Global Aviation Biofuel Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

By Type;

Hydro processed Esters and Fatty Acids (HEFA), Hydrotreated Vegetable Oils (HVO), Fischer-Tropsch (FT), Synthesized Iso-Paraffinic (SIP), and Alcohol to Jet (ATJ).

By Feedstock Type;

Vegetable Oils, Animal Fats, Algae, Biomass, and Others.

By Blend Type;

Biojet Fuel, Blended Fuel, and Others.

By Application;

Commercial, and Military.

By Geography;

North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).
Report ID: Rn633128244 Published Date: January, 2025 Updated Date: February, 2025

Introduction

Global Aviation Biofuel Market (USD Million), 2021 - 2031

In the year 2024, the Global Aviation Biofuel Market was valued at USD 71,135.55 million. The size of this market is expected to increase to USD 106,820.37 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 6.0%.

The global aviation biofuel market has emerged as a promising solution to mitigate the environmental impact of the aviation industry, one of the most carbon-intensive sectors worldwide. Aviation biofuels, derived from sustainable feedstocks such as vegetable oils, animal fats, algae, and biomass, offer a greener alternative to conventional jet fuels. This market is gaining traction due to increasing concerns over greenhouse gas emissions, volatile oil prices, and regulatory initiatives aimed at reducing carbon footprints.

One of the significant drivers propelling the growth of the aviation biofuel market is the aviation industry's commitment to sustainability. Airlines, aircraft manufacturers, and governments are actively seeking ways to reduce carbon emissions and enhance energy efficiency. Biofuels present an attractive option as they can significantly lower carbon dioxide (CO2) emissions compared to traditional fossil fuels, thereby helping airlines meet emission reduction targets set by international agreements such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Moreover, the volatility of oil prices and concerns about energy security have spurred interest in alternative fuels, including biofuels, which offer a more stable and potentially cheaper source of energy for the aviation sector. Additionally, advancements in biofuel production technologies, such as hydroprocessing, Fischer-Tropsch, and alcohol-to-jet processes, have improved the efficiency and scalability of biofuel production, making it more economically viable for commercial deployment.

The market for aviation biofuels is also driven by supportive government policies and incentives aimed at promoting the development and use of sustainable aviation fuels. Countries and regions around the world are implementing biofuel blending mandates, tax credits, and research grants to encourage investment in biofuel production facilities and stimulate market demand.

However, despite its promising outlook, the aviation biofuel market still faces challenges such as high production costs, limited feedstock availability, and the need for infrastructure investment to support biofuel distribution and storage at airports. Overcoming these hurdles will require collaborative efforts from stakeholders across the aviation value chain, including airlines, fuel suppliers, governments, and investors, to scale up biofuel production, improve supply chain logistics, and drive down costs.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Type
    2. Market Snapshot, By Feedstock Type
    3. Market Snapshot, By Blend Type
    4. Market Snapshot, By Application
    5. Market Snapshot, By Region
  4. Global Aviation Biofuel Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Volatility in Crude Oil Prices
        2. Corporate Social Responsibility
        3. Sustainability Initiatives
        4. Technological Advancements and Innovation
        5. Consumer Demand and Market Preference
      2. Restraints
        1. High Production Costs
        2. Limited Feedstock Availability
        3. Scale-Up Challenges
        4. Regulatory Uncertainty
        5. Infrastructure Compatibility
      3. Opportunities
        1. Growing Environmental Awareness
        2. Government Support and Incentives
        3. Technological Advancements
        4. Feedstock Diversification
        5. Partnerships and Collaborations
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitive Rivalry
  5. Market Segmentation
    1. Global Aviation Biofuel Market, By Type, 2021 - 2031 (USD Million)
      1. Hydro processed Esters and Fatty Acids (HEFA)
      2. Hydrotreated Vegetable Oils (HVO)
      3. Fischer-Tropsch (FT)
      4. Synthesized Iso-Paraffinic (SIP)
      5. Alcohol to Jet (ATJ)
    2. Global Aviation Biofuel Market, By Feedstock Type, 2021 - 2031 (USD Million)
      1. Vegetable Oils
      2. Animal Fats
      3. Algae
      4. Biomass
      5. Others
    3. Global Aviation Biofuel Market, By Blend Type, 2021 - 2031 (USD Million)
      1. Biojet Fuel
      2. Blended Fuel
      3. Others
    4. Global Aviation Biofuel Market, By Application, 2021 - 2031 (USD Million)
      1. Commercial
      2. Military
    5. Global Aviation Biofuel Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. Air BP Limited
      2. World Energy
      3. Chevron Corporation
      4. Honeywell International Inc.
      5. SkyNRG
      6. Velocys
      7. Red Rock Biofuels
      8. Gevo Inc.
      9. Neste Corporation
      10. Amyris Inc.
  7. Analyst Views
  8. Future Outlook of the Market