(MENAFN- GlobeNewsWire - Nasdaq) The sustainable aviation fuel market presents opportunities in expanding large-scale SAF production, investing in advanced bio-based feedstocks, and integrating AI for optimized biofuel processing. Rising global airline adoption of SAF and developing distribution networks are key drivers, despite tariff challenges.Dublin, Jan. 19, 2026 (GLOBE NEWSWIRE) -- The "Sustainable Aviation Fuel Market Report 2026" has been added to ResearchAndMarkets's offering.
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The sustainable aviation fuel (SAF) market is experiencing exceptional growth, projected to expand from $3.72 billion in 2025 to $5.75 billion in 2026, with a compound annual growth rate (CAGR) of 54.5%. This remarkable growth is driven by regulatory mandates to curb aviation carbon emissions, early adoption of bio-based feedstocks, advancements in sustainable fuel technologies, and increased airline commitments to renewable fuels. The establishment of infrastructure for blending and distribution also plays a significant role.
Looking ahead, the SAF market is expected to surge further, reaching $26.1 billion by 2030 at a CAGR of 46%. Contributing factors include large-scale production capacity expansion, investment in innovative feedstocks like algae, and AI integration for biofuel conversion. The rise in SAF adoption globally, alongside development of robust logistics for airport supply chains, is pivotal in this forecast period. Key trends include the expansion of waste-to-fuel, advancements in high-efficiency biofuel technologies, and greater use of SAF blends in commercial flights.
Biofuels remain central to the SAF market growth, in line with a global shift toward sustainability and aviation's commitment to reducing greenhouse gases. For instance, Eurostat reported an increase in the EU's renewable energy use from 23% in 2022 to 24.5% in 2023. This trend bolsters the SAF market as biofuels help airlines reduce their carbon footprints significantly.
Key players are innovating with technologies aimed at minimizing aviation's environmental impacts. In September 2023, Lummus Technology introduced an ethanol-based SAF technology, optimizing large-scale solutions to cut greenhouse gas emissions. This involves integrating ethanol to ethylene, olefin oligomerization, and hydrogenation to boost SAF yield while lowering costs and emissions.
Strategic mergers are shaping the industry landscape. In April 2024, Southwest Airlines Co. acquired SAFFiRE Renewables LLC, enhancing its Nonstop to Net Zero initiative. SAFFiRE's technology converts agricultural residues into renewable ethanol for low-carbon jet fuel, supporting scalable SAF production.
Major companies in the market include Shell plc, TotalEnergies SE, BP plc, and Neste Oyj, among others. North America led the market in 2025, but the Middle East is expected to be the fastest-growing region going forward. The market encompasses various geographies, including Asia-Pacific, Europe, and South America, reflecting a broad international scope.
Global trade dynamics affecting tariffs on biofuel feedstocks and refining equipment present challenges. These tariffs increase costs but also incentivize local production, strengthening regional supply chains. The sustainable aviation fuel market report provides comprehensive insights into these trends, offering a complete industry perspective. It covers market statistics, trends, opportunities, and strategic recommendations to navigate this dynamic environment effectively.
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