KUALA LUMPUR: The global aviation biofuel market will reach US$51.23 billion by 2028 from $32.64 billion in 2022, with an expected compounded annual growth rate (CAGR) of 7.64 per cent.
According to the Research and Markets report, the global aviation biofuel market is gaining significant attention as the aviation industry seeks to reduce its carbon footprint and mitigate the environmental impact of air travel.
The report said several factors drive the market for aviation biofuel.
Firstly, there is a growing awareness of the need to reduce greenhouse gas emissions in the aviation sector.
Biofuels offer a way to achieve this goal by providing a more sustainable and environmentally friendly fuel option.
Governments and regulatory bodies are also playing a crucial role in promoting the use of biofuels through incentives, mandates, and policies that encourage the adoption of sustainable aviation fuels.
To note, the aviation biofuel, also known as sustainable aviation fuel (SAF), is derived from renewable sources such as biomass, cooking oil, algae, and other organic materials.
It is considered a viable alternative to traditional jet fuel due to its lower carbon emissions and potential for reducing dependence on fossil fuels.
Another factor driving the growth of the aviation biofuel market is the increasing demand for air travel.
As the global population continues to grow and economies develop, the demand for air transportation is expected to rise.
This, in turn, will lead to higher aviation fuel consumption.
Biofuels offer a way to meet this growing demand while reducing the carbon emissions associated with air travel, the report noted.
Further, technological advancements and research and development efforts are also contributing to the growth of the aviation biofuel market.
Scientists and engineers are continuously working on improving the production processes, feedstock options, and overall efficiency of biofuels.
This has led to developing advanced biofuel technologies that offer higher energy density, better performance, and compatibility with existing aircraft engines.
However, the Research and Markets report noted that the aviation biofuel market still faces several challenges.
One of the main challenges is the scalability of production.
Scaling up biofuel production to meet the demands of the aviation industry requires significant investment in infrastructure, feedstock cultivation, and refining facilities.
Additionally, biofuel costs are currently higher than traditional jet fuel, making it less economically viable for widespread adoption.
“Despite these challenges, the global aviation biofuel market is expected to grow in the coming years.
“The increasing focus on sustainability, coupled with government support and technological advancements, will drive the adoption of biofuels in the aviation industry,” the report noted.
Continued research and development efforts and collaborations between industry stakeholders will be crucial in overcoming the challenges and realising the full potential of aviation biofuels in reducing carbon emissions and creating a more sustainable aviation sector, it said.
