Sustainable Aviation Fuel Market Size, Share & Analysis

Based on aircraft type, the commercial aviation segment is projected to account for the largest market share during the forecast period.

The commercial aviation segment is projected to account for the largest market share in the sustainable aviation fuel market during the forecast period due to the growing global aviation travel and growing environmental concerns. As the aviation industry operates many flights each year, especially in emerging markets, the transition to SAF presents an accessible route by which airlines can lower carbon emissions without altering existing fleets or infrastructure. This compatibility with existing fleets and infrastructure is causing broad-based acceptance across commercial fleets. Commercial air carriers are the major jet fuel users. With the sector under increasing pressure to reduce its carbon footprint, SAF has become the most promising near-term solution. International regulatory regimes and global climate policies are also moving more rapidly toward promoting SAF consumption by commercial aviation. Regulations like the International Civil Aviation Organization’s CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and regional rules like the EU’s ReFuelEU Aviation demand that airlines cut emissions and use more sustainable aviation fuels. Major airlines are signing up for long-term deals with SAF manufacturers and are aiming for carbon neutrality targets. In addition, airports and fuel providers are increasing SAF availability globally at key commercial airports, allowing airlines to access and integrate SAF into routine operations easily. Moreover, investments in SAF production units, logistics facilities, and blending systems are increasing globally, typically with the commercial aviation segment as the lead platform. With technological innovation reducing production costs, commercial aviation will likely continue to be the leading aircraft type in the SAF market.

Based on fuel type, the biofuel segment is projected to account for the largest share during the forecast period.

Based on fuel type, the biofuel segment is projected to contribute the largest market share in the sustainable aviation fuel market during the forecast period due to its scalability, maturity, and general acceptance within the aviation sector. Biofuels are made from renewable biological materials like used cooking oil, animal fat, agricultural waste, and energy crops. Their ability to integrate with current aircraft engines and airport refueling infrastructure makes them the most deployable and easiest SAF option for airlines globally. The broad geographic spread of availability of biomass feedstocks throughout various regions, such as North America, Europe, and Asia Pacific, enables the mass production and supply of biofuels. Governments and international organizations have built a range of incentives, subsidies, and blending mandates for bio-based SAF, particularly further fueling investment and commercialization. Major fuel producers and refiners have biofuel production facilities and are increasing capacities to keep pace with the increasing demand.

Biofuels provide a substantial lifecycle greenhouse gas reduction of up to 80% over traditional jet fuel, which makes them a key driver in the aviation industry’s push toward decarbonization. In addition, the biofuel segment is supported by robust airline collaborations and long-term offtake deals that ensure financial stability and scalability for SAF projects. As biofuel production technology continues to evolve and production costs decline through innovation and economies of scale, the biofuel segment is poised to maintain its lead in the SAF market.