Aviation Biofuel Market Size

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 39^th 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.