The 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. Aircraft powered fully or partially by electric propulsion are gaining prominence due to benefits such as reduced operating costs and carbon emissions. Electric aircraft use electric motors powered by batteries for propulsion either partially or fully, replacing conventional fossil fuel-powered piston or turbine engines. Electric propulsion offers higher efficiency, zero operational emissions and lower noise levels. Batteries used in electric aircraft are also witnessing continuous technological advancements with higher energy density and lower costs, which is positively impacting the electric aircraft market growth.
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 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 opportunities in the electric aircraft market include reduced operating costs, minimized carbon emissions, and technological advancements in battery energy density. The decreasing costs of lithium-ion batteries are making electric propulsion systems more viable for aircraft. Development of hybrid-electric regional aircraft with 50-100 seating capacity opens up new prospects.
Significant technological advancements in battery energy density, weight reduction, and performance have been witnessed. Lithium sulfur batteries offering 3-5 times more energy density than lithium-ion batteries are being developed for aviation applications. Advances in electric motors, power electronics, and aircraft electrification strategies are also aiding the electric aircraft market growth.
Market drivers: The primary driver boosting the electric aircraft market is the growing environmental concerns regarding emissions from conventional aircraft. Stringent emission norms by aviation regulatory bodies are compelling aircraft manufacturers to focus on electric and hybrid propulsion systems. Electric aircraft also offer significant operational cost benefits through lower fuel and maintenance costs over their lifespan.
Current challenges in Electric Aircraft Market:
The electric aircraft market is still at a nascent stage and faces several challenges. Battery technology is still evolving and existing batteries do not provide the required energy density for electric aircraft to have sufficient range. Developing lightweight and high-capacity batteries is a major challenge. Electric motors, power electronics, and management systems need further advancement to deliver the required power levels for various aircraft applications. Infrastructure also needs to be upgraded significantly with more electric charging stations at airports for electric aircraft to take-off. High development costs and certification requirements pose difficulties for market growth in initial years.
SWOT Analysis
Strength: Electric motors provide better torque control and efficiency compared to jet engines. They are quieter and have lower operating and maintenance costs. Electric propulsion enables new aircraft configurations and design flexibility.
Weakness: Limited flight range due to low battery energy density. Existing batteries significantly increase aircraft weight. High costs involved in developing new electric aircraft systems.
Opportunity: Growing focus on reducing aviation emissions presents a major market opportunity. Supportive government policies and incentives can boost adoption. Developments in battery and electric motor technologies will expand applicability over time.
Threats: Established dependency on conventional jet fuel aircraft poses resistance to change. Slow adoption due to challenges in certifying new aircraft types. Dependence on geopolitical stability for critical mineral supply chains.
The North American region currently holds the largest share in the electric aircraft market owing to stringent emission regulations and supportive government programs for electric aviation development in the US and Canada.
China is emerging as the fastest growing regional market with heavy investments by government and private players in urban air mobility and cargo drone technologies. Demonstration projects are being conducted across major Chinese cities to enable air taxi services in the coming years.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
