Electric Aircraft Market Analysis

Global Electric Aircraft Market Overview

Electric Aircraft Market Size was valued at USD 14.8 billion in 2023. The electric aircraft market industry is projected to grow from USD 17.0 Billion in 2024 to USD 40.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.40% during the forecast period (2024 - 2032). Increasing need for low-energy-consumption, eco-friendly airliners that provide efficient service. Increasing global concerns about environmental sustainability, as well as tight regulatory regulations aimed at reducing carbon emissions are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Aircraft Market Trends

• 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.

Electric Aircraft Market Segment Insights

Electric Aircraft Technology Insights

The Electric Aircraft Market segmentation, based on technology includes hybrid aircraft and all electric aircraft. In 2022, the hybrid aircraft segment accounted for a sizable revenue share. Hybrid electric aircraft use fuel-powered engines, batteries, and propellers. In some circumstances, it employs conventional jet engines together with electrically propelled propellers. This sort of electric aircraft provides a design that is not conceivable with only fuel-powered engines. It allows for silent vertical landings and takeoffs. It also has a huge number of electric propellers, which aid in efficient aerodynamics.

Figure1: Electric Aircraft Market, by technology, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Aircraft Power Source Insights

The Electric Aircraft Market segmentation is divided into two segments based on power source: less than 500 kilometers and more than 500 kilometers. The category with the shortest range (less than 500 kilometers) had the biggest revenue share in 2021. Electric airplanes currently have a range of less than 500 kilometers due to insufficient battery storage capacity and energy density.

Electric Aircraft Power Source Insights

The Electric Aircraft Market data, based on power source, includes battery, solar cells, fuel cells and others. Throughout the projection period, revenue in the battery category is predicted to expand at a rapid pace. In general, lead-acid and nickel-cadmium plates are used in aviation batteries (NiCd). Lead-acid batteries are both technologically and economically sophisticated. They have a number of advantages, including a wide range of sizes and specifications, a high current capacity, and tolerance to overcharging and overuse. Also, because several manufacturers manufacture this battery, it is widely available. NiCd batteries provide various advantages, including a simple production method and a longer life cycle. Furthermore, its superior pulse power performance and higher specific energy than lead-acid are driving its popularity.

Electric Aircraft Application Insights

The global electric aircraft industry, based on application, includes commercial and military. During the forecast period, the commercial sector is expected to hold the enormous market share growth with a CAR of 15.7%. Commercial and private applications are included in the civil end-user segment. The civil end-use includes air transportation of passengers and cargo. As air traffic grows, aircraft manufacturers increase the quantity and quality of their production to help with air travel. Because of the increased safety regulations imposed by aviation governing organizations, civil aerospace manufacturers have included more electric technologies. Civil aviation manufacturers are creating new products and solutions for environmentally friendly air travel.

Electric Aircraft Regional Insights

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, MRFR 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.

Electric Aircraft Key Market Players & Competitive Insights

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.

Key Companies in the electric aircraft market include

• Airbus SE (Netherlands)


• Elbit Systems Ltd (Israel)


• AeroVironment Inc (US)

Electric Aircraft Industry Developments

For instance,In January 2022, Wisk, a prominent Advanced Air Mobility (AAM) startup and the creator of the United States' first all-electric, self-flying air taxi, has received USD 450 million in funding from The Boeing Company.

For instance,In January 2022, Lockheed Martin Corporation's venture capital arm invested in Electra Inc., giving the company's electric short takeoff and landing (eSTOL) aircraft concept a cash and credibility boost. The sum was not disclosed.

For instance,In June 2021, American Airlines invested USD 25 million in Vertical Aerospace Group, which is developing a small, electric-powered aircraft capable of transporting passengers from city centers to airports by taking off and landing vertically, similar to helicopters. The company intends to put orders for tiny electric aircraft totaling USD 1 billion.

Electric Aircraft Market Segmentation

Electric Aircraft Technology Outlook

• Hybrid Aircraft


• All electric aircraft

Electric Aircraft Power Source Outlook

• Battery


• Solar Cells


• Fuel Cells


• Others

Electric Aircraft Market Range Outlook

• Less than 600 Km


• More than 600 Km

 Electric Aircraft Market Application Models Outlook

• Commercial


• Military

Electric Aircraft Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America