Sustainable Aviation Fuel (Biofuel) Market Size, Share & Analysis, 2026 To 2031
Sustainable Aviation Fuel Market by Fuel Type (Bio-based, Hydrogen, E-Fuel), by Conversion Pathways (FT, HEFA, ATJ, CPT), Feedstock (Used Cooking Oil, Agricultural Residues, Solid Waste), Blending Capacity, Platform, and Region - Global Forecast to 2031
SUSTAINABLE AVIATION FUEL MARKET OVERVIEW
The global sustainable aviation fuel market is projected to grow from USD 4.86 billion in 2026 to USD 31.45 billion by 2031 at a CAGR of 45.3% from 2026 to 2031. The consumption volume of sustainable aviation fuel is projected to grow from 712.5 million liters in 2026 to 4,150.8 million liters by 2031. The market is growing because airlines are focusing on reducing carbon emissions. Governments are supporting the market through sustainability policies and blending mandates. Investments in renewable fuel production and better feedstock technologies are also supporting market growth.
KEY TAKEAWAYS
-
By RegionNorth America dominated the sustainable aviation fuel market with a share of 38.4% in 2025.
-
By Feedstock TypeBy feedstock type, the renewable electricity & CO2 (FORe-SAF/PTL) segment is projected to grow at the highest CAGR of 60.7% from 2026 to 2031.
-
By Fuel TypeBy fuel type, the bio-based SAF segment is projected to grow at the highest CAGR of 44.3% from 2026 to 2031.
-
By Biofuel Conversion PathwayBy biofuel conversion pathway, the Fischer Tropsch (FT) segment is projected to grow at a CAGR of 57.2% during the forecast period.
-
Competitive Landscape: Key PlayersNeste, TotalEnergies, World Energy, LLC, Eni S.P.A, and OMV Aktiengesellschaft are recognized as key players in the sustainable aviation market. These companies hold strong positions due to their established product portfolios and wide operational presence. Consistent investment in product development supports their market standing.
-
Competitive Landscape: Startups/SMEsVirent, Inc. and Air Company Holdings, Inc. are considered progressive companies among others and have distinguished themselves in the sustainable aviation fuel market due to strong product innovation and technological advancement.
The sustainable aviation fuel industry is growing as the aviation industry focuses more on reducing carbon emissions. Airlines are increasing the use of sustainable aviation fuel to support sustainability goals. Many operators are also trying to reduce the environmental impact of flight operations. Governments are supporting the market through blending mandates and emissions-reduction policies. Fuel producers are investing in renewable fuel plants to improve fuel supply. Companies are also working on advanced feedstock processing technologies to improve production efficiency.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The sustainable aviation fuel market is witnessing major technology changes as companies invest in advanced biofuel conversion technologies. Fuel producers are also improving feedstock processing methods to increase production efficiency. Many companies are expanding production capacity through new renewable fuel plants plus refinery conversion projects. One major shift in the market is the growing use of synthetic fuels for aviation applications. Companies are also improving fuel blending capabilities to support wider sustainable aviation fuel adoption across the aviation industry.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
-
Rising focus on aviation carbon emission reduction

-
Government support through blending mandates and emission policies
Level
-
High cost of sustainable aviation fuel production
-
Limited fuel production capacity across regions
Level
-
Expansion of renewable fuel production facilities
-
Growing long-term fuel supply agreements
Level
-
Limited feedstock availability for fuel production
-
Supply chain issues affecting fuel availability
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rising focus on aviation carbon emission reduction
Airlines are increasing the use of sustainable aviation fuel to lower carbon emissions from flight operations. Governments are also supporting cleaner aviation fuel adoption through emission reduction targets plus blending mandates.
Restraint: High cost of sustainable aviation fuel production
Sustainable aviation fuel production remains expensive compared to conventional jet fuel. High feedstock costs plus limited large-scale production facilities are increasing overall fuel prices.
Opportunity: Expansion of renewable fuel production facilities
Companies are investing in new renewable fuel plants to increase sustainable aviation fuel production capacity. Growing airline demand is also creating opportunities for long-term fuel supply agreements.
Challenge:Limited feedstock availability for fuel production
Sustainable aviation fuel production depends on feedstock availability across different regions. Limited supply of waste oils, agricultural waste, and other raw materials is hindering growth in fuel production.
SUSTAINABLE AVIATION FUEL (BIOFUEL) MARKET SIZE, SHARE & ANALYSIS, 2025 TO 2030: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
|
|
Production of sustainable aviation fuel from renewable waste oils and residue feedstocks for commercial aviation operations | Helps airlines reduce carbon emissions, supports sustainability targets, and improves renewable fuel availability |
|
|
Development of renewable aviation fuel production facilities and fuel supply solutions for the aviation sector | Strengthens low-emission aviation operations, improves fuel supply capacity, and supports cleaner air transport activities |
|
|
Production of sustainable aviation fuel for commercial airlines through renewable fuel refining operations | Supports carbon emission reduction goals, improves sustainable fuel adoption, and increases renewable fuel supply |
|
|
Development of bio-refineries for sustainable aviation fuel production | Improves renewable fuel production efficiency, supports low-carbon aviation operations, and strengthens fuel availability |
|
|
using renewable feedstock materials |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The sustainable aviation fuel market ecosystem includes fuel producers, refinery operators, feedstock suppliers, airlines, airport operators, and fuel distributors. Companies such as TotalEnergies, Shell, OMV, and Repsol are producing sustainable aviation fuel through renewable fuel facilities. Many companies are also investing in refinery conversion projects to increase fuel production capacity. Airlines such as American Airlines, Delta Air Lines, and Gulfstream, as well as logistics companies like DHL, are increasing the adoption of sustainable aviation fuel to reduce carbon emissions. These companies are also focusing on long-term sustainability goals across aviation operations.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Sustainable Aviation Fuel Market, By Biofuel Conversion Pathway
The hydroprocessed esters and fatty acids (HEFA) segment dominated the market due to its commercial maturity and compatibility with existing aircraft engines and fuel infrastructure. The segment is leading because fuel producers are widely using waste oils and renewable feedstocks for large-scale sustainable aviation fuel production.
Sustainable Aviation Fuel Market, By Blending Capacity
The up to 10% segment dominated the market due to its easy integration with existing aviation fuel systems and operations. The segment is leading because airlines and fuel suppliers are adopting lower blending levels to support gradual sustainable aviation fuel usage without major infrastructure modifications.
Sustainable Aviation Fuel Market, By Fuel Type
The bio-based SAF segment dominated the market due to increasing demand for renewable aviation fuels produced from waste oils, biomass, and agricultural feedstocks. The segment is leading because governments and airlines are supporting bio-based fuel adoption to reduce aviation carbon emissions.
Sustainable Aviation Fuel Market, By Platform
The commercial aircraft segment dominated the market due to the high volume of commercial flight operations across global aviation networks. The segment is leading because airlines are increasing sustainable aviation fuel procurement to meet sustainability targets and emission reduction goals.
Sustainable Aviation Fuel Market, By Feedstock Type
The used cooking oil (UCO) segment dominated the market due to its wide availability and strong suitability for renewable fuel production processes. The segment is leading because fuel producers are increasingly using used cooking oil feedstocks to support cost-effective, sustainable aviation fuel production.
REGION
Middle East to be fastest-growing region in global aircraft seating market during forecast period
The Middle East is the fastest-growing region in the sustainable aviation fuel market because investments in renewable fuel production are increasing across the region. Governments, airlines, and energy companies are expanding sustainable aviation fuel production facilities to support emission reduction goals. Rising international air traffic, along with airport expansion activities, is also supporting sustainable aviation fuel adoption across the region.

SUSTAINABLE AVIATION FUEL (BIOFUEL) MARKET SIZE, SHARE & ANALYSIS, 2025 TO 2030: COMPANY EVALUATION MATRIX
Neste is a leading player in the sustainable aviation fuel market with strong production capacity and an established renewable fuel supply network serving airlines and aviation operators across multiple regions. The company’s investments in renewable fuel facilities and feedstock processing technologies support its strong market position. Phillips 66 Company is an emerging player in the sustainable aviation fuel market, with growing investments in renewable fuel production and refinery conversion projects that support sustainable aviation fuel development.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS -SUSTAINABLE AVIATION FUEL COMPANIES
- Neste (Finland)
- TotalEnergies (France)
- World Energy, LLC (US)
- Eni S.P.A (Italy)
- OMV Aktiengesellschaft (Austria)
- Shell International B.V. (Netherlands)
- LanzaTech (US)
- Gevo (US)
- Velocys Ltd (UK)
- Northwest Advanced Bio-Fuels, LLC (US)
- SkyNRG B.V. (Netherlands)
- Topsoe A/S (Denmark)
- Moeve (Spain)
- Repsol (Spain)
- Phillips 66 Company (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2026 (Value) | USD 4.86 Billion |
| Market Forecast in 2031 (Value) | USD 31.45 Billion |
| Growth Rate | 45.3% |
| Years Considered | 2021-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million/Billion), Volume (Liters) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
|
| Regions Covered | North America, Europe, Asia Pacific, Middle East, and Latin America |
WHAT IS IN IT FOR YOU: SUSTAINABLE AVIATION FUEL (BIOFUEL) MARKET SIZE, SHARE & ANALYSIS, 2025 TO 2030 REPORT CONTENT GUIDE

DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading Manufacturer | Additional segment breakdown for countries | Additional country-level market sizing tables for segments/subsegments covered at the regional/global level to gain an understanding of market potential by each country |
| Emerging Leader | Additional company profiles | Competitive information on targeted players to gain granular insights into direct competition |
| Regional Market Leader | Additional country market estimates | Additional country-level deep dive for a more targeted understanding of the total addressable market |
RECENT DEVELOPMENTS
- 2/1/2026 12:00:00 AM : Neste extended its partnership with World Fuel Services to increase sustainable aviation fuel availability across more than 100 airports in Europe. The partnership supports wider SAF distribution through existing airport fuel infrastructure and strengthens fuel supply flexibility for airlines. Neste is also expanding its global SAF production capability from 1.5 million tons to 2.2 million tons annually by 2027. The development supports growing aviation demand for lower-emission fuels and compliance with SAF blending mandates.
- 1/1/2026 12:00:00 AM : Neste joined the Asia Sustainable Aviation Fuel Association (ASAFA) to support the adoption of sustainable aviation fuel across the aviation sector. The company highlighted its Singapore refinery, which has a production capability of up to 1 million tons of sustainable aviation fuel annually. Neste is also investing in new feedstock technologies and renewable fuel research activities. The development supports the expansion of sustainable aviation fuel supply and technology advancement in the aviation industry.
- 7/1/2025 12:00:00 AM : Neste signed an agreement to supply 7,400 tons of sustainable aviation fuel to DHL Express at Singapore Changi Airport. The agreement supports the reduction of aviation emissions from air cargo operations and strengthens sustainable fuel adoption in the aviation logistics sector. It also expands Neste’s SAF supply network for commercial aviation customers. The development supports wider use of sustainable aviation fuel across aviation transport operations.
- 6/1/2025 12:00:00 AM : TotalEnergies announced plans to expand its sustainable aviation fuel production capacity to more than 500,000 tons annually by 2028. The company is increasing investments in renewable fuel production facilities to support rising SAF demand from aviation customers. The expansion supports compliance with aviation sustainability targets and fuel blending mandates. The development also strengthens the company’s renewable fuel production portfolio for the aviation sector.
- 4/1/2025 12:00:00 AM : Neste started sustainable aviation fuel production at its Rotterdam refinery after completing refinery modification activities. The project increased the company’s renewable fuel production capacity and strengthened fuel availability for aviation customers. The refinery is expected to produce up to 500,000 tons of sustainable aviation fuel annually. The development also supports the expansion of Neste’s global sustainable aviation fuel production network.
Table of Contents
Exclusive indicates content/data unique to MarketsandMarkets and not available with any competitors.
Methodology
The study followed four main steps to estimate the size of the sustainable aviation fuel market. Secondary research was conducted to collect data on sustainable aviation fuel production technologies, renewable feedstocks, refinery operations, fuel supply agreements, and aviation decarbonization initiatives across major countries. These findings were validated through primary interviews with fuel producers, airport operators, OEMs, and industry experts. The research analyzed renewable fuel production capacity, government regulations, blending mandates, investment activities, and technological advancements to assess market demand. Market estimates were then segmented by biofuel conversion pathway, blending capacity, fuel type, platform, and feedstock type. Data triangulation was applied to validate the final figures for each segment and subsegment.
Secondary Research
Secondary research was conducted to build the foundation for this study. Data was collected from renewable fuel reports, aviation industry publications, government sustainability policies, fuel production companies, and regulatory bodies related to sustainable aviation fuel. Company information was reviewed through annual reports, product documents, press releases, and investor presentations of sustainable aviation fuel producers and aviation companies. The study also examined industry articles, white papers, and research studies related to renewable feedstocks, biofuel conversion technologies, fuel blending methods, and aviation decarbonization initiatives. Additional insights were gathered from industry associations and market platforms to analyze market trends, technology developments, and sustainable aviation fuel adoption patterns.
Primary Research
Primary research was conducted after key insights from secondary analysis were identified. The study team engaged with executives, refinery operators, fuel suppliers, airline representatives, OEMs (Original Equipment Manufacturers), and industry experts involved in the sustainable aviation fuel ecosystem. Discussions included sustainable aviation fuel producers, aviation companies, airport operators, feedstock suppliers, and regulatory stakeholders across major markets. Interviews were conducted through calls and written correspondence to validate market size estimates, production trends, customer requirements, and fuel adoption strategies. These inputs helped refine perspectives on competition, technology development, supply chain activities, and investment trends while improving overall data accuracy.

To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down and bottom-up methods were used to estimate and validate the size of the sustainable aviation fuel market. The research process involved several steps to ensure accuracy.
- Key companies active in the sustainable aviation fuel market were identified through secondary research. Their market share was evaluated using a combination of primary inputs and published data. This included reviewing annual reports, financial disclosures, certification updates, and public filings from various organizations. Interviews were also conducted with industry participants such as company executives, program managers, operators, infrastructure providers, and aviation experts. These inputs were used to validate assumptions and refine market size estimates across regions.
- All percentage shares, segment splits, and market breakdowns were first developed using secondary information. These values were then verified through primary discussions with industry participants.
- The analysis evaluated key factors shaping the sustainable aviation fuel market, including defense spending trends, sustainable aviation fuel procurement programs, autonomous technology developments, payload integration capabilities, and surveillance requirements. Each factor was assessed through primary research and used to develop both quantitative and qualitative market estimates for this report.
Sustainable Aviation Fuel Market : Top-Down and Bottom-Up Approach

Data Triangulation
After determining the overall market size, the total market was divided into multiple segments and subsegments. The data triangulation and market breakdown procedures described below were carried out, where applicable, to complete the overall market analysis and determine the estimated market figures for the segments and subsegments. The data was triangulated by examining various factors and trends from both demand and supply sides. Additionally, the market size was validated using the top-down and bottom-up approaches.
Market Definition
The sustainable aviation fuel (SAF) market encompasses sustainable and low-carbon aviation fuels developed, produced, blended, distributed, and utilized as alternatives to conventional fossil-based jet fuel across commercial, military, business, and unmanned aviation platforms. These fuels are designed to reduce lifecycle greenhouse gas (GHG) emissions while supporting long-term aviation decarbonization, energy diversification, and regulatory sustainability targets. SAF solutions include bio-based fuels, synthetic e-fuels, and emerging hydrogen-based aviation fuels compatible with evolving aircraft propulsion technologies and airport fueling ecosystems.
Modern sustainable aviation fuel solutions are developed using multiple advanced feedstocks, conversion pathways, and fuel production technologies such as hydroprocessed esters and fatty acids (HEFA), Fischer-Tropsch (FT), alcohol-to-jet (ATJ), catalytic hydrothermolysis jet (CHJ), co-processing, and synthetic power-to-liquid (PtL) e-fuel systems. These fuels are produced from feedstocks including used cooking oil (UCO), agricultural residues, municipal solid waste (MSW), forestry residues, algae, ethanol-based sources, renewable electricity, and captured carbon dioxide (CO2). SAF deployment varies significantly based on fuel certification limits, blending capacities, feedstock availability, production economics, refinery infrastructure, regulatory incentives, and airline sustainability commitments.
As the aviation industry globally transitions toward net-zero emission targets and energy-resilient aviation ecosystems, sustainable aviation fuel is increasingly becoming a critical pillar of aviation decarbonization strategies. These fuels enable airlines, military operators, governments, and aviation stakeholders to reduce carbon emissions without requiring immediate replacement of existing aircraft fleets, while supporting long-term environmental compliance, fuel security, and sustainable aviation operations across both developed and emerging economies.
Key Stakeholders
- Airlines implementing sustainable aviation fuel adoption programs to reduce aviation emissions
- Sustainable aviation fuel manufacturers producing renewable aviation fuels from bio-based and waste feedstocks
- OEMs supporting fuel compatibility and aviation technology integration
- Refinery operators and fuel processing companies developing biofuel conversion and blending technologies
- Feedstock suppliers providing agricultural waste, used cooking oil, municipal waste, and other renewable raw materials
- Airport operators and aviation fuel distributors supporting sustainable aviation fuel storage, blending, and supply infrastructure
- Government organizations responsible for aviation emission regulations, fuel standards, and sustainability policies
- Maintenance, repair, and overhaul (MRO) service providers supporting fuel handling and operational integration
- Research institutions and industry associations supporting renewable fuel innovation and technology development
- Investment firms and energy companies funding renewable fuel production facilities and infrastructure expansion
Report Objectives
- To define, describe, and forecast the size of the sustainable aviation fuel market based on biofuel conversion pathway, blending capacity, fuel type, platform, and feedstock type
- To forecast the size of market segments with respect to key countries in the following regions: North America, Europe, Asia Pacific, the Middle East, and Latin America
- To identify and analyze drivers, restraints, opportunities, and challenges influencing the growth of the market
- To identify industry trends, market trends, and technology trends currently prevailing in the market
- To provide an overview of the regulatory landscape with respect to global sustainable aviation fuel market regulations
- To analyze micromarkets with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders by identifying key market trends
- To profile key market players and comprehensively analyze their market share and core competencies
- To analyze the degree of competition in the market by identifying growth strategies, such as agreements, acquisitions, partnerships, collaborations, and product launches, adopted by leading market players
- To identify detailed financial positions, key products, and unique selling points of leading market players
Available customizations:
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the sustainable aviation fuel market
- Profiling of other market players (up to 5)
Product Analysis
-
Product matrix, which provides a detailed comparison of the product portfolio of each company in the sustainable aviation fuel market
Key Questions Addressed by the Report
- Ethanol-to-Jet (EtJ)
- Advanced Gasification
- Hydrocracking
- Unicracking combined with the Fischer-Tropsch (FT) process
- The Fischer-Tropsch (FT) synthesis
- SAF-compatible Turbine Generator
- Advancements in feedstock processing and refining technologies
- Increasing adoption of fuel-efficient aircraft engines
- Stringent environmental regulatory mandates
Need a Tailored Report?
Customize this report to your needs
Get 10% FREE Customization
Customize This ReportPersonalize This Research
- Triangulate with your Own Data
- Get Data as per your Format and Definition
- Gain a Deeper Dive on a Specific Application, Geography, Customer or Competitor
- Any level of Personalization
Let Us Help You
- What are the Known and Unknown Adjacencies Impacting the Sustainable Aviation Fuel Market
- What will your New Revenue Sources be?
- Who will be your Top Customer; what will make them switch?
- Defend your Market Share or Win Competitors
- Get a Scorecard for Target Partners
Custom Market Research Services
We Will Customise The Research For You, In Case The Report Listed Above Does Not Meet With Your Requirements
Get 10% Free CustomisationTESTIMONIALS
Growth opportunities and latent adjacency in Sustainable Aviation Fuel Market
ANDREY
Aug, 2022
Can you provide details of companies which buy and sell Aviation Fuel along with their specific preferences? .