Aviation Biofuel Market: Global Industry Analysis and Forecast (2024-2030)

  • Aviation Biofuel Market size was valued at USD 50.25 Bn. in 2023 and the Aviation Biofuel revenue is expected to grow at a CAGR of 6.0% from 2024 to 2030, reaching nearly USD 75.56 Bn. by 2030.

  • Format : PDF | Report ID : SMR_2016

Aviation Biofuel Market Overview:

Biofuel is used as an alternative renewable source derived from plant or waste products is meant to lower environmental effects associated with greenhouse gases emanating within the air. Transport and many other purposes are the main uses of biofuels on earth. Plants which take in carbon dioxide and convert it to glucose, a simple sugar, using sunlight as an energy source are the generally known sources of biofuels from biological carbon materials which are not exhaustible. The airline industry is affected by various fluctuations like variations in crude oil prices and demand-supply imbalances because it depends on fossil fuels.

 

Sustainable biofuels can serve as a viable alternative option as long as they are produced elsewhere other than where oil reserves exist. Consequently, it would be possible for biofuel feedstocks to grow most parts across the globe that require fueling aircrafts. The aviation sector is expected to grow by about 3% per year, but growth in the use of jet fuel will likely be slightly lower because of increases in fuel efficiency.

 

The Aviation Biofuel market provides market size, share, scope, growth, and potential of the industry. It offers valuable in application to help businesses identify opportunities and potential risks within the market. Also the global Aviation Biofuel market research reports provide detailed analysis of market conditions, trends, challenges, and recommendations for stakeholders in the industry.

Aviation Biofuel Market

 

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Aviation Biofuel Market Dynamics:

Implementing Biofuels for Aviation easier than for other transport modes  

The supply of fuel to the commercial aviation industry is on a relatively small scale and less complex than for other forms of transport. For this reason, it is anticipated that it will be easier to fully implement the use of sustainable biofuels in aviation than in other transport systems. For example, there are 161,768 retail petrol stations in the United States alone. This compares to a relatively smaller number of airport fuel depots: 1,679 airports handle more than 95% of the world’s passengers. Similarly, there are around 580 million vehicles on the road today, compared to around 23,000 aircraft. And while many of those road vehicles are owned by individuals or families, there are only around 2,000 airlines in the world. The integration of biofuels into the aviation system is potentially a lot easier than it would be in a more dispersed, less controlled, public fuel delivery system.

 

Economic viability of biofuels for aviation

Sustainable biofuels will become economically viable and compete with petroleum-based fuels as costs are lowered by improvements in production technology and through economies of scale in production. They may also provide valuable economic opportunities to communities who can develop new sources of income – including in many developing nations.

 

Navigating Cost and Technological Hurdles are the major challenge for Aviation Biofuel market

The cost of bio-jet is one of the most daunting challenges. Although ongoing low oil prices will likely delay the development of some biofuel technologies and projects, lower oil prices might be less of an issue for aviation biofuels than for other sectors, because it is in the industry’s best interest to find long-term solutions. Airlines generally have low profit margins, and do not generally consider themselves able to pay a premium for fuel. This will make it difficult for the airline industry to reach carbon neutrality by 2025. This means that policy measures could be crucial to promote the production and consumption of bio-jet fuels. The lack of mature technologies is also a significant challenge. The HEFA pathway is the only mature process, but the cost of the oleochemical feedstock is high, at about 80% of the cost of making bio-jet.  

Aviation Biofuel Market1

Aviation Biofuel Market Segment Analysis:

By Type, the Analysis of Aviation biofuel market segment identifies certain categories based on type, particularly hydro processed esters and fatty acids (HEFA), Fischer-Tropsch (FT) synthetic fuels, and alcohol-to-jet (ATJ) fuels. HEFA remains the dominant segment owing to its maturity and certification, utilizing feedstocks like vegetable oils and animal fats. FT synthetic fuels, derived from gas or biomass, showcase promising potential for reducing emissions, while ATJ fuels, produced from alcohols, offer scalability and sustainability advantages, though still in early stages of commercialization. The diverse range of biofuel types reflects the industry's multifaceted approach towards achieving sustainable aviation.

Aviation Biofuel Market2

Aviation Biofuel Market Regional Insight:

According to the U.S. Energy Information Administration, the world’s aviation sector used 310bn L of jet fuel in 2012, accounting for 12% of global consumption of transport fuels. The aviation sector is expected to grow by about 3% per year, but growth in the use of jet fuel will likely be slightly lower because of increases in fuel efficiency. Growth is expected to be driven by Asian, African and, to a lesser extent, Latin American markets, as economies in these regions expand (Millbrandt, 2013). ICAO expects jet fuel consumption for international travel to increase by 2030 to between 710bn Lt and 998bn Lt.

Aviation Biofuel Market Competitive Landscape:

  • In February 2023, KBR announced a collaboration with Swedish Biofuels AB, a renowned leader in advanced biofuel research, to venture into the sustainable aviation fuel (SAF) industry.

 

  • In February 2022, Boeing announced a supply agreement for two million gallons of blended renewable aviation fuel with EPIC Fuels to power its commercial operations in Washington state and South Carolina by the end of 2022.

 

Aviation Biofuel Market Scope:

Aviation Biofuel Market

Market Size in 2023

USD 50.25 Bn.

Market Size in 2030

USD 75.56 Bn.

CAGR (2024-2030)

6.0 %

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

   Segments

By type

Hydrogenated Vegetable oil

Fischer Tropsch

Hydro processed esters and fatty acids (HEFA)

others

By Application

Civil Aviation

Military Aviation

Regional Scope

North America- United States, Canada, and Mexico

Europe – UK, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe

Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC

Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa

South America – Brazil, Argentina, Rest of South America

 

Aviation Biofuel Market Key Players:

  1. Neste
  2. Gevo
  3. World Energy
  4. Eni
  5. Aemetis
  6. SkyNRG
  7. Velocys
  8. Exxon Mobil Corp
  9. Honeywell International Inc.
  10. Alder Fuels
  11. Northwest Advanced Bio-Fuels LLC.
  12. Red Rock Biofuels
  13. SAF+ Consortium  
  14. Royal Dutch Shell
  15. Chevron Corp
  16. Virgin Atlantic
  17. Air France
  18. Scandinavian Airlines
  19. Safran
  20. Qantas Airways
  21. XX Ltd


Frequently Asked Questions

Economic viability of biofuels for aviation is the driver of the Aviation Biofuel Market.

1.    Aviation Biofuel Market: Research Methodology 
2.    Aviation Biofuel Market: Executive Summary
3.    Aviation Biofuel Market: Competitive Landscape
4.    Potential Areas for Investment

4.1. Stellar Competition Matrix
4.2. Competitive Landscape
4.3. Key Players Benchmarking
4.4. Market Structure
4.4.1.    Market Leaders 
4.4.2.    Market Followers
4.4.3.    Emerging Players

4.5. Consolidation of the Market
5.    Aviation Biofuel Market Import Export Landscape
5.1. Import Trends
5.2. Export Trends
5.3. Regulatory Compliance
5.4. Major Export Destinations
5.5. Import-Export Disparities
6.    Aviation Biofuel Market: Dynamics
6.1. Market Trends by Region
6.1.1.    North America
6.1.2.    Europe
6.1.3.    Asia Pacific
6.1.4.    Middle East and Africa
6.1.5.    South America

6.2. Market Drivers by Region
6.2.1.    North America
6.2.2.    Europe
6.2.3.    Asia Pacific
6.2.4.    Middle East and Africa
6.2.5.    South America

6.3. Market Restraints
6.4. Market Opportunities
6.5. Market Challenges
6.6. PORTER’s Five Forces Analysis
6.7. PESTLE Analysis
6.8. Strategies for New Entrants to Penetrate the Market
6.9. Regulatory Landscape by Region
6.9.1.    North America
6.9.2.    Europe
6.9.3.    Asia Pacific
6.9.4.    Middle East and Africa
6.9.5.    South America

7.    Aviation Biofuel Market Size and Forecast by Segments (by Value Units)
7.1. Aviation Biofuel Market Size and Forecast, by type (2023-2030)
7.1.1.    Hydrogenated Vegetable oil
7.1.2.    Fischer Tropsch
7.1.3.    Hydro processed esters and fatty acids (HEFA)
7.1.4.    others

7.2. Aviation Biofuel Market Size and Forecast, by Application (2023-2030)
7.2.1.    Civil Aviation
7.2.2.    Military Aviation

7.3. Aviation Biofuel Market Size and Forecast, by Region (2023-2030)
7.3.1.    North America
7.3.2.    Europe
7.3.3.    Asia Pacific
7.3.4.    Middle East and Africa
7.3.5.    South America

8.    North America Aviation Biofuel Market Size and Forecast (by Value Units)
8.1. North America Aviation Biofuel Market Size and Forecast, by type (2023-2030)
8.1.1.    Hydrogenated Vegetable oil
8.1.2.    Fischer Tropsch
8.1.3.    Hydro processed esters and fatty acids (HEFA)
8.1.4.    others

8.2. Aviation Biofuel Market Size and Forecast, by Application (2023-2030)
8.2.1.    Civil Aviation
8.2.2.    Military Aviation

8.3. North America Aviation Biofuel Market Size and Forecast, by Country (2023-2030)
8.3.1.    United States
8.3.2.    Canada
8.3.3.    Mexico

9.    Europe Aviation Biofuel Market Size and Forecast (by Value Units)
9.1. Europe Aviation Biofuel Market Size and Forecast, by type (2023-2030)
9.1.1.    Hydrogenated Vegetable oil
9.1.2.    Fischer Tropsch
9.1.3.    Hydro processed esters and fatty acids (HEFA)
9.1.4.    others

9.2. Aviation Biofuel Market Size and Forecast, by Application (2023-2030)
9.2.1.    Civil Aviation
9.2.2.    Military Aviation

9.3. Europe Aviation Biofuel Market Size and Forecast, by Country (2023-2030)
9.3.1.    UK
9.3.2.    France
9.3.3.    Germany
9.3.4.    Italy
9.3.5.    Spain
9.3.6.    Sweden
9.3.7.    Russia 
9.3.8.    Rest of Europe

10.    Asia Pacific Aviation Biofuel Market Size and Forecast (by Value Units)
10.1. Asia Pacific Aviation Biofuel Market Size and Forecast, by type (2023-2030)
10.1.1.    Hydrogenated Vegetable oil
10.1.2.    Fischer Tropsch
10.1.3.    Hydro processed esters and fatty acids (HEFA)
10.1.4.    others

10.2. Aviation Biofuel Market Size and Forecast, by Application (2023-2030)
10.2.1.    Civil Aviation
10.2.2.    Military Aviation

10.3. Asia Pacific Air Traffic Control (ATC) Communications Market Size and Forecast, by Country (2023-2030)
10.4. China
10.5. S Korea
10.6. Japan
10.7. India
10.8. Australia
10.9. Indonesia 
10.10. Malaysia
10.11. Vietnam
10.12. Taiwan
10.13. Bangladesh
10.14. Pakistan
10.15. Rest of Asia Pacific
11.    Middle East and Africa Aviation Biofuel Market Size and Forecast (by Value Units)
11.1. Middle East and Africa Aviation Biofuel Market Size and Forecast, by type (2023-2030)
11.1.1.    Hydrogenated Vegetable oil
11.1.2.    Fischer Tropsch
11.1.3.    Hydro processed esters and fatty acids (HEFA)
11.1.4.    others

11.2. Middle East and Africa Market Size and Forecast, by Application (2023-2030)
11.2.1.    Civil Aviation
11.2.2.    Military Aviation

11.3. Middle East and Africa Aviation Biofuel Market Size and Forecast, by Country (2023-2030)
11.3.1.    South Africa
11.3.2.    GCC
11.3.3.    Egypt
11.3.4.    Nigeria
11.3.5.    Rest of ME&A

12.    South America Aviation Biofuel Market Size and Forecast (by Value Units)
12.1. South America Aviation Biofuel Market Size and Forecast, by type (2023-2030)
12.1.1.    Hydrogenated Vegetable oil
12.1.2.    Fischer Tropsch
12.1.3.    Hydro processed esters and fatty acids (HEFA)
12.1.4.    others

12.2. South America Market Size and Forecast, by Application (2023-2030)
12.2.1.    Civil Aviation
12.2.2.    Military Aviation

12.3. South America Aviation Biofuel Market Size and Forecast, by Country (2023-2030)
12.3.1.    Brazil
12.3.2.    Argentina
12.3.3.    Rest of South America

13.    Company Profile: Key players
13.1. 2. Neste
13.1.1.1.    Company Overview
13.1.1.2.    Financial Overview
13.1.1.3.    Business Portfolio
13.1.1.4.    SWOT Analysis
13.1.1.5.    Business Strategy 
13.1.1.6.    Recent Developments

13.2. Gevo 
13.3. World Energy 
13.4. Eni
13.5. Aemetis
13.6. SkyNRG
13.7. Velocys 
13.8. Exxon Mobil Corp
13.9. Honeywell International Inc.
13.10. Alder Fuels
13.11. Northwest Advanced Bio-Fuels LLC.
13.12. Red Rock Biofuels
13.13. SAF+ Consortium  
13.14. Royal Dutch Shell
13.15. Chevron Corp
13.16. Virgin Atlantic
13.17. Air France
13.18. Scandinavian Airlines
13.19. Safran
13.20. Qantas Airways 
14.    Key Findings
15.    Industry Recommendation

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