Electric aircraft are powered by electric motors instead of internal combustion engines. Electric aircraft include various electric-powered aircraft variants like hybrid-electric aircraft, all-electric aircraft, and electric vertical take-off and landing aircraft (eVTOL). The growing push towards sustainable aviation to reduce aircraft emissions is driving demand for electric aircraft. Electric aircraft offer significant operational advantages over traditional aircraft as they have lower operating costs, nearly-silent operations, and zero emissions.
The global electric aircraft market is estimated to be valued at US$ 9,661.6 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity to reduce aircraft emissions is expected to drive high growth of the electric aircraft market during the forecast period. According to INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC), aviation accounts for approximately 2-3% of global human-induced CO2 emissions. With growing environmental concerns, there is a need to reduce emissions from aircraft. Electric aircraft have potential to significantly reduce aircraft emissions as they do not burn fossil fuels and have nearly zero operational emissions. Transitioning to sustainable aviation through increased adoption of electric aircraft can help the aviation industry reduce its carbon footprint. Leading airplane manufacturers are heavily investing in electric aircraft development to capitalize on this market opportunity of reducing emissions.
Porter’s Analysis:
Threat of new entrants: The electric aircraft market has moderate threat of new entrants due to high investment requirements. However, the growing demand for green aviation provides opportunities for new companies to enter this market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several established electric aircraft manufacturers. However, high costs of electric aircraft limit the bargaining power of buyers currently.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as the electric aircraft market relies on a limited number of component suppliers for critical technologies like batteries and electric motors. However, established suppliers can still influence prices.
Threat of new substitutes: Threat of substitutes is low as electric aircraft provide environmental and economic benefits over traditional fuel-powered aircraft. Hybrid and hydrogen-powered aircraft may emerge as substitutes in long-term.
Competitive rivalry: Intense among the large established aircraft manufacturers to gain greater market share through new product launches and partnerships.
SWOT Analysis:
Strengths: Established brands, expertise in aeronautics, investment in R&D.
Weaknesses: High costs, limited flight range, lack of sufficient battery technology.
Opportunities: Growing environmental concerns, support from governments.
Threats: Slow infrastructure growth, regulations around certification of new technologies.
Key Takeaways:
The Global Electric Aircraft Market Demand is expected to witness high growth over the forecast period due to stringent emission norms and rising awareness about pollution. The global Electric Aircraft Market is estimated to be valued at US$ 9,661.6 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030.
North America dominates the global market currently due to strong government support and presence of major aircraft manufacturers in the region. Asia Pacific electric aircraft market is anticipated to grow at the fastest pace during the forecast period. Countries like China and Japan are witnessing increased investment in green aviation technologies to reduce emissions.
Key players operating in the electric aircraft market are Boeing, Airbus, Raytheon Technologies Corporation, Honeywell International Inc., Thales Group, Lockheed Martin Corporation, Zunum Aero, YUNEEC, Elektra Solar GmbH, PIPISTREL, BYE AEROSPACE, DELOREAN AEROSPACE, LLC, Joby Aviation, Siemens, Safran, Bombardier, TTTech Computertechnik AG, and AgustaWestland. Major players are focused on new product launches and collaboration activities for technology development.
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