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Electric Aircraft Market

Electric Aircraft Market

The market for Electric Aircraft was estimated at $10.4 billion in 2023; it is anticipated to increase to $28.7 billion by 2030, with projections indicating growth to around $59.2 billion by 2035.

Report ID:DS2302004
Author:Swarup Sahu - Senior Consultant
Published Date:November 2024
Datatree
Aerospace & Defense
A&D Technology
Electric Aircraft
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Report Summary
Table of Contents
Methodology
Market Data

Global Electric Aircraft Market Outlook

Revenue, 2023

$10.4B

Forecast, 2033

$44.3B

CAGR, 2023 - 2033

15.6%
The Electric Aircraft industry revenue is expected to be around $13.9 billion in 2024 and expected to showcase growth with 15.6% CAGR between 2025 and 2034.

Electric planes are changing the way we see air travel by offering eco-friendly flights and quieter skies. As of 2023, the electric aircraft market was worth about $10.4 billion and is expected to reach $28.7 billion by 2030; and $59 billion by 2035 at a growth rate of 15.6% CAGR. This growth is fueled by the aviation industry's move towards sustainability and improvements, in battery and fuel cell technologies.

Electric planes utilize electric propulsion systems that are mainly powered by batteries or hydrogen fuel cells as a sustainable option compared to traditional jet engines for short, to medium range flights. They help in significantly reducing emissions and ensuring quieter operations. Companies are currently dedicated to innovating in this sector with a focus to enhance battery longevity power efficiency and flight distance aiming to make electric aviation a feasible commercial option

Electric Aircraft market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2023-2033

Market Key Insights

  • The Electric Aircraft market is projected to grow from $10.4 billion in 2023 to $44.3 billion in 2033. This represents a CAGR of 15.6%, reflecting rising demand across Passenger Transport and Cargo Transport.
  • Eviation and Rolls-Royce and magniX lead the market as key competitors which determine the competitive dynamics of this sector.
  • U.S. and Germany are the top markets within the Electric Aircraft market and are expected to observe the growth CAGR of 14.0% to 18.7% between 2023 and 2030.
  • Emerging markets including India, China and Brazil are expected to observe highest growth with CAGR ranging between 10.9% to 16.4%.
  • The Electric Aircraft market will experience $4.6 billion in additional growth through 2030 because of the transition toward hybrid electric models.
  • The Electric Aircraft market is set to add $33.9 billion between 2023 and 2033, with manufacturer targeting Long Range & undefined Range projected to gain a larger market share.
  • With Environmental regulations and sustainability goals, and Technological advancements in batteries and fuel cells, Electric Aircraft market to expand 326% between 2023 and 2033.
electric aircraft market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Electric Aircraft

The constant improvements in battery density and efficiency offer the potential to increase the flying distance and lower expenses for airplanes. This development is paving the way, for flight paths and uses.

Growth Opportunities in North America and Europe

North America Outlook

In the realm of electric aircraft, progressions in North America take precedence with funding dedicated towards urban air travel innovations and cutting edge research & development spearheaded by enterprises such as Job Aviation and magnix. The backing, from entities to promote eco-friendly aviation initiatives also bolsters the industry's growth potential.

Europe Outlook

Europe leads the way in providing backing for eco-friendly aviation by setting ambitious targets to reduce emissions and promoting the adoption of electric aircraft technology. Germany and the UK are actively encouraging innovation, in this sector through government supported programs and partnerships.

Market Dynamics and Supply Chain

01

Driver: Environmental Regulations and Sustainability Goals, and Rising Demand for Short-haul Flights

The aviation sector is also moving towards sustainable practices due to stricter emissions regulations. Electric planes are also seen as an option, in this transition. Electric planes are also great, for short distance flights that are also becoming more popular because they match up nicely with the range and offer eco friendly advantages.
Advancements, in the density of batteries and the efficiency of fuel cells have also enabled the possibility of aircraft and are also fueling market expansion as these progressions persist.
02

Restraint: Battery Limitations and Range Constraints, and Infrastructure Challenges

The current limitations of battery technology constrain how far electric aircraft can fly and how heavy they can carry cargo. This limits their use to short distance flights which presents a hurdle for wider acceptance, in the market.
The lack of charging stations at airports limits the range and adaptability of electric planes and poses a challenge to their widespread use.
03

Opportunity: Growing Demand for Urban Air Mobility and Expansion in Renewable Energy-Powered Charging

Urban air mobility is gaining attention these days with a growing emphasis on eco friendly travel options in cities; electric aircraft emerge as a viable solution for short distance transportation within urban areas. Businesses have the opportunity to utilize aircraft for services, like air taxis and urban transport to meet the needs of residents efficiently and sustainably.
With the increasing availability of energy sources such as solar and wind power options growing more widespread. The charging infrastructure for aircraft could be designed to integrate seamlessly with these sources. This integration would help enhance sustainability efforts, in the aviation industry.
04

Challenge: High Initial Development Costs

Developing electric aircraft involves expenses such as research & development and obtaining certifications. These costs may discourage players, from entering the market and slow down the growth rate.

Supply Chain Landscape

1
Battery Suppliers

Panasonic

Tesla

[Supply high-capacity batteries for electric propulsion systems]

2
Motor Manufacturers

magniX

Rolls-Royce

[Produce Aviation electric motors]

3
Aircraft Manufacturers

Eviation

Pipistrel

4
Charging Infrastructure Providers

ChargePoint

Siemens

[On-ground charging and battery swapping solutions]

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Electric Aircraft in Passenger Transport & Cargo Transport

Passenger Transport

Electric airplanes are poised to transform short distance passenger travel by providing an eco friendly option compared to conventional fuel driven planes. Leading the way in this field are companies such as Eviation and Pipistrel who are working towards creating aircraft, with enhanced range and efficiency capabilities.

Cargo Transport

Electric planes designed for transporting cargo, help to lower carbon emissions and operating expenses which makes them well suited for delivering mile and regional cargo services efficiently. Leading companies such as Alice, by Eviation are focusing on providing zero emission solutions specifically tailored for cargo transportation needs.

Recent Developments

October 2023

Eviation revealed the accomplishment of a trial run, for Alice – an electric aircraft designed for commuting purposes.

June 2023

Roll Royce and Tecnam worked together on creating electric airplanes, for short distance flights.

April 2023

Magnix received the approval by the FAA for their electric propulsion system to move forward with electric flight certification.

Lately there have been advancements in the field of electric aviation showcased by Eviation's successful test flights and Rolls Royce's efforts in hybrid electric technology development – reflecting a promising trajectory, for the industry overall as regulatory frameworks evolve and propulsion systems continue to enhance alongside infrastructure upgrades and battery innovation.

Impact of Industry Transitions on the Electric Aircraft Market

As a core segment of the A&D Technology industry, the Electric Aircraft market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Hybrid Electric Models and Integration of Autonomous Technology have redefined priorities across the A&D Technology sector, influencing how the Electric Aircraft market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift Towards Hybrid Electric Models

When it comes to electric airplanes dealing with constraints like range and payload limits, on longer routes. Hybrid models present a ground by blending fuel efficiency with lower emissions. This industry transition is expected to add $4.6 billion in the industry revenue between 2023 and 2030.
02

Integration of Autonomous Technology

The adoption of self flying functions represents a shift that decreases reliance on pilots and enhances the effectiveness of operations, in electric planes.

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