June 23, 2024
Electric Aircraft Market

Electric Aircraft Market Is Projected To Driven By Increasing Sustainability In Aviation

Electric aircraft represent an efficient and environmentally-friendly alternative to traditional fuel-powered aircraft for short-haul flights and aerial mobility applications. These new generation aircraft utilize batteries or hybrid-electric propulsion systems that emit less noise and carbon emissions compared to conventional jet fuel. Electric aircraft can be deployed for passenger or cargo transportation on intracity routes with flight ranges of under 500 kilometers. They are particularly suited for air taxi services, cargo drone deliveries, and private jet operations where electric power trade-offs like limited range are less impactful.

The global Electric Aircraft Market is estimated to be valued at US$9661.6 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The electric aircraft market is witnessing significant technological advancements as manufacturers focus on extending flight range capabilities. New battery technologies like solid-state lithium batteries offer higher energy density and charge rates than traditional lithium-ion batteries. Hybrid-electric configurations that supplement electric power with small gas turbines are also gaining popularity for their extended trip lengths. Government initiatives promoting sustainable aviation are further expected to accelerate electric aircraft adoption. Regulatory agencies in major markets have set emission reduction targets which will incentivize airlines and aircraft OEMs to invest in zero-carbon aircraft programs over the next decade. The commercialization of electric aircraft is likely to open new growth opportunities across sectors including air taxis, cargo delivery drones and private aviation.

Porter’s Analysis

Threat of new entrants: The electric aircraft market is moderately difficult to enter due to high capital requirements for technology development and manufacturing capabilities.
Bargaining power of buyers: The bargaining power of buyers in the electric aircraft market is high due to the presence of large aircraft OEMs and technology providers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the availability of alternative component suppliers and intellectual property.
Threat of new substitutes: The threat of substitutes is moderate as hybrid aircraft could emerge as an alternative to electric aircraft.
Competitive rivalry: The competitive rivalry in the electric aircraft market is high owing to the presence of major established players investing in the development of electric aircraft.

Key Takeaways

The Global Electric Aircraft Market Demand  is expected to witness high growth. The global Electric Aircraft Market is estimated to be valued at US$9661.6 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030.

Regional analysis North America dominated the electric aircraft market in 2023 owing to supportive government policies and investments by major OEMs in the US for electric aircraft development. Europe is also expected to showcase significant growth in electric aircraft adoption during the forecast period.

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. Boeing is expanding capabilities for hybrid-electric flight with investments in technologies. Airbus is aiming to launch its electric E-Fan X and ZEROe emissions aircraft demonstrators by 2023-2035.

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