 Fuel Market Share.webp)
Alcohol-to-Jet (ATJ) Fuel Market size was over USD 2.83 billion in 2024 and is poised to exceed USD 26.86 billion by 2037, witnessing over 18.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of alcohol-to-jet fuel is evaluated at USD 3.75 billion.
The major factor to boost the growth of the market is the rise in demand for biofuel. For instance, the demand for biofuel all across the world is expected to rise by about 40 billion liters or over 27% between 2021-2026. One of the technologically conceivable biofuel technologies is alcohol-to-jet (ATJ). By fermenting sugars into ethanol or other alcohols, it creates jet fuel from sugary, starchy, and lignocellulose biomass, including sugarcane, maize grain, and switch grass.
Moreover, there has been growing stringent regulation by the government in order to control pollution. The primary way that frequent travelers contribute to climate change is through air travel. Climate change is greatly accelerated by aviation emissions. Airplanes use fossil fuel, which not only emits CO2, but also has considerable non-CO2 warming impacts resulting from nitrogen oxides (NOx), vapor trails, and cloud formation caused by the height at which aircraft operate. Therefore, are putting in efforts in order to encourage the adoption of alcohol-to-jet (ATJ) fuel.
Growth Drivers
The number of foreign travelers in 2021 was estimated to be about 454 million. Therefore, the demand for air travel is estimated to grow. Flying often proves to be the most convenient alternative, especially when traveling across vast distances, which is one of the benefits of airplanes. It may get someone where one needs to go with the least amount of effort and save time. Flying is frequently considerably more convenient than driving, riding a train, or taking a bus. Hence, the preference is high while traveling over long distances further boosting the market growth.
A multi-product bio-refinery based on the ATJ pathway could produce SAF in addition to green hydrogen, ethanol, and bio-based materials such as bio-bitumen during the refining process by employing agricultural leftovers as a feedstock. Hence, with the growing agriculture waste the market demand is also anticipated to boost.
A large number of people all across the world stopped using air transport in order to protest against air pollution caused by aircraft. Various moments were launched in particular nations. For instance, the anti-flight moment in America aimed at reducing emissions from aircraft. Hence, in order to tackle this issue, the government is emphasizing using ATJ fuel which is set to boost the market growth over the coming years.
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
18.9% |
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Base Year Market Size (2024) |
USD 2.83 billion |
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Forecast Year Market Size (2037) |
USD 26.86 billion |
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Regional Scope |
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Application (Commercial Aircraft, Regional Transport Aircraft, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicles)
Alcohol-to-jet Fuel market from the commercial aircraft segment is anticipated to generate the largest revenue by the end of 2037. This is owing to the growing passenger travelling by airplane. Moreover, there has been a surge in the transportation of cargo through aircraft since shipping by air offers quicker delivery and less handling of goods throughout the route. With freight volumes striking about 64 million metric tonnes in 2021, the global amount of air freight has been increasing rapidly recently. In 2023, it was predicted that this quantity would reach approximately 56 million metric tonnes.
Feedstock (Ethanol, N-butanol, Iso-butanol, Methanol)
The ethanol segment in the alcohol-to-jet (ATJ) Fuel market is expected to have noteworthy growth over the forecast period. One of the promising biofuels that assisted with the energy crisis is bioethanol. As a result of the considerable effort and funding dedicated to its development, the production rates of bioethanol from both starch and lignocellulose increased quickly, which met the demand for fuel in aviation. Therefore, this segment is anticipated to have a greater influence on the alcohol-to-jet Fuel market.
Our in-depth analysis of the global market includes the following segments:
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Product |
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Technology |
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Process |
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Application |
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European Market Forecast
Europe industry is predicted to dominate majority revenue share by 2037, backed by growing emissions from aviation in this region. Sustainable renewable ethanol and biodiesel have been proven to drastically decrease greenhouse-gas emissions from diesel, which is still widely used in Europe. Without needing to build new infrastructure, sustainable biofuels produce results right away. They have already had the greatest influence on the replacement of imported fossil fuels used in aviation. Additionally, by eliminating the need to import animal feed and reducing the usage of crude oil, EU biofuel production greatly increases Europe's strategic autonomy. Hence, since biofuel is anticipated to benefit Europe in every way, the market demand for alcohol-to-jet (ATJ) fuel is projected to grow.
North American Market Analysis
Additionally, the alcohol-to-jet Fuel market in North America is also anticipated to have significant growth over the forecast period. This growth could be dominated by the growing technology development in this region. Moreover, there has been a surge in investment in research on ATJ fuel which is poised to boost the use of this fuel in coming years. Additionally, the price of tickets in this region has drastically been reduced which is boosting the passenger traffic.
 Fuel Market Growth.webp)
Author Credits: Dhruv Bhatia
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