has the potential to decrease emissions by nearly 80%, depending on the production technique and type of feedstock used. This can make the aviation industry more sustainable in its operations.

However, high cost and limited availability of feedstock can hinder the Sustainable Aviation Fuel (SAF) market growth.

Regional Insights:

North America Dominated Global Market Owing to Implementation of Strict Environmental Regulations

North America held the biggest sustainable aviation fuel market share in 2024 and might retain its dominance during the forecast period as well as governments across the region have imposed several stringent environmental regulations to reduce their carbon emissions. They have also formulated various policies to support the adoption of cleaner fuels in various industries.

Europe is also increasing its reliance on Sustainable Aviation Fuel (SAF) owing to the strict regulations imposed by the governments to decrease the carbon emissions of its industries, including aviation.

Competitive Landscape:

Market Players to Focus On Launch of Innovative Fuels to Cater to Wider Audience

Some of the top companies driving the global Sustainable Aviation Fuel (SAF) market growth are focusing on developing and launching a wide range of eco-friendly fuels for different industries. They are increasing their investments in research & development programs to find out about the latest technologies and use them to manufacture SAF.

Notable Industry Development:

September 2024- TotalEnergies signed an agreement with Air France-KLM to help the former deliver around 1.5 million tons of Sustainable Aviation Fuel (SAF) over a period of 10 years until 2035. This deal was one of the biggest SAF purchase agreements for Air France-KLM to date. It strengthened the airline’s dominance in the use of SAF, accounting for 17% and 16% of the global SAF production in 2022 and 2023, respectively.