Bio-Jet Fuels Market, by Type of Feedstock (Agriculture Crops, Aquaculture Crops, Energy Crops, Multiple Solid Waste, and Others), Technology (First Generation, Second Generation, Third Generation, and Fourth Generation), Type (Hydrogenated Vegetable Oil (HVO) and Fischer-Tropsch (FT)), and Application (Commercial, Military and Private) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Bio-Jet Fuels market size was estimated at USD 564.14 million in 2023 and is projected to reach USD 15478.16 million in 2030 at a CAGR of 60.50% during the forecast period 2023-2030.
Biojet fuel, or aviation turbine fuel (ATF), is a special form of petroleum-based fuel used to power jet and turbo-engined aircraft. Jet A1 and jet A are the two main jet fuels used by commercial airlines. The need to develop sustainable green energy is growing significantly worldwide. The majority of carbon dioxide emissions come from the burning of conventional fuel used in the aviation industry. These greenhouse gases contribute to global warming and ocean acidification. From the point of view of sustainable development, biofuel is a promising alternative to traditional jet fuel. About 60-70% of CO2 emissions are caused by flights using conventional jet fuel. Therefore, it is important to increase the use of biofuels in aviation.
The growth of the global Bio-Jet Fuels market is mainly driven by these key factors such as research and development initiatives to reduce carbon emissions, government initiatives towards the use of biofuels are expected to drive the growth of the global bio-aviation fuel market. In addition, reliability and maintainability are important factors for the success of commercialization of biofuels in the aviation industry, especially in commercial aviation. However, due to long storage, slow biomass degradation process, etc., biofuel oxidation is expected to limit the market growth. In addition, biofuels can provide valuable economic opportunities for communities that can develop new sources of income, especially in developing economies. Such market opportunities for biofuels will increase demand in the near term.
OVID-19 had a huge impact on the world's economic activity, and individuals, organizations, governments and companies have had to adapt to the challenges of the crisis. Air travel restrictions in various regions for domestic and international flights had resulted in idle air of planes worldwide. Like many other sectors, the sustainable aviation fuel industry was disproportionately affected by the COVID-19 pandemic, as production activity is delayed across industries. In addition, many older and less efficient aircraft that were parked as part of the downsizing are not returning to service. However, most of the industry have delayed purchasing new aircraft with technological improvements until demand strengthens, airline solvency is assured, and jet fuel prices force the addition of fuel-saving emerging technologies to the fleet.
The aviation industry seeks to reduce its carbon footprint to achieve a sustainable environment and meet strict emission standards. Various stakeholders in the aviation industry are adopting alternative solutions such as improving the efficiency of aircraft engines through structural changes, hybrid electric and all-electric aircraft, renewable aviation fuels, etc. However, among these solutions, the adoption of sustainable aviation fuels such as electronic fuels, synthetic fuels, ecological jet fuels, bio-jet fuels and hydrogen fuels is one of the most viable alternative solutions compared to others in terms of social and economic benefits which helps to significantly reduce the current and expected environmental impacts of aviation. In addition, airlines in the aviation sector are expanding their commercial fleets due to the increase in air traffic. These large and growing fleets will drive demand for SAF as a near-medium term solution to reduce greenhouse gas emissions. These factors have led to the expansion of the market and increased demand for Bio-Jet Fuels solutions.
North America to Dominate the Market