Aircraft Electrification Market Size (2021-2031) and Regional Overview
The Aircraft Electrification Market size is projected to reach US$ 22.54 billion by 2031 from US$ 7.87 billion in 2023. The market is expected to register a CAGR of 14.1% in 2023–2031. The growing concern for mitigating environmental pollution and lowering carbon emissions from the aviation sector is anticipated to boost the demand for aircraft electrification globally. The growing emphasis on rising fuel efficiency is anticipated to drive the application of aircraft electrification at the global level.
Aircraft Electrification Market Analysis
The process of operating aircraft systems through electrical methods rather than through conventional fuel-driven techniques. The procedure of electrification provides a number of prospective advantages, such as reduced emissions, increased fuel efficiency, and augmented aircraft range. The market of aircraft electrification also includes the advancement, fabrication, and supply of numerous systems utilized in the aircraft electrification process. The major aim of aircraft electrification is to make air travel more environment-friendly and sustainable while enhancing operational efficiency and lowering costs.
Aircraft Electrification Market Overview
The upsurge in the number of air travel and aircraft fleet size, pollution levels are also rising globally. The demand for electric aircraft is rising as it primarily helps in lowering carbon emissions. Government agencies such as the Federal Aviation Administration and the International Civil Aviation Organization, among others, are focusing on sustainable alternatives to fuel to mitigate environmental pollution.
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Aircraft Electrification Market: Strategic Insights
Market Size Value in US$ 1,977.47 Million in 2021 Market Size Value by US$ 14,683.71 Million by 2028 Growth rate CAGR of 34.1% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2021
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Aircraft Electrification Market: Strategic Insights
| Market Size Value in | US$ 1,977.47 Million in 2021 |
| Market Size Value by | US$ 14,683.71 Million by 2028 |
| Growth rate | CAGR of 34.1% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2021 |
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Aircraft Electrification Market Drivers and Opportunities
Growing Concerns Regarding Carbon Emission is Expected to be the Prime Driver for Aircraft Electrification Market
The aviation sector is one of the key contributors to greenhouse gas emissions that direct to climate change by utilizing fossil fuels. The employment of aircraft electrification technology is rising due to growing concern towards more sustainable and environment-friendly alternatives, rising climate change concerns, and supportive government initiatives towards boosting the usage of environment-friendly options across the globe. Governments of several economies are recognizing the significance of switching to electrification technologies for aircraft to meet the future targets of achieving low to zero carbon emissions. For instance, the US government targets to lower net GHG emissions by ~50–~52% in comparison to 2005 levels by 2031 and attain net zero emissions by 2050. Likewise, the German government has fixed a target to lower its carbon emissions by ~65% compared to 1990 levels by 2031. Thus, the growing environmental concern and focus on mitigating carbon emissions, along with encouraging fuel-efficient technology in the aviation sector is driving the market for aircraft electrification market globally.
Advancement of Electric Propulsion-Based eVTOL Aircraft
The increasing developments in electric propulsion-based UAVs are also expected to boost the eVTOL aircraft in the coming years, which is a major opportunity for the aircraft electrification market. Also, the operators across this market are initially focusing on the development of fully electric propulsion-based eVTOL aircraft, which is acting as one of the major drivers of the aircraft electrification market. For instance, in May 2022, Volocopter, a German startup, announced that it is partnering with Jetex, an aircraft ground handling company, to deploy and operate permanent vertiport infrastructure for passenger services. The startup will launch operations in 2024. As battery technology has improved over the years, eVTOL is becoming sustainable. Electric propulsion-driven eVTOL can move into intra-city and inter-city aviation. The funding from key players is also increasing, which is anticipated to drive the development of the market. Thus, the growing proliferation of electric propulsion-based eVTOL aircraft is projected to propel the growth of the aircraft electrification market over the forecast period.
Aircraft Electrification Market Report Segmentation Analysis
Key segments that contributed to the derivation of the aircraft electrification market analysis are component, technology, application, and platform.
- Based on the component, the aircraft electrification market has been divided into batteries, fuel cells, solar cells, electric actuators, electric pumps, generators, motors, power electronics, and distribution devices. The batteries segment held a larger market share in 2023.
- In terms of technology, the market has been segmented into more electric, hybrid electric, and fully electric. The hybrid electric segment dominated the market in 2023.
- In terms of application, the market has been segmented into power generation, power distribution, power conversion, and energy storage. The power generation segments dominated the market in 2023.
- In terms of platform, the market has been segmented into commercial aviation, military aviation, business & general aviation, fixed wing, rotary wing, unmanned aerial vehicles, and advanced air mobility. The commercial aviation segments dominated the market in 2023.
Aircraft Electrification Market Share Analysis by Geography
The geographic scope of the Aircraft Electrification Market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
North America led the aircraft electrification market in 2023. The North America region includes the US, Canada, and Mexico. High investment in advanced technologies and a growing focus on reducing carbon emissions from the airline sector are acting as a major driver for the aircraft electrification market. The high presence of airlines and major aircraft electrification manufacturers is also driving the growth of the aircraft electrification market in North America.
Aircraft Electrification Market Report Scope
Aircraft Electrification Market News and Recent Developments
The Aircraft Electrification Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Aircraft Electrification Markets market and strategies:
- On July 2022, Collins Aerospace collaborated with Hybrid Air Vehicles and the University of Nottingham and launched its 500-kilowatt electric motor appropriate for the Airlander 10. (Source: Collins Aerospace, Press Release/Company Website/Newsletter)
- On March 2023, BAE Systems associated with Heart Aerospace to work on the battery system for Heart’s ES-30 regional electric airplane. (Source: BAE Systems, Press Release/Company Website/Newsletter)
Aircraft Electrification Market Report Coverage and Deliverables
The “Aircraft Electrification Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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