The electric aircraft market has witnessed significant growth over the past few years owing to the advantages offered over conventional fuel aircraft. Electric aircraft are powered by electric motors instead of fossil fuel engines which results in lower operational noise and zero direct emissions. In addition, electric aircraft have lower operating and maintenance costs compared to fuel-powered aircraft. As the demand for green and sustainable air transportation increases globally, the adoption of electric aircraft is expected to surge in the coming years. 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 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. These players are focusing on developing advanced lithium-ion batteries and electric propulsion systems to manufacture fuel-efficient electric aircraft.
The increasing initiatives by governments across regions to adopt electric airplanes present significant opportunities in the market. Countries like the U.S., France, and Germany are providing funding and incentives to develop and deploy locally manufactured electric aircraft. This encourages manufacturers to invest in the electric aircraft technology.
As emission regulations tighten globally, long-haul electric aircraft are expected to witness heightened demand. Leading manufacturers are focusing on expanding their electric aircraft portfolio to include larger electric airplanes for inter-city and inter-continental routes. They are collaborating with airlines to develop the required infrastructure and gradually replace fuel-powered fleets with electric models.
Market Drivers
One of the key drivers for electric aircraft market is the reduced operating and maintenance costs of electric aircraft as compared to conventional fuel aircraft. Electric aircraft have approximately 60% lower operating costs versus conventional aircraft since they don’t require combustion engine repairs and maintenance. In addition, electric motors have fewer moving parts compared to jet engines and hence result in reduced downtime and maintenance expenses.
Market Restrains
High manufacturing costs of electric aircraft is a major challenge restraining the growth of this market. The development of advanced batteries, electric motors and other electric components increases the upfront acquisition price of electric aircraft. Further, the limited flight range and payload capacity of current electric aircraft designs restrict their large-scale commercial adoption. Battery technology needs further advancement to increase energy storage capacity and enable long-haul electric flights.
Segment Analysis
The electric aircraft market segments into fixed-wing aircraft and rotary-wing aircraft. The fixed-wing segment leads the market and is projected to maintain its dominance over the forecast period due to the advantages like higher payload capacity and ability to travel longer distances on a single charge. Adoption of electric propulsion technologies significantly reduces operational costs for airlines while increasing aircraft range and payload capacity. These factors are positively influencing the demand for fixed-wing electric aircraft.
Global Analysis
North America dominates the global electric aircraft market and is estimated to continue its dominance during the forecast period. The region has presence of major aircraft manufacturers like Boeing and Bell developing and testing electric aircraft. Ongoing investments by regional governments towards development of advanced aircraft technologies and presence of key innovators in the US and Canada are fueling the market growth. Asia Pacific is projected as the fastest growing market during the forecast period due to rising focus of China on indigenization of aircraft manufacturing and ongoing investments by India to develop advanced aircraft. Developing regional connectivity through electric aviation is attracting investments in electric aircraft development programs in Asia Pacific countries.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
