Electric Aircraft Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 8.84 Billion
Forecasted Value (2030)
USD 31.24 Billion
CAGR (2023 â€“ 2030)
Fastest Growing Region (2023 - 2030)
Regional Transport Aircraft, Business Jets, Light & Ultralight Aircraft
Batteries, Electric Motors, Aero Structures, Avionics, Others
By Power Density
Less Than 500 km, More Than 500km
The global Electric Aircraft Market was valued at USD 8.84 billion in 2022 and is projected to reach USD 31.24 billion by 2030, growing at a CAGR of 15.06% from 2023 to 2030.
The electric aircraft market is growing at a significant rate owing to the advances and innovations in electronic aircraft technology and the development of electric vertical take-off and landing (eVTOL) and unmanned aerial vehicles (UAV). Increasing investment towards initiatives in the electric aircraft industry provides more efficient and sustainable aviation solutions which augments the market growth. Furthermore, government policies and incentives are promoting investment and innovation in the field of electric aviation. Aircraft manufacturers are exploring new designs such as hybrid electric propulsion systems and VTOL aircraft to bring new features and functionality to the Electric Aircraft Market. In addition to this, advances in battery technology, electric motors, and power management systems are also expected to enable electric aircraft to have longer flights, greater range, and greater payload. However, some technical and regulatory challenges, such as battery power density and government regulations, restrict electric aircraft market growth. Need for technical knowledge and the high cost of manufacturing are major factors restraining the market growth.
Analyst’s Review on Electric Aircraft Market
Innovations in electric aircraft technology focus on improving battery technology, increasing efficiency, reducing weight, and improving the overall performance and reliability of electric aircraft. The â€‹â€‹innovation is designing more efficient electric motors that can produce more power while being light and compact. In addition, advances in battery technology are focused on increasing power density and reducing the weight and size of battery packs to extend the range and payload capacity of electric aircraft. The use of distributed propulsion systems and the development of more efficient power management systems propels the market growth. In addition, growing environmental awareness among people due to air pollution and depletion of natural resources offers favorable market prospects.
Electric aircraft dynamics refers to the study of engineering sciences that support the dynamics, control, management, and design of electric aircraft. An electric aircraft consists of battery modelling and energy storage, flight control systems, physics-based battery modelling, differential thrust in directional control, and environmental effects, among other components. The complexities of electric aircraft dynamics, which are often used to integrate and optimize the various subsystems of an electric aircraft design overall restrict the market growth. Electric aircraft reduce the environmental effects of aviation by reducing carbon emissions and noise pollution and can power a range of aerial vehicles, including regional transport aircraft, business jets, and vertical take-off and landing (VTOL) aircraft.
The electric aircraft market growth is accelerated by increased government support from several nations to lessen the effects of carbon emissions and greenhouse gas emissions, as well as the expansion of the aviation industry. The manufacturing of airplanes involves numerous technologies which use autonomous systems that restrict the market growth. For instance, in February 2023, the UK Government has invested USD 113 million through the Aerospace Technology Institute (ATI) program to pioneer electric aircraft to reduce aviation emissions. The funding supports the UK aviation industry in developing the latest technologies for zero-emission electric aircraft. The investment witnesses the development of electric flying taxis and hydrogen-fuelled aircraft spread across the country, helping achieve Britain's carbon neutrality target. The military and defence sectors are increasingly investing in electric aircrafts, which propels the market growth.
The electric aircraft market is expected to grow in the coming years due to growing environmental problems and the low energy density of batteries used in electric aircraft makes it difficult to achieve the range and efficiency required by commercial aviation. The current price of electric aircraft is generally higher than conventional aircraft, and more research and development is needed to lower the cost and make it more affordable. The costs of electric aircraft are generally higher than conventional aircraft, and more research and development is needed to lower costs and make them more affordable.
The global electric aircraft market is segmented based on platform, component, power density, end-user, and geography.
Based on platform, the market is segmented into regional transport aircraft, business jets, and light and ultralight aircraft. The light and ultralight aircraft segment dominated the market in 2022. The demand for light and ultralight aircraft is rising at a rapid pace, which is attributed to the modernization of aircraft and technological advancements, and product innovation in the electric aircraft market.
Based on component, the electric aircraft market is classified into batteries, electric motors, aero structures, avionics, and others. The electric motors segment accounted for the largest revenue share in 2022 attributed to various benefits such as high performance and low cost of operations and maintenance. Electric motors are more efficient and effective compared to traditional motors.
Based on the power density, the electric aircraft market is further bifurcated into less than 500 km and more than 500km. The less than 500 km segment is anticipated to lead the market during the forecast period. Aircraft can achieve a higher range with the introduction of advanced and high-capacity batteries in the market. As a result, electric aircraft with increased range were launched for commercial use. The ultra-light electric aircraft available in the market mostly have power density from 0 to 500 km.
Based on end-users, the electric aircraft market is classified into commercial and military. The commercial segment is the dominating segment which can be attributed to the increasing demand for electric aircraft from the commercial sector. Commercial electric aircraft are being used increasingly for short-haul flights, owing to their low operating costs and reduced carbon emissions.
Based on regional analysis, the global electric aircraft market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
North America is dominating the global industry owing to the increased demand for fuel-efficient transportation and strict government laws promoting the implementation of clean technology. Prominent upcoming projects and the emergence of several start-ups supporting the electrification in the aviation industry are additional factors influencing the growth of the North American market. The expanding forthcoming projects and the emergence of various start-ups promoting electrification in the aviation industry.
Improvement in aircraft and engine architecture, reduction of airport noise, the need for optimization of aircraft performance, and the paradigm of using fuel cells are foreseen to promote the growth of the market during the forecast period. In addition, advances in high-density battery solutions, the development of alternative energy sources for power generation, and the expansion of advanced electronic components for a more electric aircraft industry also offer growth prospects for the industry in the coming years. The increasing production of commercial aircrafts in the region has increased which is creating demand for eVTOL aircraft. Notable military innovations such as the acquisition of unmanned aerial vehicles and novel technologies such as hybrid aircraft that can take off in vertical flights are expected to drive the market growth during the forecast period.
The global electric aircraft industry study will provide valuable insights with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization. The major players in the electric aircraft market are:
- American Airlines
- Collins Aerospace
- Leonardo S.p.A.
- Scandinavian Airlines (SAS)
- BAE Systems
- ARCHER AVIATION INC.
- GENERAL ELECTRIC
- PARKER HANNIFIN CORP
- June 2023 (Launch): Scandinavian Airlines (SAS) officially started leveraging electric aircraft for commercial flights in Sweden, Norway, and Denmark. The proposed initiative is in line with SAS's ideals and represents a significant step toward more sustainable air travel.
- August 2021 (Collaboration): Archer Aviation Inc. collaborated with REEF to build an ecosystem for urban air mobility and an all-electric vertical takeoff and landing ("eVTOL") aircraft. The company's priorities are sustainability and reinventing the experience of traveling in cities on a daily basis.
- June 2021 (Investment): American Airlines invested in Vertical Aerospace with a focus on cutting-edge technologies that could mitigate carbon emissions and investing in strategies that could enhance the passenger experience. The VA-X4 is a zero-carbon aircraft being developed by Vertical that has a range of more than 100 miles and can carry four passengers and a pilot.
The global Electric Aircraft Market is segmented as:
- Regional Transport Aircraft
- Business Jets
- Light & Ultralight Aircraft
- Electric Motors
- Aero Structures
By Power Density
- Less Than 500 km
- More Than 500km
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America