Global Aviation Biofuel Market is projected to be valued at USD 59.88 billionby 2025, expanding at a CAGR of5.90% between 2019 and 2025. Growth in the air passenger traffic has significantly contributed to the growth of the aviation biofuel market.
High competition owing to presence of large number of players in this market is forcing manufacturers to continuously focus on product innovation and development. Furthermore, airline operators are also shifting to the use of aviation biofuel to reduce greenhouse gas emissions and reduce global carbon footprint. For example, in May 2019, World Energy was awarded a contract by United Airlines to provide nearly 10 million gallons of aviation biofuel over the next two years.
Hydrotreated Vegetable Oils (HVO) segment expected to witness the highest growth in the market: HVO offers benefits such as reduced greenhouse gas emissions, flexibility, low maintenance cost, high storage properties, and is odorless. Therefore, the segment is expected to witness the highest growth during the forecast period.
Commercial segment expected to remain the dominating segment: The commercial segment dominates the market in 2018 and is expected to witness higher growth during the review period. Increasing the number of commercial aircraft being manufactured to cater to the rising air passenger traffic is driving the segment growth. Furthermore, the growing adoption of aviation biofuel by commercial airlines is also expected to drive the growth of the market. For example, in 2018 SpiceJet operated biofuel-powered aircraft from Dehradun to New Delhi.
