2031 Sustainable Aviation Fuel Market Report: Trends, Growth & Future Outlook
2031 Sustainable Aviation Fuel Market Report: Trends, Growth & Future Outlook
According to the latest report from Kings Research, the global Sustainable Aviation Fuel market is set for a transformational leap, projected to grow from USD 1,169.8 million in 2023 to USD 18,460.4 million by 2031, expanding at an impressive compound annual growth rate (CAGR) of 42.11% between 2024 and 2031. This robust growth underscores the aviation industry's unwavering commitment to reducing carbon emissions, bolstered by favorable regulatory frameworks, green technology investments, and evolving passenger expectations.
Market Overview: Paving the Way for a Greener Sky
The aviation industry, historically responsible for approximately 2-3% of global CO₂ emissions, is now undergoing a paradigm shift. With global climate change mitigation targets becoming increasingly stringent, sustainable aviation fuel has emerged as a vital enabler for achieving carbon neutrality in air travel. SAF, which includes biofuels, synthetic fuels, and fuels derived from renewable waste streams, offers up to 80% reduction in lifecycle carbon emissions compared to conventional jet fuels.
This dramatic shift is not only regulatory-driven but also supported by strong consumer demand and corporate sustainability pledges. The use of SAF has gained traction as a transitional solution until more radical propulsion technologies such as hydrogen and electric aircraft become commercially viable.
Market Trends: Strategic Shifts and Innovation as Growth Drivers
Key trends shaping the SAF market include increasing airline partnerships with fuel producers, emergence of diversified feedstock options, and innovative processing technologies. Airlines such as Delta, United, and British Airways have signed long-term supply agreements with SAF producers to meet their decarbonization targets.
Moreover, feedstock innovation is broadening the supply base for SAF. Agricultural residues, municipal solid waste, algae, and even captured CO₂ are being transformed into jet fuel, thereby improving fuel sustainability and easing reliance on food crops. Technologies like Fischer-Tropsch synthesis, Alcohol-to-Jet (AtJ), and Hydroprocessed Esters and Fatty Acids (HEFA) are central to this transformation, offering scalable and commercially viable pathways.
Demand Dynamics: Airlines and Governments Fuel the Market
The demand for sustainable aviation fuel is witnessing a steep rise, driven by regulatory mandates and airline carbon offset commitments. According to Kings Research, global airline operators are increasingly opting for SAF to align with net-zero emissions targets by 2050, a goal backed by the International Air Transport Association (IATA) and various national aviation authorities.
Corporate travelers and environmentally conscious passengers are also influencing SAF uptake, with major airline alliances offering green ticketing options and carbon offsetting programs. Governments are incentivizing SAF production through subsidies, mandates, and tax credits. For example, the U.S. Inflation Reduction Act includes substantial benefits for SAF producers, aiming to make sustainable fuels cost-competitive by the end of the decade.
Market Segmentation: By Fuel Type, Technology, and Aircraft Class
The Kings Research report offers a detailed segmentation of the SAF market, providing insights into key growth pockets:
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By Fuel Type:
Biofuels dominated the segment with a market share of 58.75% in 2023, thanks to compatibility with existing jet engines and airport infrastructure. Synthetic fuels are also gaining traction for their low-carbon footprint and higher energy density. -
By Technology:
The HEFA-SPK (Hydroprocessed Esters and Fatty Acids - Synthetic Paraffinic Kerosene) segment led the market with USD 317.59 million in revenue in 2023. HEFA is favored due to its commercial readiness, scalability, and broad feedstock base, including animal fats and vegetable oils. -
By Aircraft Type:
Business and general aviation sectors are early adopters of SAF and are forecasted to reach USD 8,279.1 million by 2031. These operators often act as testbeds for new fuel technologies due to smaller fleet sizes and premium clientele demanding sustainable practices.
Recent Developments: Strategic Investments and Breakthroughs
Recent market developments indicate accelerated growth and heightened industry interest:
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In February 2024, TotalEnergies partnered with Airbus to deliver over 50% of the aircraft manufacturer's European SAF needs. This collaboration is aligned with both companies’ carbon neutrality goals for 2050.
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Southwest Airlines, in collaboration with LanzaJet, announced a $30 million investment to develop a new SAF production facility that converts corn stover and other residues into ethanol-based jet fuel.
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Neste, the world’s largest producer of renewable diesel and SAF, expanded its Rotterdam refinery, significantly boosting its annual SAF production capacity to 1.5 million tons.
These initiatives showcase the industry’s movement toward a vertically integrated value chain, spanning feedstock sourcing to final fuel delivery.
Regional Analysis: Global Hotspots for SAF Development
The adoption of SAF is gaining momentum across regions, each with unique drivers and opportunities:
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Europe is emerging as a frontrunner, with the market projected to grow at the highest CAGR of 46.19%. The EU’s Renewable Energy Directive (RED III), Fit for 55 package, and REFuelEU Aviation initiative are central to boosting SAF consumption.
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North America accounted for 31.05% of the global market in 2023, underpinned by policy support such as the Low Carbon Fuel Standard (LCFS) in California and the Sustainable Aviation Fuel Grand Challenge Roadmap in the U.S.
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Asia-Pacific is rapidly catching up, with strong government focus on aviation sustainability and increasing air traffic. Countries like Japan, Singapore, and Australia are investing in regional SAF production hubs.
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Middle East & Africa and Latin America show potential due to abundant feedstock availability, such as algae and agricultural residues, and growing commitments from national carriers like Emirates and LATAM.
Key Market Players: Industry Giants Leading the Green Flight
Major players are leveraging economies of scale, innovative technologies, and strategic alliances to stay ahead in the SAF market. Notable companies mentioned in Kings Research include:
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Neste Corporation
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TotalEnergies
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World Energy, LLC
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LanzaTech
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Aemetis
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SkyNRG
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Boeing
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Airbus
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Gevo Inc.
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Shell Aviation
These players are deeply invested in expanding SAF capacity, forming airline partnerships, and securing regulatory approvals for their fuel technologies.
Future Outlook: A Sustainable Flight Path to 2031 and Beyond
Looking ahead, the Sustainable Aviation Fuel market is expected to become a mainstream component of the aviation ecosystem. With continuous improvements in feedstock logistics, cost-efficiency, and policy harmonization across borders, SAF is expected to cover up to 10% of global jet fuel demand by 2030, according to Kings Research.
Public-private collaboration will be critical to scaling up SAF supply. The development of global SAF certification systems and transparent carbon accounting will further drive adoption. Meanwhile, corporate flyers and ESG-conscious investors will continue to push for clean aviation alternatives, making SAF a core strategy for long-term value creation in the industry.
About Kings Research
Kings Research provides in-depth, data-driven market intelligence on emerging and high-growth industries. With a team of experienced analysts and a commitment to quality insights, Kings Research helps businesses, governments, and investors navigate complex market dynamics and make informed strategic decisions.
Get Full Detailed PDF Report- https://www.kingsresearch.com/sustainable-aviation-fuel-market-565
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