Electric Aircraft Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The electric plane market is set to grow rapidly, from a current market size of $ 17 billion in 2024 to $ 40 billion in 2032. The forecast period is from 2024 to 2032, a CAGR of 15.4%. This growth is mainly driven by the increasing demand for sustainable aviation solutions and the continuous development of battery technology and electric propulsion systems. The development of electric planes is also closely related to the tightening of air regulations, the reduction of the carbon footprint of aviation, and the development of electric vehicles. The major players in the electric plane industry, such as Airbus, Boeing, and new entrants such as Joby Aviation and Archer Aviation, are all committed to the development of electric flight. Strategic cooperation with technology companies and government departments is expected to further promote the development of electric planes. Among them, the development of hybrid-electronic systems and the improvement of energy-saving performance are expected to be the main routes to overcome the current technological obstacles. The industry is expected to continue to grow and become the leading trend of the future of aviation.

Regional Market Size

Regional Deep Dive

Electric Aircraft Market is experiencing substantial growth in various regions across the globe, owing to the technological advancements, growing concern about the environment, and supportive government policies. In North America, the market is characterized by the strong presence of major aerospace companies and the high level of investments. Europe, on the other hand, is focused on innovation and the reduction of carbon emissions in aviation. In the Asia-Pacific region, the growing urbanization and air traffic are resulting in the increased demand for electric aircraft. In the Middle East and Africa, electric aircraft are a means of diversifying the economy and increasing the number of routes. Latin America is gradually adopting electric aircraft technology, influenced by regional associations and cooperation aimed at improving the efficiency of air transportation.

Europe

• The European Union has launched the Green Deal, which includes initiatives to promote electric aviation as part of its broader strategy to achieve carbon neutrality by 2050, influencing market dynamics significantly.
• Companies such as Rolls-Royce and Airbus are collaborating on the E-Fan X project, which aims to develop hybrid-electric aircraft, showcasing Europe's commitment to innovation in sustainable aviation.

Asia Pacific

• China is rapidly advancing its electric aircraft capabilities, with state-owned companies like COMAC investing in electric and hybrid aircraft technologies to support the country's growing aviation market.
• Japan's government has initiated programs to support the development of electric aircraft, including funding for research and partnerships with private companies like Mitsubishi Aircraft Corporation.

Latin America

• Brazil is exploring electric aviation through partnerships between government and private sectors, with companies like Embraer investing in electric aircraft research and development.
• Regulatory bodies in Latin America are beginning to adapt their frameworks to accommodate electric aircraft, which is expected to enhance the market's growth potential in the region.

North America

• The Federal Aviation Administration (FAA) has introduced new regulations to facilitate the testing and certification of electric aircraft, which is expected to accelerate the development and deployment of these technologies in the region.
• Major companies like Boeing and Airbus are investing heavily in electric propulsion systems, with Boeing's subsidiary Aurora Flight Sciences leading projects focused on urban air mobility solutions.

Middle East And Africa

• The UAE is actively promoting electric aviation through initiatives like the Dubai Airshow, where electric aircraft technologies are showcased, reflecting the region's commitment to sustainable transport solutions.
• Israel's aviation sector is seeing growth in electric aircraft startups, such as Eviation Aircraft, which is developing all-electric commuter planes, indicating a burgeoning interest in innovative aviation solutions.

Did You Know?

“The first all-electric commercial aircraft, the Alice, is expected to make its maiden flight in 2024, marking a significant milestone in the electric aviation industry.” — Eviation Aircraft

Segmental Market Size

Electric Aircraft is experiencing a high growth rate, driven by the growing demand for sustainable aviation solutions. The main driving forces for this market are the increasingly strict regulatory environment aimed at reducing carbon emissions, and the development of batteries that can enhance the performance of electric aircraft. Electric Aircraft manufacturers like Joby Aviation and Archer Aviation are leading the way in demonstrating the viability of electric vertical take-off and landing (eVTOL) aircraft for urban air mobility. At the moment, the market is in its experimental phase, with several projects in the testing and early-deployment stages. Eviation Alice, a revolutionary aircraft for regional air travel, and ZeroAvia, a UK company working on hydrogen-powered electric propulsion systems, are some of the notable projects in this field. Electric Aircraft are used mainly for urban air mobility, freight transport and regional flights. The market is driven by a combination of government initiatives and the desire to adopt more sustainable technologies. Propulsion and energy storage systems are evolving in tandem with the market.

Future Outlook

From 2024 to 2032, the market for electric aircraft is expected to grow from $ 17,000,000,000 to $40,000,000,000, with a CAGR of 15.4%. It is due to a combination of technological developments, regulatory support and a growing awareness of the environment among consumers and businesses. By 2032, electric aircraft are expected to account for about 10 to 15 percent of the total market, mainly due to advances in batteries, electric propulsion systems and the development of sustainable aviation fuels. The market is also driven by the stricter emissions regulations and the government incentives to reduce the carbon footprint of the aviation industry. The International Air Transport Association has set itself the goal of achieving zero emissions by 2050, which has led to a strong increase in the number of electric aircraft and in the development of electric aircraft. The growth of urban air mobility solutions will also create new opportunities for electric vertical take-off and landing (eVTOL) aircraft to improve urban transport and logistics. The electric aircraft market is thus transforming the future of air transport, making it more sustainable and accessible.