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 to 2031.
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.
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.
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.
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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
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative 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 List of Companies
- Wisk Aero
- Airbus
- Lilium GmbH
- Diamond Aircraft Industries
- Textron Aviation Inc.
- Eviation
- Bye Aerospace
- Ampaire Inc.
- Electra Aero, Inc.
- MagniX USA Inc.
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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