Bio jet fuel Market Size, Share, Growth, and Industry Analysis, By Type (Hydrogenated Vegetable Oil (HVO), Fischer Tropsch (FT) and other), By Application (Commercial, Military and Private) and Regional Forecast to 2032

Updated On: 10 September 2024

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BIO JET FUEL REPORT OVERVIEW

The global Bio Jet fuel Market size was USD 267.88 billion in 2023 and the market is projected to touch USD 417.39 billion by 2032, exhibiting a CAGR of 4.2% during the forecast period.

Bio jet fuel or aeronautics turbine fuel (ATF) is a technical form of petroleum- based energy used for powering jet and turbo- propelled machine aircraft. Jet A1 and jet A are two primary grades of aeronautics energy used in marketable airline diligence. The need for sustainable green energy development is adding vastly across the world. Utmost of the CO2 is emitted by burning of conventional energy used by the aeronautics assiduity. This hothouse gas emigration is contributing towards global warming and ocean acidification. Bio aeronautics energy is the promising volition for conventional aeronautics energy for sustainable development. Around 60- 70 of CO2 emigration is caused by conventional aeronautics energy breakouts. Therefore, it's important to increase the use of bio fuels in the aeronautics assiduity.

The bio jet fuel market is passing significant growth, with estimates projecting it to reach roughly billion. This expansion is driven by adding demand for sustainable aeronautics energies, strict environmental regulations, and advancements in product technologies, situating bio jet fuel as a pivotal element in the aeronautics assiduity's decarbonisation efforts.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Raw Material Shortage

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

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 associations. The action of the authorities in respects to lockdown caused the flash arrestment of tourism assiduity, aeronautics sector, and others. This had negatively impacted the development of the bio jet fuels market.

LATEST TRENDS

"Environmental Regulations and Sustainability Goals to flourish the market"

A latest trend in the global bio jet fuel market is the environment regulations and sustainability goals. Governments and transnational associations are setting ambitious sustainability targets, compelling airlines and manufacturers to explore cleaner energy druthers. Bio jet fuels, produced from sustainable feed stocks, offer a promising result to meet these nonsupervisory conditions. By prioritizing the use of bio fuels, the aeronautics assiduity can enhance its sustainability profile and contribute to global sweats against climate change, thereby motivating investments and inventions in bio fuel technology.

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BIO JET FUEL MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Hydrogenated Vegetable Oil (HVO), Fischer Tropsch (FT) and other.

Hydrogenated Vegetable Oil (HVO): Surge in awareness among individualities regarding the decline of natural reactionary energy coffers and the presence of indispensable terrain-friendly fuels lead to increase in the demand for the bio-jet energy market. The presence of abundant feedstock and untapped waste coffers as feedstock has a positive impact on the development of hydrogenated vegetable oil painting.

Fischer Tropsch (FT): Fischer- Tropsch( FT) conflation converts biomass into high- quality synthetic energies, including bio jet fuel. This process enables the product of cleaner, more effective fuels, supporting the aeronautics assiduity's sustainability pretensions and reducing carbon emigrations.

Other: Other feedstocks in the bio jet fuel market include agrarian remainders, algae, and waste canvases. These sources give different options for sustainable energy product, reducing reliance on fossil energies and enhancing energy security.

By Application

Based on application the global market can be categorized into Commercial, Military and Private.

Commercial: The rapid in the expansion of the commercial aeronautics sector due to the rapid development of developing countries across the globe has a great impact on the demand for conventional energy. In order to manage with the adding demand which will affect in global warming led to the operation of bio-jet fuel which is sustainable energy with lower impact on the terrain compared with conventional energy.

Military: Bio jet fuel is increasingly employed in the military sector to enhance energy security, reduce dependence on traditional energies, and lower greenhouse gas emigrations, supporting sustainability pretensions while maintaining functional effectiveness and performance.

Private: In the private aeronautics sector, memoir jet fuelis gaining fashionability for its environmental benefits, enabling companies to meet sustainability targets, enhance commercial social responsibility, and appeal to eco-conscious travellers and clients.

DRIVING FACTORS

"Increasing technology advancement to Propel Growth in Market"

One significant key driving factor in the bio jet fuel market growth is the rapidly increasing technology advancement. Recent advancements in bio fuel product and processing technologies have significantly enhanced the feasibility and effectiveness of bio jet fuel. Inventions similar as enzymatic processing, hydrothermal liquefaction, and advanced feedstock civilization have bettered the yield and quality of bio fuels. These technologies enable the conversion of a wider array of feedstocks into jet fuel, reducing reliance on traditional fossil fuels. Likewise, ongoing exploration and development sweats continue to lower product costs and increase scalability, making bio jet fuels more competitive and seductive for aeronautics stakeholders looking for sustainable results.

"Consumer Demand for Sustainable Travel Is Expected To Fuel the Growth of the Market"

Another crucial factor impacting the bio jet fuel market is the consumer demand for sustainable travel. As travellers become increasingly apprehensive of the environmental impact of air trip, there's growing demand for sustainable aeronautics options. Consumers are favouring airlines that commit to sustainability enterprise, including the use of memoir spurt energies. This shift in consumer behaviour encourages airlines to invest in cleaner energy technologies and borrow practices that alleviate their carbon vestiges. Accordingly, bio jet fuel directors align themselves with this trend, selling their products as eco-friendly alternatives. By feeding to the environmentally conscious rubberneck, both airlines and bio fuel companies can enhance their brand fidelity and market share.

RESTRAINING FACTORS

"Limited feedstock availability to Hamper Market Growth"

One of the primary restraining factors in the bio jet fuel market is the limited feedstock availability. Although various sources like agriculture waste, algae, and used cooking canvases can be employed, the overall force frequently struggles to meet the growing demand for bio fuels. Competition for feedstocks with other diligence, similar as food product and bio energy, exacerbates this challenge. Also, the civilization of devoted energy crops can lead to land- use conflicts and environmental enterprises. This failure not only hampers large- scale product but also increases feedstock prices, eventually affecting the profitable viability of bio jet fuel investments.

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BIO JET FUEL MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

"North America Region Dominating the Market due to High Aeronautics Sector"

North America has emerged as the most dominant region in the global bio jet fuel market share due to several factors. North America dominates the global bio jet fuel market. The adding expansion of the marketable airlines and the low cost of the air transportation in the developed countries led to swell in the carbon emigrations due to aeronautics sector. The high authorities and government bodies similar as Environment Protection Agency, Department of Energy, Department of Transportation, and U.S. Department of Agriculture have jointly funded and support the development of the product of bio fuels as an alternative. The action similar as sustainable Aviation Energy duty credit is a part of Build Back Better Agenda proposed by President Biden will help cut costs and fleetly scale domestic product of sustainable fuels for aeronautics.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The bio jet fuel market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Red Rock Biofuels (U.S.)
• Honeywell International (U.S.)
• Virent (U.S.)
• Fulcrum BioEnergy (U.S.)
• Neste Oil (Finland)
• AltAir Paramount (U.S.)
• Preston (Canada)
• SkyNRG (Netherlands)
• Vega Biofuels (U.S.)
• GEVO (U.S.)
• Targray Technology International (Canada)
• Petrosun (U.S.)
• Shirke Energy (India)
• Archer Daniels Midland (U.S.)
• KFS Biodiesel (Germany)
• Argent Energy (U.K.)

INDUSTRIAL DEVELOPMENT

August 2024 – Honeywell (NASDAQ: HON), headquarters in U.S., announced the launch of INNCOM Direct, an easy-to-install energy management system that uses automation to help improve energy efficiency in mid-market hotel properties. The INNCOM Direct supports Honeywell’s alignment of its business around three compelling megatrends, including automation and the energy transition.  INNCOM Direct enables a hotel to manage energy-intensive HVAC systems more efficiently during periods when guest rooms are vacant.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.