PUBLISHER: The Business Research Company | PRODUCT CODE: 1659024
PUBLISHER: The Business Research Company | PRODUCT CODE: 1659024
Electric aircraft are a type of air transportation that utilizes batteries to power an electric motor, replacing the traditional use of jet fuel to drive an engine. These aircraft consist of a motor responsible for converting electrical energy into mechanical energy and a battery to store and supply the required power.
The main categories of electric aircraft are fixed-wing, rotary-wing, and hybrid-wing. Fixed-wing aircraft encompass planes that utilize jet engines or propellers for forward movement, with wings that remain stationary. These aircraft can be further classified based on takeoff and landing capabilities, including CTOL (Conventional Takeoff and Landing), STOL (Short Takeoff and Landing), and VTOL (Vertical Takeoff and Landing). The technologies involved in electric aircraft cover various systems such as batteries, electric motors, aerostructures, avionics, software, and more. These aircraft are applicable in diverse sectors like commercial, military, and other specialized types, including regional transport aircraft, business jets, and light and ultralight aircraft.
The electric aircraft market research report is one of a series of new reports from The Business Research Company that provides electric aircraft market statistics, including electric aircraft industry global market size, regional shares, competitors with an electric aircraft market share, detailed electric aircraft market segments, market trends and opportunities, and any further data you may need to thrive in the electric aircraft industry. This electric aircraft market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The electric aircraft market size has grown rapidly in recent years. It will grow from $10.21 billion in 2024 to $11.68 billion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to urban air mobility (UAM) initiatives, rising fuel costs, demonstration flights and prototypes, environmental concerns, government initiatives and incentives.
The electric aircraft market size is expected to see rapid growth in the next few years. It will grow to $19.42 billion in 2029 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to increasing global air traffic, advancements in energy storage, regulatory support and certification processes, global efforts to achieve net-zero emissions. Major trends in the forecast period include development of regional and short-haul electric aircraft, advancements in battery technology, hybrid electric aircraft solutions, focus on noise reduction, increasing investments in electric aviation.
A surge in global air passenger volume is anticipated to fuel the electric aircraft market. Airlines that focus on transporting individuals are known as passenger airlines. Air travelers are increasingly choosing air travel due to its advantages, including speed and the rise in international travel, among others. Electric aircraft help reduce travel costs for passengers while also being environmentally sustainable. For example, in March 2023, the Bureau of Transportation Statistics, a US-based government agency, reported that US airlines carried 853 million passengers in 2022, up from 658 million in 2021. Consequently, the increase in global air passenger volume is driving demand for the electric aircraft market.
The growing volatility in conventional fuel prices is expected to accelerate the growth of the electric aircraft market in the upcoming years. Conventional fuels refer to long-established energy sources such as coal, diesel, and petrol, which are commonly used for various applications, including electricity and heat production. These fuels are often employed in airplanes for propulsion, particularly aviation fuels derived from fossil sources. For instance, in August 2022, the Bureau of Transportation Statistics, a US-based federal agency that collects, analyzes, and shares data on transportation, noted that regular motor gasoline prices rose by 49% between January and June 2022, while diesel fuel prices saw a slightly larger increase of 55%. Thus, the rising volatility in conventional fuel prices is propelling the electric aircraft market.
Technological advancements stand out as a key trend shaping the electric aircraft market. Major players in the industry are actively developing novel technologies to enhance aircraft capabilities, allowing for longer routes and improved performance. Rolls Royce, a prominent UK-based aero-engine maker, introduced turbogenerator technology in June 2022. This technology includes the development of a new compact engine for hybrid-electric applications, serving as an on-board power source with scalable power supplies. Rolls-Royce aims to offer a power range of 500 kW to 1200 kW, showcasing a commitment to advancing electric propulsion solutions in the aviation sector.
Major companies in the electric aircraft market are embracing a strategic partnership approach to support the aviation industry's transition toward sustainability. Strategic partnerships involve companies utilizing each other's strengths and resources to achieve mutual benefits and success. For example, in September 2022, Saab AB, a Sweden-based aerospace and defense firm, announced a collaboration with Heart Aerospace focused on subsystem supply and exploring potential new areas for cooperation, including manufacturing and certification. This highlights Saab AB's commitment to advanced technology and eco-friendly aviation solutions. As a leader in commercial electric aviation, Heart Aerospace is poised to benefit from Saab AB's expertise in developing innovative technological solutions to shape the future of aviation.
In April 2022, Textron Inc., a US-based conglomerate, successfully completed the acquisition of Pipistrel for $235 million. This strategic move integrates Pipistrel into Textron's newly established Textron eAviation division. The acquisition aligns with Textron's vision of advancing sustainable aviation, encompassing urban air mobility, general aviation, freight, and special missions. Pipistrel, a Slovenia-based electric aircraft manufacturer, brings its expertise in electric airplane design, development, and certification to enhance Textron's position in the evolving aviation landscape.
Major companies operating in the electric aircraft market are Airbus Yuneec Holding Limited, The Boeing Company, Lilium GmbH, Safran SA, Bye Aerospace Inc., Honeywell International Inc., Rolls-Royce Holding PLC, Aerospace Limited, Electric Aircraft Corporation, Aero Electric Aircraft Corp., Airspace Experience Technologies LLC, Ampaire Inc., BAE Systems PLC, Beta Technologies Inc., Blackbird Aero, Cessna Aircraft company, DigiSky SkySpark, Electravia SARL, Elroy Air Technologies Inc., Eviation Aircraft Ltd., Flight Design General Aviation GmbH, Harbour Air Seaplanes, Heart Aerospace AB, Joby Aviation Inc., Lange Aviation GmbH, Pipistrel d.o.o Ajdovscina, RTX Corporation, Siemens AG, Vertical Aerospace Ltd.
North America was the largest region in the electric aircraft market in 2024. The regions covered in the electric aircraft market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the electric aircraft market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The electric aircraft market consists of sales of ultralight and light electric aircraft. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Electric Aircraft Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on electric aircraft market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for electric aircraft ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The electric aircraft market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.