Global SAF market to reach $ 15 billion by 2035

The sustainable aviation fuel (SAF) market is anticipated to achieve a remarkable $ 15 billion revenue by 2035, showing robust annual growth rate of 42% from 2023.

The surge is attributed to increased air travel, with a significant rise in passengers and a growing preference for SAF due to its lower greenhouse gas emissions compared to traditional jet fuel. “With its growth in the last few decades outpacing that of rail, road, or shipping, aviation contributed to approximately 3% of the world's energy-related CO2 emissions in 2022. Hence, the preference for sustainable aviation fuel is growing”, Finance Yahoo reports.

Finance Yahoo reports that a survey by Research Nester shows that the international tourism spike, particularly in the first quarter of 2023 with over 234 million foreign tourists, has contributed to the escalating demand for SAF. Notably, North America is expected to capture the largest market share, driven by rising aircraft production. Asia Pacific is also poised for substantial growth, fueled by regional initiatives like the Association of Asia-Pacific Airlines' target to consume 6% sustainable aviation fuel by 2030.

The biofuel segment, representing about 40% market share, is flourishing due to increased biofuel production.