The global aviation biofuels market attained a value of nearly USD 420.74 Million in 2024. The market is further expected to grow at a CAGR of 60.50% during the forecast period of 2025-2034 to reach a value of USD 47.72 billion by 2034.
The expanding aviation sector, globalisation, and improving living standards are significantly boosting the preference for affordable and comfortable air travel experiences, which, in turn, is increasing the demand for cost-effective biofuels.
The sustainability of biofuels, its increasing production, and the rising need to reduce carbon footprint are accelerating the growth of the aviation biofuels market. Additionally, the use of biofuels in the aviation sector is potentially easier when compared to a more dispersed public fuel delivery system. Leading airlines and aircraft manufacturers are setting up voluntary targets to achieve carbon neutrality, which is aiding the market growth.
Various government initiatives towards combating climate change are expected to augment the use of biofuels as an alternative to conventional fuels in the aviation sector. Further, the use of advanced technologies for effective biofuel production to meet the growing demands is likely to aid the aviation biofuels demand growth over the forecast period.
A non-binding Memorandum of Understanding (MoU) was signed in August 2022 by representatives of Shell International Petroleum Co Ltd. and Deutsche Lufthansa AG (Lufthansa Group) to explore the possibility of Shell providing Sustainable Aviation Fuel (SAF) to the Lufthansa Group for seven years at airports worldwide, beginning in 2024. According to the MOU, the parties are going to examine the possibility of providing up to 594 million gallons (1.8 million metric tonnes) of SAF overall between 2024 and 2030. SAF represents a significant technological advancement in the aviation sector's decarbonization.
The expected Sustainable Aviation Fuel requirement for achieving Net Zero by 2050 shows a significant upward trend over the years. According to International Energy Agency (IEA), in 2025, the projected Sustainable Aviation Fuel requirement is 8 billion liters, which increases to 23 billion liters by 2030. This upward trajectory continues, with the requirement expected to reach 90 billion liters by 2035, thus aiding the growth of the aviation biofuels industry. The growth becomes even more pronounced by 2040, with an expected requirement of 229 billion liters. By 2045, the requirement escalates to 346 billion liters, and it peaks at 449 billion liters by 2050. This substantial increase underscores the significant efforts needed in Sustainable Aviation Fuel production to meet Net Zero targets by 2050. This significant increase in Sustainable Aviation Fuel requirements highlights the critical role of the aviation biofuel market in achieving Net Zero targets by 2050.
As per the aviation biofuels industry analysis, in 2021, the USA had the highest aviation fuel consumption at 1.36 billion liters, accounting for 29.19% of the global share. China followed with 800 million liters, representing 17.04% of the global share. Russia consumed 215.4 million liters, which was 4.59% of the global share. Hong Kong's consumption stood at 138.3 million liters, accounting for 2.95%. Japan used 134 million liters, making up 2.85% of the global share. Germany's consumption was 132.3 million liters, or 2.82%. Singapore consumed 107.4 million liters, equating to 2.29% of the global share. India and the UK had similar consumption levels at 106.9 million liters (2.28%) and 105.9 million liters (2.26%), respectively. The UAE consumed 103.1 million liters, representing 2.20% of the global share. This distribution reflects the higher aviation activity in more industrialized and larger countries.
The market will likely see the highest demand in countries with significant aviation fuel consumption, such as the USA, China, and Russia, due to their substantial share in global aviation activity.
The increasing air traffic and the matured aviation sector of the region are providing lucrative opportunities for the market growth in North America. Meanwhile, the market in Europe is expected to be aided by the rising focus on sustainability and the growing environmental consciousness in the region.
Rising Environmental Consciousness to Drive the Market Growth of Aviation Biofuels
The growing concerns over environmental pollution are driving the adoption of biofuels in the aviation sector, as they are renewable, biodegradable, and non-toxic. The emerging need to reduce the dependency on fossil fuels and the soaring price of crude oils are also contributing to the aviation biofuels market value.The expanding aviation sector, globalisation, and improving living standards are significantly boosting the preference for affordable and comfortable air travel experiences, which, in turn, is increasing the demand for cost-effective biofuels.
The sustainability of biofuels, its increasing production, and the rising need to reduce carbon footprint are accelerating the growth of the aviation biofuels market. Additionally, the use of biofuels in the aviation sector is potentially easier when compared to a more dispersed public fuel delivery system. Leading airlines and aircraft manufacturers are setting up voluntary targets to achieve carbon neutrality, which is aiding the market growth.
Various government initiatives towards combating climate change are expected to augment the use of biofuels as an alternative to conventional fuels in the aviation sector. Further, the use of advanced technologies for effective biofuel production to meet the growing demands is likely to aid the aviation biofuels demand growth over the forecast period.
Recent Developments
Federal Aviation Administration (FAA), Boeing, and the U.S. Department of Transportation collaborated with the APEC economies in November 2023 to establish SAF, which will improve supply access for the airlines operating in the region. To reduce aviation's influence on the climate, sustainably generated jet fuel is crucial. It can cut lifecycle CO2 emissions by up to 85% when compared to petroleum. This collaboration will help the ICAO achieve its 2050 net-zero carbon emission target.A non-binding Memorandum of Understanding (MoU) was signed in August 2022 by representatives of Shell International Petroleum Co Ltd. and Deutsche Lufthansa AG (Lufthansa Group) to explore the possibility of Shell providing Sustainable Aviation Fuel (SAF) to the Lufthansa Group for seven years at airports worldwide, beginning in 2024. According to the MOU, the parties are going to examine the possibility of providing up to 594 million gallons (1.8 million metric tonnes) of SAF overall between 2024 and 2030. SAF represents a significant technological advancement in the aviation sector's decarbonization.
Industry Outlook
Stringent environmental regulations and rising demand for sustainable aviation fuels increase the aviation biofuels industry revenue, while high production costs and limited availability of feedstocks present significant challenges.The expected Sustainable Aviation Fuel requirement for achieving Net Zero by 2050 shows a significant upward trend over the years. According to International Energy Agency (IEA), in 2025, the projected Sustainable Aviation Fuel requirement is 8 billion liters, which increases to 23 billion liters by 2030. This upward trajectory continues, with the requirement expected to reach 90 billion liters by 2035, thus aiding the growth of the aviation biofuels industry. The growth becomes even more pronounced by 2040, with an expected requirement of 229 billion liters. By 2045, the requirement escalates to 346 billion liters, and it peaks at 449 billion liters by 2050. This substantial increase underscores the significant efforts needed in Sustainable Aviation Fuel production to meet Net Zero targets by 2050. This significant increase in Sustainable Aviation Fuel requirements highlights the critical role of the aviation biofuel market in achieving Net Zero targets by 2050.
As per the aviation biofuels industry analysis, in 2021, the USA had the highest aviation fuel consumption at 1.36 billion liters, accounting for 29.19% of the global share. China followed with 800 million liters, representing 17.04% of the global share. Russia consumed 215.4 million liters, which was 4.59% of the global share. Hong Kong's consumption stood at 138.3 million liters, accounting for 2.95%. Japan used 134 million liters, making up 2.85% of the global share. Germany's consumption was 132.3 million liters, or 2.82%. Singapore consumed 107.4 million liters, equating to 2.29% of the global share. India and the UK had similar consumption levels at 106.9 million liters (2.28%) and 105.9 million liters (2.26%), respectively. The UAE consumed 103.1 million liters, representing 2.20% of the global share. This distribution reflects the higher aviation activity in more industrialized and larger countries.
The market will likely see the highest demand in countries with significant aviation fuel consumption, such as the USA, China, and Russia, due to their substantial share in global aviation activity.
Aviation Biofuels Market Regional Analysis
North America to Account for A Significant Aviation Biofuels Market Share
In North America, the introduction of favourable government initiatives towards producing aviation biofuels that address climate change is a key trend of aviation biofuels market. Several administrative bodies in the United States are taking initiatives to increase production and reduce the cost of sustainable aviation fuels while lowering emissions in the aviation sector.The increasing air traffic and the matured aviation sector of the region are providing lucrative opportunities for the market growth in North America. Meanwhile, the market in Europe is expected to be aided by the rising focus on sustainability and the growing environmental consciousness in the region.
Aviation Biofuels Industry Segmentation
Aviation biofuels, also known as sustainable aviation fuel, are used as alternatives to conventional jet fuel in order to power an aircraft. The adoption of aviation biofuels enables the aviation sector to reduce its carbon footprint and address climate change, as they are typically obtained from plant waste. Thus, they are cost-effective and sustainable.The market for aviation biofuels, by technology, is divided into:
- Fischer-Tropsch
- Hydrogenated Vegetable Oil
Based on application, the market is segmented into:
- Military Aviation
- Commercial Aviation
The regional markets for aviation biofuels can be divided into:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa.
- Environmental Regulations and Policies: Stringent regulations and incentives for reducing greenhouse gas emissions drive the adoption of aviation biofuels.
- Technological Advancements: Innovations in biofuel production make aviation biofuels more efficient and cost-effective, positively impacting the aviation biofuels demand forecast.
- Rising Airline Commitments: Major airlines commit to sustainable practices, increasing investments in biofuel production.
- Economic Benefits and Energy Security: Biofuels reduce dependence on fossil fuels, enhance energy security, and create jobs.
- High Production Costs: The cost of producing aviation biofuels is higher compared to conventional jet fuel, making widespread adoption challenging.
- Limited Feedstock Availability: The availability of sustainable feedstock for biofuel production is limited, impacting large-scale production.
- Infrastructure and Distribution: Inadequate infrastructure for biofuel distribution and storage hinders the integration of biofuels into the aviation fuel supply chain and negatively impacts the aviation biofuels market revenue.
- Regulatory and Certification Issues: Complex regulatory requirements and certification processes for biofuels can delay their approval and commercialization.
- Increased Investments and Partnerships: As per the aviation biofuels market dynamics and trends, growing investments and strategic partnerships are accelerating biofuel development.
- Advancements in Feedstock Technology: New sustainable feedstocks like algae and waste materials are enhancing production efficiency.
- Policy Support and Incentives: Government subsidies, tax breaks, and renewable fuel standards are driving biofuel adoption and creative lucrative aviation biofuels market opportunities.
- Focus on Carbon Neutrality: Airlines are adopting biofuels to achieve carbon neutrality in their sustainability strategies.
Competitive Factors in the Global Aviation Biofuels Market
- Competitive factors in the market include technological advancements in biofuel production, which improve efficiency and cost-effectiveness.
- Strategic partnerships and collaborations among airlines, fuel producers, and governments drive innovation and growth of aviation biofuels market.
- Additionally, regulatory support and government incentives boost competitive advantage. Companies with access to diverse and sustainable feedstocks, robust distribution networks, and the ability to scale production quickly are positioned strongly in the market.
- Continuous R&D investment further enhances competitive positioning.
Competitive Landscape
The report gives a detailed analysis of the following key players in the global market for aviation biofuels, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:- Gevo, Inc.
- Red Rock Biofuels
- Exxon Mobil Corporation
- TotalEnergies SE
- Enerkem Inc.
- Others
Key Players in the Global Aviation Biofuels Market and their Strategic Initiatives
- Gevo, Inc.: Focused on developing renewable jet fuel through innovative processes and strategic partnerships with airlines.
- Red Rock Biofuels: Utilizing waste biomass to produce renewable jet fuel, collaborating with major airlines for fuel supply agreements.
- Exxon Mobil Corporation: Investing in advanced biofuel technologies and forming strategic alliances to enhance sustainable fuel production and increasing the aviation biofuels demand.
- TotalEnergies SE: Expanding its biofuel production capabilities and partnering with aviation stakeholders to promote sustainable aviation fuel.
- Enerkem Inc.: Specializing in converting waste into biofuels, leveraging technology and partnerships to scale production.
Aviation Biofuels Companies
Aviation Biofuels Market Regional Analysis
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Aviation Biofuels Market Analysis
6 Regional Analysis
7 Market Dynamics
8 Competitive Landscape
Companies Mentioned
- Gevo, Inc.
- Red Rock Biofuels
- Exxon Mobil Corporation
- TotalEnergies SE
- Enerkem Inc.
