The electric aircraft market involves the manufacturing of fully electric or hybrid electric aircraft for use in commercial, private and military applications. Electric aircraft replace conventional engines and fuel systems with electric motors and batteries to power propulsion. This offers significant benefits like near-zero carbon emissions, reduced operating costs, and less noise pollution. Various technologies are being explored including fully electric planes with larger battery capacities providing sufficient flight ranges. Major OEMs like Boeing and Airbus are actively involved in production of electric prototypes for passenger transport. The global electric aircraft market is estimated to be valued at US$ 9,661.6 Mn in 2024 and is expected to exhibit a 14% CAGR over the forecast period between 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. Major players are investing heavily in research and development of fully electric and hybrid-electric aircraft models. For instance, Boeing unveiled its fully electric passenger aircraft prototype in 2022 which can accommodate up to 40 passengers.
The demand for electric aircraft is increasing globally due to stringent emission norms and focus on sustainable aviation. Various countries and aviation authorities have proposed plans to shift a significant share of their fleet to electric models by 2050 to reduce the aviation industry's carbon footprint. For example, the European Union aims to operate 30% electric flights within Europe by 2030. Growing preference for green flying is a major driver boosting demand.
Global manufacturers are strategizing production facilities across important aircraft markets to tap opportunities. In 2022, Eviation announced pre-order of 150 Alice commuter aircraft from Cape Air with first deliveries expected in 2027. The company is setting up an assembly center in Washington to cater the regional demand. Similarly, other players are exploring global expansion through overseas manufacturing plants and partnerships.
Market drivers
One of the major drivers for electric aircraft market is the rising concerns over carbon emissions from conventional aircraft. The aviation industry accounts for nearly 3% of total carbon emissions globally. Strict emission regulations especially in Europe are compelling aircraft manufacturers to focus on sustainable technologies. Other drivers include reduced operating costs of electric models with lower fuel and maintenance expenses. Electric motors also offer significantly quieter flight experience with less noise pollution. With technological advancements in battery capacities, electric aircraft are gradually becoming a viable alternative with acceptable flight ranges. Growing infrastructure for electric air taxis and cargo deliveries is another factor augmenting the electric aircraft industry.
Impact of Geopolitical Situation on Electric Aircraft Market Growth
The electric aircraft market is facing challenges due to geopolitical tensions and trade issues between major economies. Restrictions on technology exports and rising costs of raw materials due to supply chain disruptions are negatively impacting the development and production of electric aircraft. Geopolitical conflicts can also reduce defense budgets that fund military electric aircraft programs. However, some nations are promoting local manufacturing and supply chain development to boost electric aviation independence.
Going forward, players must diversify supplier networks across geopolitically stable regions to mitigate risks. Partnerships between local firms can help circumvent trade barriers. Adopting universal design standards and establishing global certification processes for interoperability can stimulate international cooperation despite political differences. Focusing on regional routes within friendly alliance blocs initially, before expanding overseas, offers a safer growth strategy. Collaborating across ideologies on humanitarian and scientific projects can gradually build cross-border trust supporting long-term industry growth.
North America is the Leader in Electric Aircraft Market Value
North America currently leads the global electric aircraft market in terms of value, accounting for over 35% share. This is due to substantial defense and commercial investments by the US to develop electric vertical take-off and landing (eVTOL) vehicles. Several American startups are conducting flight tests and have funding to certify electric aircraft. The region also has a supportive regulatory environment and advanced manufacturing base. As costs fall and use cases expand, North American electric airplane fleet numbers are expected to surge through partnerships with major airlines.
Asia Pacific is the Fastest Growing Region for Electric Aircraft
Asia Pacific is poised to be the fastest growing regional market for electric aircraft globally. This is driven by efforts in China and Japan to reduce aviation emissions and dependence on imported fuel. The Chinese government is focusing on certifying electric air taxis andcargo drones as part of its clean transportation goals. Complementing this, Indian metro authorities are exploring electric aircraft for passenger commutes within cities. Meanwhile, startup investment is rising across Australia, South Korea and Southeast Asia to pioneer new electric plane technologies and solutions. As the middle class expands procuring flight demand, the Asia Pacific electric aircraft industry is well placed for rapid gains.