Electric Aircraft Market Size to Worth Around US$ 50.86 Bn by 2032

The global electric aircraft market size reached USD 7.91 billion in 2022 and it is projected to grow to USD 50.86 billion by 2032 with a noteworthy CAGR of 20.6% from 2023 to 2032.

Key Takeaway

Light and ultralight aircraft segment will generate 40.1% revenue share in 2032.
Battries segment will lead the market and projected to reach 35.6% revenue share in 2032.
Fixed wing segment will account revenue share of 46% in 2032.
eVTOL segment will capture 58.25% revenue share in 2032.
Military segment will generate 45.1% of global revenue share in 2032.
North America region will capture 43% revenue share in 2032.

The expansion of the electric aircraft market is aided by growing environmental concerns. Electric airplanes aid in pollution reduction. As a result, the negative effects of global warming are reduced as well. Electric aircraft are also thought to be an environmentally favorable option. Carbon emissions and greenhouse gas emissions are being addressed by governments in both developed and developing countries. This element is expected to boost the worldwide electric aircraft market’s growth and development over the next few years.

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The number of passengers for airlines is growing due to rising disposable income and expanding urbanization. Because of the increased number of passengers, modern technology and creative aircraft are being adopted. This factor is driving the growth of the global electric aircraft market.

Regional Snapshot

In terms of region, the electric aircraft market in North America is the largest. The expansion of the electric aircraft industry is being fueled by factors such as rising environmental concerns and more government initiatives. Furthermore, people and business owners in the North American region use business aircraft for large-scale travel. This reason is also propelling the electric aircraft market in the U.S. and Canada.

In the electric aircraft market, the Europe area is the fastest expanding region. The presence of key industry participants is driving the electric aircraft market in Europe. Furthermore, residents in this region can afford to travel by business jet, which is driving demand for electric aircraft in Europe. Furthermore, favorable government policies are assisting in industry expansion

Report Highlights

The business jets, regional transport aircrafts, and light and ultralight aircraft are the different types of electric aircraft. Among all these segments, the light and ultralight aircraft is the dominating segment. This is due to the growing need of ultralight and light vehicles for transport.
On the basis of system, electric motors dominate the electric aircraft market. This is owing to the benefits provided by electric motors such as cost effectiveness and efficiency as compared to traditional motors.
By technology, the VTOL holds the largest market share in the global electric aircraft market. The VTOL based electric aircrafts are hugely utilized for regional transport as air taxis. In addition, this aircraft helps for the passenger transportation and medical assistance.

Report Scope of the Electric Aircraft Market

Report Coverage	Details
Market Size by 2032	USD 50.86 Billion
Growth Rate from 2023 to 2032	CAGR of 20.6%
Largest Market	North America
Fastest Growing Market	Europe
Base Year	2022
Forecast Period	2023 to 2032
Segments Covered	Platform, System, Type, Technology, Application, Range, Geography

Market Dynamics

Drivers

Use of electric aircraft for logistics purpose

The logistics sector is moving towards the zero or low emission transport solutions due to environmental concerns. That’s the reason the logistics industry players are highly investing in the transport modes which deploy electric based vehicles. The electric aircraft with advanced features is also helping logistics sector to deliver their cargo on time. The electric aircraft is also cost effective in nature. Thus, the use of electric aircraft for logistics purpose is driving the market growth over the projected period.

Restraints

Lack of development of high-density batteries

The original equipment manufacturers (OEMs) are not able to develop batteries with high density due to lack of resources. The electric aircraft requires batteries that can assist in long distance journeys. Still, the long shelf-life batteries have not been introduced in the electric aircraft market. With the help of technological advancements, this type of battery is expected to be launched in the near future. Thus, lack of development of high-density batteries is restricting the growth of the global electric aircraft market.

Opportunities

Surge in demand for low or zero emission aircrafts

Due to the environmental issues and concerns, the government of developed and developing regions is recommending for the launch of low or zero emission aircrafts. Thus, the electric aircraft does not emit carbon dioxide or greenhouse gas which is saving the environmental pollution. Hence, this is driving the demand for electric aircraft in the market. As a result, the surge in demand for low or zero emission aircrafts is creating lucrative opportunities for the growth of the global electric aircraft market during the forecast period.

Challenges

High cost of investments

The manufacturing of electric aircraft requires lot of money. The manufacturing cost of electric aircraft includes labor, hardware, and technology. These components must be of high quality in nature. Many of the original equipment manufacturers cannot afford this huge amount. As a result, the high cost of investments is a major challenge for the expansion of the electric aircraft market.

Recent Developments

DHL Express bought 12 electric cargo planes from startup aviation in August 2021 for delivery by 2024, with plans to create the world’s first electric air transport network.
CUSTOMCELLS, a German manufacturer of custom lithium-ion battery cells in July 2021 teamed with Lilium GmbH. CUSTOMCELLS, which provides major aviation, military, and automotive customers such as Porsche AG will be one of Lilium’s primary suppliers, producing lithium-ion batteries on a large scale for the all-electric Lilium Jet.
American Airlines invested around USD 25 million in Vertical Aerospace Group in June 2021, which is developing a small and electric powered aircraft that could transport people from cities to airports by taking off and landing vertically, similar to helicopters. The corporation intends to place a $1 billion purchase for small electric aircrafts.

Some of the prominent players in the global electric aircraft market include: