Aviation Biofuel Market Size, Share, Growth Analysis, By Type (HEFA (Hydroprocessed Esters and Fatty Acids), HVO (Hydrogenated Vegetable Oil)), By Application (Military, Commercial), By Region - Industry Forecast 2025-2032

Global Aviation Biofuel Market size was valued at USD 43.2 billion in 2023 and is poised to grow from USD 45.79 billion in 2024 to USD 72.99 billion by 2032, growing at a CAGR of 6.0% during the forecast period (2025-2032).

The global aviation biofuel market is experiencing substantial growth, driven by the urgent need to address the industry's environmental impact. Sustainable aviation fuels (SAFs) are emerging as critical solutions, leading to increased investment from major players like United Airlines, which launched the Sustainable Flight Fund in February 2023, offering over USD 100 million in support of eco-friendly fuel startups. With heightened air transport demands and a growing aircraft fleet, the appetite for biofuels is escalating. However, the sector faces challenges, including limited raw materials for production, refinery constraints, and supply chain issues that could impede the adoption of renewable aviation fuels. Moreover, fluctuating crude oil prices and the high costs of developing biofuel plants pose additional hurdles, potentially slowing market expansion despite rising investments driven by global emission reduction commitments.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Aviation Biofuel market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Aviation Biofuel Market Segments Analysis

Global Aviation Biofuel Market is segmented by Type, Application and region. Based on Type, the market is segmented into HEFA (Hydroprocessed Esters and Fatty Acids), HVO (Hydrogenated Vegetable Oil), FT (Fischer-Tropsch), SIP (Synthetic Iso-Paraffins) and ATJ (Alcohol-to-Jet). Based on Application, the market is segmented into Military and Commercial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Aviation Biofuel Market

The global aviation biofuel market is experiencing significant growth driven by advancements in biofuel production technologies. Innovations aimed at enhancing feedstock cultivation, refining processes, and conversion techniques are making biofuels increasingly viable and cost-effective for commercial aviation. For instance, Zero Petroleum has pioneered a technology that creates sustainable aviation fuel (SAF) from air and water, utilizing carbon captured directly from the atmosphere and hydrogen generated through water electrolysis. This method, known as the Power-to-Liquid process, holds the promise of greatly reducing emissions throughout the fuel's lifecycle, particularly when supported by a consistent supply of renewable energy.

Restraints in the Global Aviation Biofuel Market

One of the significant challenges facing the global aviation biofuel market is its cost competitiveness compared to conventional jet fuels. Currently, biofuels tend to be more expensive due to factors including production methods, feedstock acquisition, and the refining processes involved. These elevated costs hinder the widespread adoption of biofuels by airlines, making it essential to find solutions to enhance their affordability. Addressing this issue will require concerted efforts in research and development, as well as the strategic use of economies of scale, to effectively lower production costs and ultimately make biofuels a more viable option for the aviation industry.

Market Trends of the Global Aviation Biofuel Market

The global aviation biofuel market is witnessing a marked trend towards the adoption of sustainable aviation fuels (SAFs), driven by a collective commitment among airlines and stakeholders to reduce carbon emissions. As environmental concerns mount and regulatory frameworks become more supportive, aviation players are increasingly investing in SAFs derived from renewable materials. This shift not only addresses the urgent climate crisis but also aligns with the industry's goal of achieving net-zero emissions by 2050. Enhanced partnerships, technological advancements, and scalable production methods further underpin this trend, positioning sustainable aviation fuels as a cornerstone of future air travel and enhancing the sustainability agenda in the aviation sector.