Market Research Report
Electric Aircraft Market with COVID-19 Impact Analysis, By Technology, By Component, By Aircraft Type, By Organization Size, By Range, By Vertical, By Application, and By Region - Size, Share, & Forecast from 2022-2027
|Electric Aircraft Market with COVID-19 Impact Analysis, By Technology, By Component, By Aircraft Type, By Organization Size, By Range, By Vertical, By Application, and By Region - Size, Share, & Forecast from 2022-2027|
Published: March 1, 2022
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Content info: 299 Pages
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The global Electric Aircraft market was valued at USD 180.6 million in 2021, growing with 16.7% CAGR during the forecast period, 2022-2027.
An electric aircraft is an aircraft which uses electricity as a source of energy. Electric motors are used to power the propellers in the aircraft to generate thrust or power rotors to generate lift. The most common source of electricity for the motors are batteries or solar powered cells.
The electric aircraft market is in its nascent stage and is expected to grow at a moderate pace during the forecast period. The major driver for production and demand of e-flights is the concern raised regarding the carbon emissions by the traditional aviation industry and its impact on the environment. The rising adoption of e- motors and solar powered cells coupled with its reducing costs are few other factors which will aid in faster growth for the electric aircraft market. Noise pollution is another key driver for implementing e-flights. The international civil aviation organization has developed stringent protocols for noise pollution.
Moreover, adoption of e- flight production by key commercial airliners is estimated to fuel the growth of the industry. For Example, Airbus helicopters is developing Airbus city Airbus and tested its first flight in 2019. The e-VTOL is a four-passenger vehicle which is meant for intra city transportation and for air taxi.
Many startups have also shown interest in producing e-flights especially from developing economies such as India and China. Original equipment manufacturers are also furthering their research to produce e-components such as batteries and motors. A key constraint in developing such a technology is the significant investment that is required to take it into production, but major airliners are significantly investing in research and development because of the costs saved in running an e-flight compared to a traditional one.
Transformation of urban transportation and personalized mobility are other drivers for companies to target and produce e-flights. Apart from mobility, logistics service providers have also been studying the usage of Drones and e-VTOLs to deliver packages to consumers in a cost-effective manner.
On the basis of technology, the global e- aviation industry is bifurcated into hybrid, all electric and others. The hybrid category had a major share in 2019 in the global e- aviation industry and accounted for over 30% of the market in 2019. There is an increase in adoption by major aircraft manufacturers to produce hydrogen-based fuel cells, alternate propulsion systems, solar powered cells and electric propulsion systems for Hybrid based aircrafts. There is also a rising popularity to manufacture a fully functioning electric aircraft amongst OEMs, designers and various other players, and these players are collaborating to build a fully electric aircraft for the market. Another reason that has led to a huge interest by the commercial airliners towards manufacturing an all-electric aircraft is because of significant amount of cost saved by not using fuel. For instance, Airbus developed and tested it's all electric flight called as Vahana, in 2019, which is a single seated, tilted winged vehicle demonstrator. This vehicle was developed to innovate vertical takeoff and landing aircrafts for personalized usage.
Besides, e-VTOLS are expected to grow at the highest CAGR of 20.42% in the coming years, because of the increase in demand for sustainable transportation and also increase in on ground transport congestion. The growth can also be attributed to the various number of startups that are developing various prototypes in this industry especially from emerging economies. The increase in the growth can also be attributed to the various investments coming in to develop e-VTOLs and drones for urban mobility.
Based on the components used, the e-aviation industry is divided into electric motors, aircraft battery and others. The market for electric motors is a matured one as compared to aircraft battery which is still in development. Manufacturers are focusing on both the components to ensure that the aircrafts can travel for longer distances. The electric motors market accounted for a major share in 2019 and had more than 30% of the market share in the same year. The increased adoption of electric motors in other modes of transport is a major reason for its dominance.
However, there is quick development in aircraft battery market as well. For instance, in 2020, first ever journey completed by e-caravan one of the largest electric aircraft carrier has a 2000 pound lithium ion battery developed into it. This showcases that the aviation industry is becoming mature in using all its components as e-components. Significant research is also being undertaken to develop motors and batteries for long range flights. Improvement in motor and battery performance by various players will also close the technology gap involved in developing long range commercial flights.
Based on geography, the global e- aviation industry is categorized into Europe, North America, Asia Pacific and others. In 2019, Europe had the major market share and proportionally it had 35% of the market revenue share in 2019. The key factor for Europe's dominance is because of the aircraft industry in Europe using advanced materials, in major components, such as single crystals and gamma titanium aluminides. Such advanced materials help the aircrafts to reduce noise, carbon emission and also reduce fuel usage.
Along with Europe, the USA is also growing its e- aviation industry at a similar CAGR. Asia pacific and the rest of the world is catching up with USA and Europe with its development in the relevant technology taking place at a slower rate.
COVID 19 has had a huge impact on the e- aviation industry. Lockdown and closure of border at various countries have made the e- flight manufacturers to delay their plans of production. The reversal of the impact will depend on the governments opening up the borders and allowing flights. The impact on e-aviation industry is derived from the traditional aviation market. Cancellation of existing orders and delay in new orders have impacted the traditional aviation players. The imbalance in the supply chain will affect the e- aviation industry as well.
The industry is in consolidated owing to the nascent stage of the industry and ongoing development in research of prototype development and production techniques. Most of the players are however present in the USA and Europe region. The increase in demand for technologies which reduce carbon emissions have led to organizations adopting growth strategies such as acquiring startups or having strategic partnerships with like-minded organizations so that the organizations can be first movers in the industry on the global scale. For example, in 2021, e-aircraft manufacturer, archer merged with Moelis backed Spac in the hopes of commercializing urban air taxis. This deal helped Archer to go public, gathering the required funds to produce and commercialize urban taxis on a large scale. Integration of the supply chain from various actors will help reduce the costs of production, thereby improving the demand of urban mobility vehicles. Such steps will also help various players to start volume manufacturing.
The scope of this report covers the market by its major segments, which include as follows: