The Renewable bio jet fuel market consists of biofuel derived from renewable feedstocks such as camelina plant, jatropha, algae and agricultural waste that can be used directly or blended with conventional jet fuel in existing aircraft engines and fueling infrastructure. Renewable bio jet fuels provide a sustainable solution for aviation as they have the potential to significantly reduce greenhouse gas emissions compared to conventional jet fuel.

The global renewable bio jet fuel market is estimated to be valued at US$ 299.4 Mn in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity for sustainable aviation presents a major market opportunity for Global renewable bio jet fuel market size. With growing concerns about the environmental impact of aircraft emissions, there is a need to transition aviation towards more sustainable fuel options. Renewable bio jet fuel can play a key role in reducing emissions from the aviation sector. As policy support and incentives increase for use of sustainable fuels in aviation along with commercial production reaching larger scales, the market potential for renewable bio jet fuel is likely to grow substantially over the coming years given its ability to provide a low carbon drop-in replacement for petroleum-based jet fuel. Sustainable aviation fuels are seen as one of the most viable solutions to lower aviation's carbon footprint in the long run.

Porter's Analysis

Threat of new entrants: New entrants face high initial costs for building new production facilities and establishing supply chains. Strict emission standards also act as a barrier.

Bargaining power of buyers: Buyers have moderate bargaining power given the availability of alternatives such as conventional jet fuel. However, growing awareness about sustainability can boost demand for bio jet fuel.

Bargaining power of suppliers: Major suppliers include crop, oil and chemical companies with specialized expertise in biofuel production. Suppliers enjoy high bargaining power due to increasing collaboration between players.

Threat of new substitutes: Electric and hydrogen-powered aircrafts pose a threat but widespread commercialization may take over a decade due to technical challenges.

Competitive rivalry: Intense competition exists between existing bio fuel producers to cater to growing jet fuel needs. Collaboration is also increasing to address emissions targets.

SWOT Analysis

Strength: Renewable bio jet fuel offers substantially lower carbon emissions and is a drop in replacement for conventional jet fuel. Growing focus on sustainability drives adoption.

Weakness: High production costs compared to fossil fuels. Limited availability of commercial scale production facilities.

Opportunity: Favorable government policies and initiatives to support the biojet fuel industry in regions like Europe and North America present lucrative opportunities.

Threats: Dependence on agricultural feedstock prices and availability of land. Technology risks associated with scaling up production.

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