May 29, 2024

The Global Electric Aircraft Market is driven by Surging Demand for Sustainable Air Travel

The electric aircraft market has seen tremendous growth in recent years driven by the need for sustainable and eco-friendly modes of air travel. Electric aircraft have zero operational emissions and offer considerable savings on fuel costs compared to traditional jet aircraft which heavily rely on fossil fuels. These electric planes are typically powered by lithium-ion batteries that can be charged much like electric vehicles. While battery technology is still evolving to improve energy storage capacity for long range flight, electric aircraft are perfectly suitable for short haul commercial flights within cities or small regions. With falling battery prices and advancements in electric propulsion systems, leading aerospace firms are investing heavily in the development of various electric aircraft models ranging from small e-planes suitable for personal use to larger electric commercial airliners. The global electric aircraft market offers a wide variety of electric aircraft suited for everything from personal use and commuting to cargo transportation and commercial aviation. Emerging models feature advanced aerodynamics, lightweight composite materials, and electric motors that deliver efficient and reliable air travel.

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.

Market key trends:
The electric aircraft market is rapidly evolving driven by technological advancements and focus on sustainable aviation. Some of the key trends include growing investments in the development of large electric commercial airliners suited for regional air travel. Leading players like Boeing and Airbus are unveiling ambitious plans for electric air taxis and small commuter planes to connect cities. There is also significant focus on improving battery energy density through new chemistries like solid-state batteries that can power electric aircraft over longer ranges. Lightweight composite materials and advanced aerodynamics are enabling more efficient aircraft designs optimized for electric propulsion. Furthermore, governments across regions are implementing supportive policies and incentives to drive commercial electric aviation forward to achieve environmental targets. These trends are likely to shape the future growth trajectory of this market over the coming years.

Key players Boeing, Airbus, Zip Aviation, MagniX, etc. Key players operating in the electric aircraft market are Boeing, Airbus, Zip Aviation and MagniX. Boeing and Airbus are investing heavily in electric flight testing and development programs. Startups like Zip Aviation and MagniX are working on electric propulsion systems and retrofitting solutions. Partnerships across the ecosystem are frequent.

Porter’s Analysis
Threat of new entrants: Low cost of production in emerging economies may attract new players. However, high R&D costs and the need for extensive certifications pose significant barriers to entry.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several global aircraft OEMs and operators in the market. However, differentiated products and services provide some customer lock-in.

Bargaining power of suppliers: Suppliers of critical components like batteries and electric propulsion systems have high bargaining power due to limited availability and supplier concentration. This influences costs.

Threat of new substitutes: Hydrogen-powered aircraft and sustainability-driven innovations pose a threat, but limited infrastructure impedes widespread commercialization in the near future.

Competitive rivalry: Intense as Boeing, Airbus and key startups race to develop and certify electric aircraft. Partnerships are common to mitigate risks from heavy capital investments.

Regional analysis: Europe is also an important market led by increasing focus on reducing aviation emissions. Countries like Germany and France are funding electric aircraft programs. The Asia Pacific region is emerging as a high growth market led by China. Developing economies are expanding aviation networks requiring new aircraft.

Key Takeaways

The global Electric Aircraft Market is expected to witness high growth.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it