DELRAY BEACH, Fla., April 25, 2025 /PRNewswire/ -- The US sustainable aviation fuel market is forecasted to reach USD 6.97 billion in 2030 from USD 0.86 billion in 2024, growing at a CAGR of 46.8% according to a new report by MarketsandMarkets." The US sustainable aviation fuel market is driven by several key factors. Firstly, rising concerns about carbon emissions have prompted a shift from conventional fossil fuels to alternative fuels in both military and civil aviation, supporting the transition towards more sustainable aviation solutions.
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The US government's commitment to reducing emissions has led to the introduction of tax credits for sustainable aviation fuel, incentivizing production and adoption. Furthermore, airlines like United Air, KLM, and JetBlue have begun integrating sustainable aviation fuel in 50% blends with conventional fuels, demonstrating its feasibility and viability. The successful demonstration by United Airlines, operating the first commercial flight with 100% sustainable aviation fuel, has proven the technology's effectiveness and contributed to its wider acceptance. Lastly, the US government's net-zero emissions target by 2050 and support for sustainable fuel initiatives are expected to lead to price reductions and further increase demand for sustainable aviation fuels.
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Biofuel type accounted for the dominant share of the US sustainable aviation fuel market in 2024.
Based on the fuel type, the sustainable aviation fuel market is divided into biofuel, hydrogen fuel, power-to-liquid and gas-to-liquid. In 2024, the biofuel type segment dominated the sustainable aviation fuel market, and the power-to-liquid type segment is anticipated to grow at the highest CAGR during the forecast period in US. The established infrastructure for producing and distributing biofuels is a key factor driving its dominance, along with government incentives and subsidies supporting biofuel production. Additionally, biofuels' compatibility with existing aviation infrastructure allows for easier adoption compared to newer fuel types like hydrogen. The cost-effectiveness and sustainability of biofuels, coupled with their lower carbon emissions, further contribute to their dominance in the market.
Moreover, the ongoing advancements in biofuel technologies and scalability in production processes are expected to support the increasing demand for sustainable aviation fuel in the US.
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Above 50% biofuel blending capacity segment is likely to grow at a significant CAGR during the forecast period in US sustainable aviation fuel market.
Based on biofuel blending capacity, the US sustainable aviation fuel industry is categorized into below 30%, 30 - 50% and above 50%. During the forecast period, the above 50% biofuel blending capacity segment accounted for the fastest-growing CAGR in the sustainable aviation fuel market in the US. The increased regulatory support and subsidies for higher biofuel blends are driving the growth of the segment. Additionally, the growing demand for more sustainable and environmentally-friendly aviation fuels is contributing to the adoption of higher biofuel blending capacities. Moreover, advancements in biofuel production technologies and scalability of biofuel production have made it more cost-effective and feasible to blend biofuels at above 50% levels in aviation fuel. Furthermore, airlines' commitments to sustainability and the need to meet carbon reduction targets are also pushing the demand for higher biofuel blends in the market.
Sustainable aviation fuel companies players include World Energy, LLC (US), Fulcrum BioEnergy (US), Gevo (US), Red Rock Biofuels (US), WasteFuel (US), and Prometheus Fuels (US).
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