Sustainable Aviation Fuel Market is set to reach US$ 4,841.5 million by 2031, at a strong CAGR of 35.2%. North America leads the market with 45%+ market share.

Sustainable Aviation Fuel Market reached USD 586.4 million in 2024 and is expected to reach USD 4,841.5 million by 2031, growing with a CAGR of 35.2% during the forecast period 2024-2031.. During the forecast period, new technological advances in fuel production are likely to augment the growth of the global sustainable aviation fuel market.

Sustainable Aviation Fuel (SAF) is an eco-friendly alternative to conventional jet fuel, produced from renewable resources like waste oils and biomass, reducing carbon emissions and supporting greener, sustainable air transportation globally.

DataM Intelligence unveils its latest report on the " Sustainable Aviation Fuel Market size 2025," offering an in-depth analysis of market trends, growth drivers, competitive landscape, and regional dynamics. The study covers market size in value and volume, CAGR forecasts, and emerging opportunities that can guide businesses in seizing growth potential and crafting winning strategies. Packed with data-driven insights on current developments and future trends, this report is essential for companies aiming to stay ahead in the competitive Market.

Get a Free Sample PDF Of This Report (Get Higher Priority for Corporate Email ID):-https://www.datamintelligence.com/download-sample/sustainable-aviation-fuel-market?prtk

United States: Key Industry Developments (2025)

✅ December 2025: XCF Global announced a major $300M expansion of its New Rise Reno 2 facility, aiming to double SAF production capacity to 80 million gallons annually to meet rising demand from commercial and private aviation sectors.

✅ November 2025: XCF Global signed an MOU with Impact Jets to supply verified SAF to the private aviation market, unlocking new high‐value SAF demand channels across 130 operators.

✅ October 2025: U.S. lawmakers introduced a bipartisan bill to boost sustainable aviation fuel production, support farmers, and grow American jobs signaling legislative momentum for SAF incentives and supply chain growth.

✅ Early 2025 (Q1-Q2): U.S. SAF production capacity surged materially in 2025, with production capacity rising from 25,000 b/d to 44,000 b/d, reflecting major output increases at key facilities.

Japan: Key Industry Developments (2025)

✅ July 2025: 国産SAF (domestically produced SAF) began supply at Tokyo (Haneda) Airport, where mass‐produced SAF from used cooking oil and other sustainable feedstocks was delivered for commercial passenger flights under the Fry to Fly Project.

✅ August 2025: 加古川市 (Kakogawa City) and SAF partners signed a cooperation agreement to promote SAF feedstock sourcing from recycled cooking oil, reinforcing local SAF feedstock supply and community participation.

✅ June 2025: The 7th Government‐Industry Council for SAF Promotion was held, bringing stakeholders together to accelerate SAF adoption policies and refine national SAF deployment strategies.

✅ January 2025: Cosmo Energy Group and partners completed SAF production facilities in Japan, enabling mass SAF manufacturing and laying the groundwork for ongoing 2025 domestic SAF supply.

✅ January 2025: Cosmo Energy Group announced domestic SAF supply plans for Japan's major airlines starting in 2025, establishing Japan's first commercial SAF supply chain to ANA and JAL.

📌 Sustainable Aviation Fuel Market 2025-26 M&A Deals

→ In June 2025, XCF Global Capital, Inc. completed a business combination with Focus Impact BH3 Acquisition Company (a special purpose acquisition company) creating the first publicly traded pure‐play Sustainable Aviation Fuel (SAF) producer in the U.S. under the name XCF Global, Inc.. While the exact transaction value wasn't publicly disclosed, this merger positioned XCF to expand SAF production facilities and enter Nasdaq under the ticker "SAFX," marking a major corporate consolidation event in the sector.

→ In 2025 (Completed by mid‐year), Southwest Airlines Co. divested its renewable fuel subsidiary SAFFiRE Renewables including its intellectual property and technology to Conestoga Energy (a renewable fuels producer). This deal transferred SAF technology assets and development plans for a Kansas pilot facility to Conestoga; financial terms were not disclosed publicly. This move reflects broader restructuring of Southwest's sustainability portfolio.

Sustainable Aviation Fuel Market Drivers:-
⏩ The European Union's ReFuelEU Aviation regulation mandates progressive SAF blending starting at 2 % by 2025 and rising sharply toward 70 % by 2050 providing a guaranteed long‐term demand signal for fuel producers.

⏩ In the United States, tax credits and the SAF Grand Challenge aim to support production of 3 billion gallons by 2030, aligning policy incentives with industry growth.

⏩ A mix of global aviation carbon reduction schemes like ICAO's CORSIA adds further compliance pressure, nudging airlines to switch from conventional kerosene to SAF.

⏩ Over 40 global carriers have committed to SAF use, cumulatively signing long‐term offtake agreements targeting billions of liters by 2030 a clear signal of demand certainty.

⏩ Such agreements are no longer symbolic; they provide revenue certainty that helps secure project financing for new SAF facilities.

⏩ Breakthroughs in manufacturing processes such as Hydroprocessed Esters and Fatty Acids (HEFA‐SPK) and Power‐to‐Liquid (PtL) pathways are enhancing scalability.

⏩ Innovation in feedstock flexibility from waste oils to agricultural residues broadens the raw material base, easing supply bottlenecks and improving industry economics.

⏩ With global air passenger traffic recovering and growing post‐pandemic, airlines face increasing pressure to reduce carbon footprints from a segment that contributes roughly 2-3 % of total CO2 emissions.

⏩ Strong corporate ESG commitments and sustainability strategies increasingly tie travel budgets to low‐carbon fuel use, adding a commercial pull for SAF adoption.

📌 Buy Now & Unlock 360° Market Intelligence:https://www.datamintelligence.com/buy-now-page?report=sustainable-aviation-fuel-market?prtk

Sustainable Aviation Fuel Major Players:-
Neste, Fulcrum BioEnergy, LanzaTech, TotalEnergies, Gevo, SG Preston, Velocys plc, Northwest Advanced Bio-Fuels,LLC, Red Rock Biofuels and Prometheus Fuels.

Key players highlights:-
Neste - 24.6% market share
Global leader in SAF production with advanced refining capacity and wide airline offtake agreements.

TotalEnergies - 13.9% market share
Major energy firm expanding SAF output via integrated renewable projects and global supply networks.

Fulcrum BioEnergy - 12.8% market share
Converts municipal solid waste into SAF, focusing on circular economy‐oriented fuel production.

LanzaTech - 11.4% market share
Uses gas fermentation to produce low‐carbon fuels from industrial emissions.

Gevo - 9.6% market share
Develops renewable hydrocarbons and SAF via alcohol‐to‐jet pathways and carbon reduction tech.

Sustainable Aviation Fuel Regional Highlights
North America
• Holds the largest share (45%+) of the global SAF market due to early adoption and heavy investment in production.
• Strong government policies (e.g., SAF incentives and mandates) and major SAF producers drive growth.
• Ongoing development includes expanded refinery capacities and large commercial airline commitments.

Europe
• Accounts for 28% of global SAF market share, ranking second regionally.
• Growth fueled by strict carbon reduction regulations and SAF blending mandates in the EU.
• Investment in PtL e‐fuel facilities and renewable fuel projects expanding regional supply.

Asia Pacific
• Contributes around 21% of global SAF share with rapid growth potential.
• Development driven by rising aviation traffic and supportive renewable fuel initiatives.
• China, India, and Japan are scaling feedstock investments and SAF capacity expansion.

Get Customization in the report as per your requirements:https://www.datamintelligence.com/customize/sustainable-aviation-fuel-market?prtk

Sustainable Aviation Fuel market segmentation :
The Sustainable Aviation Fuel (SAF) market is segmented based on type, aircraft, and platform. By type, it includes Biofuel, Hydrogen Fuel, Power-to-Liquid Fuel, and Gas-to-Liquid Fuel. By aircraft type, the market is divided into Fixed-Wing and Rotary-Wing aircraft. By platform, it covers Commercial Aviation, Military Aviation, Business Aviation, and UAVs, reflecting the diverse applications and fuel requirements across different aviation sectors.

Q: What is driving the growth of the Sustainable Aviation Fuel Market?
A: Rising environmental regulations, airline decarbonization goals, and demand for low-carbon fuel alternatives.

Q: Which regions are leading the Sustainable Aviation Fuel Market?
A: North America and Europe lead due to supportive policies and early adoption of biofuel technologies.

Unlock 360° Market Intelligence with DataM Subscription Services: https://www.datamintelligence.com/reports-subscription
Power your decisions with real-time competitor tracking, strategic forecasts, and global investment insights all in one place.

✅ Competitive Landscape
✅ Sustainability Impact Analysis
✅ KOL / Stakeholder Insights
✅ Unmet Needs & Positioning, Pricing & Market Access Snapshots
✅ Market Volatility & Emerging Risks Analysis
✅ Quarterly Industry Report Updated
✅ Live Market & Pricing Trends
✅ Import-Export Data Monitoring

Have a look at our Subscription Dashboard: https://www.youtube.com/watch?v=x5oEiqEqTWg

Contact Us -

Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About Us -
DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.

Our research database features countless statistics and in-depth analyses across a wide range of 6300+ reports in 40+ domains creating business solutions for more than 200+ companies across 50+ countries; catering to the key business research needs that influence the growth trajectory of our vast clientele.

This release was published on openPR.