by Zero emission aircraft or electric aircraft utilize electric motors powered by rechargeable batteries or fuel cells instead of combustion engines. They offer several advantages such as near-silent operations, zero operational emissions, and lower operating costs compared to traditional kerosene-based aircraft. Various prototypes of electric aircraft ranging from small two-seater trainer aircraft to large commercial aircraft have emerged to address the growing demand for sustainable air travel. The global zero emission aircraft market is driven by stringent emission regulations, tax benefits for green technologies, and rising environmental awareness.
The zero emission aircraft market is estimated to be valued at US$ 7.68 Bn in 2024 and is expected to exhibit a CAGR of 16.% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the zero emission aircraft market are AeroDelft, Airbus S.A.S., Ampaire Inc., Avinor AS, BETA Technologies, Inc., Bye Aerospace, Equator Aircraft AS, Evektor, spol. s r. o., Eviation Aircraft, Heart Aerospace, HES Energy Systems, Joby Aero, Inc., Lilium GmbH, NASA, Pipistrel d.o.o, Rolls-Royce plc, Wright Electric, and ZeroAvia, Inc.
The growing demand for sustainable transportation solutions and rising environmental regulations are fueling investments in Zero Emission Aircraft Market Trends technologies. Several governments and airport authorities are providing subsidies and tax benefits to boost the development of electric air mobility solutions.
Many aircraft manufacturers are expanding their global footprint to facilitate the large-scale production of electric aircraft. Partnerships between automakers, battery technology companies, and aviation firms will help transfer electric powertrain knowledge from road to air transport. Suppliers are also investing in setting up global supply chains for sourcing specialized components like electric motors and lithium-ion batteries.
Market Key Trends
The key trend driving the zero emission aircraft market is the push for sustainability in the aviation industry. Growing awareness about climate change and carbon emissions from air travel is compelling manufacturers to develop electric and hydrogen-powered aircraft. Several prototypes of small trainer aircraft, eVTOL vehicles, and larger passenger aircraft have emerged, validating the technical and commercial viability of zero-emission aircraft technologies. The cost of lithium-ion batteries is steadily declining while their energy density is improving, addressing a major barrier hindering the adoption of electric aircraft so far. The advent of electric air taxis and cargo drones will accelerate the electric aviation ecosystem, stimulating innovation. Partnerships across industries will help plug technology gaps to make zero-emissions flight a mainstream reality by 2030.
Porter’s Analysis
Threat of new entrants: Low development and manufacturing costs pose a low threat of new entrants in the zero emission aircraft market. Bargaining power of buyers: Airlines hold strong bargaining power over aircraft OEMs as they can negotiate on price and demand other benefits like maintenance contracts. Bargaining power of suppliers: Aircraft component suppliers hold low bargaining power due to the availability of component substitutes and contracts spanning aircraft program lifecycles. Threat of new substitutes: Modular electrical powertrains used in electric aircraft reduce the threat from new substitutes that may arise from alternative propulsion technologies. Competitive rivalry: Fierce competition exists between legacy OEMs and new entrants to gain early mover advantage in the emerging zero emission aircraft market.
Geographical regions with high market concentration
North America accounts for the largest share of the global zero emission aircraft market regional analysis in terms of value, mainly driven by supportive government policies and strong presence of key industry players such as Ampaire, Joby Aviation, Eviation, Heart Aerospace etc. in the US and Canada.
Fastest growing region
Europe is poised to witness the fastest growth in the zero emission aircraft market over the forecast period owing to initiatives like the European Aviation Green Deal aiming to achieve climate neutrality for aviation by 2050 and significant investments poured in by European manufacturers including Airbus, Lilium, Volocopter and Rolls Royce.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
