Aircraft electrification market is expected to grow from US$ 1,977.47 million in 2021 to US$ 14,683.71 million by 2028; it is estimated to grow at a CAGR of 34.1% between 2022 and 2028.
The aircraft industry across the world is continuously evolving with new and advanced technologies, which helps improve the overall aircraft operational efficiency and reduce environmental emissions. Federal Aviation Administration (FAA), Air Transport Association (ATA), International Air Transport Association (IATA), and other regulatory bodies are putting up stringent regulations to reduce the carbon emissions from the aviation sector. The global aerospace sector currently accounts for ~2.7% of the global carbon emissions that is expected to be reduced in the future after the launch of electric commercial aircraft models. The aircraft electrification market is currently driven by the small lightweight and ultralight aircraft models. Ultralight aircraft includes one- or two-seater aircraft models. However, small lightweight aircraft models consist of 5–7-seater aircraft models, such as Lilium's 5-seater and 7-seater electric aircraft jets. The development of electric aircraft is limited to such aircraft models only as per the current market development scenario. The demand for large sized electric aircraft is expected to be in the future, as there are many vendors working on the electric propulsion technology that can be integrated into large-sized commercial aircraft models. However, due to many limitations and technological challenges, the development of such large payload electric engines has not been succeeded yet which is expected to be developed in the near future. This is mainly due to the factor that two of the major manufacturers of commercial aircraft, such as Airbus and Boeing, still have plans to produce jet fueled aircraft through 2030. Therefore, currently, the all-electric or hybrid commercial aircraft models are unforeseeable.
The significant acceleration among the urban air mobility industry players is expected to propel the aircraft electrification market in the future. The companies operating in the industry are investing substantial amounts in their respective R&D and designing teams as well as in certification acquisitions. The urban air mobility (UAM) sector is anticipated to be one of the key catalyzers of electric aircraft models.
Further, many vendors are focusing on the development of more electric and all-electric aircraft models. For instance, in August 2022, Seaplane airline Harbour Air announced that it has successfully completed its first point-to-point test flight of new all electric eBeaver plane in Canada. The eBeaver electric plane flew 45 miles with plenty of reserve power left when it landed. Moreover, in February 2022, Rolls Royce announced that the company is aiming to develop a small fully-electric aircraft in the next three to five years; the product will be named as P-Volt that will comprise of a battery electric system and will have a power capacity of 600-kilowatt hours.
MARKET DYNAMICS
Rising awareness related to the need for reduction in carbon emissions generated from the aviation industry is one of the major factors that has led to the introduction of electric aircraft. The electric aircraft models do not emit any harmful emissions and offers the users a lesser operational cost.
Several aviation and environmental authorities such as FAA, IEA, and others are mainly focusing on introducing new regulations on the use of electric systems that could lead to lesser carbon emissions. The demand for electric propulsion in the aviation industry is currently driven by the rising development of electric aircraft propulsion systems by aircraft OEMs and engine manufacturers worldwide. For instance, in July 2022, GE announced that it has successfully completed the testing of its megawatt (MW)-class and multi-kilovolt (kV) hybrid electric propulsion system in altitude conditions that simulate single-aisle commercial flight.
Strategic Insights
MARKET SCOPE
The "Global Aircraft Electrification Market Analysis to 2028" report aims to provide an overview of aircraft electrification market with detailed market segmentation based on technology and application. The report provides key market statistics based on the financial performances of the leading players in the aircraft electrification market. It also offers key trends and opportunities in the market.
MARKET SEGMENTATION
The global aircraft electrification market is bifurcated on the basis of technology and application. By technology, the market is segmented into battery, fuel-cell, and hybrid. Based on application, the market is bifurcated into ultralight aircraft and light aircraft.
REGIONAL FRAMEWORK
The global aircraft electrification market is segmented into five major regions—North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and South America. The report covers analysis and forecast of 18 countries across the world along with trends and opportunities prevailing across the regions.
From the regional perspective, North America dominates the aircraft electrification market with ~42% share in 2022. The market growth in the region is majorly attributed to the presence of a large number of electric aircraft OEMs and electric propulsion system manufacturers. magniX, Honeywell International Inc., and General Electric are among the key electric propulsion system companies in the region. These players witness constant demand from electric aircraft manufacturers, including Joby Aviation, Wisk Aero, Ampaire, and Textron. The below figure showcases the revenue growth trend in the global aircraft electrification market.
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Source: The Insight Partners Analysis
The report analyzes factors, such as drivers, restraints, opportunities, and future trends, which impact the aircraft electrification market. It also provides exhaustive Porter's five forces analysis of the factors influencing the aircraft electrification market.
IMPACT OF COVID-19 PANDEMIC
The COVID-19 pandemic adversely affected the aviation industry. The global aviation industry was expected to lose around US$ 200 billion between 2020 and 2022. During the FY 2020, the pandemic impact reduced aircraft production, disrupted supply chain, and postponed new orders. In the same year, vendors in the aviation industry witnessed challenges related to labor shortage and the supply and transportation of materials and parts. This had also impacted the electric aircraft industry in a negative manner. As the electric aircraft industry is still in its development phase and is required to have an increasing economic growth to sustain the developments across the industry, the testing, certification, and production of prototypes have been severely impacted during the pandemic. Such factors hindered the aircraft electrification market growth during the COVID-19 pandemic. However, the aviation industry has resumed its operations by the end of 2021, and the companies are already started recovering from their losses occurred during the pandemic. Thus, the developments across the aircraft electrification market have been witnessing several proposals for the certifications and approvals of different electric aircraft models by electric aircraft OEMS.
MARKET PLAYERS
The report covers key developments in the aircraft electrification market. Various companies are focusing on organic growth strategies, such as product launches, product approvals, and patents and events. In addition, acquisitions, and partnerships & collaborations are among the inorganic growth strategies witnessed in the market. These activities have paved way for the expansion of business and customer base of market players. The players operating in the aircraft electrification market are anticipated to experience lucrative growth opportunities in the future owing to the rising demand for the electrification of aircraft.
The report also includes the profiles of key aircraft electrification market companies along with their SWOT analysis and market strategies. In addition, it focuses on leading industry players with information, such as company profiles, components and services offered, financial information of last 3 years, and key developments in past five years.
KEY MARKET PLAYERS
- ?Wisk Aero?Airbus?Lilium GmbH?Diamond Aircraft Industries?Textron Aviation Inc.?Eviation?Bye Aerospace?Ampaire Inc.?Electra Aero, Inc.?MagniX USA Inc.
The Insight Partner's dedicated research and analysis team consists of experienced professionals with advanced statistical expertise and offers various customization options in the existing study.
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