Bio-Based Aviation Fuel Market Projected to Grow from USD 4.9 Billion in 2025 to USD 35 Billion by 2035

The Bio-Based Aviation Fuel Market is entering a phase of rapid expansion, driven by rising global efforts to decarbonize air transport and transition toward sustainable energy solutions. Valued at 4,000 USD Million in 2024, the market is projected to grow from 4,900 USD Million in 2025 to 35,000 USD Million (35 USD Billion) by 2035, reflecting a remarkable compound annual growth rate (CAGR) of 21.8% during the forecast period (2025–2035).

Bio-based aviation fuel, also known as Sustainable Aviation Fuel (SAF), is produced from renewable feedstocks such as waste oils, fats, agricultural residues, municipal solid waste, and non-food biomass. It can be blended with conventional jet fuel and used in existing aircraft engines without modification. The increasing global commitment to achieving net-zero aviation emissions by 2050, supported by stringent regulatory mandates and carbon reduction initiatives, is propelling demand for bio-based aviation fuels across commercial, military, and private aviation sectors.

Market Drivers

• Rising Focus on Decarbonizing Aviation

The aviation industry contributes nearly 2–3% of global CO₂ emissions, and with air travel demand expected to double by 2040, decarbonization has become a top priority. Bio-based aviation fuel can reduce lifecycle greenhouse gas (GHG) emissions by up to 80% compared to traditional fossil-based jet fuel. This makes it a key component in meeting international climate goals established under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and regional sustainability targets.

• Supportive Government Policies and Incentives

Governments worldwide are implementing policies to accelerate SAF adoption. The U.S. Sustainable Aviation Fuel Grand Challenge, the European Union’s ReFuelEU Aviation Initiative, and mandates in countries such as the UK, Japan, and Singapore are providing financial incentives, production subsidies, and blending mandates to stimulate the market. These initiatives are making bio-based aviation fuel production economically viable and reducing investment risk for new entrants.

• Increasing Airline Commitments Toward Net-Zero Goals

Major airlines including Delta Air Lines, British Airways, Lufthansa, and Emirates have announced aggressive carbon neutrality commitments. Many carriers have entered long-term offtake agreements with biofuel producers such as Neste, Gevo, and World Energy to secure sustainable fuel supply and meet corporate emission targets. Such collaborations are reinforcing market stability and signaling strong demand growth.

• Technological Advancements in Feedstock Conversion

Breakthroughs in hydroprocessed esters and fatty acids (HEFA), alcohol-to-jet (ATJ), Fischer-Tropsch (FT), and synthetic biology-based conversion processes are improving yield efficiency and reducing production costs. Advancements in carbon capture, waste gas utilization, and biomass-to-liquid (BTL) technologies are also expanding feedstock options and optimizing production scalability.

• Rising Pressure to Reduce Dependence on Fossil Fuels

Fluctuating crude oil prices, energy security concerns, and global commitments to renewable energy diversification are further propelling the transition toward bio-based fuels. Airlines are increasingly seeking stable, domestic fuel alternatives that reduce carbon intensity while minimizing exposure to fossil fuel price volatility.

Industry Trends

• Commercial Scale-Up of SAF Production Plants: Global biofuel producers are investing in large-scale refineries capable of producing hundreds of millions of gallons of SAF annually. Companies like Neste, Shell, BP, and TotalEnergies are expanding capacity to meet growing demand.
• Strategic Partnerships and Offtake Agreements: Collaboration between airlines and fuel producers is becoming central to securing supply. Agreements between Boeing, Airbus, and SAF developers are strengthening the aviation ecosystem’s sustainability roadmap.
• Drop-in Fuel Compatibility: SAF’s ability to blend seamlessly with conventional jet fuel (up to 50%) without engine modifications is accelerating adoption. Research is ongoing to achieve 100% SAF certification by 2030.
• Emergence of Power-to-Liquid (PtL) and Synthetic SAF: Integration of renewable hydrogen with captured CO₂ to produce synthetic jet fuels is gaining momentum, offering a pathway for carbon-neutral aviation.
• Growing Investor and Corporate ESG Focus: Sustainability-focused investors and funds are channeling capital into SAF projects as part of broader environmental, social, and governance (ESG) investment strategies.

Get a Sample PDF Brochure of the Report @ https://www.wiseguyreports.com/sample-request?id=575672

Market Segmentation

The Bio-Based Aviation Fuel Market can be segmented by fuel type, feedstock, application, technology, and region.

By Fuel Type

• Hydroprocessed Esters and Fatty Acids (HEFA)
• Alcohol-to-Jet (ATJ)
• Fischer-Tropsch (FT) Synthetic Paraffinic Kerosene (SPK)
• Others (Co-Processing and CHJ)

By Feedstock

• Waste Oils and Fats
• Agricultural Residues
• Lignocellulosic Biomass
• Municipal Solid Waste (MSW) and Algae

By Application

• Commercial Aviation
• Military Aviation
• Private and Business Jets

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

Buy Now @ https://www.wiseguyreports.com/checkout?currency=one_user-USD&report_id=575672

Key Companies in the Global Bio-Based Aviation Fuel Market include:

• LanzaTech
• Fulcrum BioEnergy
• Sustainable Aviation Fuel Producers
• Airbus
• Green Plains Renewable Energy
• Cargill
• TotalEnergies
• Neste
• Atrium Innovations

Future Outlook

The Bio-Based Aviation Fuel Market is set for exponential growth, underpinned by technological innovation, regulatory support, and airline sustainability commitments. With a projected CAGR of 21.8%, the market will expand from 4,900 USD Million in 2025 to 35 USD Billion by 2035.

Key future opportunities include:

• Expansion of next-generation biorefineries capable of processing diverse feedstocks.
• Integration of synthetic fuels (e-SAF) and carbon capture technologies.
• Development of supply chain partnerships to stabilize fuel availability and pricing.
• Government-backed incentive programs to close the cost gap with fossil-based jet fuels.

As aviation moves toward net-zero emissions, bio-based fuels will become an essential pillar of sustainable transport. Strategic collaboration among airlines, fuel producers, policymakers, and investors will be critical in building a scalable, resilient, and sustainable SAF ecosystem.

The Bio-Based Aviation Fuel Market represents one of the fastest-growing sectors in renewable energy. Driven by environmental commitments, supportive regulations, and technological advancements, it is poised to revolutionize global aviation. By 2035, bio-based fuels are expected to play a central role in powering a cleaner, more sustainable aviation industry.

The journey toward carbon-neutral skies is accelerating, and bio-based aviation fuel stands at the heart of this transformation—bridging today’s energy needs with tomorrow’s sustainable future.

Explore More Reports:

Soundproofing Windows Market | Japan | German | French | Korean | China | Spanish

Shellac-Based Primer Market | Japan | German | French | Korean | China | Spanish

Soybean Oil Emulsifier Market | Japan | German | French | Korean | China | Spanish

Rubidium Acetate Market | Japan | German | French | Korean | China | Spanish

Reduced Snap Back Ropes Market | Japan | German | French | Korean | China | Spanish

Radical Initiator Market | Japan | German | French | Korean | China | Spanish

Strong Cross Film Market | Japan | German | French | Korean | China | Spanish

Repaglinide Api Market | Japan | German | French | Korean | China | Spanish

Rotomolded Containers Market | Japan | German | French | Korean | China | Spanish

Rubber Filter Belt Market | Japan | German | French | Korean | China | Spanish

You May Also Like This Regional Reports:

バイオベース航空燃料市場レポート | Marktbericht für biobasierten Flugkraftstoff | Rapport sur le marché des carburants d’aviation biosourcés | 바이오 기반 항공 연료 시장 보고서 | 生物基航空燃料市场报告 | Informe del mercado de combustible de aviación de base biológica