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Aviation Biofuel Market size was valued at USD 42.36 billion in 2023 and is set to exceed USD 91.47 billion by 2036, registering over 6.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of aviation biofuel is evaluated at USD 44.43 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.
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.
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
6.1% |
|
Base Year Market Size (2023) |
USD 42.36 billion |
|
Forecast Year Market Size (2036) |
USD 91.47 billion |
|
Regional Scope |
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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:
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By Production Technology |
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By Application |
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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.
The market is estimated to stand predominant in North America industry is poised to dominate majority revenue share by 2036, 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.
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
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