The State of Sustainable Aviation Technologies 2025, in a nutshell

The aviation industry faces urgent pressure to decarbonise. While its contribution to global carbon emissions is estimated at 2.5%, that number rises to 4% when non-CO2 emissions are considered.

Recognising the critical nature of the climate crisis, the industry is exploring several technology levers to decarbonise.

In the short to medium term, sustainable aviation fuel (SAF) is crucial for near-term decarbonisation. The SAF market is projected to grow from $430 million to over $27 billion by 2032, driven by regulatory mandates and industry commitments.

Hydrogen presents a promising long-term solution for aviation, with potential applications in fuel cells, combustion engines, and e-fuel production. The global hydrogen market across all industries could reach $1.4 trillion by 2050.

Electric aviation shows potential for short-haul flights and regional connectivity. The electric aviation market is expected to grow from $8.5 billion in 2023 to $23.5 billion by 2031, focusing on battery technology advancements and infrastructure development.

Carbon Dioxide Removal (CDR) technologies, including Direct Air Capture (DAC), are gaining traction as complementary solutions to emissions reduction efforts. The CDR market could reach $1.2 trillion by 2050.

Sustainable cabin design and waste reduction present significant opportunities, with the aircraft cabin interiors market projected to reach $74 billion by 2033.

Retrofitting existing aircraft with clean technologies offers a faster path to emissions reduction, particularly for smaller aircraft and regional fleets.

Airport infrastructure is evolving to support sustainability goals, with the global green airport market expected to reach $12 billion by 2032.

Software and AI solutions play a crucial role in optimising flight operations, reducing fuel consumption, and mitigating non-CO2 impacts like contrail formation.

Key challenges across all these sectors include high costs, technological limitations, and the need for significant infrastructure development.

Regulatory pressures and market demands are driving innovation and investment opportunities across the sustainable aviation landscape.

The transition to sustainable aviation represents not just an environmental imperative but also a significant market opportunity, with potential for growth and innovation in various interconnected technologies and sectors.

Given the urgency of the climate crisis – and the aviation industry’s net zero 2050 target – investors have the opportunity to participate in the industry's transformation while potentially reaping substantial returns in a market primed for disruption.

As a result, we are introducing the SimpliFlying Launchpad that focuses on nurturing startups in key sustainable aviation areas, aiming to accelerate the adoption of sustainable technologies and connect innovative solutions with industry needs.