Sustainable Aviation Fuel Market Report 2026

The sustainable aviation fuel market size has grown exponentially in recent years. It will grow from $3.72 billion in 2025 to $5.75 billion in 2026 at a compound annual growth rate (CAGR) of 54.5%. The growth in the historic period can be attributed to increasing regulatory pressure to reduce aviation carbon emissions, early adoption of bio-based feedstocks for jet fuel production, technological advancements in sustainable fuel processing and refining, rising airline initiatives to integrate renewable fuels into operations, growth in infrastructure for blending and distributing sustainable aviation fuels.

The sustainable aviation fuel market size is expected to see exponential growth in the next few years. It will grow to $26.1 billion in 2030 at a compound annual growth rate (CAGR) of 46%. The growth in the forecast period can be attributed to expansion of large-scale production facilities for sustainable aviation fuel, rising investment in advanced feedstocks such as algae and non-food crops, integration of ai and process optimization for efficient biofuel conversion, increasing adoption of saf by commercial airlines globally, development of logistics and distribution networks for seamless supply to airports and blending facilities. Major trends in the forecast period include expansion of waste-to-fuel and non-food crop feedstocks, development of high-efficiency biofuel refining technologies, increased adoption of high-blend saf in commercial aviation, growth in hydrogen- and co2-based power-to-liquid fuels, integration of saf production with airport infrastructure and logistics.

The surge in the adoption of biofuels is expected to propel the growth of the sustainable aviation fuel market going forward. Biofuels refer to renewable energy sources derived from plant, algal, or animal biomass. This adoption is fueled by a global shift toward sustainable practices and the aviation industry’s commitment to lowering greenhouse gas emissions. By using biofuels, airlines can significantly reduce their carbon footprint and overall environmental impact. For instance, in December 2024, according to Eurostat, a Luxembourg-based government agency, renewable energy accounted for 24.5% of the EU’s total energy consumption in 2023, up from 23% in 2022. Therefore, the surge in the adoption of biofuels is driving the growth of the sustainable aviation fuel market.

Key players in the sustainable aviation fuel market are focusing on developing innovative technologies such as fuel processing technology to minimize aviation's environmental impact. Fuel processing technology involves the scientific and technological aspects of processing and utilizing clean fuels, fuel-related chemicals, and advanced carbon materials and by-products. For instance, in September 2023, Lummus Technology introduced ethanol-based sustainable aviation fuel technology, offering a large-scale solution to reduce the aviation industry's greenhouse gas emissions. Lummus' ethanol to SAF technology integrates ethanol to ethylene (EtE), olefin oligomerization, and hydrogenation technologies to maximize SAF yield while minimizing capital costs (CAPEX), CO2-specific operational costs (OPEX), and carbon emissions.

In April 2024, Southwest Airlines Co., a US-based airline, acquired SAFFiRE Renewables LLC for an undisclosed amount. Through this acquisition, Southwest Airlines Co. aims to advance its Nonstop to Net Zero initiative by securing scalable sustainable aviation fuel (SAF) production using SAFFiRE Renewables’ Department of Energy-supported technology, which converts agricultural residues such as corn stover into renewable ethanol for low-carbon jet fuel. SAFFiRE Renewables LLC is a US-based commercial company that provides sustainable aviation fuel.

Major companies operating in the sustainable aviation fuel market are Shell plc, TotalEnergies SE, BP plc, Eni S.p.A., OMV Group, Neste Oyj, Preem AB, Sustainable Aviation, Aemetis Inc., REG Synthetic Fuels LLC, Ballard Power Systems, ZeroAvia Inc., AvFuel Corporation, LanzaTech Inc., Sundrop Fuels Inc., LanzaJet Inc., Fulcrum BioEnergy Inc., SkyNRG BV, Alder Fuels, Red Rock Biofuels, SG Preston Company, Velocys Plc, WasteFuel, World Energy, SAF+ International Group, Gevo Inc., Northwest Advanced Bio-Fuels LLC., AltAir Fuels, REG Geismar LLC.

North America was the largest region in the sustainable aviation fuel market in 2025. Middle East is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable aviation fuel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on biofuel feedstocks, refining equipment, and SAF transportation infrastructure are increasing costs and slowing adoption, particularly affecting commercial aviation segments in regions like Europe, North America, and Asia-Pacific. Gas-to-liquid and power-to-liquid SAF production segments are most impacted due to reliance on imported equipment and catalysts. However, tariffs are encouraging domestic production of feedstocks and local refinery investments, potentially boosting regional supply chain resilience and long-term market growth.

The sustainable aviation fuel market research report is one of a series of new reports that provides sustainable aviation fuel market statistics, including sustainable aviation fuel industry global market size, regional shares, competitors with a sustainable aviation fuel market share, detailed sustainable aviation fuel market segments, market trends and opportunities, and any further data you may need to thrive in the sustainable aviation fuel industry. This sustainable aviation fuel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Sustainable aviation fuel (SAF) is a type of fuel produced from renewable and sustainable feedstocks, including waste oils, agricultural residues, and non-food crops. It aims to reduce the carbon footprint of aviation by providing a more environmentally friendly alternative to conventional jet fuel. SAF can be blended with traditional jet fuel and used in existing aircraft without requiring any modifications, making it a promising solution for reducing greenhouse gas emissions in the aviation industry.

The primary types of sustainable aviation fuel are biofuel, power-to-liquid, and gas-to-liquid. Biofuel is derived from renewable biological resources, such as plant or animal materials, and serves as an alternative to conventional fossil fuels. Blending capacities typically include below 30%, 30% to 50%, and above 50%, and SAF is used across various platforms including commercial aviation, military aviation, business and general aviation, and unmanned aerial vehicles.

The countries covered in the sustainable aviation fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sustainable aviation fuel market consists of revenues earned by entities by providing services such as cultivation, processing, and refining of feedstocks into biofuels, and distribution services involve the transportation of biofuels from production facilities to airports or blending facilities. The market value includes the value of related goods sold by the service provider or included within the service offering. The sustainable aviation fuel market also includes sales of biofuel refineries, blending facilities, and transportation infrastructure. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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