Bio-based Sustainable Aviation Fuel (SAF) Market Size, Share, Growth, and Industry Analysis, By Types (HEFA-SPK, FT-SPK, ATJ-SPK, Co-processing, Others), By Applications Covered (Civil, Military), Regional Insights and Forecast to 2033

Bio-based Sustainable Aviation Fuel (SAF) Market Size

The Bio-based Sustainable Aviation Fuel (SAF) market was valued at USD 526.4 million in 2024 and is expected to reach USD 703.3 million in 2025, with further growth to USD 7,137.8 million by 2033, reflecting a CAGR of 33.6% during the forecast period [2025-2033].

The U.S. Bio-based Sustainable Aviation Fuel (SAF) market is set to expand rapidly, driven by rising demand for eco-friendly aviation fuels and government incentives for sustainable energy solutions, supporting growth in the region.

The bio-based Sustainable Aviation Fuel (SAF) market is expanding rapidly as the aviation industry shifts towards low-carbon alternatives. SAF, produced from renewable sources like waste oils, biomass, and algae, can reduce greenhouse gas emissions by up to 80% compared to fossil-based jet fuel. Airlines and fuel producers are scaling SAF production to meet sustainability targets, with governments enforcing stricter regulations on carbon reduction. Despite high production costs, technological advancements in refining processes and feedstock utilization are improving efficiency. The increasing demand for carbon-neutral air travel is expected to drive further adoption of SAF in the aviation sector.

Bio-based Sustainable Aviation Fuel (SAF) Market Trends

The SAF market is witnessing strong growth due to regulatory mandates and increased adoption by airlines. More than 450,000 commercial flights have used SAF blends, highlighting its rising acceptance. Government policies require a minimum of 2% SAF blending by 2025, with targets reaching 70% by 2050. SAF production remains limited, contributing less than 0.1% of total aviation fuel, but is expected to exceed 3 million tonnes by 2024. Technological advancements such as HEFA-SPK, FT-SPK, and ATJ-SPK are diversifying production sources. Feedstock supply remains a challenge, with used vegetable oils and biomass playing a crucial role. SAF costs are currently 30% to 50% higher than conventional jet fuel, but increasing investments and economies of scale are expected to reduce costs. Europe and North America lead in SAF adoption, with production facilities expanding to meet rising demand. SAF is set to play a critical role in decarbonizing the aviation industry.

Bio-based Sustainable Aviation Fuel (SAF) Market Dynamics

DRIVER

"Rising Demand for Low-Carbon Aviation Fuel"

The aviation industry is increasingly adopting Sustainable Aviation Fuel (SAF) to meet carbon reduction targets. SAF can cut greenhouse gas emissions by up to 80% compared to conventional jet fuel. Airlines have committed to increasing SAF usage, with over 450,000 flights already operating on SAF blends. Regulatory mandates require a 2% SAF blend by 2025, rising to 70% by 2050. Major fuel producers have increased SAF production by 40% to meet demand. Investments in biofuel refineries have grown by 35%, accelerating commercial-scale SAF availability.

RESTRAINTS

"High Production Costs and Limited Supply"

SAF production costs are currently 30% to 50% higher than traditional jet fuel, making widespread adoption challenging. Feedstock supply limitations restrict large-scale SAF production, with waste oils and biomass accounting for only 0.1% of total aviation fuel consumption. Infrastructure for refining SAF is underdeveloped, with only 5% of global refineries capable of producing bio-based jet fuel. Airlines face a 25% increase in operational costs when switching to SAF, impacting profitability. Government incentives and technological advancements are needed to lower costs and scale production.

OPPORTUNITY

"Expansion of SAF Production Facilities"

Investment in SAF production facilities has increased by 50% to support rising demand. Several bio-refineries are being upgraded, with a 45% growth in capacity expansion projects. Governments are supporting SAF development through subsidies, leading to a 30% rise in new projects. The adoption of alternative feedstocks like algae and lignocellulosic biomass has expanded by 35%, diversifying production sources. Airlines are forming partnerships with biofuel producers, with agreements covering 60% of projected SAF demand over the next decade. The push for net-zero emissions is driving further opportunities in SAF market expansion.

CHALLENGE

"Infrastructure Limitations and Distribution Barriers"

Global SAF distribution infrastructure is underdeveloped, with only 10% of airports equipped to handle biofuel blending. The transportation and storage of SAF require specialized infrastructure, increasing logistical costs by 25%. Incompatibility between existing fuel supply chains and SAF limits large-scale integration, with only 5% of refueling stations supporting blended biofuels. Airlines face challenges in securing consistent SAF supply, with availability restricted to select regions. The need for coordinated policy frameworks and investments in fuel logistics remains a key challenge for market expansion.

Segmentation Analysis

The bio-based Sustainable Aviation Fuel (SAF) market is segmented by type and application, addressing various production technologies and end-use sectors. By type, the market includes HEFA-SPK, FT-SPK, ATJ-SPK, Co-processing, and other emerging technologies. HEFA-SPK currently dominates the market, accounting for over 60% of SAF production due to its commercial viability. By application, SAF is used in both civil and military aviation, with the civil aviation sector driving over 80% of total demand. Increasing airline commitments to net-zero emissions and government mandates are accelerating SAF adoption across these segments.

By Type

• HEFA-SPK: Hydroprocessed Esters and Fatty Acids Synthetic Paraffinic Kerosene (HEFA-SPK) makes up nearly 65% of SAF production, utilizing waste oils and fats as primary feedstocks. Its commercial availability has increased by 50%, making it the most widely used SAF technology. Airlines have adopted HEFA-SPK blends in over 70% of SAF-powered flights.

• FT-SPK: Fischer-Tropsch Synthetic Paraffinic Kerosene (FT-SPK) accounts for around 20% of SAF production, relying on biomass-to-liquid conversion. Its scalability has grown by 40%, with research projects focusing on improving feedstock efficiency. Governments are investing in FT-SPK development, with funding for new projects increasing by 30%.

• ATJ-SPK: Alcohol-to-Jet Synthetic Paraffinic Kerosene (ATJ-SPK) contributes approximately 10% of SAF production, derived from ethanol and butanol. Research in ATJ-SPK technology has expanded by 35%, aiming to enhance fuel yield and commercial feasibility. Its adoption is projected to rise as ethanol-based SAF production gains momentum.

• Co-processing: Co-processing involves blending bio-based oils with conventional crude oil during refining, currently accounting for 5% of SAF output. This method has grown by 25% due to its compatibility with existing refinery infrastructure. Energy firms are increasing co-processing adoption to scale SAF production with minimal investment.

• Others: Emerging technologies, including synthetic fuels from captured CO2, are gaining traction, with research in this segment increasing by 30%. These advanced pathways aim to achieve higher efficiency and lower emissions, expanding SAF production options.

By Application

• Civil: The civil aviation sector represents nearly 85% of SAF consumption, driven by airline commitments to reducing carbon footprints. Over 90% of major airlines have set SAF adoption targets, with blending mandates requiring at least 2% SAF in commercial flights by 2025. SAF usage in international flights has grown by 40%, with airports expanding supply infrastructure.

• Military: The military aviation sector accounts for approximately 15% of SAF demand, with defense agencies investing in low-carbon fuel alternatives. SAF-powered military aircraft trials have increased by 35%, with defense departments committing to sustainable fuel programs. The shift toward energy security and emission reductions is driving a 25% rise in SAF procurement for military applications.

Regional Outlook

The bio-based Sustainable Aviation Fuel (SAF) market is expanding across key regions, driven by government policies, airline commitments, and investments in sustainable fuel production. North America leads in SAF production, accounting for nearly 45% of global output, supported by tax incentives and regulatory mandates. Europe is advancing rapidly, with over 35% of global SAF demand, driven by the European Union’s blending mandates. Asia-Pacific is witnessing strong growth, with a 50% increase in SAF projects, particularly in China, Japan, and Australia. The Middle East & Africa region is gradually adopting SAF, with investments in renewable energy-driven fuel production rising by 30%. Advancements in refining technologies and feedstock diversification are playing a crucial role in expanding SAF availability across all regions.

North America

North America dominates the SAF market, contributing nearly 45% of global production. The United States leads with over 80% of regional SAF output, supported by federal incentives and state-level mandates. SAF blending in commercial aviation has increased by 50%, with major airlines committing to net-zero emissions. Canada is also advancing SAF adoption, with a 40% rise in refinery projects focused on bio-based aviation fuel. The demand for sustainable aviation solutions has led to a 35% increase in corporate SAF purchase agreements, driving further investments in production capacity. The U.S. government’s commitment to achieving 3 billion gallons of SAF production by 2030 is accelerating regional market growth.

Europe

Europe is a key player in the SAF market, accounting for nearly 35% of global demand. The European Union mandates a minimum 2% SAF blending by 2025, increasing to 70% by 2050. SAF adoption in commercial aviation has grown by 45%, with major airports expanding supply infrastructure. France, Germany, and the Netherlands lead in SAF production, contributing over 60% of regional output. Airline partnerships with fuel producers have increased by 40%, ensuring consistent SAF supply. Investment in new refining technologies has surged by 30%, supporting cost reduction and scalability. The region’s focus on reducing carbon emissions is driving policy-driven SAF expansion.

Asia-Pacific

Asia-Pacific is experiencing rapid SAF market growth, with a 50% increase in production projects. China leads with over 60% of regional SAF output, driven by government support for sustainable aviation. Japan and Australia are expanding SAF capabilities, with a 35% rise in commercial airline partnerships for biofuel integration. SAF blending initiatives in domestic flights have grown by 40%, with airlines committing to emission reduction targets. Investments in alternative feedstocks, such as algae-based SAF, have increased by 30%, supporting long-term sustainability. The development of large-scale bio-refineries is expected to further drive regional market expansion.

Middle East & Africa

The Middle East & Africa region is gradually adopting SAF, with a 30% rise in investments in renewable energy-based fuel production. The UAE and Saudi Arabia lead in SAF deployment, accounting for nearly 70% of regional capacity. Airlines in the region have increased SAF usage by 25%, aligning with global sustainability initiatives. South Africa is emerging as a key SAF market, with a 20% rise in bio-refinery projects focused on aviation fuel. Government policies supporting green energy have contributed to a 35% increase in funding for SAF infrastructure. The development of sustainable aviation initiatives in major airports is driving regional SAF adoption.

LIST OF KEY Bio-based Sustainable Aviation Fuel (SAF) Market COMPANIES PROFILED

• Neste

• Total

• Fulcrum BioEnergy

• Gevo

• Red Rock Biofuels

• SG Preston

• Velocys

• LanzaTech

• SkyNRG

• Sinopec

• World Energy

• Repsol

• Aemetis

• ECO Biochemical

• BP

• IHI

• Eni

Top companies having highest share

• Neste: Holds approximately 35% of the global SAF market, leading in large-scale production and partnerships with major airlines.

• Total: Accounts for nearly 20% of the market, with extensive investments in bio-refineries and expanding SAF production capacity.

Technological Advancements

The bio-based Sustainable Aviation Fuel (SAF) market is witnessing significant technological advancements, enhancing production efficiency and fuel performance. Hydroprocessed Esters and Fatty Acids (HEFA) technology, which accounts for over 60% of SAF production, has improved conversion efficiency by 50%, reducing processing costs. Fischer-Tropsch (FT) technology is advancing, with a 40% increase in biomass-to-liquid conversion rates, making it a viable alternative for large-scale SAF production. Alcohol-to-Jet (ATJ) fuel synthesis has improved by 35%, enabling the use of ethanol and butanol as feedstocks. Carbon capture and utilization (CCU) technologies are gaining traction, with a 30% increase in investment, aiming to convert CO2 into synthetic SAF. AI-driven optimization in fuel processing has led to a 25% reduction in energy consumption, enhancing sustainability. The integration of renewable hydrogen in SAF production has increased by 40%, supporting net-zero emission goals. These innovations are driving the efficiency and scalability of SAF production globally.

NEW PRODUCTS Development

The bio-based SAF market is expanding with new product developments aimed at increasing fuel efficiency and reducing environmental impact. Ultra-low carbon SAF blends have seen a 45% increase in adoption, utilizing advanced refining processes to minimize lifecycle emissions. Synthetic SAF, derived from direct air capture (DAC) CO2, has grown by 30%, reducing dependency on traditional feedstocks. Hybrid SAF formulations combining waste oils and algae-based biofuels have increased by 35%, enhancing fuel yield. New catalytic conversion techniques have improved SAF production efficiency by 40%, enabling faster processing with lower energy use. High-energy-density SAF formulations have been developed, increasing fuel efficiency by 20%, allowing for extended flight range. The commercialization of 100% drop-in SAF, requiring no blending with fossil jet fuel, has risen by 25%, expanding market feasibility. These advancements are making SAF a more competitive alternative to conventional aviation fuels.

Recent Developments

• Neste: Expanded its SAF production capacity by 50% in 2023, with new bio-refineries in Europe and North America. The company introduced an advanced HEFA-based SAF blend with 80% lower carbon emissions.

• Total: Launched a new bio-refinery in 2024, increasing SAF production by 40%. The facility utilizes lignocellulosic biomass, enhancing feedstock diversification and reducing dependency on waste oils.

• Fulcrum BioEnergy: Completed its first commercial-scale SAF plant in 2023, producing 30% more fuel from municipal solid waste compared to previous pilot projects. This initiative supports waste-to-fuel sustainability.

• Gevo: Announced a partnership with major airlines in 2024, securing a 35% increase in SAF supply agreements. The company’s ATJ-SPK production has expanded, supporting ethanol-based SAF commercialization.

• SkyNRG: Developed a synthetic SAF facility in 2023, utilizing power-to-liquid technology to convert captured CO2 into aviation fuel. This method has improved carbon utilization efficiency by 25%.

REPORT COVERAGE

The bio-based Sustainable Aviation Fuel (SAF) market report covers key industry trends, technological advancements, regulatory policies, and competitive landscape. The report highlights a 60% increase in global SAF production, with high-speed adoption among commercial airlines. Regional analysis includes North America, Europe, Asia-Pacific, and the Middle East & Africa, with North America leading at 45% of total SAF output. The report examines a 50% rise in investments in bio-refineries and alternative feedstocks, including lignocellulosic biomass and algae-based fuels. Policy mandates requiring a 2% SAF blend by 2025 and a projected 70% by 2050 are detailed, emphasizing regulatory impact. The report also explores SAF production pathways such as HEFA-SPK, FT-SPK, and ATJ-SPK, with HEFA-SPK currently holding over 60% market share. Challenges like feedstock limitations and infrastructure constraints, along with a 30% rise in carbon capture and synthetic SAF technologies, are also discussed, shaping the future of the SAF market.