Renewable Aviation Fuel Market Size (2024 - 2029)

The Renewable Aviation Fuel Market is projected to experience significant growth over the forecast period, driven by stringent government regulations on greenhouse gas emissions and the promotion of renewable fuel production and consumption. Despite the high costs associated with renewable aviation fuel posing a challenge, the market is expected to benefit from increasing demand in emerging regions such as Southeast Asia. North America is anticipated to lead the market, with substantial demand originating from the United States and Canada. The market has rebounded to pre-pandemic levels following the negative impact of COVID-19.

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Market Size of Renewable Aviation Fuel Industry

Renewable Aviation Fuel Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 6.58 Billion
Market Size (2029) USD 45.37 Billion
CAGR (2024 - 2029) 47.16 %
Fastest Growing Market North America
Largest Market North America

Major Players

Renewable Aviation Fuel Market Major Players

*Disclaimer: Major Players sorted in no particular order

Renewable Aviation Fuel Market Analysis

The Renewable Aviation Fuel Market size is estimated at USD 6.58 billion in 2024, and is expected to reach USD 45.37 billion by 2029, growing at a CAGR of 47.16% during the forecast period (2024-2029).

The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.

  • Over the long term, factors such as increased government regulations for greenhouse gas emissions, and encouraging production and consumption of renewable aviation fuel are likely to drive the renewable aviation fuel market during the forecast period.
  • On the other hand, high costs of renewable aviation fuel are expected to restrain the growth of renewable aviation fuel market.
  • Nevertheless, increasing demand from emerging regions like southeast asia are exoected to create lucrative opportunities for the renewable aviation fuel market in the forecat period.
  • North America is likely to dominate the renewable aviation fuel market during the forecast period, with a majority of the demand coming from countries like the United States and Canada.

Renewable Aviation Fuel Industry Segmentation

Renewable aviation fuel (RAF), often considered sustainable aviation fuel (SAF), is a clean substitute for fossil jet fuels. SAF is produced from sustainable resources, such as waste oils from a biological origin, agriculture residues, or non-fossil CO2. The Renewable Aviation Fuel market is segmented by technology, application and geography. By technology, the market is segmented as Fischer-Tropsch (FT), Hydroprocessed Esters and Fatty Acids (HEFA), Synthesized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT). By application, the market is semented into commercial. By geography, the market is segmented as North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done based on revenue (in USD million).

Technology
Fischer-Tropsch (FT)
Hydroprocessed Esters and Fatty Acids (HEFA)
Synthesisized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT)
Application
Commercial
Defense
Geography
North America
United States of America
Canada
Rest of the North America
Asia-Pacific
China
India
Japan
Rest of the Asia-Pacific
Europe
United Kingdom
France
Germany
Rest of the Europe
South America
Brazil
Argentina
Rest of the South America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Qatar
Rest of the Middle-East and Africa
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Renewable Aviation Fuel Market Size Summary

The renewable aviation fuel market is poised for significant growth, driven by increasing government regulations aimed at reducing greenhouse gas emissions and promoting sustainable fuel production and consumption. Despite the high costs associated with renewable aviation fuel, the market is expected to expand rapidly, with emerging regions like Southeast Asia presenting lucrative opportunities. North America is anticipated to lead the market, with substantial demand from the United States and Canada. The market's recovery to pre-pandemic levels and the ongoing advancements in technology, such as the development of sustainable aviation fuel from captured carbon dioxide and green hydrogen, further bolster the market's prospects.

Hydroprocessed Esters and Fatty Acids (HEFA) are expected to dominate the market due to their significant share in commercial bio-jet fuel volumes and the support from policies like the US Renewable Fuel Standard. The market is moderately fragmented, with key players such as TotalEnergies SE, Neste Oyj, and Gevo Inc. actively participating in the sector. Collaborative efforts, such as those between Twelve and Etihad Airways, and investments in projects like the one in northern France by Engie SA and Infinium Holdings, highlight the industry's commitment to advancing renewable aviation fuel technologies. These developments, alongside supportive government policies and increasing demand, are set to enhance the market's growth trajectory over the forecast period.

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Renewable Aviation Fuel Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD million, till 2028

    3. 1.3 Government Policies and Regulations

    4. 1.4 Recent Trends and Developments

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

        1. 1.5.1.1 Increased Government Regulations for Greenhouse Gas Emissions

        2. 1.5.1.2 Encouraging Production and Consumption of Renewable Aviation Fuel

      2. 1.5.2 Restraints

        1. 1.5.2.1 The High Costs of Renewable Aviation Fuel

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 Fischer-Tropsch (FT)

      2. 2.1.2 Hydroprocessed Esters and Fatty Acids (HEFA)

      3. 2.1.3 Synthesisized Iso-Paraffinic (SIP) and Alcohol-to-Jet (AJT)

    2. 2.2 Application

      1. 2.2.1 Commercial

      2. 2.2.2 Defense

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States of America

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Rest of the North America

      2. 2.3.2 Asia-Pacific

        1. 2.3.2.1 China

        2. 2.3.2.2 India

        3. 2.3.2.3 Japan

        4. 2.3.2.4 Rest of the Asia-Pacific

      3. 2.3.3 Europe

        1. 2.3.3.1 United Kingdom

        2. 2.3.3.2 France

        3. 2.3.3.3 Germany

        4. 2.3.3.4 Rest of the Europe

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of the South America

      5. 2.3.5 Middle-East and Africa

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 Qatar

        4. 2.3.5.4 Rest of the Middle-East and Africa

Renewable Aviation Fuel Market Size FAQs

The Renewable Aviation Fuel Market size is expected to reach USD 6.58 billion in 2024 and grow at a CAGR of 47.16% to reach USD 45.37 billion by 2029.

In 2024, the Renewable Aviation Fuel Market size is expected to reach USD 6.58 billion.

Renewable Aviation Fuel Market Report Snapshots

Renewable Aviation Fuel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)