PUBLISHER: The Business Research Company | PRODUCT CODE: 1729082
PUBLISHER: The Business Research Company | PRODUCT CODE: 1729082
Sustainable Aviation Fuel (SAF) is a renewable, low-carbon alternative to traditional fossil-based jet fuel, designed to reduce the aviation industry's environmental impact. It is produced from sustainable feedstocks such as used cooking oil, agricultural residues, municipal waste, and even algae, significantly lowering greenhouse gas emissions compared to conventional jet fuel. The primary goals of sustainable aviation fuel (SAF) are to significantly reduce carbon emissions, enhance energy security, meet sustainability targets, and support the circular economy.
The sustainable aviation fuel market consists of sales, by entities (organizations, sole traders and partnerships) of sustainable aviation fuel that has the potential to reduce carbon emissions by up to 80% compared to conventional jet fuel over its lifecycle. This reduction is achieved because SAF utilizes carbon that is already part of the current carbon cycle, primarily through biomass. When SAF is burned, the CO2 emitted is roughly equivalent to what was absorbed by the feedstock during its growth phase.
The global sustainable aviation fuel market was valued at $181.58 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 60.00%.
Increasing Disposable Income
Increasing disposable income boosted the growth of the sustainable aviation fuel market during this historic period. Increasing disposable income led to a rise in air travel demand as more people could afford flights, driving growth in the aviation industry. This increased pressure on airlines to adopt sustainable aviation fuel (SAF) to meet emissions targets and consumer expectations for greener travel options. For example, in July 2023, according to the Department of Statistics Malaysia (DOSM), median household income in urban areas increased by 3.3% from 6,561 ringgit ($1,489.27) in 2019 to 7,243 ringgit ($1,644.08) in 2022. In rural areas, median household income rose by 2.2%, from 3,828 ringgit ($868.91) to 4,094 ringgit ($929.29). Additionally, according to the Bank of Korea, a South Korea-based central bank, disposable personal income in South Korea increased to 2191418.90 KRW billion ($1696.84) billion in 2022 from 2099125.20 KRW billion ($1625.38) billion in 2021. Therefore, increasing disposable income boosted the growth of the sustainable aviation fuel market.
Advancing Sustainable Technologies Through Collaboration
Major companies operating in the sustainable aviation fuel market are adopting strategic partnerships approach to develop advanced sustainable technologies. Strategic partnerships help sustainable aviation fuel companies by combining resources and expertise, enhancing research and development capabilities, expanding market reach, and accelerating commercialization, ultimately driving innovation and growth in the sustainable aviation fuel industry. For instance, in January 2025, The Boeing Company, a US-based aerospace corporation partnered with Norsk e-Fuel AS, a Norway-based company focuses on developing industrial-scale Power-to-Liquid (PtL) fuel production to advance the production of sustainable aviation fuel (SAF). This collaboration seeks to make a substantial impact on the aviation industry's goal of reaching net-zero carbon emissions by 2050. The initiative aligns with global sustainability efforts, including the targets set by the International Civil Aviation Organization (ICAO), to promote a greener future for aviation.
The global sustainable aviation fuel market is fairly concentrated, with large players in the market. The top ten competitors in the market made up to 29.17% of the total market in 2023.
Sustainable Aviation Fuel Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global sustainable aviation fuel market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for sustainable aviation fuel? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The sustainable aviation fuel market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider sustainable aviation fuel market; and compares it with other markets.