May 28, 2024
Renewable Bio Jet Fuel Market

Renewable Bio Jet Fuel Market Driven By Increasing Air Travel Is Poised To Reduce Emission Levels

Renewable bio jet fuel is a drop-in replacement for conventional jet fuel produced from biomass feedstocks such as algal oil, agricultural residues, forest residues, and municipal solid wastes. It has similar physical and chemical properties as conventional jet fuel with significant carbon reduction benefits. Air travel continues to grow year-on-year with increased passenger demand. However, aviation emissions contribute significantly to environmental pollution. Bio jet fuel provides an opportunity to reduce emissions from growing air transport activities.

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 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the Global renewable bio jet fuel market size is the increased research on algae as a biomass feedstock. Algae can produce high oil content suitable for Jet A fuel production and has the potential for large-scale production with less land and freshwater use as compared to other energy crops such as corn, soy or palm. Companies are exploring genetically engineered algal strains with extremely high oil content and jet fuel compatibility to commercialize algae-based bio jet fuel production. Improvements in algal cultivation and processing technologies can help reduce the cost of algal bio jet fuel and aid in its market development.

Porter’s Analysis

Threat of new entrants: The renewable bio jet fuel market requires significant investment in R&D and production facilities, lowering the threat of new entrants.

Bargaining power of buyers: Airlines have considerable purchasing power due to the oligopolistic nature of the industry. However, growing environmental concerns are increasing demand for sustainable fuel options.

Bargaining power of suppliers: A small number of oil producers dominate the supply of conventional jet fuel. Alternative fuel producers face pressure to prove the technical and economic viability of renewable bio jet fuels.

Threat of new substitutes: Electric and hydrogen-powered aircraft pose a long-term threat but are not commercially viable substitutes for conventional jet fuel in the near future due to technical hurdles.

Competitive rivalry: Major industry players are collaborating to develop sustainable aviation fuel standards and production methods, mitigating direct competition in the emerging market segment.

Key Takeaways

The global renewable bio jet fuel market is expected to witness high growth over the forecast period driven by stringent regulations and initiatives to reduce 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 2024-2031.

North America currently dominates the market owing to supportive government policies and presence of key industry players in the region. Presence of leading alternative fuel producers and government incentives for the commercial deployment of sustainable aviation fuels (SAF) have propelled the regional market.

Key players: 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. Major players are investing in large-scale production facilities and partnerships to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it