Electric Aircraft Market Report by Type (Fixed Wing Aircraft, Rotary Wing Aircraft), Technology (All Electric, Hybrid), End Use (Commercial, Military, and Others), Region and Competitive Landscape (Market Share, Business Overview, Products Offered, Business Strategies, SWOT Analysis and Major News and Events) 2024-2032

Electric Aircraft Market Report by Type (Fixed Wing Aircraft, Rotary Wing Aircraft), Technology (All Electric, Hybrid), End Use (Commercial, Military, and Others), Region and Competitive Landscape (Market Share, Business Overview, Products Offered, Business Strategies, SWOT Analysis and Major News and Events) 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A22279
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Electric Aircraft Market Size:

The electric aircraft market size reached US$ 9.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 41.0 Billion by 2032, exhibiting a growth rate (CAGR) of 16.5% during 2024-2032. The global market is primarily driven by growing focus on the reduction of carbon emission, growing environmental concerns, continual and technological advancements in battery technology, rising government incentives and support, and the increasing accessibility.   

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 US$ 9.9 Billion
Market Forecast in 2032 US$ 41.0 Billion
Market Growth Rate (2024-2032) 16.5%


Electric Aircraft Market Analysis:

  • Market Growth and Size:  The market is witnessing significant growth, driven by the increasing focus on reducing carbon emissions and enhancing sustainability in aviation. The market's expansion is underpinned by advancements in electric propulsion, battery technology, and governmental support for green aviation initiatives. 
  • Major Market Drivers: A key driver for the market is the urgent need to reduce the aviation industry's substantial carbon footprint, contributing to global greenhouse gas emissions. Aircraft emerge as a pivotal solution, offering substantial reductions in carbon emissions, aligning with global environmental goals and regulatory frameworks promoting sustainable aviation.  
  • Key Market Trends: Urban Air Mobility (UAM) is a burgeoning trend, with electric Vertical Take-Off and Landing (eVTOL) aircraft leading the way in revolutionizing urban transport, offering solutions that are significantly faster and environmentally friendly compared to traditional ground transport, potentially transforming cityscape mobility and infrastructure.
  • Geographical Trends: North America is showing robust activity in the aircraft sector, with advancements led by significant investments, innovative startups, and supportive regulatory frameworks. Europe and the Asia-Pacific regions are also key players, with Europe focusing on enhancing aviation efficiency and Asia-Pacific capitalizing on its technological and manufacturing prowess to advance in the aircraft domain. 
  • Competitive Landscape: The competitive landscape is marked by strategic collaborations, innovative product developments, and investments in new technologies. Major players, including Airbus, Bye Aerospace, and Ampaire are actively advancing the market with new aircraft designs, partnerships, and significant focus on R&D to catalyze the industry's transition towards electrification.   
  • Challenges and Opportunities: The market faces challenges such as technological limitations in battery energy density and the need for supportive infrastructure. However, these challenges present opportunities for innovation in battery technology, electric propulsion, and the development of urban air mobility ecosystems, potentially leading to transformative advancements in the aviation industry. 
     

Electric Aircraft Market Drivers:

Growing Focus on the Reduction of Carbon Emission       

The aviation industry is more of a key focus area in relation to its substantial carbon footprint, thereby leading to a significant share of global greenhouse gas emissions. The shift towards aircraft is due to an overall agreement on the reduction of greenhouse gasses emissions to reach a more sustainable future. Electrical aircraft offer a substantial decrease in carbon footprints while they are aligned with the environmental goals and the regulations that encourage the sustainable airlines. In the midst of these technological advancements along with governmental pressures, aircraft is undergoing a transformation that has a carbon emissions curbing as the ultimate driving force behind the aircraft market growth. For instance, in 2018, global aviation emitted an estimated 1.04 billion tonnes of CO₂, representing 2.5% of total CO₂ emissions that year.     

Growing Environmental Concern 

Increased consciousness about biodiversity and climatic changes has increased the collective response all over the world and the shift in policies globally. Public and private sectors now aim at more sustainable business, which pushes the aviation industry towards more green alternatives.  Among all the innovations, the rise of the aircraft becomes a leading technology that mitigates noise pollution, air pollution, and consumption of non-renewable resources. The increasing ecological concern of the community fills up the market demand for electric plane, as all the stakeholders in the field center on ecological preservation and sustainable development. A study by the University of Cambridge and Massachusetts Institute of Technology projected that electric aircraft could reduce aviation's air quality and carbon footprint by 50% or more when fully integrated into the transportation system.

Increasing Accessibility

With the advent of aircrafts, the aviation industry will be revolutionized with simple air travel becoming a reality to everyone. The possibility of their usage at short takeoff and landing can enable fresh routes that were previously difficult to reach. For example, Studies estimate that urban air mobility with electric vertical take-off and landing (eVTOL) aircraft could serve over 25,000 routes globally that are currently underserved or unserved by aviation. Furthermore, the use of electric propulsion results in cost savings and efficient operation, which in turn promote competitive ticket pricing and thus facilitate the larger population’s access to air travel. These competitive advantages form a new market driver, by growing the number of potential consumers and making the aircraft industry more diverse in the process.               

Relatively Low Maintenance and Other Costs    

With relatively low operational and maintenance costs, aircraft come as a package of good deals. For instance, for electric vertical take-off and landing (eVTOL) aircraft, maintenance costs are projected to be around $0.74 per vehicle mile compared to $2.53 for conventional helicopters. Electric motors, on the other hand, have few moving parts, and therefore less wear, in contrast to the fossil-fueled counterparts, there is a lower risk of mechanical failure and consequently reduced maintenance cost. Moreover, electricity, being a source of power, is very affordable compared to the aviation fuel, consequently, there is a large saving over the entire life of an aircraft. The costs efficiencies are very attractive opportunities for airlines and operators, enlarging the possibility of higher profitability and investment in sustainable aviation technologies to contribute to market growth.

Electric Aircraft Market Opportunities:

Rising Urban Air Mobility Industry

This domain of urban air mobility (UAM) encompasses radical changes in the way individuals and goods move into and around cities, with innovative solutions opening up in urban mobility. Furthermore, as the density of a city increases, the urge towards convenient and fast transportation also increases, as a result this becomes a very attractive alternative against the traditional ground transport system. The aircraft, such as eVTOL (Electric Vertical Takeoff and Landing), democratizes the new sector by promising solutions that are not only 75% faster but also environmentally friendly, by reducing urban congestion and emissions. For instance, according to a report by Deloitte, eVTOL aircraft could reduce travel times by 50-80% compared to ground transportation in dense urban areas. The market expansion of UAM is further supported by the development and deployment of electric aircraft. This catalyzes the growth of infrastructure, technology, and regulatory frameworks towards this new dawn in urban transportation.  

Partnership and Collaboration    

Partnerships and collaboration are considered key in the aircraft sector to pool technology and resources over the large market entry barriers. These can take the form of alliances ranging from high-flying manufacturers and technology firms to regulatory bodies, even coming down to urban planners, all joining hands to realize the vision of electric aviation. For example, the Air Mobility Urban - Large Experimental Unmanned Vehicle (AMUV-LE) project involves 13 partners from 6 European countries, with a budget of €25 million. Such collaboration allows shared innovation, risk, and cost, streamlining the research and development process, and, on the other hand, complementing the technologies well-integrated. They will also allow businesses to leverage strengths from each other, be it advanced battery technology, propulsion systems, or designing aircraft, so that better, efficient, reliable, and safe aircraft will have evolved with no time. 

Innovation in Technologies        

Development in aircraft segment is mandatory for the improved range, safety, performance, and cost, putting  aircraft in the prospects of being a possible replacement for traditional avionics. As the development continues, the batteries being developed are not only more energy-dense but also lightweight, and they recharge quite quickly. Advancements in electric propulsion systems also parallel those being realized in aircraft to ensure propulsion is much more reliable than fossil-based propulsion, with much lower maintenance, thus improving operational efficiency. For instance, NASA's Electrified Aircraft Propulsion (EAP) project is researching integrated megawatt-class electric propulsion systems with over 90% energy efficiency. Continuous improvement in materials science, in addition to the aerodynamic design, makes the aircraft more energy-efficient and, at the same time, environmentally friendly.   

Government Investment and Incentives    

Incentives and investment by the public sector provide the necessary support to the market by offsetting research and development costs, fast-tracking infrastructure development, and encouraging consumer adoption through subsidy and tax concessions. For example, the European Union has launched the €1.2 billion Clean Aviation program to support research into disruptive aircraft technologies like hybrid-electric propulsion. World governments are fast waking up to electric aviation as a possible vehicle that will take them to goals such as reductions in greenhouse gas emissions and the combatting of noise pollution. This is turning public policies and funding initiatives in the direction of sustainable aviation technologies. This provides financial support and signal to the market the effort of commitment to the long-term transformation of this industry, thus stimulating additional investments by the private sectors. 

Key Technological Trends & Development:

Smart sensors

The smart sensors used in aircraft improve the operational effectiveness, safety, and maintenance procedures. It involves smart sensors, which may collect data and assist in real-time analysis in many areas that include structural health, battery condition, motor effectiveness, and environmental conditions, together with other most important parameters. This allows predictive maintenance due to continuous data to minimize aircraft downtimes and, in turn, extend the life of the aircraft by anticipating and fixing problems that may lead to a critical situation. According to estimates by Honeywell, integrating smart sensors for structural health monitoring can reduce maintenance costs for aircraft by 25-30%. This additionally plays into optimized flight performance and energy use, with the inclusion of smart sensors. They are important to aircraft in the maximization of the range and durability, hence more reliability and cost-effectiveness prevails. 

Turbogenerator Technology

Turbogenerator technology is essential as this effort is part of a hybrid solution to combine the reliability of traditional turbines with those of the electric power system. The technology gives an aircraft the capability to produce its own electrical power while in the air, providing range and endurance that can far surpass any aircraft solely designed for a battery-powered system. It is efficient in the conversion of fuel to electrical energy, acts as a backup, provides increases in safety, and can allow missions or routes that are much longer. Such a hybrid approach would hold a lot of promise toward making sure the transition of the aviation industry into sustainability is smooth, without having to compromise performance or operational capabilities. For example, a research by the Georgia Institute of Technology indicates that their megawatt-class turbogenerator system could enable over 1,000 miles of range for hybrid-electric aircraft.

Autopilot System Technologies   

Autopilot system technologies are enhancing including improved algorithmic computation, machine learning, and AI. For instance, machine learning algorithms developed by researchers at Stanford University have demonstrated up to 50% improvement in navigational accuracy compared to traditional autopilot systems. To boost navigational precision and operational security, AI should improve navigational precision and operational security. These systems can take control of the aircraft independently at different flight stages with the aim of reducing workload to the pilot, improving efficiency, and optimizing flight paths for energy conservation. Thus, these autopilot systems are provided with advanced sensors and processing real-time data that will enable intelligent decision-making through adapted flight environments and significantly ensure a smooth, safe, and efficient flying experience importantly useful for highly complex operational scenarios of electric aviation. 

Advanced Electrified Aircraft Propulsion system 

Advanced and electrified propulsion systems for aircraft embody the forefront of innovation in aviation. Such systems work through electric motors that interface with power electronics, converting electrical power to mechanical power for propulsion, deriving a remarkably low emission result compared to conventional engines. Key performance enablers relate to innovations in motor efficiency, power density, and thermal management, enabling these systems to usher in significant improvements in the range, endurance, and operational costs of aircraft. The development of such propulsion systems, therefore, becomes one of the critical enablers for the aviation industry to meet its sustainability goals, considering they have to offer a scalable solution across all types and sizes of aircraft. For example, research by the University of Cambridge has demonstrated electric motors with efficiencies exceeding 97%, compared to 30-40% for conventional turbine engines.  

 Li-Ion Battery Technologies  

Li-ion battery technology is the key development of aircraft and the required energy storage solution in powering the flights. The advancements in Li-ion technology are in the direction of increased energy density with improved safety, lighter weight, that are very important for range and performance improvements. These include the solid-state batteries, which are higher in energy density and offer much safety to the liquid electrolyte. More efficient batteries would allow longer flight durations and shorter charging times, yielding generally more viable, sustainable electric aviation solutions.  NASA projects that solid-state batteries with energy densities above 800 Wh/kg could enable aircraft to match the range and performance of conventional turbine-powered aircraft. 

Regenerative Energy    

Regenerative energy system marks a regenerative approach to the energy efficiency of aircraft, capturing energy in various flight modes, such as while descending or braking, and reconverting back to electric power for recharging the batteries. This technology extends the aircraft's range and improves the overall efficiency of the energy use. Such a regenerative system, therefore, may enhance the endurance of aircraft by capturing kinetic energy that would otherwise be lost and convert it into useful power, hence contributing to an increment in suitability for longer distances and sustainability. Researchers explore twin-propeller 20-MW aircraft configurations, a global vision for aircraft includes hybrid combinations of piston and electric power units.     

Electric Aircraft Market Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, technology, and end use.

Breakup by Type: 

  • Fixed Wing Aircraft
  • Rotary Wing Aircraft
     

 Rotary wing aircraft accounts for the majority of the market share 

The report has provided a detailed breakup and analysis of the market based on the type. This includes fixed wing aircraft and rotary wing aircraft. According to the report, rotary wing aircraft represented the largest segment.

Rotary wing aircraft segment represents the largest in the market led by the inherent adaptability and flexibility of these aircraft, serving as urban mobility solutions, providing various emergency services, and facilitating short-haul travel due to the suitability of rotary-wing designs for urban air mobility. They offer a competitive advantage with their electric propulsion, characterized by low operational costs, reduced noise pollution, and minimal environmental impact compared to conventional helicopters. The strategic move towards electrification is ideal, given their capability and versatility in operating across different environments, including those requiring vertical take-offs and landings. A study by Frost & Sullivan estimates that the urban air mobility market, which includes electric and hybrid-electric rotary-wing aircraft, could be worth $90 billion by 2050.

Breakup by Technology:

  • All Electric
  • Hybrid
     

Hybrid holds the largest share of the industry   

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes all electric and hybrid. According to the report, hybrid accounted for the largest market share.

Hybrid-electric aircraft currently dominate the aircraft market, primarily due to their dual-benefit design. They integrate the efficiency and environmental advantages of electric propulsion with the range and dependability of traditional combustion engines. These aircraft blend electric motors and conventional engines, enabling them to undertake much longer flights than purely electric models, while also significantly cutting down on emissions and fuel consumption. This hybrid approach serves as a transitional solution towards complete electrification, delivering notable improvements in operational efficiency, cost-effectiveness, and carbon emissions reduction. For example, the National Aeronautics and Space Administration (NASA) has conducted studies indicating that hybrid-electric aircraft can achieve up to 30% reduction in fuel consumption and emissions compared to conventional aircraft.

Breakup by End Use:

  • Commercial
  • Military
  • Ohers
     

Commercial represents the leading market segment    

The report has provided a detailed breakup and analysis of the market based on the end use. This includes commercial, military, and others. According to the report, commercial represented the largest segment.

The commercial segment dominates the market, largely due to the growing emphasis on reducing greenhouse gas emissions, noise pollution, and the high operating costs associated with traditional aircraft. There's an escalating demand for electric passenger planes, air taxis, and drones for commercial purposes, supported by continuous advancements in battery technology and propulsion systems, along with progressive regulatory frameworks for eco-friendly aviation. For instance, in 2022, the UK government announced plans to introduce air taxi services by 2025, with the potential to create over 4,500 jobs and generate £1.2 billion ($1.6 billion) in economic benefits by 2030.This sector's expansion is significantly influenced by the increasing interest in urban air mobility solutions, which are set to transform short-haul travel in cityscapes. 

Regional Insights:

  • North America 
    • United States
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East
  • Africa
     

XX leads the market, accounting for the largest electric aircraft market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); the Middle East, and Africa. According to the report, XX represents the largest regional market for aircraft.

Analysis Covered Across Each Country:

  • Historical, current, and future market performance
  • Historical, current, and future performance of the market based on type, technology, and end use
  • Competitive landscape
  • Government regulations
     

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape covering market structure, market share by key players, market player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, among others. Detailed profiles of all major companies have also been provided. This includes business overview, product offerings, business strategies, SWOT analysis, financials, and major news and events. Some of the major market players in the electric aircraft industry include: 

  • Airbus 
  • Bye Aerospace
  • Eviation
  • Joby Aviation
  • Leonardo
  • Lilium
  • Pipistrel Group
  • Wisk Aero LLC
     

Key players in the global market are actively engaging in various strategies such as product development, partnerships, and acquisitions to strengthen their market position and expand their product portfolios. Companies are at the forefront, focusing on innovation and collaboration to advance aircraft technologies. Airbus has been particularly proactive, unveiling the world’s first zero-emission electric commercial aircraft prototype, expected to enter service by 2035. This aircraft features a turbofan design capable of over 2000+ nautical miles range, showcasing Airbus's commitment to sustainable aviation​​. Another major manufacturer is working on aircraft that promise significant reductions in fuel expenses and maintenance costs, aligning with the industry's goal of reducing carbon footprints and operational costs.

Analysis Covered for Each Player:   

  • Market Share
  • Business Overview
  • Products Offered
  • Business Strategies
  • SWOT Analysis
  • Major News and Events
     

Electric Aircraft Market News: 

  • 26 February 2024: Lilium Gears Up for Production of the Lilium Jet’s Revolutionary Electric Propulsion Units. Lilium’s aerostructures assembly line is using equipment provided by Schnaithmann for handling of the Lilium Jet’s wings and canards. 
  • 17 January 2023: Eviation Aircraft, a manufacturer of all-electric aircraft, today announced that Aerus, an emerging regional airline in Mexico, has signed a Letter of Intent (LOI) for 30 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.
  • 08 February 2022: Leonardo and Vertical Aerospace announce collaboration on Fuselage Development Program for the design, testing, manufacture, and supply of the carbon composite fuselage for Vertical’s VX4 electric aircraft.
     

Electric Aircraft Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Type
  • Technology
  • End Use
  • Region
Types Covered Fixed Wing Aircraft, Rotary Wing Aircraft
Technologies Covered All Electric, Hybrid
End Uses Covered Commercial, Military, Others 
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East, Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Airbus, Bye Aerospace, Eviation, Joby Aviation, Leonardo, Lilium, Pipistrel Group, Wisk Aero LLC etc. (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
Customization Scope 10% Free Customization
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

  • How has the global electric aircraft market performed so far, and how will it perform in the coming years?
  • What are the drivers, restraints, and opportunities in the global electric aircraft market?
  • What is the impact of each driver, restraint, and opportunity on the global electric aircraft market?
  • What are the key regional markets?
  • Which countries represent the most attractive electric aircraft market?
  • What is the breakup of the market based on the type?
  • Which is the most attractive type in the electric aircraft market?
  • What is the breakup of the market based on the technology?
  • Which is the most attractive technology in the electric aircraft market?
  • What is the breakup of the market based on the end use?
  • Which is the most attractive end use in the electric aircraft market?
  • What is the competitive structure of the market?
  • Who are the key players/companies in the global electric aircraft market?

Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the electric aircraft market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global electric aircraft market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the electric aircraft industry and its attractiveness.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market. 

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
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Electric Aircraft Market Report by Type (Fixed Wing Aircraft, Rotary Wing Aircraft), Technology (All Electric, Hybrid), End Use (Commercial, Military, and Others), Region and Competitive Landscape (Market Share, Business Overview, Products Offered, Business Strategies, SWOT Analysis and Major News and Events) 2024-2032
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