Dublin, Sept. 16, 2025 (GLOBE NEWSWIRE) -- The "Sustainable Aviation Fuel Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)" has been added to ResearchAndMarkets.com's offering.
The global sustainable aviation fuel (SAF) market, valued at USD 1.43 billion in 2024, is set to experience robust growth. Driven by collaborative efforts between airlines, energy producers, and IT businesses to boost SAF development and accessibility, the market is projected to reach USD 59.98 billion by 2034, growing at a CAGR of 45.30% from 2025 to 2034.
Global Sustainable Aviation Fuel Market Report Summary
- Market Size 2024: USD 1.43 Billion
- Market Size 2034: USD 59.98 Billion
- CAGR 2025-2034: 45.30%
- Regional Highlights: Asia Pacific leading with a CAGR of 50.7%, driven by India (51.6%) and China (50.4%)
- Platform Growth: Commercial aviation expected at 47.8% CAGR
- Blending Capacity: 30-50% blends set for 54.3% CAGR
- Market Share 2024: Canada holds 3.2%
Sustainable Aviation Fuel Market Overview
The exponential market growth is fuelled by the aviation sector's commitment to reducing carbon emissions and meeting strict regulatory standards. Innovations such as power-to-liquid and hydrogen-based SAF are gaining traction, with tech-startup collaborations scaling up production efficiencies. Investments in refining processes and infrastructures are rising as the demand for SAF grows.
Sustainable Aviation Fuel Market Growth Drivers
Government and defense investments in SAF aim to reduce fossil fuel dependence. The U.S. Air Force and NATO's tests on various SAF fuels underscore its potential. Meanwhile, the rise of eVTOL aircraft positions SAF as a transitional fuel. Companies like Joby Aviation are exploring hybrid-electric models powered by SAF solutions.
Key Trends and Recent Developments
- February 2025: Norsk e-Fuel, Prime Capital, and RES launched a SAF facility in Ange, Sweden, to produce over 80,000 tons of e-Fuel annually.
- February 2025: Honeywell and AM Green evaluated green hydrogen, methanol, and SAF production at India Energy Week.
- December 2024: Neste and Air New Zealand reached an agreement to supply 23,000 tons of Neste MY Sustainable Aviation Fuel.
Feedstock Diversification and Innovations
The SAF market is diversifying its feedstock range, incorporating technologies like CO2-to-fuel. Companies such as LanzaTech and Neste drive this shift, enhancing feedstock sustainability. Meanwhile, advances in electrofuels (e-fuels), employing renewable energy, are catalyzing SAF demand. The emergence of PtL fuels, supported by renewable energy price drops, represents a pivotal development.
Airline Agreements and Government Mandates
Long-term SAF agreements, commitments to sustainability, and government mandates such as the EU's ReFuelEU Aviation directive and U.S. SAF tax credits are propelling SAF adoption. This regulatory landscape incentivizes investments and scaling in SAF production.
Sustainable Aviation Fuel Opportunities
Emerging SAF refineries offer smaller production means, reducing costs and boosting regional airline supplies, supplemented by blockchain technology for supply chain traceability. This trend fosters transparency and attracts investment.
Market Trends and Challenges
SAF costs remain high, posing challenges for large-scale adoption. However, significant investments from entities like BlackRock are fostering innovation. As hydrogen and hybrid-electric aircraft rise, they complement SAF utilization. Certification complexities and inconsistent policies also inhibit market expansion.
Competitive Landscape
Key players like Neste Oyj, LanzaTech Inc., and World Energy, LLC are enhancing production capacities through collaborations, focusing on technological advancements and sustainability to achieve net-zero aviation emissions by 2050.
Innovation and Startups
Startups like Metafuels are pivotal in developing advanced feedstocks, production methodologies, and partnerships to accelerate SAF commercialization. These innovations promise scalable and cost-effective solutions for aviation decarbonization.
Companies Featured
- Neste Oyj
- LanzaTech, Inc.
- World Energy, LLC
- TotalEnergies SE
- Gevo, Inc.
- Montana Renewables, LLC
- Honeywell International Inc
- BP p.l.c
- SkyNRG B.V.
For more information about this report visit https://www.researchandmarkets.com/r/snkpxn
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