Bio-based Sustainable Aviation Fuel Market Set for Explosive Growth to USD 4,772.33 Million by 2032, Led by North America's 37.5% Market Share | DataM Intelligence

The Global Bio-Based Sustainable Aviation Fuel market reached USD 420.04 million in 2024 and is expected to reach USD 4772.329 million by 2032, growing at a CAGR of 31.0% during the forecast period 2025-2032.

Market growth is driven by stringent aviation emissions regulations, rising demand for low-carbon fuels amid net-zero commitments by airlines, and supportive government mandates like the EU's ReFuelEU and U.S. SAF Grand Challenge. Advancements in feedstock technologies such as alcohol-to-jet and Fischer-Tropsch processes, expanding production capacities from key players like Neste and World Energy, surging airline offtake agreements, and increasing investments in biorefineries are further accelerating market expansion.

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United States: Key Industry Developments
✅ October 2025: Gevo expanded production at its Net-Zero 1 facility in South Dakota, achieving commercial-scale output of bio-based sustainable aviation fuel (SAF) from renewable alcohols, supporting airline decarbonization goals with over 10 million gallons annually.​

✅ September 2025: Phillips 66 initiated a major SAF blending program at its Rodeo Renewed facility in California, converting refinery operations to produce up to 800 million gallons per year of bio-based SAF from feedstocks like used cooking oil.​

✅ August 2025: Delta Air Lines signed a multi-year off-take agreement with Twelve for e-SAF production, integrating bio-based pathways to deliver 10 million gallons starting late 2025, enhancing supply chain sustainability.​

Asia Pacific / Japan: Key Industry Developments
✅ October 2025: Japan finalized regulatory framework for a 10% SAF mandate by 2030, spurring investments in bio-based production with Mitsubishi Heavy Industries piloting alcohol-to-jet technology.​

✅ September 2025: China Airlines (Taiwan) expanded its SAF procurement via a renewed MOU with FPCC, committing to additional bio-based SAF volumes derived from waste oils to cut emissions further.​

✅ August 2025: Japanese government allocated $250 million in subsidies for bio-refineries, enabling EUGLEN and ENEOS to launch pilot plants for bio-based SAF from lignocellulosic biomass.​

Key Mergers and Acquisitions:
✅ Gevo expanded its sustainable aviation fuel capabilities through strategic partnership expansions with Axens in February 2025, enhancing ethanol-to-jet technology commercialization.​

✅ Shell advanced bio-based SAF production by collaborating with Yilkins in January 2025, integrating complementary technologies for improved output efficiency.​

✅ AltAir Fuels solidified U.S. leadership in advanced biofuels by acquiring World Energy in March 2024, scaling production capacity to 110 million gallons annually.​​

Market Segmentation Analysis:
-By Type: HEFA-SPK Leads with Proven Scalability
HEFA-SPK dominates at 60% share in 2025, produced from waste oils and animal fats via hydroprocessing for high yield and drop-in compatibility with existing jets.
FT-SPK holds 20%, derived from Fischer-Tropsch synthesis of biomass or natural gas, excelling in long-haul flights but costlier.
ATJ-SPK captures 10%, alcohol-to-jet from ethanol or isobutanol, ideal for crop-based feedstocks.
Co-processing and others split 10%, blending biofuels in refineries for gradual transition.

-By Application: Commercial Aircrafts Command Bulk Demand
Commercial aircrafts seize 75% share, propelled by IATA net-zero goals and major carriers like Delta adopting SAF for 30%+ blending.
Military takes 15%, prioritizing energy security and performance in high-altitude ops.
Private jets hold 8%, growing via luxury sustainability mandates.
Others account for 2%, niche uses like unmanned drones.

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Why is the Bio-based Sustainable Aviation Fuel Market Growing?
The rapid expansion of the bio-based Sustainable Aviation Fuel (SAF) market in 2026 is fueled by several critical factors:

-Stringent Decarbonization Regulations: Governments worldwide, including the EU's ReFuelEU Aviation mandate and US Inflation Reduction Act incentives, require airlines to blend SAF into jet fuel, slashing net-zero emissions targets.​

-Rising Air Travel Demand: Global passenger traffic is doubling by 2040, pressuring the aviation sector to adopt low-carbon alternatives amid fossil fuel constraints.​

-Feedstock and Technology Advances: Innovations in algal biomass, waste-to-fuel conversion, and catalytic hydroprocessing enable scalable production with up to 70% lower GHG emissions.​

-Corporate ESG Commitments: Airlines and producers form partnerships for SAF supply chains, leveraging incentives and brand differentiation in sustainability-focused markets.​

Regional Insights:
-North America leads the bio-based Sustainable Aviation Fuel (SAF) market with the highest share of approximately 37.5% as of 2024, driven by strong policy support, established production facilities from companies like Neste and Gevo, and commitments from major U.S. airlines to integrate SAF into operations. This dominance stems from advanced infrastructure and federal incentives aimed at reducing aviation emissions, positioning the region as a key growth hub through 2032.​

-Europe follows with a substantial market share, estimated around 33% based on regional analyses, fueled by aggressive EU mandates for SAF blending and investments in biofuel pathways like HEFA and ATJ. Airline commitments and cross-border collaborations have accelerated adoption, though supply chain constraints remain a challenge.​

-Asia Pacific ranks third with a growing share of about 23%, propelled by rapid air travel expansion in China, India, and Japan, alongside government-backed initiatives such as China's recent SAF purchase agreements. The region is the fastest-growing, benefiting from rising demand and infrastructure investments despite starting from a lower base.​

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Key Players:
Neste | World Energy | TotalEnergies | Honeywell International | SkyNRG | LanzaJet | Gevo | Shell | Swedish Biofuels AB

Key Highlights (Top 5 Key Players) for Bio-based Sustainable Aviation Fuel Market:
-Neste leads as the world's top producer of sustainable aviation fuel (SAF), refining waste and residues into drop-in fuels like Neste MY SAF for major airlines including Air New Zealand and United Airlines.
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-World Energy specializes in converting waste oils and fats into SAF via its Paramount, California facility, supplying commercial aviation with scalable alcohol-to-jet production.
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-TotalEnergies advances bio-based SAF through integrated refining and renewable energy investments, targeting reduced lifecycle emissions via advanced feedstocks across its global operations.
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-Honeywell International provides U.S.-approved SAF production technologies, including Ecofining processes that upgrade bio-feedstocks for high-volume jet fuel blending.
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-SkyNRG develops customized SAF supply chains, partnering with airlines and producers to deliver book-and-claim credits and physical deliveries from advanced waste-based pathways.

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