Electric Aircraft Market

• Growing demand for clean and quiet aircraft is driving market growth

One of the primary factors driving the Electric Aircraft Market CAGR is the increasing demand for clean and quiet airplanes. According to the Air Transport Action Group, global flights created around 915 million tonnes of CO2 in 2120. (ATAG). The worldwide aviation industry contributes for approximately 2% of all CO2 emissions created by humans. These estimates are likely to climb dramatically as the global aircraft fleet and air travel develop.

As a result, organizations and governing bodies such as the International Civil Aviation Organization, the Federal Aviation Administration, and the European Union Aviation Safety Agency have called for sustainable aircraft fuel alternatives, estimating that by 2050, aircraft-generated emissions will have tripled in volume. These factors will propel the market gtowth in the forecast years.

Additionally, the development of 3D printing has made it possible for designers to produce unconventional design configurations that would not have been feasible in the past. The aircraft or its parts can be fully printed with little material wasted. In the ensuing years, this will further support market growth.

For instance, carbon fibre reinforced polymer, which is incredibly lightweight and malleable and offers the mechanical strength of metal, enables the design to deviate significantly from current standards depending on the configurations. Lightweight materials will enable designers to lower the overall weight of the aircraft and make it commercially viable because the current generation of batteries weighs close to 65% of the total weight of the aircraft .Thus, driving the electric aircraft market revenue.

Technological advancements play a pivotal role in the expansion of the Global Electric Aircraft Market Industry. Innovations in battery technology, such as solid-state batteries, are enhancing energy density and reducing weight, which are critical for aircraft performance. Furthermore, advancements in electric propulsion systems are improving efficiency and reliability. Companies like Boeing and Airbus are investing heavily in research and development to integrate these technologies into their aircraft designs. As these technologies mature, they are expected to significantly lower operational costs and improve the feasibility of electric aircraft, potentially leading to a market valuation of 61.9 USD Billion by 2035.

The rise of urban air mobility is emerging as a significant driver for the Global Electric Aircraft Market Industry. As cities become increasingly congested, electric vertical takeoff and landing (eVTOL) aircraft are being explored as a solution for urban transportation. These aircraft promise to alleviate traffic woes and provide rapid transit options for urban dwellers. Companies like Joby Aviation and Volocopter are at the forefront of developing eVTOL solutions, which are expected to gain regulatory approval in the coming years. This burgeoning segment of the market could substantially contribute to the overall growth of the electric aircraft sector, aligning with global trends towards smart city initiatives.

The Global Electric Aircraft Market Industry is witnessing a surge in demand driven by increasing environmental concerns. As nations strive to meet stringent emissions targets, electric aircraft offer a viable solution to reduce carbon footprints in aviation. The shift towards sustainable aviation fuels and electric propulsion systems aligns with global initiatives to combat climate change. For instance, the European Union has set ambitious goals for reducing greenhouse gas emissions, which propels investments in electric aviation technology. This growing awareness and regulatory pressure are likely to enhance the market's growth trajectory, with projections indicating a market value of 17 USD Billion in 2024.

Government initiatives and funding are crucial drivers of the Global Electric Aircraft Market Industry. Various countries are implementing policies to support the development and adoption of electric aircraft. For example, the United States government has allocated substantial funding for research and development in electric aviation technologies. Additionally, grants and subsidies are being offered to manufacturers and startups focusing on electric aircraft. This financial backing not only accelerates innovation but also fosters collaboration between public and private sectors, thereby enhancing the overall market landscape. Such initiatives are likely to contribute to a compound annual growth rate of 12.47% from 2025 to 2035.

The Global Electric Aircraft Market Industry is diversifying with various applications beyond traditional passenger transport. Electric aircraft are being explored for cargo transport, surveillance, and agricultural applications. The versatility of electric aircraft allows for tailored solutions that meet specific industry needs. For instance, companies are developing electric drones for agricultural monitoring and crop spraying, which can significantly reduce operational costs and environmental impact. This diversification not only broadens the market appeal but also opens new revenue streams for manufacturers. As the industry evolves, the integration of electric aircraft into various sectors is expected to drive sustained growth and innovation.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America is predicted to increase rapidly during the projection period. Electric aircraft are increasingly being used for urban air travel in North America, and this aspect is projected to boost market expansion in this region. Many ecologically aware people are flying short distances in electric airplanes, which is driving up demand for the product.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: ELECTRIC AIRCRAFT MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s electric aircraft market accounts for the second-largest market share because of the growing market for electric aircraft and the region's strict restrictions for airplane emissions. Further, the German electric aircraft market held the largest market share and the UK electric aircraft market was the fastest-growing market in the European region

The Asia-Pacific Electric Aircraft Market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to Renovating and enhancing the region's current aircraft infrastructure is necessary due to the increase in aviation traffic in the Asia-Pacific region. Moreover, China’s electric aircraft market held the largest market share, and the Indian electric aircraft market was the fastest-growing market in the Asia-Pacific region.

 For instance, in December 202, The UK-based BAE Systems made a multi-million dollar facility investment to support its Aircraft Electrification activities in Endicott, America. The money will be used to fund the production of innovative control and power conversion system subsystems for use in aviation. Recent Market News

In October of 2024, Kempe Gowda International Airport in Bengaluru announced plans to deploy electric flying taxis in partnership with Sarla Aviation. The intention of the scheme was to launch seven-seater eVTOL aircrafts that would be able to enable efficient and green transportation in short amounts of time, greatly revolutionizing the means of transportation in overcrowded metros.

In September 2024, the investigative sphere, Loganair, allied with Heart Aerospace aimed to add hybrid aircraft incorporation with an end four zero carbon emissions in 2040 while developing Heart's ES-30 aircraft. Furthermore, in a Series D funding round of $ 116 million five months later, ZeroAvia secured a follow-on investment of $ 34 million to expedite the research and expansion of a hydrogen-electric jet engine.

In September 2024, ZeroAvia raised USD 34 million in funding to advance the development and commercialization of hydrogen fuel cell and electric aircraft engines, building off the prior raise of USD 116 million.

In June 2024, magniX introduced an innovative battery system by the name of cc"Samson300" with an aim to advance electric and hybrid electric aviation systems including eVTOLs and helicopters.

In May 2024, Wilbur Air joined forces with FlyNow with the goal of deploying a hundred electric planes in Australia but commencing with freight operations. The focus of the commercial endeavor was to develop a business-to-business strategy that ensured the safety and security of operations prior to venturing into passenger transportation.

In May 2024, Ampaire Inc. completed the acquisition of the electric aviation technologist company Magpie Aviation Inc. The acquisition of the technology developed by Magpie is a competitive advantage for Ampaire, allowing it to maintain the lead in aviation electrification and respond to client needs with innovative solutions. The acquisition adds new technologies to Ampaire's IP and adds new contracts to its portfolio via Magpie's multiple pending patents and government contracts. With the acquisition, the company also expects to see renewed sales growth in its commercial and defense-focused sectors whilst improving its research and development capabilities.

Leading market players are making significant R&D investments in order to diversify their product offerings, which will drive the market for electric aircraft to expand even more. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The industry for electric aircraft must provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.

One of the primary business strategies utilized by manufacturers in the global electric aircraft industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. The electric aircraft industry has recently provided some of the most important benefits to medical. Astronics Corporation, Amphenol Corporation, Honeywell International Inc., Meggitt PLC, Thales Group, Boeing, Airbus S.A.S., Lockheed Martin Corporation, and other major players in the electric aircraft market are expanding their respective product portfolios and gaining a strong foothold in the global market.

Pratt & Whitney Canada (PWC or P&WC) is a Canadian manufacturer of aviation engines. The headquarters of PWC are located in Longueuil, Quebec, just outside of Montreal. It is a subsidiary of the bigger US-based Pratt & Whitney (P&W), which is a branch of Raytheon Technologies Corporation. [2] PWC has been awarded a global mandate by United Technologies for small and medium aviation engines, while P&W's American divisions research and produce larger engines. 

In  July  2021, Pratt & Whitney Canada (P&WC), a Pratt & Whitney business entity, announced a collaboration with De Havilland Aircraft of Canada Ltd (De Havilland Canada) to integrate hybrid-electric technology into a De Havilland Canada Dash 8-100 flight demonstrator. Collins Aerospace will supply a sophisticated electric motor and controller for the flight demonstrator.

Airbus SE is a multinational aerospace firm based in Europe. Airbus designs, manufactures, and sells commercial aircraft, as well as having separate businesses for Defense and Space and Helicopters. Airbus is the world's largest maker of airliners and the third largest manufacturer of turbine helicopters as of 2019. 

In April 2021, Airbus announced plans to replace mechanical rudder controls on A320 Neo-family aircraft with full electric rudder systems by early 2024. The upgrade will correspond with the introduction of the long-range A321XLR, which was designed with the 'E-rudder' architecture in mind.

Recent Development

In January 2023, the most recent carrier to indicate interest in purchasing Alice, an all-electric commuter plane that Eviation is currently developing, is the start-up Mexican airline Aerus. A letter of intent was signed by the Monterrey, Mexico-based business to buy 30 of the aircraft, which it plans to use for flights throughout northeast Mexico.

For instance, In 2023 : Beta opens a manufacturing plant for electric aircraft and begins production. Whereas publicly listed electric aircraft firms celebrate every technical and financial victory to appease investors, Beta Technologies has achieved significant strides in the relative safety of private ownership. Over 500 flights have been completed by two piloted, full-scale demonstrators, performing both vertical and conventional takeoffs and landings. Thousands of hours of ground testing have been accomplished by hundreds of electric motors. At Vermont's Patrick Leahy Burlington International Airport, Beta established its production site.

For instance, In 2023 : AIBOT has chosen Honeywell to supply its Compact Fly-By-Wire (cFBW) system in order to facilitate the company's completely electric vertical takeoff and landing (eVTOL) aircraft. The next generation of aircraft avionics will be empowered by this Honeywell technology, which will also establish a sustainable transportation ecosystem. The compact Fly-By-Wire system from Honeywell, which is as light as a paperback book, gives aircraft manufacturers—like AIBOT—more design freedom without sacrificing power or safety.

The hybrid-electric, ultra-short takeoff and landing (eSTOL) EL-2 Goldfinch aircraft has successfully completed its first flights, according to a 2023 announcement from Electra.aero, Inc. (Electra). The first blown lift aircraft in the world to use hybrid-electric power and distributed electric propulsion is the two-seat Goldfinch eSTOL technology demonstration. Compared to traditional aircraft and helicopters, the aircraft's noise and pollution are drastically reduced thanks to its eight electric motors, which also allow for ultra-short takeoffs and landings. Long ranges can be achieved with hybrid electricity without the requirement for ground-based charging stations.