Aviation Biofuel Market Research Report: By Type (HEFA, HVO, FT, SIP, ATJ) and By Application (Commercial, Military) Forecast to 2030

Aviation Biofuel Market Overview

 Aviation Biofuel Market is expected to grow USD 60 billion at a CAGR of 6% By 2020-2030

Air travel is increasing, with the number of passengers expected to rise manifold in the next two decades. Thus, aviation demand is strong across the globe as rising economic prosperity is opening up new travel opportunities. This growth emphasizes the need for the aviation industry to reduce carbon emissions, which is promoting the adoption of aviation biofuels. Aviation is one of the fastest-growing industries, owing to a rapidly expanding global middle class, particularly in developing nations, and the increasing penetration of low-cost carriers. The expanding number of international visitors, as well as fluctuations in oil and gas prices, have a significant impact on the aviation fuel business. Demand is primarily driven by commercial and military applications that are emerging in response to air traffic and aircraft fleet. Increased demand for air cargo transport in terms of volume and freight traffic is one of the major drivers of the aviation fuel market.  

The need to minimize carbon emissions has played a crucial role in propelling the aviation biofuels sector. Among gaseous biofuels, electrification, and liquid biofuels, liquid biofuels are the most sophisticated option for the aviation industry due to their high specific energy content and ability to cut carbon emissions. However, the expansion of the aviation biofuel business may be hampered by strict legislation to maintain standard requirements in aviation biofuel manufacturing. With creative solutions, this difficulty can be overcome in the prediction era.

Covid 19 Analysis

The sudden outbreak of the novel coronavirus pandemic has opened doors of havoc for new problems and struggles for both the production and manufacturing units of prominent market players in the international aviation bio-fuel market. One of the major issues is that restraining the market is the low or negligible availability of raw materials that will impact the prevalent ability of the producers to produce and manufacture a sufficient amount to cater to the rising needs of the target audiences across the globe. Another struggle that is being faced by the production units is that the lockdown that had been imposed by the government which is restricting them to either giving up or carrying on their operations for a longer duration to restore the supply chain mechanism that prevailed in the market in the pre-covid times. However, the rising environmental concerns in the 21st century regarding climate change and pollution are pushing people to mend their ways that harm the environment and cause irreparable damage.

The rising environmental concerns are pushing the global governments to address the important climatic issues and hence, increase their investment in the global market functions and products that are proven to be better for environmental conservation. Also, there have been wide attempts undertaken by the prominent players as a part of the growing aviation bio-fuel market size that is likely to have positive attributes in-store post the COVID-19 era and hence, promise great returns to the market during the forecast period that ends.

Market Dynamics

Drivers

The Aviation Biofuel Market is home to sustainable aviation fuels that are emerging as a key component in meeting the aviation industry’s commitments to decouple increases in the form of carbon emissions from traffic growth. SAF gives an impressive reduction of up to 80% in the head of CO2 emissions over the lifecycle of the fuel when compared to fossil jet fuel. This is done depending on the sustainable feedstock used, and other factors like production method, and the supply chain analysis to the airport. According to the information that has been circulated by the IATA fact sheet, SAF will be an eligible option for aircraft operators to meet their set obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Restraints

The aviation biofuel market growth is witnessing restraints in the form of the associated costs. Any conventional bio-lubricant is expected to be available in the market at a 30-40% increased price. The substantial increase in the production of cost-effective fuel components and inclusions is a major issue which the prominent market players are facing major issues to resolve.

Technology Analysis

Based on the technological advancements and developments, there is a special focus on motor oil for cars. There is a rapid increase in environmental issues which will benefit and enhance the demand for bio-based lubricants. The temperature and climate for aviation bio-fuel are favorable and hence, the Aviation Bio-fuel Market players are positive and anticipate a great degree of sustainability for the industry to emerge as an evergreen one during the forecast period and beyond that as well.

Study Objectives

• To project the CAGR growth rate and the Aviation Bio-fuel Market valuation expected to reach during the forecast period that based on the market dynamics like drivers, opportunities, and restraints.


• To study the market scope and the revenue potential of the market segments that will impact the final market valuation during the period.


• To analyze the degree of competition prevailing amongst the market players that are functional in the global market during the period.


• To forecast the dominant market players and regions based on the undertaken recent developments during the period.

Segment Overview

The aviation biofuel market has been segmented based on the following:

By fuel type

• Biofuel


• Hydrogen Fuel


• Power to Liquid Fuel

By Biofuel Manufacturing Technology

• Hydro processed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)


• Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)


• Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)


• Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)


• Alcohol to Jet SPK (ATJ-SPK)


• Catalytic Hydrothermolysis Jet (CHJ

By Biofuel Blending Capacity

• Below 30%


• 30% to 50%


• Above 50%

By Platform

• Commercial Aviation


• Military Aviation


• Business & General Aviation


• Unmanned Aerial Vehicle

By Region

• North America


• Europe


• Asia Pacific


• Middle East


• Latin America


• Africa

Regional Analysis

The North American Aviation Biofuel Market is expected to grow at the highest CAGR during the forecast period that ends in 2028. To cater to the need for of reduction in carbon footprints due to increasing air traffic and air passengers, prominent regional countries such as the US and Canada in North America are laying their focus on various initiatives to utilize renewable aviation fuel. With a steep rise in the supportive policies and initiatives for the decarbonization process of aviation emissions, the North American market is likely to be deemed to be one of the strong demand centers for sustainable aviation fuel.

Competitive Landscape

The aviation biofuel market trends are pushing the development of a globally competitive degree that is prevalent amongst the prominent market players and, thus, helps cater to the needs of a larger target audience. The market players are as follows:

• Neste (Finland)


• Gevo (US)


• World Energy (US)


• Eni (Italy)


• Aemetis, Inc. (US)


• SkyNRG (Netherlands)


• Velocys (UK)


• Fulcrum BioEnergy (US)

These key players are offering various market products and services such as biofuel, synthetic fuel, fuels, green fuel, and hydrogen fuel, to come forward and curb the GHG emissions from aviation and other industrial sectors such as automotive, marine, chemical, etc.The startup companies in the sustainable aviation fuel market include companies like the following:

• Red Rock Biofuels (US)


• SG Preston Company (US)

Recent Developments

• February 2022: ExxonMobil received an agreement by the Civil Aviation Authority of Singapore (CAAS), Singapore Airlines (SIA), and the Singapore-based global investment firm Temasek to supply and distribute sustainable aviation biofuel in Singapore. This product will consist of 1.25 million liters of neat SAF supplied by Neste and created from discarded cooking oil and waste animal fats before being combined with refined jet fuel at ExxonMobil's Singapore facility.

Intended Audience

• Public sector and government enterprises


• Bio-lubricant manufacturers and producers


• Enterprises included in the aviation biofuel in trading


• Market investors


• Research firms


• Development institutions


• Medical and pharmaceutical companies

Report Overview

The aviation bio-fuel market outlook in the form of this report is a clear depiction of the market functions. The report focuses on important aspects like the performance of the prominent market players and the recent developments undertaken. The report offers detailed market insights on the prevailing trends and encompasses the dynamics in the form of the demand drivers and growth opportunities that will be responsible for the global growth of the market when the forecast period.