Global Aircraft Electrification Market Insights Forecasts to 2033

• The Aircraft Electrification Market Size was valued at USD 10.3 Billion in 2023.
• The Market Size is Growing at a CAGR of 9.91% from 2023 to 2033
• The Worldwide Aircraft Electrification Market Size is expected to reach USD 26.5 Billion by 2033
• Asia Pacific is expected to Grow the fastest during the forecast period

The Global Aircraft Electrification Market Size is expected to reach USD 26.5 Billion by 2033, at a CAGR of 9.91% during the forecast period 2023 to 2033.

The research and application of electric propulsion systems, electrical power production and distribution systems, and other associated technologies in aircraft constitute the rapidly expanding aircraft electrification market within the aviation industry. The growing need for aviation solutions that are more economical, ecologically friendly, and fuel-efficient has brought a lot of attention to this industry in recent years. Electrified aircraft can be more cost-effective during their lifespan due to long-term operating benefits, such as lower fuel and maintenance expenses, even though the initial investment costs for these systems may be significant. Innovation in electric propulsion technology is being propelled by the rise of UAM, which encompasses ideas like electric vertical takeoff and landing (eVTOL) aircraft for urban transportation.

Aircraft Electrification Market Value Chain Analysis

Research and development (R&D) centres, academic institutions, and R&D divisions of businesses collaborate to advance technology pertaining to power electronics, battery systems, electric propulsion, and other essential components for aircraft electrification. Suppliers of components are vital in supplying necessary parts and systems for aeroplanes that run on electricity. This covers wiring, connectors, battery systems, power electronics, electric motors, and other electrical parts. Electrification technologies are included into aeroplane designs by manufacturers. In order to integrate electric propulsion systems while maintaining safety and legal compliance, this entails rebuilding the structures, systems, and individual parts of aircraft. The task of putting together different parts to create entire electric propulsion systems falls to system integrators. The final consumers of electrified aircraft are airlines and operators. They assess the efficacy, economy, and performance of electric propulsion systems and base their fleet electrification decisions on operational needs, route characteristics, and financial concerns.

Aircraft Electrification Market Opportunity Analysis

Compared to conventional jet engines, electric propulsion systems have the potential to save a substantial amount of fuel. Over the course of an aircraft's lifetime, airlines can reap the benefits of lower operating costs, which include less fuel consumption and maintenance charges. The market for aircraft electrification is anticipated to increase significantly over the next several years due to a rise in the demand for environmentally friendly aviation solutions, legislative measures that support electrification, and technological developments. For businesses engaged in the design, development, production, and use of electrified aircraft systems and components, this expansion offers prospects. Supporting infrastructure is needed for the electrification of aeroplanes, such as in-flight charging options and airport charging infrastructure. In order to facilitate the general adoption of electrified aircraft, this offers infrastructure providers the chance to engage in the development and implementation of charging infrastructure.

Market Dynamics

Aircraft Electrification Market Dynamics

Environmental issues on the rise and battery technological developments

There is a growing movement to reduce carbon emissions in all sectors of the economy, including aviation, as people become more aware of climate change and its effects. The aviation sector is under pressure to implement more environmentally friendly procedures since aircraft contribute significantly to greenhouse gas emissions. Customers are selecting brands with a sustainability focus as they become more aware of environmental challenges. In order to stay competitive in the market and uphold their good reputation, airlines and aircraft manufacturers are investing in environmentally friendly technologies in response to this transition. The cost of batteries is going down as economies of scale and developing technology in battery manufacturing take effect, making electric propulsion systems more feasible from an economic standpoint for use in aeroplanes.

Restraints & Challenges

In battery technology, energy density, weight, and safety continue to be major obstacles. For batteries to meet aircraft performance standards, they must be lightweight and able to store a substantial amount of energy. Furthermore, it's crucial to guarantee battery safety and dependability throughout a range of working circumstances. A sufficient infrastructure for charging electric aircraft is necessary for their widespread use. This covers both in-flight charging options and ground-based charging facilities at airports. The infrastructure needs to be able to support various battery technologies and aircraft types. It can be difficult to establish a reliable supply chain for electric aircraft parts, such as batteries, motors, and power electronics. The effective manufacture of electric aircraft depends on controlling supply chain interruptions, increasing manufacturing capacity, and guaranteeing the availability of high-quality components.

Regional Forecasts

North America Market Statistics

North America is anticipated to dominate the Aircraft Electrification Market from 2023 to 2033. In the aviation sector, innovation and technology developments are centred in North America. Many businesses, academic institutes, and start-ups focused on electric propulsion systems, battery technology, power electronics, and other components necessary for aircraft electrification are based in the region. One of the most important aspects of the North American aircraft electrification market is the establishment of charging infrastructure. To facilitate the integration of electric aircraft into the current aviation infrastructure, airports and aviation stakeholders are investing in the development of ground-based charging stations, in-flight charging options, and infrastructure modifications.

Asia Pacific Market Statistics

Asia Pacific is witnessing the fastest market growth between 2023 to 2033. Some of the fastest-growing aviation markets globally are found in the Asia-Pacific region, where the middle class is developing, urbanisation rates are rising, and disposable incomes are rising. Interest in more ecologically friendly and fuel-efficient aeroplane options, such as electrified planes, is developing due to the region's increasing need for air travel. Because of their existing supply chains and capacities for aerospace manufacturing, the APAC region is a desirable place to produce parts for electric aircraft. China and Japan, for example, are investing in developing their own local batteries, power electronics, and electric propulsion systems.

Segmentation Analysis

Insights by Application

The power distribution segment accounted for the largest market share over the forecast period 2023 to 2033. More advanced power distribution systems are becoming more and more necessary as aeroplanes electrify. Aircraft power distribution needs to be efficient and dependable as additional electrically powered systems and components, including as propulsion, avionics, and cabin systems, are added. To control the flow of electricity to and from energy storage systems like batteries integrated into aeroplanes, strong power distribution systems are needed. Battery energy must be efficiently charged, discharged, and regulated by power distribution systems while maintaining dependability and safety. Manufacturers of aeroplanes are always looking for ways to reduce weight and increase efficiency in order to increase performance and fuel economy.

Insights by Technology

The hybrid electric segment is dominating the market with the largest market share over the forecast period 2023 to 2033. Enhanced fuel efficiency and lower emissions are provided by hybrid electric propulsion systems in contrast to conventional gas turbine engines. They accomplish this by enabling more effective power generation and distribution by integrating electric propulsion with traditional engines or generators. Airlines can save money by using hybrid electric propulsion systems since they use less fuel and require less maintenance. Hybrid electric aeroplane systems are attracting interest and investment due to their economic benefits. The range of electric aeroplanes can be increased using hybrid electric systems, which supply extra power when required. By addressing one of the main drawbacks of entirely electric aircraft, hybrid electric options are now more suited for longer-haul flights.

Insights by Platform

The UAV segment accounted for the largest market share over the forecast period 2023 to 2033. UAVs are becoming more and more in demand in a number of industries, including defence, agricultural, delivery services, surveillance, and mapping. Due to its affordable and adaptable solutions for a variety of uses, UAVs are propelling this segment's market expansion. Compared to their internal combustion engine counterparts, electric UAVs emit less pollutants and generate less noise, making them more ecologically friendly and appropriate for usage in sensitive and metropolitan regions. To cut down on noise and pollution, regulatory organisations may also require or encourage the usage of electric UAVs. New use cases and applications are always emerging in the UAV sector, which is undergoing tremendous innovation and diversification. The development of electric unmanned aerial vehicles (UAVs) for specific purposes such cargo transportation, long-range surveillance, agricultural spraying, and environmental monitoring is propelling the market expansion.

Recent Market Developments

• In January 2024, Two Kenyan carriers have signed deals with Surf Air Mobility to receive its technology. Safarilink and Yellow Wings have agreed to use SAM's unique powertrain after it is certified by the FAA, which should happen in 2026.

Competitive Landscape

Major players in the market

• Collins Aerospace
• Honeywell International Inc.
• Rolls-Royce plc
• Thales Group
• BAE Systems
• Safran S.A.
• Ametek.Inc.
• MagniX
• Meggitt plc
• Astronics Corporation

Market Segmentation

This study forecasts revenue at global, regional, and country levels from 2023 to 2033.

Aircraft Electrification Market, Application Analysis

• Power Distribution
• Power Generation
• Power Conversion
• Energy Storage

Aircraft Electrification Market, Technology Analysis

• Hybrid Electric
• Fully Electric
• More Electric

Aircraft Electrification Market, Platform Analysis

• Military Aviation
• Commercial Aviation
• General Aviation
• UAV
• Advanced Air Mobility

Aircraft Electrification Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa