The global electric aircraft market has been gaining significant traction over the past few years owing to increasing focus on development of sustainable aviation technologies. Electric aircraft utilize electric motors powered by batteries for propulsion rather than conventional jet fuel or turboprop engines. Various types of electric aircraft include ultra-light and small electric aircraft, general aviation airplane, general aviation helicopter, others. Electric aircraft provide numerous operational and environmental benefits such as near-silent flights, low operating costs, zero direct emissions and reduced carbon footprint. They are increasingly being utilized for purposes such as passenger air transportation, cargo transport, agriculture, surveillance, aerial photography and more.
The global electric aircraft market is estimated to be valued at US$ 9661.6 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Rising adoption of sustainable aviation technologies is one of the major drivers propelling growth of the electric aircraft market. Growing concerns regarding environmental pollution and carbon emissions from conventional jet fuels are encouraging manufacturers to shift focus towards developing green aviation solutions. Additionally, various government policies and initiatives aimed at promoting adoption of electric aircraft for commercial passenger transport are further augmenting market growth. For instance, the ‘Flight Plan 2050’ by European Commission aims to facilitate introduction of over 2,000 new electric aircrafts in Europe by 2035 and reduce emissions from aviation by 75% compared to 2000 levels.
The other driver for electric aircraft market expansion is increased R&D investments by leading aircraft OEMs. Boeing, Airbus, Raytheon Technologies Corporation and others have poured in billions of dollars in electric aircraft development programs. This has resulted in advancement of critical technologies such as battery packs, electric propulsion systems and autonomous flight control systems. Introduction of innovative e-planes such as Alice, Eviation Alice and Pipistrel Velis Electro are expected to revolutionize the aviation industry over the coming years.
Growing consumer inclination towards green flying solutions owing to benefits like lower noise levels and cleaner air travel is fostering adoption of electric aircraft for leisure and recreational activities. Furthermore, increasing utilization of drones and unmanned aerial vehicles for various commercial applications has amplified demand for compact electric aircraft.
The global electric aircraft market is dominated by commercial aircraft segment, accounting for over 55% share in 2024. Factors such as high fuel efficiency, low operating costs and minimal environmental impact have increased the demand for electric commercial aircraft from airlines. The urban air mobility sub-segment within commercial aircraft is expected to witness highest growth during forecast period, driven by growing need for intra-city transportation.
Political: Governments across regions are supporting development of electric aircraft through funding and incentives. For instance, US and European governments have pledged billions of funding for sustainable aviation research programs.
Economic: Rising fuel costs and focus on lowering operating expenses are compelling airlines to explore electric aircraft options. Few electric aircraft models are projected to offer 30-40% lower operating costs compared to conventional jets.
Social: Growing environmental consciousness among public is driving demand for green technologies. Passengers are showing preference for airlines offering flights through sustainable alternatives like electric aircraft.
Technological: Advancements in electric propulsion systems, battery technology and autonomous operations are bringing down costs and enabling viable short-range electric flights. Lithium-ion battery costs have dropped significantly over last decade.
The Global Electric Aircraft Market Growth is expected to witness high. The global Electric Aircraft Market is estimated to be valued at US$9661.6 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030.
The global electric aircraft market is expected to witness high growth at a CAGR of 7.9% during forecast period of 2023-2030. North America dominates currently with over 40% share due to strong investments in development of electric Vertical Take-Off and Landing (eVTOL) aircraft by key players like Boeing, Airbus and Joby Aviation in the region. Europe is second largest market for electric aircraft currently.
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. Key players like Boeing and Airbus are investing heavily in developing hybrid-electric aircraft prototypes with target of launching electric passenger planes by mid-2030s. Several startups are also working on electric Aircraft designs focused on urban air mobility and cargo applications.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it