April 17, 2024

Electric Aircraft are Gaining Momentum in Aviation by Driving Sustainability

 


The growing demand for low emission aircraft is propelling the electric aircraft market. Electric aircraft offer numerous advantages over conventional aircraft such as reduced operating costs, noise-free operations, and zero carbon emissions. These aircraft are equipped with sophisticated batteries and electric motors that enable green and sustainable air travel. The growing airline industry coupled with stringent emission regulations are compelling aircraft manufacturers to shift toward electric aircraft technology. 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 from 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. These players are investing heavily in research and development activities to develop advanced electric aircraft.

The growing environmental concerns and need to reduce carbon footprints are fueling the demand for environment-friendly electric aircraft globally. Stringent emission standards by aviation regulatory bodies are compelling aircraft manufacturers to shift toward green aviation. Commercial electric aircraft are expected to connect shorter distances and offer regional air travel in the coming years.

North America dominates the global electric aircraft market due to significant investments by key players in the development of innovative electric aircraft. However, Asia Pacific is expected to offer lucrative opportunities with growing aviation sectors in China and India. Manufacturers are expanding their product portfolio and extending delivery routes to leverage potential growth opportunities in emerging markets. Collaboration with regional airlines and airport authorities is helping global players strengthen their international foothold.

Market key trends
One of the major trends in the electric aircraft market is the growing focus on hybrid-electric aircraft propulsion. Hybrid electric aircraft utilize electric motors along with conventional jet engines to enhance fuel efficiency and reduce noise levels. Manufacturers are developing more electric or more electric aircraft designs with partial or full electrification of aircraft systems. Furthermore, the development of advanced batteries with high energy density and lightweight is a key enabler of practical electric flight. Lithium-ion batteries, lithium-polymer batteries and solid-state batteries are finding increasing applications in electric aircraft.

Porter’s Analysis
Threat of new entrants: Moderate threat due to huge R&D investment required to develop electric aircraft technologies and certifications required. But with improvement in battery technologies and decreasing costs, threat may increase.

Bargaining power of buyers: Moderate bargaining power due to increasing demand for electric aircrafts for commercial and military purposes leading to presence of many established OEMs.

Bargaining power of suppliers: Moderate bargaining power due to need for specialized components like electric motors, batteries, charging infrastructures from limited suppliers requiring long-term agreements.

Threat of new substitutes: Low threat as electric aircrafts provide environmental benefits over traditional aircrafts without viable alternatives currently. Hydrogen powered aircrafts are in nascent stage.

Competitive rivalry: High competition expected among major established players like Boeing, Airbus, Raytheon focusing on electric aircraft development through partnerships and new product launches.

Geographical regions: North America holds largest market currently due to initiatives by NASA and major OEMs in the region for electric aircraft development and testing. presence of key players is also driving this region.

Fastest growing region: Asia Pacific region is expected to grow at fastest rate during forecast period led by government initiatives in China and Japan for lowering carbon emissions through electric aircraft adoption and increasing focus of players in this region.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it