PUBLISHER: The Business Research Company | PRODUCT CODE: 1795804
PUBLISHER: The Business Research Company | PRODUCT CODE: 1795804
Sustainable fuel refers to energy sources that are renewable, environmentally friendly, and produce a lower carbon footprint compared to fossil fuels. These fuels are derived from resources such as bioenergy, hydrogen, or synthetic fuels, with the goal of reducing environmental impact. They help meet long-term energy demands while preserving natural resources.
The main types of sustainable fuels include biofuels, synthetic fuels, hydrogen fuel, and others. Biodiesel, a renewable and biodegradable fuel made from organic sources such as vegetable oils, animal fats, or recycled grease, is commonly used as an alternative to traditional diesel. Sustainable fuels can be in either liquid or gas form and have a variety of applications, including use in automobiles, ships, aerospace, and other industries.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials-such as rare earth elements vital for clean energy technologies-posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.
The sustainable fuel market research report is one of a series of new reports from The Business Research Company that provides sustainable fuel market statistics, including the sustainable fuel industry's global market size, regional shares, competitors with a sustainable fuel market share, detailed sustainable fuel market segments, market trends and opportunities, and any further data you may need to thrive in the sustainable fuel industry. This sustainable fuel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The sustainable fuel market size has grown rapidly in recent years. It will grow from $175.41 billion in 2024 to $196.04 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth in the historic period can be attributed to the adoption of clean and sustainable energy alternatives, rapid industrialization and urbanization, the shift towards renewable energy sources, the surge in demand for biofuel, and increasing energy demand.
The sustainable fuel market size is expected to see rapid growth in the next few years. It will grow to $312.16 billion in 2029 at a compound annual growth rate (CAGR) of 12.3%. The growth in the forecast period can be attributed to growing environmental concerns associated with conventional fuels, growing demand in the transportation sector, increasing awareness of the need to reduce carbon emissions, increasing electric vehicle production, and supportive government policies and regulations. Major trends in the forecast period include carbon capture technologies, innovations in sustainable sourcing techniques, advanced biofuels, innovations with hydrogen-based fuels, and waste-to-fuel technologies.
The forecast of 12.3% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. The sustainable fuel sector may struggle with increased input costs as tariffs affect imports of feedstock processing equipment, hydrogen catalysts, and blending modules. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The transition to renewable energy sources is expected to drive the growth of the sustainable fuel market in the future. This shift is motivated by various factors, including the need to address climate change, the rise in electricity consumption, the move away from fossil fuels, international agreements, and energy security concerns. Sustainable fuels, such as biofuels, green hydrogen, and synthetic fuels, play a key role in this transition by providing low-carbon alternatives to fossil fuels, reducing environmental impact, and promoting energy sustainability. For example, in September 2024, the Department for Energy Security and Net Zero, a UK-based governmental department, reported that renewable energy accounted for 51.6% of the UK's total energy generation in the second quarter (Q2) of 2024, marking an increase of 9.9 percentage points compared to the same period in 2023. As a result, the growing shift towards renewable energy is fueling the demand for sustainable fuels.
Companies operating in the sustainable fuel market are focusing on developing sustainable biodiesel as a means to reduce carbon emissions, improve energy efficiency, and support the transition to cleaner energy sources. Sustainable biodiesel is a renewable fuel made from organic feedstocks, such as vegetable oils, animal fats, and recycled cooking oils. It offers significant reductions in greenhouse gas emissions and reliance on fossil fuels. For instance, in March 2022, Renewable Energy Group, a US-based biodiesel production company, introduced EnDura Fuels, a line of sustainable fuels that includes PuriD, InfiniD, VelociD, BeyonD, and UltraClean. These fuels are derived from lower carbon intensity feedstocks such as used cooking oil, distillers corn oil, and animal fats. Each product in the EnDura Fuels range is specifically engineered to reduce greenhouse gas emissions by up to 80% over its lifecycle compared to traditional petroleum-based fuels. These fuels provide cleaner energy solutions for industries such as marine, aviation, rail, and trucking.
In April 2024, Southwest Airlines Co., a US-based company, acquired SAFFiRE Renewables LLC for an undisclosed amount. This acquisition was aimed at expanding Southwest Airlines' portfolio by incorporating SAFFiRE Renewables' expertise in sustainable fuel solutions. SAFFiRE Renewables LLC is a US-based company that specializes in providing sustainable fuels.
Major players in the sustainable fuel market are Total Energies SE, Air BP Ltd., Chevron Corporation, Cargill Inc., Equinor ASA, The Archer-Daniels-Midland Company, Neste Corp., Kinder Morgan Inc, Saudi Basic Industries Corporation (SABIC), Novozymes Ltd., Verbio SE, Raven Industries Inc., Praj Industries Ltd, Honeywell UOP LLC, Green Plains Inc., World Energy LLC, Climeworks AG, Aemetis Inc., LanzaTech Inc., Cielo Waste Solutions Corp., SkyNRG BV, Gevo Inc., and Velocys PLC.
North America was the largest region in the sustainable fuel market in 2024. The regions covered in sustainable fuel report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the sustainable fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The sustainable fuel market consists of sales of biodiesel, ethanol, biogas, alcohol fuels and processed engineered fuels. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Sustainable Fuel Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on sustainable fuel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for sustainable fuel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The sustainable fuel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.