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The electric aircraft market consists of various aircraft designs that utilize electric motors rather than combustion engines for propulsion. These include both manned and unmanned aircraft ranging from small drones to proposed designs for large passenger aircraft. Electric aircraft offer potential environmental and operational benefits over traditional fuel-powered designs by reducing emissions, noise, and maintenance costs. However, energy storage technology limitations have posed challenges to electric aircraft achieving sufficient range for most applications.
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 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
North America currently dominates the market due to ongoing investments and developments of electric aircraft prototypes by major aerospace companies in the region. However, the market in Asia Pacific is expected to witness the highest growth owing to rapid expansion of the commercial aviation industry in countries such as China and India.
Market Dynamics:
Advancements in electric motors and battery technologies are expected to be a key driver of growth for the electric aircraft market over the forecast period. Continuing improvements in battery energy density, charging times, and costs will push the performance and economics of electric aircraft designs towards meeting commercial viability. Lithium-ion batteries are most widely used currently but novel battery chemistries including lithium-sulfur and solid-state designs show promise to significantly enhance aircraft range. Electric motors are also becoming smaller, lighter, and more efficient. The widespread adoption of electrification across other industries is focusing further innovation and commercialization of advanced electric propulsion systems for aircraft.
Additionally, concerns regarding environmental impact of aviation are prompting investment into electric aircraft as a lower emission technology. Growing regulatory pressure to minimize carbon footprints may help accelerate electric aircraft market development. Airport operators are also supportive to reduce local noise and air pollution from aircraft operations. This is, coupled increasing research emphasis on energy efficiency, will aid the electric aircraft market growth during the forecast period.
Key players operating in the electric aircraft market are Boeing, Airbus, Volta-x, Eviation, Pipistrel and Bye Aerospace. Key players like Boeing and Airbus have ambitious production targets and investment plans for electric aircraft like eVTOL and narrow body aircraft to capture the fast growing market.
Segment Analysis
The global electric aircraft market is dominated by the narrow body aircraft segment, which held around 55% share of the total market in 2024. This is because narrow body aircraft have high demand for short haul flights within region. Their design makes them efficient for short trips with 100-200 seats capacity.
PEST Analysis
Political: Development of supportive infrastructure and policies by governments worldwide to reduce carbon emissions from aviation is driving electric aircraft development. Economic: High fuel costs for conventional aircraft and lower operating costs of electric aircraft is encouraging airlines and manufacturers to invest in electric aircraft. Social: Rising environmental concerns and passenger preference for greener modes of transport is increasing demand for electric aircraft. Technological: Advancements in battery technology with higher energy density, lighter materials for aircraft body, and efficient electric motors are enabling commercial electric aircraft programs.
Key Takeaways
The global Electric Aircraft Market is expected to witness high growth at a CAGR of 14% during the forecast period of 2024 to 2031 to reach a market size of US$ 28,650 Mn by 2031.
Regional analysis: North America region is expected to dominate the electric aircraft market during the forecast period owing to supportive policies and large investments by Boeing, Airbus and other players in the region for electric aircraft development.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
