Electric Aircraft Market by Technology (Battery, Fuel Cell, and Hybrid), Application (Ultralight Jet and Light Jet): Global Market Size Estimates and Forecast (2019–2030)
The market is expected to cross US$ 2.52 billion in 2022 and is expected to hit US$ 28.70 million by 2030, recording a CAGR of 35.5% during the forecast period.
Vendors Focusing on the Development of Electric and Hybrid Propulsion-Based Aircraft Models.
The vendors across the electric aircraft industry are showing major interest in the development of electric and hybrid propulsion aircraft. For this several vendors are collaborating with electric propulsion engine manufacturers to build up a strong relationship with propulsion system manufacturers in the electric aviation market. For instance, the ultralight electric aircraft model eDA40 of Diamond Aircraft company are being powered by EP Systems and Safran made electric propulsion systems. Similarly, another model of Diamond Aircraft that was developed in 2018 in collaboration with Seimens wherein the companies collaboratively developed hybrid engines for operation in HEMEP aircraft model.
Most of the electric aircraft vendors face major challenges during the certification of the aircraft models that is one of the major restraining factors hampering the market growth. The regulatory authorities such as Federal Aviation Administration (FAA) are announcing new regulations for the certifications of electric propulsion-based aircraft models. For instance, in September 2021, the FAA announced special conditions for airworthiness standards of electric propulsion systems in commercial aircraft. Such announcements by FAA have brought new relief to the electric aircraft manufacturers as they can now fully focus on the baseline requirements of regulatory authorities for the approval of their respective aircraft models as there were no specific regulation requirements that had been shared by FAA before. Such developments have been pushing the electric aircraft manufacturers to develop reliable solutions based on the market requirements
Within the report, the market is segmented into technology, application, and geography. By technology, the market is segmented into battery, fuel cell, and hybrid. Based on application, the market is bifurcated into ultralight jet and light jet. Geographically, the market is sub-segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.
Development of eVTOL (Electric Vertical Takeoff and Landing) Aircraft to Provide Future Opportunities for Market Vendors During the Forecast Period.
The favorable government initiatives from leading countries and a growing number of startups entering the market fuel the adoption of eVTOL air aircraft models. For instance, in December 2021, the Australian government announced a grant worth US$ 23 million to explore the application of new aviation technology as part of its Emerging Aviation Technology Partnerships Program. The funding aims to accelerate the adoption of urban air mobility transportation, which consists of drones, eVTOL aircraft, and alternative propulsion systems. Similarly, in April 2022, Airbus and ITA Airways signed a Memorandum of Understanding to collaborate on urban air mobility (UAM) in Italy. The agreement also focuses on the safe and sustainable launch of CityAirbus NextGen eVTOL aircraft.
In European countries, the first flight of air taxis is expected to occur by 2024. Most European firms have announced developments of urban air mobility vehicles for passenger. Thus, as per the European Union Aviation Safety Agency (EASA), commercial use of (air) taxis can start by 2024 or 2025. In addition, according to FAA, the US is engaged with more than 15 eVTOL aircraft manufacturers. Uber Air, EHang, Volocopter, Joby, and Lilium GmbH are among those who have forefront their intent to launch commercial passenger operations within the next three to five years across the US aviation industry. Thus, upcoming developments and initiatives from leading countries for incorporating the adoption of air taxis would strengthen the demand for urban air mobility, which is expected to provide lucrative opportunities for the eVTOL aircraft market growth during the forecast period.
Rising Demand for Lower Emission-Based Aircraft Propulsion Systems is Another Major Factor Accelerating the Electric Aircraft Market Growth.
The aviation industry accounts for nearly 2.7% CO2 emissions worldwide which is one of the major factors generating the concerns for aviation regulatory authorities for the reduction of harmful emissions caused by aviation industry. Several regulatory associations are majorly focusing pushing the vendors for the development of low cost and low emission-based aircraft propulsion systems which is one of the major factors pushing the development of electric propulsion systems for electric aircraft models. Moreover, the vendors across the aviation industry are also taking several initiatives to enter the electric propulsion technology for future innovations in the aircraft ecosystem.
Many aircraft propulsion manufacturer companies are also focusing on the development of hybrid propulsion system that can accommodate electric as well as jet fuel systems. For instance, in July 2022, GE Aviation announced that it has successfully completed the testing of megawatt (MW)-class and multi-kilovolt (kV) hybrid electric propulsion system in altitude conditions that simulate single-aisle commercial flight. Similarly in September 2022, Electra.aero announced that it has completed a fully integrated test of its hybrid-electric propulsion system for the eSTOL aircraft. Such developments are likely to generate huge opportunities for electric aviation or electric aircraft market during the forecast period.
Recent strategic developments in electric aircraft market
The electric aircraft market has undergone several significant developments, and a few of these have been mentioned below:
- In April 2022, Safran and Diamond Aircraft signed a collaboration agreement to equip Diamond Aircraft’s eDA40 all-electric training aircraft with an ENGINeUS electric smart motor developed by Safran.
- In April 2022, Eviation Aircraft (a US-based electric aircraft manufacturer company) signed a letter of intent with Cape Air to sell 75 units of its all-electric Alice commuter aircraft.
- In April 2022, the US Army Combat Capabilities Development Command Army Research Laboratory (DEVCOM ARL) awarded a contract worth US$ 5.1 million to GE Aviation to develop hybrid electric engine technologies under the Applied Research Collaborative Systematic Turboshaft Electrification Project (ARC-STEP).
The electric aircraft market is driven by several players by implementing strategic activities such as investments, new launches, mergers & acquisitions, and partnerships. Wisk Aero, Airbus, Lilium GmbH, Diamond Aircraft Industries, Textron Aviation Inc., Eviation, Bye Aerospace, Ampaire Inc., Electra Aero Inc., and MagniX USA Inc. are among the prominent players operating in the market.
Target audience for the report:
- Light electric aircraft manufacturers
- Ultralight electric aircraft system manufacturers
- Electric aircraft propulsion system manufacturers
- Hybrid-electric propulsion system manufacturers
- Aviation related associations, organizations, forums, and alliances
- Government bodies, such as regulating authorities and policy makers
- Venture capitalists, private equity firms, and start-up companies
- Research institutes, organizations, and consulting companies
Scope of the report:
In this report, the market has been segmented on the basis of:
- Technology:
- Battery
- Fuel-Cell
- Hybrid
- Application
- Ultralight Aircraft
- Light Jet
- Region
- North America
- US
- Canada
- Mexico
- Europe
- Asia Pacific (APAC)
- Middle East & Africa
- South America
- North America
- Companies profiled
- Wisk Aero
- Airbus
- Lilium GmbH
- Diamond Aircraft Industries
- Textron Aviation Inc.
- Wisk Aero
- Airbus
- Lilium GmbH
- Diamond Aircraft Industries
- Textron Aviation Inc.