Bio Jet Fuels Market Outlook - 2030
The global bio jet fuels market size was valued at $166.5 million in 2020, and projected to reach $837.7 million by 2030, with a CAGR of 17.9% from 2021 to 2030. Bio jet fuel or aviation turbine fuel (ATF) is a specialized form of petroleum-based fuel used for powering jet and turbo-propelled engine aircraft. Jet A1 and jet A are two primary grades of aviation fuel used in commercial airline industries. The need for sustainable green energy development is increasing considerably across the world. Most of the CO2 is emitted by burning of conventional fuel used by the aviation industry. This greenhouse gas emission is contributing towards global warming and ocean acidification. Bio aviation fuel is the promising alternative for conventional aviation fuel for sustainable development. Around 60-70% of CO2 emission is caused by conventional aviation fuel flights. Thus, it is important to increase the use of biofuels in the aviation industry.
The key factors such as initiatives toward research & development in reducing carbon emissions, governmental initiatives to use bio-based fuel are expected to drive the global bio jet fuel market growth. Additionally, the reliability and maintainability will be the key factors for the success of deployment of commercialization of bio jet fuel for aviation industries, especially in commercial aviation. However, Oxidization of biofuel because of long time storage, slow process of biomass decomposition, and others are expected to limit the market growth. Moreover, biofuels may provide valuable economic opportunities to communities that can develop new sources of income, particularly in the developing economies. Such bio jet fuel market opportunities are expected to boost demand in the foreseeable future.
The Bio jet fuels market is segmented on the basis of feedstock and technology, type, application, and region. On the basis of feedstock and technology, the global market is segmented into First generation, Second generation, Third generation, and Fourth generation. On the basis of type, the market is segmented into hydrogenated vegetable oil and Fischer-Tropsch. On the basis of application, the global Bio jet fuel market is segmented into commercial, military, and private. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in bio jet fuel industry include Archer Daniels Midland Company, Argent Energy, GEVO, Honeywell International Inc., KFS Biodiesel GmbH & Co KG, Petrosun, Inc., Red Rock Biofuels, Shirke energy, Targray Technology International Inc., and Vega Biofuels.
Global Bio Jet Fuels Market, By Region
North America dominates the global bio jet fuels market. The increasing expansion of the commercial airlines and the low cost of the air transportation in the developed countries led to surge in the carbon emissions due to aviation sector. The high authorities and government bodies such as Environment Protection Agency, Department of Energy, Department of Transportation, and U.S. Department of Agriculture has jointly funded and supported the development of the production of biofuels as an alternative for the fossil fuels. The initiative such as sustainable Aviation Fuel tax credit is a part of Build Back Better Agenda proposed by President Biden will help cut costs and rapidly scale domestic production of sustainable fuels for aviation.
By Region
North America holds a dominant position in 2020
Global Bio Jet Fuels Market, By Feedstock & Technology
Second generation segment dominates the global bio jet fuels market. The manufacturing of biodiesel with the help of using numerous international locations has helped manufacturers in decreasing their dependence on overseas oil reserves, as it is produced in a large quantity and may be utilized in any diesel engine with very little changes to the engine or the gasoline system. Biodiesel is turning into a low-priced option owing to the fluctuating charges of petroleum-primarily based products which is projected to drive the growth of the second generation biofuels market.
By Feedstock & Technology
Second Generation segment is projected to create abundant $ opportunity till 2030
Global Bio Jet Fuels Market, By Type
Hydrogenated Vegetable Oil (HVO) segment dominates the global bio jet fuels market. Surge in awareness among individuals regarding the decline of natural fossil fuel resources and the presence of alternative environment-friendly fuels lead to increase in the demand for the bio-jet fuel market. The presence of abundant feedstock and untapped waste resources as feedstock has a positive impact on the development of hydrogenated vegetable oil.
By Type
Hydrogenated Vegetable Oil (HVO) segment is projected to create abundant $ opportunity till 2030
Global Bio Jet Fuels Market, By Application
Commercial segment dominates the global bio jet fuels market. The rapid in the expansion of the commercial aviation sector due to the rapid development of developing countries across the globe has a great impact on the demand for conventional fuel. In order to cope with the increasing demand which will result in global warming led to the application of bio-jet fuels which is sustainable fuel with less impact on the environment compared with conventional fuel.
By Application
Paints and Coating segment is projected as the most lucrative segment.
COVID-19 analysis:
The COVID-19 pandemic had a big effect on the worldwide financial system and on the lives of human beings. With the outbreak of the COVID-19 global, numerous enterprise companies have reduced their planned operations as a result of lockdowns introduced by the governments of several countries throughout the globe. The lockdown has primarily affected important businesses organizations. The initiative of the authorities in regards to lockdown caused the transient shutdown of tourism industry, aviation sector, and others. This had negatively impacted the development of the bio jet fuels market.
The outbreak of novel coronavirus has wide impact in oil product markets, as restrictions on international travel and regional and local movement prevent people and goods from circulating freely, which takes a heavy toll on transport fuel demand. According to IEA, overall global gasoline demand in 2020 is forecasted to fall by 9% which led to 15% contraction in the biofuel output. The sharp reduction in crude oil prices has led to increase in the pressure on the biofuels industry, as lower petroleum product prices drag down biofuel prices.
The pandemic has severely affected the US ethanol industry as output fell by nearly 50% between the February and early April, as numerous production plants idled or reduced output in response to the dramatic drop in gasoline consumptions. Blending levels of biofuels remained steady at 10% of their lower volume, as higher ethanol blends such as E15 or E85 remain a small part of the market. The simultaneous drop in fuel demand worldwide caused by the crisis also affected ethanol export prospects.
In Europe, restrictions on movement and social contact have spread almost as fast as the virus itself while disrupting industrial production and lowering trade and shipping activities which had negative impact over the existing blending targets which would lower biodiesel and fuel ethanol demand.
Key benefits for stakeholders
- This report provides a detailed quantitative analysis of the current global bio jet fuels market trends and estimations from 2020 to 2030, which assists to identify the prevailing opportunities.
- An in-depth global bio jet fuels market analysis of various countries in this region is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate specific plans.
- A comprehensive analysis of the factors that drive and restrain the growth of the global bio jet fuels market is provided.
- Region-wise and country-wise market conditions are comprehensively analyzed in this report.
- The projections in this report are made by analyzing the current trends and future market potential from 2020 to 2030 in terms of value and volume.
- An extensive analysis of various regions provides insights that are expected to allow companies to strategically plan their business moves.
- Key market players within the market are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the global bio jet fuel market.
Bio Jet Fuels Market Report Highlights
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Analyst Review
The global Bio Jet Fuel market is likely to gain traction during the forecast period as a result of government regulations and investments that are aimed at developing potentially underutilized agricultural and other waste resources.
Bio jet fuel also known as bio aviation fuel is a biofuel used to power aircraft and is said to sustainable aviation fuel as these fuel sources do not compete with food crops, prime agricultural land, natural forest or fresh water. These fuels are alternative to the fossil fuel and help in reducing the carbon emission with the application in transportation sector. These fuels are promising alternative for conventional aviation fuel for sustainable development as they can curb the 60-70% of CO2 emission caused by conventional aviation fuel flights.
The increase in greenhouse gas emission and the rapid development of airlines especially in commercial aircrafts led to the emission of more CO2 which led to ocean acidification. The decline in natural fossil fuel resources and increasing future demand for conventional fuels led to the surge in the exploration of alternative which are beneficial to the environment. In addition to this, the emergence of successful commercial flight test in the past few years especially from 2018 have great impact on the demand for the biofuel.
The constraints that restrain the commercial production and use of biofuels is mostly due feedstock barrier, financial barrier as the production is still expensive, existing laws and regulations are immature for biofuels, infrastructure barrier as specific biofuel requires new facilities, existing storage and transportation systems are inappropriate for biofuels. The above mentioned barriers are all hampering the development of the bio jet fuel market.
Acquisition is the key growth strategy of Bio jet fuel market players
Asia-Pacific will provide more business opportunities for Bio jet fuel in future
To get latest version of Bio jet fuel market report can be obtained on demand from the website.
Second generation segment holds the maximum share of the Bio jet fuel market
Initiatives toward R&D in reducing carbon emissions and government Initiatives to use bio-based fuel are the driving factors and opportunities in the Bio jet fuel market
The top ten market players are selected based on two key attributes - competitive strength and market positioning
Commercial, military, and private jet players are the potential customers of Bio jet fuel industry
Archer Daniels Midland Company, Argent Energy, GEVO, Honeywell International Inc., KFS Biodiesel GmbH & Co KG, Petrosun, Inc., Red Rock Biofuels, Shirke energy, Targray Technology International Inc., and Vega Biofuels
The Bio jet fuels market is segmented on the basis of feedstock and technology, type, application, and region. On the basis of feedstock and technology, the global Bio jet fuels market is segmented into First generation, Second generation, Third generation, and Fourth generation. On the basis of type, the market is segmented into hydrogenated vegetable oil and Fischer-Tropsch. On the basis of application, the global Bio jet fuels market is segmented into commercial, military, and private.
The increase in demand for sustainable aircraft fuel to reduce carbon footprint, reuse of the present infrastructure and government initiatives is the current trend which will influence the Bio jet fuel market in the next few years
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