Sustainable Aviation Fuel Market Size

Sustainable Aviation Fuel Market Size

The global sustainable aviation fuel market was valued at USD 1.7 billion in 2024 and is estimated to grow at a CAGR of 46.2% from 2025 to 2034.

The aviation industry faces increasing pressure to reduce its carbon footprint, with growing demand for sustainable aviation fuel (SAF) solutions. For instance, international air transport association (IATA) has highlighted the aviation industry is aiming for net-zero carbon emissions by 2050. Achieving this goal will rely on new technologies and sustainable aviation fuels (SAF), which are expected to reduce emissions by 80%. Efforts also include optimizing air routes, reducing airport congestion, and managing environmental impacts through noise and waste reduction.
 

As global environmental awareness increases, airlines and passengers are prioritizing eco-friendly alternatives to traditional jet fuels. SAFs, derived from renewable sources such as biomass, waste oils, and agricultural residues, offer a significant reduction in greenhouse gas emissions compared to conventional fossil fuels. This demand is driven by airlines aiming to meet corporate sustainability goals, improve environmental ratings, and comply with international carbon-reduction commitments, including those set by the International Civil Aviation Organization (ICAO). The expanding need for SAF is expected to increase production capacity and investment in green aviation technologies.
 

Governments worldwide are introducing policies to reduce aviation's environmental impact, significantly boosting the growth of sustainable aviation fuel (SAF) markets. For instance, in 2023, the UAE government introduced the general policy for sustainable aviation fuel to address challenges in the aviation sector's energy transition. This policy aims to boost SAF production and usage both domestically and internationally.
 

As part of its climate goals, the UAE is committed to the ICAO’s carbon offsetting and reduction scheme for international aviation (CORSIA) and has adopted a national sustainable aviation fuel roadmap to reduce aviation sector emissions and achieve climate neutrality by 2050. Several countries have implemented tax incentives, subsidies, and funding programs to encourage SAF development and adoption, aiming to meet climate targets and promote innovation in the aviation industry.