The Electric Aircraft Market consists of hybrid, all-electric, and blended wing body aircraft. The increasing demand for environment-friendly modes of transportation is driving the demand for electric aircraft. Advanced electric propulsion technologies are facilitating increased payload and longer flight range compared to conventional aircraft. Electric Aircraft also promise savings on fuel and maintenance cost, lower noise levels, and reduced carbon emissions. The Global Electric Aircraft Market is estimated to be valued at US$ 9,661.6 Mn in 2024 and is expected to exhibit a CAGR of 14.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Electric Aircraft 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. Boeing and Airbus are focusing on developing hybrid-electric aircraft with an expected rollout by 2030. Zunum Aero, Eviation, and PIPISTREL are leading players involved in developing all-electric aircraft.
Electric aircraft provide opportunities for new airlines and operators with lower operating costs. They enable new flight routes of shorter distances economically with zero emissions. The falling costs of batteries are also expected to improve the ROI for electric aircraft. Several governments are providing funding and partnerships to accelerate the development of green aviation technologies and infrastructure.
The global demand for air travel is growing steadily. Electric aircraft allow expanding aviation into new regions and will foster the establishment of electric aircraft networks worldwide. Countries like Norway and New Zealand have announced plans to transition to electric aircraft for short-haul flights by 2030. More sustainable aviation is vital for continued growth of the aviation sector in the future.
Market drivers:
Stringent emission regulations are pushing aircraft manufacturers towards adopting greener technologies. With environmental concerns rising, electric aircraft will see higher demand especially for short-haul flights where they provide compelling economics.
Market restrain:
The high costs of developing and certifying new electric aircraft technologies are significant barriers. Battery technologies also need further improvement to provide sufficient energy density for longer flight ranges. Establishing supporting charging infrastructure will require significant investments. Uncertainties around technology maturation and customer acceptance also pose challenges.
Segment Analysis
The electric aircraft market is dominated by two main segments namely battery electric aircraft and hybrid electric aircraft. The battery electric aircraft segment held the largest market share in 2024 and is expected to continue to dominate during the forecast period. This is due to increased focus on developing fully electric aircraft by manufacturers to curb emissions from air travel. Hybrid electric aircraft is expected to emerge as the fastest growing segment owing to its advantages of reduced emissions without compromising on flight range. By 2031, hybrid electric aircraft is projected to account for over 50% of the total electric aircraft market share.
Global Analysis
Regionally, North America dominated the global electric aircraft market in 2024 with a share of over 40%, followed by Europe. Presence of leading aircraft OEMs and suppliers, focus on developing green aviation technologies, and supportive government policies and investments drive the market in these regions. Asia Pacific is expected to emerge as the fastest growing regional market during the forecast period with a CAGR of around 17%. Increasing air passenger traffic, focus on regional air connectivity through eVTOLs, and investments by regional governments are boosting the electric aircraft market in Asia Pacific. The China and Japan markets are projected to witness substantial growth in the coming years owing to investments in hybrid and fully electric aircraft programs.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
