Global renewable/bio jet fuel market was valued at US$ 186.81 Mn in 2021 in terms of revenue, exhibiting a CAGR of 17.95 % during the forecast period (2022 to 2030).
Figure 1. Global Renewable/Bio Jet Fuel Market Value Share (%), By Region, 2021
Drivers
Increasing need for reduction in GHG emissions in aviation industry
Sustainable aviation fuels are a key component in meeting the aviation industry’s commitments to decouple increases in carbon emissions from traffic growth SAF gives an impressive reduction of up to 80 % in CO2 emissions over the lifecycle of the fuel compared to fossil jet fuel, depending on the sustainable feedstock used, production method, and the supply chain to the airport. According to the IATA fact sheet, SAF will be an eligible option for aircraft operators to Organization (ICAO) agreed on a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to reduce CO2 emissions from international aviation with a pilot phase from 2021-2023, followed by a first from phase 2024- 2030
The COVID-19 pandemic disrupted the market severely. The pandemic led to lockdowns to control the virus, which resulted in minimal aviation traffic, thereby declining the demand for aviation fuel. Factors such as government policies and efforts to limit emissions from the aviation industry and increasing growth in air traffic, are some of the major factors driving the market. However, renewable aviation fuel is more expensive than conventional jet fuel, and this cost premium may restrain the market growth during the forecast period.
Market Trends
Hydroprocessed Esters and Fatty Acids (HEFA) Technology to Dominate the Market
Figure 2. Global Renewable/Bio Jet Fuel Market value Share (%), By Conversion Technology, 2021
Renewable/Bio Jet Fuel Market Report Snapshots
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