Aviation Biofuel Market Size was valued at USD 40.2 billion in 2022. The Aviation Biofuel market industry is projected to grow from USD 42.612 Billion in 2023 to USD 60.4459 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.00% during the forecast period (2023 - 2030). The aviation bio-fuel market is home to sustainable aviation fuels emerging as a component in meeting the aviation industry and growing environmental concerns, the key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Aviation biofuel is introduced as a substitute for conventional petroleum fuels. Fossil fuels produce greenhouse gases when burnt, and these gases trap sunlight in the atmosphere, thereby heating the planet. The use of biofuel is encouraged in many countries to reduce the generation of greenhouse gases, which helps to grow the market CAGR. Moreover, biofuel use has higher cost-effectiveness than conventional fossil fuels. Biofuels are adaptable to the engine, keeping it running longer and reducing maintenance costs. The aviation industry is committed to decoupling carbon emissions from traffic growth increases. SAF gives an impressive reduction of up to 80% in the head of CO2 emissions over the fuel lifecycle compared to fossil jet fuel. This depends on the sustainable feedstock used and other factors like production methods and the supply chain analysis to the airport. According to the information circulated by the IATA fact sheet, SAF will be a suitable option for aircraft operators to meet their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Additionally, The biofuel industry help reduces the country's dependence on foreign oil. Thus, the production cost associated with biofuel is high, and the investment is low. If the demand increases, then increasing the supply will be quite expensive. Another challenge faced by biofuels is the use of fertilizers which drives the Aviation Biofuel Market revenue. As biofuels are extracted from crops, these crops require fertilizers for better growth, and fertilizers harm the environment. Similarly, large quantities of water are used to grow biofuel crops, threatening regional water resources. Implementing stringent regulations to maintain standards in aviation fuel production may hinder the market's growth; however, it can be overcome with innovation and technological advancements in the upcoming years.
Aviation Biofuel Type Insights
The Aviation Biofuel market segmentation, based on type, includes HEFA, HVO, FT, SIP, and ATJ. The HEFA segment dominated the market and was the only mature technology. The CAA considers HEFA fuel a leading alternative replacement for conventional jet fuel. HEFA was approved by Altair Engineering for use HEFA. The FT segment in the renewable aviation fuel sector will likely increase demand during the forecast period due to the rising demand for (FT) technology to convert an estimated 133,000 metric tons of waste a year into a biocrude that can be upgraded to aviation fuel. Thus, such investments in upcoming sustainable aviation fuel projects will likely increase the demand for FT technology.
In developing economies, further category growth is expected to grow significantly during the forecast period. The availability of sustainable raw materials at low cost is expected to generate lucrative opportunities for aviation biofuels period the next five years. In addition, growth in the aviation sector has contributed to the expansion of the aviation fuel market. An upsurge in demand for eco-friendly biofuels and a rise in concern about carbon emissions are expected to witness robust growth.
For instance,January 2022Â Johnson Matthey launched an innovative technology, HyCOgenTM, by converting captured carbon dioxide (CO2) and green hydrogen into sustainable aviation fuel (SAF) using FT technology.
For instance,February 2022Â 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 Application Insights
Based on application, the aviation biofuel market segmentation includes commercial and military. The commercial-based category dominated the market. This is due to the rapid development in technological pathways to commercialize jet fuel use. The military-based segment has the fastest growth in the forecast period due to the rising research and development in the military.
Figure1 Aviation Biofuel Market, by Application,2022& 2030 (USD billion)
          Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Aviation Biofuel Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North American aviation biofuel will dominate this market. Because the Aviation Bio-fuel Market is home to sustainable aviation fuels that are emerging as a component in meeting the aviation industry, growing environmental concerns will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2 AVIATION BIOFUEL SHARE BY REGION 2022 (%)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Aviation Biofuel market accounts for the second-largest market share due to the rise in supportive policies and initiatives for decarbonizing aviation emissions. Further, the German Aviation Biofuel market held the largest market share, and the UK Aviation Biofuel market was the fastest-growing market in the European Region.
The Asia-Pacific Aviation Biofuel Market is expected to grow at the fastest CAGR from 2023 to 2030. This is because Asia-Pacific countries are the major supply hubs for raw materials such as crops to produce aviation biofuels. Moreover, China’s Aviation Biofuel market held the largest market share, and the Indian Aviation Biofuel market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Aviation Biofuel market grow even more. Market participants are also undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The aviation biofuel industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Aviation biofuel industry to benefit clients and increase the market sector. The Aviation Biofuel industry has offered some of the most significant advantages to growing environmental concerns in recent years. Major players in the Aviation Biofuel market, including Neste (Finland), Gevo (US), World Energy (US), Eni (Italy), Aemetis, Inc. (US), SkyNRG (Netherlands), Velocys (UK), Fulcrum BioEnergy (US)., and others, are attempting to increase market demand by investing in research and development operations.
Johnson Matthey is a British multinational specialty chemicals and sustainable technologies company headquartered in London, England. Specialties Johnson Matthey offers catalysis, precious metals, fine chemicals, process technology, sustainability, chemistry, chemicals, pgms, chemical processes, fuel cells, emissions control, automotive, refining, electrochemistry, chemical synthesis, material science, process engineering, product formulation, material characterization, specialist metallurgy, hydrogen, syngas, surface chemistry, chemical synthesis, and sustainable aviation fuel. Johnson Matthey launched an innovative technology, HyCOgenTM, by converting captured carbon dioxide (CO2) and green hydrogen into sustainable aviation fuel (SAF) using FT technology.
Boeing is the world's largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and services. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers, and invest in its people and future growth. 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.
Key companies in the aviation biofuel market include.
For instance,January 2022Â Johnson Matthey launched an innovative technology, HyCOgenTM, by converting captured carbon dioxide (CO2) and green hydrogen into sustainable aviation fuel (SAF) using FT technology.
For instance,February 2022Â 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 Type Outlook
Aviation Biofuel Application Outlook
Aviation Biofuel Regional Outlook
| Report Attribute/Metric | Details |
| Market Size2022 | USD 40.2 billion |
| Market Size 2023 | USD 42.612 billion |
| Market Size 2030 | USD 60.4459 billion |
| Compound Annual Growth Rate (CAGR) | 6.00% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, By Application, and by Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â Neste (Finland), Gevo (US), World Energy (US), Eni (Italy), Aemetis, Inc. (US), SkyNRG (Netherlands), Velocys (UK), Fulcrum BioEnergy (US) |
| Key Market Opportunities | ·        Increased demand for air cargo transport in terms of volume and freight traffic is one of the major drivers of the aviation fuel market. |
| Key Market Dynamics | ·        The Aviation Bio-fuel Market is home to sustainable aviation fuels that are emerging as a key component in meeting the aviation industry’s |
Aviation Biofuel Market Highlights:
Frequently Asked Questions (FAQ) :
The Aviation Biofuel market size was valued at USD 40.2 Billion in 2022.
The market is projected to grow at a CAGR of 6.00% during the forecast period, 2023-2030.
North America had the largest share of the market
The key players in the market are Neste (Finland), Gevo (US), World Energy (US), Eni (Italy), Aemetis, Inc. (US), SkyNRG (Netherlands), Velocys (UK), Fulcrum BioEnergy (US).
The HEFA category dominated the market in 2022.
The Commercial application had the largest share of the market.
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