The Electric Aircraft Market is estimated to be valued at US$ 9661.6 Mn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Electric aircraft are piloted aircraft that use electric motors powered by on-board battery packs for propulsion. They are a more sustainable alternative to conventional fuel-powered aircraft and produce significantly lower noise emissions. Different types of electric aircraft currently in development include hybrid-electric aircraft that combine electric and conventional propulsion systems, all-electric planes powered solely by batteries, and hydrogen fuel cell aircraft. Electric aircraft have potential applications for both passenger and cargo transport over short-medium haul routes.
Market Dynamics:
The growing concerns over environmental impact of fuel emissions from aircraft is a key driver boosting adoption of electric aircraft. According to Air Transport Action Group, the aviation industry is responsible for about 2% of total human-induced CO2 emissions. Transitioning to electric propulsion can help airlines reduce their carbon footprint significantly. Furthermore, electric aircraft have lower operating and maintenance costs compared to fuel-powered planes due to having fewer moving parts. The reduced noise levels of electric motors is another advantage as it allows electric aircraft operations near noise-sensitive residential areas as well. However, battery energy density limits the flight ranges of electric aircraft presently and developing high-capacity battery technologies remains a challenge.
Segment Analysis
The Global Electric Aircraft Market Size can be segmented into Battery Electric Aircraft and Hybrid Electric Aircraft. Among these, Hybrid Electric Aircraft dominates the market as it allows electric propulsion along with combustion, reducing weight and increasing efficiency. Hybrid electric aircraft are becoming popular as they provide the technology to be efficient and environment friendly without compromising on range or cost.
PEST Analysis
Political: Governments globally are supporting the development and adoption of electric aircraft through funding and policy reforms to reduce emissions. Economic: Lower operating and maintenance costs of electric aircraft are expected to boost their commercial adoption. Social: Increasing environmental concerns are driving demand for green technologies like electric aircraft. Technological: Advancements in battery technologies, electric motors and power electronics are enhancing the viability of electric aircraft.
Key Takeaways
The global electric aircraft market is expected to witness high growth, exhibiting CAGR of 14.% over the forecast period, due to increasing environmental concerns. The market size for electric aircraft is estimated to be US$ 9661.6 Mn in 2023.
Regional analysis
North America is witnessing the fastest growth in adoption of electric aircraft due to supportive government policies and significant investments from Boeing, Airbus and other manufacturers in the region for developing electric and hybrid-electric aircraft. Europe is also emerging as a major market for electric aircraft supported by initiatives from Airbus, Rolls Royce and other European firms.
Key players
Key players operating in the electric aircraft market are Boeing, Airbus, Raytheon Technologies Corporation, Honeywell International Inc., Thales Group, Lockheed Martin Corporation, Zunum Aero, YUNEEC, Elektra Solar GmbH, PIPISTREL, BYE AEROSPACE, DELOREAN AEROSPACE, LLC, Joby Aviation, Siemens, Safran, Bombardier, TTTech Computertechnik AG, and AgustaWestland.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it