Aviation Biofuel market: Global Opportunity Analysis and Industry Forecast, 2020–2027

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Aviation Biofuel Market Outlook - 2027

Aviation biofuel is an eco-friendly biofuel used by the aviation industry. It is cost-efficient and renewable, which make it preferable over the conventional fossil fuels. Biofuels made from hydrogenated vegetable oil and Fischer–Tropsch process is introduced as a substitute for conventional fossil fuels to reduce the carbon emissions. Aircraft authorities first used aviation biofuel in 2011, since then most of the airlines are following the trend. Report from NASA stated that the use of 50% of aviation biofuel can reduce the air pollution by 50–70%. Air pollution is a major concern across the world. Rise in carbon emission further contributes toward global warming. Currently, global warming is one of the most discussed topics across the world and companies are trying to create a second-generation biofuel. Owing to the growing concerns about the environment, the adoption of aviation biofuel is expected to grow significantly during the forecast period. Moreover, the flourishing aviation industry paved way for the growth of the global aviation biofuel market. 


Market scope and structure analysis

  Base year considered


  Forecast period

  2020 - 2027

  Forecast unit

  Billion USD

  Segments covered

  Type, Application, Feedstock, and Region

  Regions covered

North America, Asia-Pacific, South America, Europe, and MEA

  Companies covered

Chevron Corp, Exxon Mobil Corp, Hindustan Petroleum Corp, Honeywell International Inc., Royal Dutch Shell, Petrosun, Shrike Energy, GEVO, and Vega Biofuels


COVID-19 impact analysis

  • The restrictions on international travel have impacted the production and lowered the trade between countries.
  • As the countries are expanding their quarantine period to contain the outbreak, the demand for gasoline is going down drastically.
  • The fuel demand is reduced around the globe and companies are coming up with the manufacturing of disinfectants in the coming months of the corona outbreak.
  • The disruptions in the supply chain effects the prices of the fuels in various regions. The countries which are dependent on foreign oil may have to face consequences during this period.

By Types

  • Hydrogenated Vegetable oil
  • Fischer Tropsch 

By Applications

  • Civil Aviation
  • Military Aviation

By Feedstock

  • Sugarcane
  • Cassava
  • Grasses
  • Industrial & Municipal Waste
  • Algae
  • Sweet Sorghum

Market scenario analysis

Global aviation biofuel market is expected to witness a significant growth by the year 2027. Aviation biofuel offers a second-generation sustainable biofuel as the first generation. Aviation biofuel market offers substitute to the conventional petroleum fuels. The advantage of having produced from natural feedstock such as sugarcane and algae makes it renewable and sustainable. Thus, the aviation biofuel market is expected to grow significantly during the forecast period. The availability of sustainable raw materials at low cost is expected to generate lucrative opportunities for the aviation bio fuels period the next five years. In addition, growth in the aviation sector has contributed toward the expansion of the aviation fuel market. Upsurge in the demand for eco-friendly biofuels and rise in concern about carbon emissions is expected to witness robust growth over the forecast period.

Market drivers and restraints

Aviation biofuel is introduced as a substitute for the conventional petroleum fuels. Fossil fuels produce greenhouse gases when burnt, and these gases trap sunlight in the atmosphere, thereby heating up of the planet. The use of biofuel is encouraged in many countries to reduce the generation of greenhouse gases. Moreover, the use of biofuels has a higher cost effect compared to the conventional fossil fuels. Biofuels are adaptable to the engine, keeping it running for a longer period and bringing down the maintenance cost. 

Furthermore, the biofuel industry help reduce the county’s dependence on foreign oil. However, the production cost associated with biofuel is high and the investment is low. If the demand increases, then increasing the supply will be quite expensive. Another challenge faced by biofuels are the use of fertilizers. As biofuels are extracted from crops, these crops require fertilizers for better growth, and fertilizers have a harmful effect on the environment. Similarly, large quantities of water are used for growing biofuel crops, which poses a threat to the regional water resources. Implementation of stringent regulations to maintain standard in aviation fuel production may hinder the growth of the market; however, can be overcome with the innovation and technological advancements in the upcoming years.

Region analysis

U.S is a major hub of aviation biofuels, and is expected to dominate the aviation biofuel market during the forecast period. Being a fast-growing country for the aviation industry, the U.S. aircraft authorities is expected to account for significant value share in the aviation biofuel market. European nations are expected to show significant growth in the upcoming years. Other developing countries such as India and China are expected to grow at a notable rate, as they are the major supply hubs for raw materials such as crops to produce aviation biofuels. 

Key benefits of the report

  • This study gives clarity on analytical depiction of the global aviation biofuel industry along with the future estimations to determine the imminent investment pockets.
  • The report presents information related to drivers, restraints, and opportunities along with detailed analysis of the global Aviation Biofuel market share.
  • The current market is quantitatively analyzed from 2020 to 2027 to highlight the global market growth scenario.
  • The report provides a detailed market analysis depending on competitive intensity and how the market will grow in coming years. 
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