Electric Aircraft Market by platform (Regional Transport Aircraft, Business Jets, Light & Ultralight Aircraft), Type, System (Batteries, Electric Motors, Aerostructures, Avionics, Software), Technology, Application and Region - Forecast to 2030
[270 Pages Report] The Electric Aircraft market is expected to grow from USD 10.1 billion in 2023 to USD 37.2 billion in 2030, at a CAGR of 19.8%. Rising demand for environment-friendly aircraft and the growing development of UAVs and electric VTOLs are the key factors driving the electric aircraft market.
Electric Aircraft Market Forecast to 2030
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An electric aircraft uses batteries for power and propulsion, which is traditionally achieved by fossil fuels. There has been a growing need for sustainable alternatives to fossil fuel to reduce the carbon emissions resulting from aircraft, as the global aircraft fleet size and air travel is expected to increase in the future. Electric aircraft are more energy-efficient and are considered a cleaner and quieter mode of air travel. Recent technological advancements in power electronics, battery technologies, and electrical motors played a major role in driving the market for electric aircraft. The adoption of electric aircraft is expected to drive value and unlock significant improvements in terms of aircraft weight, energy efficiency, total life cycle cost, maintenance, and aircraft reliability.
Attractive Growth Opportunities in Electric Aircraft Market
Electric Aircraft market Dynamics:
Driver: Growing Need for cleaner and quieter aircraft
According to the International Energy Agency (IEA), global flights produced around 720 million tons of carbon dioxide in 2021. The global aviation industry produces over 2% of all the CO2 emissions induced by humans.
With an increase in the number of global aircraft fleet size and air travel, these numbers are expected to rise even higher. Hence, there has been a pressing need for electric aircraft, which will help reduce the carbon footprint of the aviation industry. Organizations and governing bodies such as the International Civil Aviation Organization, the Federal Aviation Administration, and the European Union Aviation Safety Agency have called for sustainable alternatives to aircraft fuel as they estimate that aircraft-generated emissions are expected to be three-fold in volume by 2050. Since electric engines do not have noises associated with jet or combustion engines, they result in no aircraft noise levels. In an electric aircraft, manufacturers aim to improve efficiency by replacing hydraulically controlled systems with electric systems.
Electric aircraft manufacturers such as Airbus (France), Eviation (Israel), Embraer (Brazil), and Joby Aviation (US) identify the need for cleaner aircraft as a major opportunity in the near future. Thus, the need for sustainable air travel is a major factor driving the electric aircraft market.
Opportunity: Emergence of Advanced Air Mobility
The purpose of advanced air mobility is to provide a convenient, safe, and affordable air travel system that will use highly automated aircraft transporting passengers or cargo at lower altitudes. Advanced air mobility includes services such as air taxis, commercial inter-city, cargo delivery, public services, or private/recreational vehicles. This presents a great market opportunity for electric aircraft manufacturers as the demand for this type of air mobility will only increase in the future, considering the ever-growing population and congestion of cities.
According to Roland Berger, advanced air mobility is expected to grow at the highest rate in the coming few years, and urban air taxis will dominate the full-electric advanced air mobility market. NASA hosted an Advanced Air Mobility National Campaign promoting confidence in the public and expediting the urban, suburban, rural, and regional advanced air mobility by 2022. The campaign had announced agreements with four new organizations, Electra Aero (US), Overair (US), Supernal (US), and Ellis & Associates (US), to exchange information related to the development and testing of vehicles, systems, and technology to integrate air taxis, cargo delivery, and other advanced aircraft concepts into the National Airspace System (NAS). With the existing propulsion technologies, long-range commercial flights might not seem possible. However, advanced air mobility aircraft certainly seems possible, and many of the manufacturers such as Pipistrel (Slovenia), Joby Aviation (US), and Eviation (Israel) are focusing on developing small all-electric aircraft. Innovative startups such as Joby Aviation have developed a flying eVTOL taxi prototype that can carry five people up to 150 miles on a single charge. They have also acquired Uber’s urban air mobility (UAM) initiative. Hence, advanced air mobility is a great opportunity for all electric aircraft manufacturers in the coming few years.
Challenge: Development of high energy density batteries
One of the biggest challenges that electric aircraft manufacturers face in terms of long-distance flights is the low energy density of batteries. The energy density for aircraft propulsion is usually measured in watt-hours per kilogram (Wh/kg). The existing lithium-ion batteries have an energy density of around 250 Wh/kg, which is way lesser than the energy density provided by conventional jet fuel or kerosene of around 12,000 Wh/kg. Thus, all-electric long-haul commercial flights are still a distant reality as conventional fossil fuels are about 14 times more energy-rich than battery-powered alternatives.
Hence, aircraft would require electric batteries that weigh 30 times more than their current fuel intake to achieve the range of distances covered by fossil fuels. This is a major challenge that aircraft manufacturers must address if they want to achieve the goal of all-electric commercial flights. Advancements such as lithium-sulfur batteries significantly increase the energy density to 500 Wh/kg or 600 Wh/kg. However, some industry experts claim that batteries that will enable all-electric commercial flights will not be available until the late 2030s to early 2040s. It will take a considerable amount of time to build batteries sufficient to electrify the medium and long-range flights that make up the bulk of commercial aviation, which is a big challenge faced by electric aircraft manufacturers.
The Aerostructures segment is estimated to dominate the electric aircraft market during the forecast period
By system, the aerostructures segment is estimated to dominate the electric aircraft market during the forecast period. Aerostructures account for the largest share of the total development cost of an aircraft. Newly developed electric aircraft, especially eVTOL aircraft, require some of the most advanced materials to make them lightweight while maintaining their structural strength. These factors contribute to the large share of the system segment in the electric aircraft market.
The Rotary Wing segment to witness largest market share in 2022
Based on type, the electric aircraft market has been segmented into fixed wing, rotary wing, and hybrid wing. The rotary wing segment is estimated to account for the largest share of the electric aircraft market in 2022. This is due to the increased deployment of rotary wing air taxis to reduce the price and convenience of urban flights.
North American region is expected to have the highest market share during the forecast period
Based on region, the electric aircraft market has been segmented into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. While North America is estimated to lead the electric aircraft market in 2022, the market in Latin American region is projected to register the highest CAGR during the forecast period. North American region constitutes that largest electric aircraft manufacturers and are also in the lead of adoption of the advanced air mobility solutions. Latin America having companies like Embraer (Brazil) that are receiving high numbers of contracts with their electric aircraft. Latin America is also leading with larger adoption of advanced air mobility solutions.
Electric Aircraft Market by Region
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Key Market Players
Major players operating in the electric aircraft market include Airbus SE (France), Eve Air Mobility (Brazil), Joby Aviation (US), Vertical Aerospace (UK), and Lilium N.V. (Germany) among others. These key players offer electric aircraft and services to different key stakeholders.
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- Latest News, Updates & Trend analysis
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Report Metric |
Details |
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Market size available for years |
2018-2030 |
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Base year considered |
2021 |
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Forecast period |
2022-2030 |
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Forecast units |
Value (USD) |
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Segments covered |
Platform, Type, System, Application, Technology and Region |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East, Latin America and Africa |
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Companies covered |
Airbus SE (France), Eve Air Mobility (Brazil), Joby Aviation (US), Vertical Aerospace (UK), and Lilium N.V. (Germany)) |
Electric Aircraft Market Highlights
This research report categorizes the Electric Aircraft market into End Use, Technology, Type, Detection, Component and Region.
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Segment |
Subsegment |
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By Type |
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By System |
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By Technology |
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By Platform |
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By Application |
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Recent Developments
- In January 2023, Eviation Aircraft secured a contract from Aerus, an emerging regional airline in Mexico, for the supply of 30 of its commuter Alice aircraft. Aerus intends to utilize Alice for middle-mile travel across regions including Nuevo León, Tamaulipas, Coahuila, and Veracruz, providing historically underserved communities in northern areas of the country with access to carbon-free, cost-effective, and convenient air travel.
- In December 2022, Eve Air Mobility (Eve), the subsidiary of Embraer SA, signed a Letter of Intent (LOI) with FlyBIS Aviation Limited (FlyBIS), an advanced air mobility start-up based in Caxias do Sul, in the south of Brazil, to collaborate on the development of eVTOL operations in Brazil and South America. Based on the agreement, FlyBIS will also purchase up to 40 of Eve’s eVTOL vehicles.
Frequently Asked Questions (FAQ):
What is the current size of the electric aircraft market?
The Electric Aircraft market is expected to grow from USD 8.8 billion in 2022 to USD 37.2 billion in 2030, at a CAGR of 19.8%.
Who are the winners and small enterprises in the Electric Aircraft market?
Major players operating in the electric aircraft market include Airbus SE (France), Eve Air Mobility (Brazil), Joby Aviation (US), Vertical Aerospace (UK), and Lilium N.V. (Germany) among others. These key players offer electric aircraft and services to different key stakeholders.
What are some of the technological advancements in the market?
Energy harvesting, also called energy scavenging or power harvesting, is the process of obtaining energy from the outside environment and converting it to electrical energy, which can be used to power an aircraft. Several proposed energy harvesting (EH) methods exist for aerospace applications. Some of them include the usage of thermal gradients, solar radiation, vibration, and airflow. Sensors with a power range of 10-50 MW are used to harvest energy from the environment. For example, transducers such as photovoltaic generators, thermoelectric generators, electromagnetic, piezoelectric, and triboelectric converters are used to convert external energies into electrical energies and power the aircraft. The energy harvesting method can be useful for UAVs as it can prolong flight time with the use of solar power. Energy harvesting is an emerging subject of research in the aerospace industry as it can possibly solve the power source issues of electric aircraft.
What are the factors driving the growth of the market?
The latest developments in electric and electronic aircraft technologies offer significant opportunities to electric aircraft as well as component manufacturers. Aircraft manufacturers are examining ways to generate and distribute large power sufficient to carry an aircraft over long distances. High energy density batteries, high-performance electric motors, distributed architectures, and power electronics (in the starter/generation system of the main engine) are some of the upcoming technologies for aircraft. Lithium-sulfur batteries are expected to offer a potential solution for aircraft propulsion, as key industry players are investing in developing new lithium-based batteries with high power density. Presently, battery technologies are in the development stage and can supply power to small passenger aircraft traveling short distances.
Which sectors are witnessing larger adoptions?
The main developments are focusing on commercial and passenger taxing applications. But the military are also keen in adopting electric aircrafts for last mile and mid-mile delivery that will complement the other military operations.
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The research study conducted on the electric aircraft market involved extensive use of secondary sources, directories, and databases such as Hoovers, Bloomberg Businessweek, and Factiva to identify and collect information relevant to the Electric Aircraft market. The primary sources considered included industry experts from the Electric Aircraft market as well as raw material providers, Electric Aircraft manufacturers, solution providers, technology developers, alliances, government agencies, and aftermarket service providers related to all segments of the value chain of this industry. In-depth interviews with various primary respondents, including key industry participants, Subject Matter Experts (SMEs), industry consultants, and C-level executives have been conducted to obtain and verify critical qualitative and quantitative information pertaining to the Electric Aircraft market as well as to assess the growth prospects of the market.
Secondary Research
The ranking of companies operating in the Electric Aircraft market was arrived at based on secondary data made available through paid and unpaid sources, the analysis of product portfolios of the major companies in the market and rating them on the basis of their performance and quality. These data points were further validated by primary sources.
Secondary sources referred for this research study on the Electric Aircraft market included government sources, such as corporate filings that included annual reports, investor presentations, and financial statements, and trade, business, and professional associations. Secondary data was collected and analyzed to arrive at the overall market size, which was further validated by various primary respondents.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, product development/innovation teams, and related key executives from aircraft landing gear vendors; system integrators; component providers; distributors; and key opinion leaders.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, application, vertical, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs, and installation teams of the customer/end users who are using electric aircraft were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of aircraft landing gear and future outlook of their business which will affect the overall market.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the Electric Aircraft market. The following figure offers a representation of the overall market size estimation process employed for the purpose of this study on the Electric Aircraft market.
The research methodology used to estimate the market size includes the following details:
- Key players in this market were identified through secondary research, and their market share was determined through primary and secondary research. This included a study of the annual and financial reports of top market players and extensive interviews of leaders such as Chief Executive Officers (CEOs), directors, and marketing executives of leading companies operating in the Electric Aircraft market.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Market Size Estimation Methodology: Bottom-Up Approach
Market Size Estimation Methodology: Top-Down Approach
DataTriangulation
After arriving at the overall market size through the market size estimation process explained above, the total market was split into several segments and subsegments. In order to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegments, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand- and supply-sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Report Objectives
- To define, describe, segment, and forecast the Electric Aircraft market based on platform, type, system, application, technology and Region.
- To analyze demand- and supply-side indicators influencing the growth of the market
- To understand the market structure by identifying high-growth segments and subsegments of the market
- To provide in-depth market intelligence regarding key market dynamics, such as drivers, restraints, opportunities, and challenges, influencing the growth of the market
- To forecast the revenues of market segments with respect to 6 main regions: North America, Europe, Asia Pacific, Middle East, Latin America and Africa.
- To analyze technological advancements and new product launches in the market from 2019 to 2023
- To provide a detailed competitive landscape of the market, in addition to market share analysis of leading players
- To identify the financial position, product portfolio, and key developments of leading players operating in the market
- To analyze micromarkets with respect to their individual growth trends, prospects, and contribution to the overall market
- To provide a comprehensive analysis of business and corporate strategies adopted by key market players.
- To profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Electric Aircraft Market
I want to understand the number of aircraft operations (and petroleum-based jet-fuel consumption) that could go electric by 2030.
Dear Sir or Madam, I am looking for a market research report, which is considering different companies developing e-aircrafts and aircraft strategies but also battery manufacturers. It should emphasize the battery (technologies, challenges, market, prospects, etc. in detail) in dependence on the different approaches by the aircraft manufacturer and load profiles for the system (battery). So, I want to know, if your report is covering the battery as a component in such detail that this is also interesting for battery developers. Can it be extended otherwise? When was it updated lastly and when will it be updated next? Please let me know and send me a sample adjusted to our interests. Many thanks! Best regards, Jan Majchel.
I would like to know more about the concept of MEA and as a novice in this field, I figured this brochure might help me understand better about the different types of MEA out there.