by The growing need for reducing dependency on conventional jet fuel and curbing carbon emissions from airplanes is driving the renewable bio jet fuel market trend. Renewable bio jet fuel is produced from sustainable feedstocks like used cooking oil, agricultural and forestry waste using Hydro processed Esters and Fatty Acids (HEFA) technology. It provides a green alternative to conventional jet fuel and helps lower greenhouse gas emissions by 50-80%.
The global renewable bio jet fuel market is estimated to be valued at US$ 299.4 Mn in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2030.
Renewable bio jet fuel provides equivalent performance to conventional jet fuel and can be directly used to power aircraft engines. It is a drop-in replacement for petroleum-based jet fuel that requires no aircraft modification. Bio jet fuel is internationally approved and has been used successfully in over 100 test and commercial flights globally. The growing preference for sustainable aviation combined with stringent emission norms are fueling the demand for renewable bio jet fuels.
Key Takeaways
Key players operating in the Global renewable bio jet fuel market size are Abbott Laboratories, Aurobindo Pharma USA, Boehringer Ingelheim International GmbH, Cipla Limited, Hikma Pharmaceuticals plc, Jubilant Cadista Pharmaceutical, Sanofi S.A., Solco Healthcare (Prinston Pharmaceutical Inc.) and Torrent Pharmaceuticals Ltd.
The increasing environmental awareness and focus on reducing carbon footprint are driving the demand for renewable bio jet fuels globally. Many airline companies and airports have committed to use sustainable fuels to lower their emissions.
Major players are also expanding their production capabilities to cater to the growing needs. International flight routes are also expected to increase the consumption of bio jet fuels globally in the coming years.
Market Key Trends
One of the key trends observed in the renewable bio jet fuel market is the increasing partnerships between airlines and fuel suppliers for large-scale production and deployment. For instance, United Airlines and Finnish refiner Neste have partnered for supplying 30 million gallons of sustainable aviation fuel annually by 2030. Such long-term partnerships are important for establishing a steady supply chain of renewable bio jet fuels. Additionally, advancements in biofuel production technologies like power-to-liquid continue to enhance the feasibility of alternative aviation fuels. This will further push the transition towards sustainable aviation globally.
Porter’s Analysis
Threat of new entrants: High capital requirements for production facilities pose as a barrier for new players.
Bargaining power of suppliers: Fuel producers have low bargaining power as petroleum-based jet fuel has several substitutes available.
Bargaining power of buyers: Large customers such as airlines can negotiate low prices, exerting pressure on producers’ margins.
Threat of new substitutes: Alternatives like biojet fuel from camelina, jatropha and algae pose competition.
Competitive rivalry: Major players investing in R&D are intensifying competition to gain leadership in the new-age renewable fuel.
North America holds the largest share in the renewable bio jet fuel market currently due to strong government support and presence of leading manufacturers. The United States has set a blend mandate of one billion gallons of renewable jet fuel by 2024. The European region has witnessed significant investments to develop advanced biofuels including biojet fuel and is anticipated to observe fastest growth over the forecast period on back of stringent emission regulations.
The Asia Pacific region offers abundant potential for market expansion on account of rising aviation sector coupled with initiatives to boost use of sustainable aviation fuels. Countries like India and Japan are actively supporting research and production of biojet fuel to substitute imported petroleum-based jet kerosene in the long run.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
