Renewable bio jet fuel is a type of aviation biofuel produced from sustainable feedstocks like agricultural and forestry residues, algae, and municipal solid waste. It provides similar performance as conventional jet fuel with significant reduction in greenhouse gas emissions. The growing need to lower carbon emission from air travel and a focus on replacing fossil fuel based jet fuel have boosted the adoption of renewable bio jet fuel. It can be blended with conventional jet fuel and used without any modifications to aircraft or fueling infrastructure.
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 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The Global renewable bio jet fuel market size is primarily driven by the growing consumer preference for sustainable aviation fuels. Air travelers are increasingly concerned about their carbon footprint from air travel and seeking low emission fuel options. The airline companies are promoting the usage of renewable bio jet fuel blend to appeal environmentally conscious flyers. They are also working with fuel suppliers to secure future supplies of renewable bio jet fuel. For instance, major airlines like KLM, Lufthansa, Qatar Airways have conducted biofuel flights demonstrating their commitment to sustainability. This shift towards green fuels is expected to boost the demand for renewable bio jet fuel in the coming years.
SWOT Analysis
Strength: Renewable bio jet fuel provides a sustainable alternative fuel source that significantly reduces greenhouse gas emissions and fossil fuel usage. It has the potential to be a direct replacement for conventional jet fuel.
Weakness: The production costs of renewable bio jet fuel remain substantially higher than that of conventional jet fuel. Wide scale commercialization and adoption by the aviation industry requires further reductions in manufacturing costs.
Opportunity: Government policies and regulations aimed at reducing carbon emissions present opportunities for the increased production and usage of renewable bio fuels in the aviation sector. Partnerships between fuel producers and airlines can help boost demand.
Threats: Fluctuations in crude oil prices impact the economic viability of renewable jet fuels. Traditional oil producers may exert political pressure to limit more stringent environmental regulations favoring bio fuels.
Key Takeaways
The global renewable bio jet fuel market is expected to witness high growth over the forecast period of 2024 to 2031 driven by initiatives to lower aviation’s carbon footprint. 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 2031.
North America currently dominates the market owing to supportive government policies and active investment from fuel producers and airlines in the region. European nations are also strengthening incentives to promote the usage of sustainable aviation fuels to meet long-term decarbonization targets.
Key players operating in the renewable bio jet fuel market 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. These companies are focusing on technological advancements and strategic partnerships to drive down costs and facilitate the scale-up of renewable jet fuel production.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it