by With supportive government policies and incentives, the production of bio-jet fuels from sustainable feedstock is increasing at a promising rate. Renewable jet fuel offers an equivalent performance to conventional petroleum-based jet fuel while reducing greenhouse gas emissions by 80%. Made from hydroprocessed esters and fatty acids (HEFA) derived from camelina, jatropha, algae and used cooking oil, these drop-in substitutes can run in existing aircrafts without any engine modification, ensuring smooth operations.
The global renewable or 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.
Standards-compliant drop-in replacements for fossil jet kerosene provide a feasible solution to decarbonize aviation. As sustainable aviation fuels gradually penetrate the supply chains, the use of renewable jet fuel is set to rise steadily.
Key Takeaways
Key players operating in the renewable 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. As the demand for lower carbon aviation gains momentum, these leaders are ramping up their bio-jet fuel production capacities through new plants and expansion projects.
The consumption of renewable Renewable Or Bio Jet Fuel Market Demand is witnessing significant y-o-y growth owing to the growing preference of airlines and airport operators for environment-friendly alternatives. Stringent emission norms by ICAO also necessitate air transport stakeholders to utilize more sustainable aviation fuels. The rising air passenger traffic and flight movements globally are further propelling the demand for bio-jet fuels in the coming years.
Countries across Europe, Americas and Asia Pacific are committing to develop a framework for scaling up the supply of renewable jet fuel. Major aviation hubs like Frankfurt, Los Angeles, Amsterdam and Singapore have initiated long-term offtake agreements and infrastructure projects to advance the usage of bio-jet fuels. With coordinated global efforts, the share of renewable sources in aviation fuel mixture is anticipated to rise markedly between 2025-2030 timelines.
Market Key Trends
The commercialization of advanced biofuel technologies such as power-to-liquid (PtL) fuels is one of the primary trends observed in the renewable jet fuel market. By using renewable electricity to produce e-fuels like e-kerosene from hydrogen and captured carbon, the PtL approach can deliver carbon-neutral synthetic fuels for aviation. It offers a highly scalable route to decarbonize air travel in line with net-zero commitments. As the relevant R&D projects enter the demonstration phase, PtL bio-jet fuels are expected to enter the supply chains and airports by 2030.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements for developing and producing renewable or bio jet fuels as well as establishing distribution channels.
Bargaining power of buyers: Airlines have some bargaining power as bulk buyers of jet fuels however limited product differentiation reduces impact on suppliers.
Bargaining power of suppliers: A few large players control majority of supply globally for fossil jet fuels giving them strong bargaining power over airlines.
Threat of new substitutes: Limited product substitutes currently exist for jet fuels that can power commercial aviation at scale. Alternative fuel types face technical and economic challenges.
Competitive rivalry: Intense competition exists among existing fossil fuel suppliers and new entrants developing renewable or bio jet fuels to gain market share through investments in R&D and production capabilities.
Geographical Regions
North America currently accounts for the largest share of the global renewable or bio jet fuel market in terms of value due to supportive regulatory policies and presence of leading fuel producers in the US.
The Asia Pacific region is expected to witness the fastest growth in the renewable or bio jet fuel market during the forecast period owing to rising aviation sector and focus of regional governments on developing sustainable aviation fuel industries.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
