Aviation Biofuel Market Size & Share, by Production Technology (Fischer-Tropsch and Hydrogenated Vegetable Oil); Application (Military Aviation and Commercial Aviation) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

  • Report ID: 2695
  • Published Date: Dec 23, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Aviation Biofuel Market size was over USD 44.94 billion in 2024 and is projected to reach USD 97.04 billion by 2037, growing at around 6.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of aviation biofuel is assessed at USD 47.27 billion.

Biofuels used for aircraft are known as aviation biofuel. Biofuel is made from living biological material. Common examples of biofuel include ethanol (a form of alcohol), biodiesel prepared from vegetable oils and liquid animal fats, green diesel (extracted from algae and other plant foundations), and biogas (methane resulting from animal compost and other consumed biological material).

Air transport is a fast-growing transport medium that plays a critical role in attributing for carbon emission.  According to an article published by the World Economic Forum on November 17, 2017, Flying aircraft burns 1.5 billion barrels of jet fuel yearly and is held responsible for 12% of all transportation carbon emissions and 2% of global carbon emissions. Thereby, the aviation industry needs to incline towards green development and switch to biofuels to reduce the carbon footprint.

At the 39th session of the ICAO (International Civil Aviation Organization) assembly, an UN-affiliated aviation body, States adopted CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), a global aviation biofuel market-based measure scheme for international aviation, to address the escalation in total carbon di-oxide emissions from international aviation above the 2020 levels.


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Aviation Biofuel Sector: Growth Drivers and Challenges

Growth Drivers

Growing efforts to decrease carbon emission

The climbing demand for biofuel and growing international trade is projected to drive the aviation biofuel market globally. European airlines, such as British Airways, Air France, and Lufthansa, in synchronization with Airbus and European aviation biofuel makers, have commenced the authorization of aviation biofuel in Europe. Additionally, the U.S. Federal government is budding as an active promoter and buyer of aviation biofuel. An inter-agency biofuel partnership has been made amongst the Department of Defense, the U.S. Department of Agriculture, and the U.S. Department of Energy to gain biofuel for the U.S. Air Force and the U.S. Navy.

An escalation in the number of aircraft will drive the market

The Air-transport industry is booming. The number of passengers commuting frequently around the world is increasing due to a high preference for air travel and less time taken to travel across destinations.

Although currently, all airlines are facing a critical downfall in demand due to widespread COVID-19 pandemic, it is expected to pick up the pace gradually once the situation normalizes.

Rising demand in APAC countries

Demand for aircraft is likely to rise considerably in emerging nations of Asia-Pacific (APAC) due to upsurge in the number of middle-income customers throughout the forecast period.

Challenges

Strict regulations

Maintaining the standard specifications while producing aviation biofuel comes under strict guidelines that might put a hindrance on the global aviation biofuel market growth.

Aviation Biofuel Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

6.1%

Base Year Market Size (2024)

USD 44.94 billion

Forecast Year Market Size (2037)

USD 97.04 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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Aviation Biofuel Segmentation

The aviation biofuel market is segmented by production technology, application, and region. Among production technology, the hydrogenated vegetable oil segment is expected to influence the overall market owing to the fact that it’s the primary source of raw material for first-generation aircraft biofuel manufacturing and generation. Based on the application, the commercial aircraft segment is predicted to dominate the global market on account of the growing adaptation of biofuels instead of traditional jet fuel.

Our in-depth analysis of the global market includes the following segments:

By Production Technology

  • Fischer-Tropsch
  • Hydrogenated Vegetable Oil

By Application

  • Military Aviation
  • Commercial Aviation

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Aviation Biofuel Industry - Regional Synopsis

Geographically, the aviation biofuel market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.

North America industry is predicted to dominate majority revenue share by 2037, on account of expansion of aviation biofuel production companies, growing clean energy demand, and rising carbon emission reduction measures.

The European aviation biofuel market is expected to be the second dominant region over the forecast time owing to the rigorous rules and regulations regarding carbon emission. Several policy instruments related to biofuel have also been employed by the EU. For instance, the Renewable Energy Directive (RED) has established an objective of attaining 20% gross energy consumption from renewable resources by 2020.

Aviation demand is distinctly evident in the Asia Pacific region, where growing economic prosperity is introducing new travel opportunities and tremendous opportunities are coming up in the distribution of feedstock to produce aviation biofuel.

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Companies Dominating the Aviation Biofuel Landscape

    • Red Rock Biofuels
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • GEVO
    • PetroSun, Inc.
    • Archer Daniels Midland Company
    • Honeywell International Inc.
    • Targray Technology International
    • Argent Energy
    • KFS Biodiesel GmbH & Co. KG
    • Shirke Energy

In the News

  • April 2020: EasyJet founder Stelios Haji-Ioannou, warned that the airline will run out of cash by August or perhaps earlier if a contract for more than 100 Airbus jets is not terminated between the two companies as already EasyJet is facing a collapse in demand due to COVID-19 pandemic.
  • CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) is the first global market-based measure scheme for international aviation under ICAO (International Civil Aviation Organization), United Nations. In March 2020, ICAO agreed to the terms ruling the eligibility of carbon offset programs for the initial pilot phase of CORSIA which runs from 2021-2023. These terms permit airlines to purchase CO2 offset units from six programs under CORSIA to reach its emissions reduction targets up to 2023.
  • February 17, 2020, Delta Airlines has become the latest airline pledging to reduce its carbon emissions by investing in aircraft renovation, sustainable jet fuel, weight reduction, and CO2 offsetting and sequestration projects

Author Credits:  Dhruv Bhatia


  • Report ID: 2695
  • Published Date: Dec 23, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of aviation biofuel is assessed at USD 47.27 billion.

Aviation Biofuel Market size was over USD 44.94 billion in 2024 and is projected to reach USD 97.04 billion by 2037, growing at around 6.1% CAGR during the forecast period i.e., between 2025-2037.

North America industry is predicted to dominate majority revenue share by 2037, on account of expansion of aviation biofuel production companies, growing clean energy demand, and rising carbon emission reduction measures.

The major players in the market are Red Rock Biofuels, GEVO, PetroSun, Inc., Archer Daniels Midland Company, Honeywell International Inc., Targray Technology International, Argent Energy, KFS Biodiesel GmbH & Co. KG, Shirke Energy, and others.
Aviation Biofuel Market Report Scope
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