Delray Beach, FL, Nov. 18, 2025 (GLOBE NEWSWIRE) -- The global Sustainable Fuel Market size is expected to grow from USD 193.8 billion in 2024 to USD 299.9 billion by 2029, at a CAGR of 9.1% according to a new report by MarketsandMarkets™.
Growth is driven by stricter environmental regulations, carbon reduction policies, and government initiatives such as carbon pricing, emission trading systems, and fuel blending mandates. Increasing consumer preference for eco-friendly products and corporate sustainability commitments are further accelerating adoption.
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Sustainable Fuel Market Highlights
Market Data:
- 287 Market Data Tables
- 81 Figures
- 323 Pages
Top Companies:
- ADM (US) · Shell plc (UK) · Siemens Energy AG (Germany) · Saudi Aramco (Saudi Arabia) · Chevron Corporation (US)
Market Dynamics
Drivers:
- Rising environmental concerns about fossil fuels
- Supportive policies promoting low-carbon alternatives
Restraints:
- High initial capital costs for infrastructure and production
Opportunities:
- Global transition to renewable and sustainable energy systems
Challenges:
- Limited commercial availability of sustainable-fuel-powered vehicles
Based on Fuel type, the Sustainable Fuel Market is segmented into five types of fuels: Biofuels, Biomethane, Hydrogen, Compressed Natural Gas (CNG) and e-fuels. Among them, the Biofuels will be the largest segment. Biofuels are viewed as a greener alternative to fossil fuels, as they reduce GHG emissions significantly and contribute to climate change mitigation. This environmental benefit is a major driver of their expansion. Furthermore, biofuels help to reduce dependency on imported fossil fuels, so improving national energy security. Countries may mitigate the risks of oil price volatility and geopolitical crises by diversifying their energy sources. Furthermore, growing prices for traditional jet fuels encourage the aviation industry to look for more cost-effective and sustainable options, driving demand for aviation biofuel.
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This report segments the Sustainable Fuel Market based on state into 2 categories: Gas and Liquid. The gas segment is expected to be the fastest-growing segment in the Sustainable Fuel Market. To reduce greenhouse gas emissions, governments throughout the world are implementing stricter environmental restrictions. This legislative drive promotes the use of cleaner alternatives such as biomethane, CNG, and hydrogen, which benefits the gas category in the Sustainable Fuel Market. Furthermore, advances in gas generation, storage, and distribution technologies have considerably enhanced the efficiency and viability of renewable gases such as biomethane and hydrogen. alternative developments cut prices while increasing the usefulness of alternative fuels. Furthermore, sustainable gasses improve energy security by lowering reliance on imported fossil fuels. Diversifying the energy mix with local and renewable gas sources helps to stabilize energy supply and costs, which encourages their use.
Sustainable Fuel Market is segmented into 3 categories
- Road transportation:
- Marine
- Aviation.
The Road transportation segment is anticipated to grow as the largest segment in the Sustainable Fuel Market. To combat climate change and reduce carbon emissions, nations are enacting strict environmental regulations. This supports the use of cleaner fuels in road transportation, such as biofuels, biomethane, CNG, hydrogen, and e-fuels, to meet emission targets. Furthermore, continual developments in fuel technology, such as improved hydrogen fuel cells and more efficient biofuel manufacturing processes, increase the viability and performance of sustainable fuels in road transportation. These advancements reduce costs and improve fuel efficiency, making them more appealing to both consumers and businesses.
Regional Insights
The Asia Pacific region is expected to record the fastest growth through 2029.
- Governments are introducing incentives and mandates for sustainable aviation fuels.
- Collaborative efforts between governments, research institutions, and industry partners are expanding SAF infrastructure.
- Investments in production, distribution, and consumption infrastructure are improving SAF accessibility and affordability.
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Notable Developments
- May 2024: TotalEnergies and SINOPEC partnered to establish a 230,000 tons-per-year SAF production unit at a SINOPEC refinery in China.
- March 2024: Gasum and the Norwegian Road Transport Association (NLF) collaborated to promote biogas as a green alternative for road transport in Norway.
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Biomass Power Generation - Global Forecasts to 2028
Biofuel - Global Forecasts to 2028
Fuel Cell - Global Forecasts to 2028
Biomethane - Global Forecasts to 2030
Hydrogen - Global Forecasts to 2030
