Global Aviation Biofuel Market Research Report: By Type (HEFA, HVO, FT, SIP, ATJ) and By Application (Commercial, Military) – Forecast to 2025

Market Scenario

Global Aviation Biofuel Market is projected to reach USD 59.88 Billion by 2025, expanding at a CAGR of 5.90% between 2019 and 2025. The aviation biofuel market is highly fragmented with the presence of a large number of players catering to the increasing demand. High competition among the industry players leads to product innovation, which attracts more consumers. This, in turn, drives the market growth. Many key players, such as World Energy are acquiring renewable jet and diesel providers to strengthen their presence in the global aviation biofuel market. For instance, in 2018, World Energy acquired AltAir Paramount, LLC, a renewable jet and diesel producer, for USD 72 million to strengthen its position in the global aviation fuel market.

Market Synopsis

The Global Aviation Biofuel Market has witnessed high growth in recent years owing to growing concerns about environmental protection and global warming. Biofuel accounted for a share of around 13% of the global aviation fuel market, which valued at nearly USD 299.67 billion in 2018. Aviation fuel gained popularity due to increasing air passenger traffic and the rise in demand for alternative fuel. Additionally, increasing aircraft deliveries in the Asia-Pacific region is also expected to drive the growth of the market.

Factors contributing to the growth of the market are growing concerns about environmental protection and global warming. Additionally, the growing preference for bio-based solvents is also encouraging the oil & gas companies to invest in the market. However, issues related to storing biofuel and high costs associated with R&D might hamper the growth of the market.

Market USP

The growing need to reduce greenhouse gas emissions is expected to drive the market growth

Market Drivers

• Rising demand for new aircraft: Rising demand for new aircraft to cater to the rising air passenger traffic is expected to drive the market growth.

• Growing concerns about environmental protection and global warming

• Increasing preference for bio-based solvents

Market Restraints

• Issues related to storing biofuel


• High costs associated with R&D

Segmentation

By Type

• Hydro processed Esters and Fatty Acids (HEFA): The segment dominated the market in 2018. It is a biofuel which is extracted from a wide variety of vegetable oils and fats. The term HEFA is used collectively for biogenic hydrocarbons-based renewable biofuel. HEFA is free of sulfur and aromatics with a high cetane number. It is well known for drop-in fuel, which implies that it is chemically equivalent to fossil diesel fuel and can be used in existing diesel engines without making any changes in the design of the engine.

• Hydrotreated Vegetable Oils (HVO): The segment is expected to grow at the highest CAGR during the forecast period. HVO uses methanol as a catalyst in the esterification process, whereas HEFA uses hydrogen as a catalyst. The use of hydrogen leads to the hydrogenation process instead of esterification. Hydrogenation removes the oxygen from the fuel, while esterification does not remove the oxygen.

• Fischer-Tropsch (FT): The method uses high-temperature treatment of biomass such as agricultural residues, wood waste or municipal solid waste (MSW) to produce a synthesis gas, which generated into synthetic hydrocarbon fuels over catalysts.

• Synthesized Iso-Paraffinic (SIP): This biofuel is produced by sugars that are converted into a pure paraffin molecule by making use of advanced fermentation.

• Alcohol to Jet (ATJ): It utilizes dehydration and hydroprocessing to convert alcohol feedstock into a pure hydrocarbon fuel blending component.

By Application

• Commercial: The segment dominates the aviation biofuel market in 2018 and is expected to witness higher growth during the review period. Increasing air passenger traffic and growing manufacturing of new commercial aircraft is expected to drive the segment growth.

• Military: The growing adoption of aviation biofuel by the defense units of developing nations such as India is expected to drive the segment growth.

By Region

• North America: North America dominates the aviation fuel market. This trend is projected to continue during the forecast period due to the presence of prominent aviation biofuel providers such as Honeywell International, Inc. and World Energy.

• Europe: Increasing collaborations between aviation biofuel providers such as Velocys and aviation fuel providers such as Shell International BV to develop aviation biofuel plant in the region is driving the market growth in the region.

• Asia-Pacific: The market in this region is projected to expand at a high CAGR during the forecast period. Rising air passenger traffic in countries such as China and India and growing adoption of aviation biofuel by low-cost airline such as SpiceJet Limited headquartered in the region are driving the market growth in the region.

• Middle East: Presence of prominent airline companies such as The Emirates Group and Etihad Airways fuels the growth of the aviation biofuel market in this region.

• Latin America: Presence of prominent OEMs such as Embraer fuels the growth of the aviation biofuel market in this region.

Key Players

• Air BP Limited (UK)


• World Energy (US)


• Chevron Corporation (US)


• Honeywell International Inc. (US)


• SkyNRG (The Netherlands)


• Renewable Energy Group, Inc. (US)


• TerraVia (US)


• SWEDISH BIOFUELS AB (Sweden)


• NXT Fuels Limited (New Zealand)


• Red Rock Biofuels (US)

Other Prominent Players

• Gevo Inc. (US)


• Targray Technology International Inc. (Canada)


• Argent Energy (UK)


• KFS Biodiesel GmbH & Co. KG (Germany)


• NXT Fuels Limited (New Zealand)


• PetroSun, Inc (US)


• The Archer Daniels Midland Company (US)


• Neste Oyj (Finland)

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