The sustainable aviation fuel (SAF) market is estimated at $2.06 billion in 2025 and projected to reach $25.62 billion by 2030, growing at a CAGR of 65.5 percent
In terms of volume, the market is projected to grow from 0.30 billion gallons in 2025 to 3.68 billion gallons by 2030 according to a new report by MarketsandMarkets. The increasing air travel, growing aircraft production and fleet expansion, and advancements in fuel processing technologies are driving the market's growth.
The sustainable aviation fuel market is undergoing various technological developments, with efforts for the aviation sector to decrease carbon emissions and reach net-zero targets. Innovations in production technologies are central to this progress.
Alcohol-to-Jet (ATJ) technology is used broadly in companies to transform ethanol from farm waste into SAF, yielding millions of gallons per year. Similarly, the Fischer-Tropsch (FT) process converts waste and biomass into synthetic kerosene, providing a flexible and scalable solution. Rapid development in algae-based biofuels and electrofuels, synthetic fuels generated from CO2 captured from the atmosphere, and renewable power is broadening the options for sustainable sources. These innovations have made production more sustainable and scalable.
BIOFUEL SEGMENT GROWTH
Based on fuel type, the biofuel segment is projected to account for the largest share during the forecast period due to several primary factors related to the availability of feedstocks, technology maturity, and regulatory backing. Biofuel production is done from feedstocks like used cooking oil, agricultural residues, animal fats, and other biomass feedstocks.
Technologies such as Hydroprocessed Esters and Fatty Acids (HEFA) and Fischer-Tropsch (FT) processes are established and already qualified for use in biofuel production and are becoming more scalable and easier to retrofit into existing aviation fuel infrastructure. This technological availability provides biofuels with an important start over other types of SAF, which remain at more advanced commercial development stages.
Additionally, biofuel production has a broad and increasingly sustainable supply chain, using waste and non-food biomass, which assists in solving both environmental and economic issues. Moreover, the lifecycle greenhouse gas emission reduction potential of biofuels up to 80% over that of traditional jet fuel renders it a strong near-term solution for airlines aiming to achieve carbon reduction targets. Airlines and producers of SAF are increasingly signing long-term offtake contracts for bio-based SAF, further supporting demand and investment in this area. All factors, such as technological maturity, regulation support, and the ability to reduce emissions short-term, make biofuel the dominant fuel in the SAF industry.
PIXABAY PHOTO
