HYBRID ELECTRIC JET MARKET ANALYSIS

The Global Hybrid Electric Jet Market size was valued at US$ 8.9 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 18.2% from 2023 to 2030.

The hybrid electric jets are the aircrafts powered with the electric motors. The electricity is supplied through several methods such as batteries, solar cells, ultra capacitors, fuel cells, and power beaming. Electrified hybrid aircrafts are cleaner as compared to conventional models. The aviation industry is focused in reducing the fuel use and carbon emissions by manufacturing lightweight plane, efficient engines, and airlines using the biofuel blends for better traffic flow management. For instance, according to Coherent Market Insights analysis, the aviation produces around 2% of the world’s carbon emissions. Therefore, to reduce the emissions, many of the companies’ such as Zunum Aero, JetBlue Technology are planning for the low-carbon flying future.

Covid-19 Analysis.

Due to the COVID-19 pandemic, several nations have declared total or partial lockdowns. The lockdown has had an effect on numerous industries, especially those that are deemed non-essential, like the aviation and defense sectors. The spread of COVID-19 and the aviation industry's response have caused a historically low level of global air traffic. In March 2020, there were 145,000 average daily flights, down from 176,000 in March 2019 by a 17 point 61 percent. Furthermore, the demand for hybrid aircrafts decreased further as a result of the restrictions on air travel that were imposed by numerous governments around the world. With long-term repercussions that are anticipated to restrain the growth of the hybrid aircraft market during the forecast period, COVID-19 is an unprecedented global public health crisis that has impacted almost every industry.

Global Hybrid Electric Jet Market: Regional Insights

On basis of region, the global hybrid electric jet market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Europe is expected to exhibit the highest growth in the market during the forecast period, owing to the presence of large number of manufacturers such as Airbus SE, Rolls Royce, Siemens AG, Boeing, and Easy Jet. Europe is projected to retain its dominance in market over the forecast period, owing to increasing number of manufactures, collaboration, and partnerships.

Due to rising environmental concerns and expanding government initiatives, North America will account for the greatest revenue share in 2022, which will fuel the market for electric aircraft. Additionally, many individuals and business owners in the North American region travel extensively by business jet. The market for electric aircraft is expanding in North America as a result of this aspect.

During the forecast period, Europe is anticipated to grow the fastest. In Europe, the U.K. controls the market for electric aircraft. Major market players are what are driving the growth of the electric aircraft industry in Europe. Additionally, the region's residents have the means to fly on business jets, which is fueling Europe's demand for electric aircraft. Additionally, supportive government policies are fostering market expansion.

Figure 1. Global Hybrid Electric Jet Market Share (%), By Region, 2022

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Global Hybrid Electric Jet Market Drivers:

Decrease in the green gas emissions is the major factor driving growth of the global hybrid electric jet market

Decreasing the green gas emissions such as carbon dioxide, methane, nitrous oxide and among others is the major factor driving growth of the global hybrid electric jet market. The jets using conventional motors results in green gas emissions, which is the major environmental concerns. For instance, on March 2023, according to the Europe Aviation Safety Agency (EASA), utilization of electric engines in the jet is expected to reduce 75% of Carbon Dioxide (CO2) and 90% of Nitrous Oxide (NOx) along with reduction in the noise levels to 65% by 2050. Furthermore, according to the Flight path 2050 plan, the European Commission aims to reduce carbon dioxide emissions by 60%, nitrogen oxide pollution by 90%, and noise reduction of 75%. Moreover, apart from the environmental benefits, a hybrid electric jets could benefit in saving the carriers money on the fuel costs. Also, it reduces the noise pollution, as they are quieter and also enables the carriers to fly more at night especially in airports close to city centers, which in turn is positively influencing growth of the market.

Growth of Air Traffic in Recent Times

Domestic air travel has increased significantly in both developed and developing nations, which is largely to blame for the increase in air traffic. In 2022, domestic flights operated by American airlines carried about 688 million passengers. This number represented a significant increase from the 612 million domestic passengers carried by US airlines in 2021. From January 2022 to December 2022, domestic airlines in India carried 123.245 million passengers. This number represents a significant increase (47.05%) over the 83.814 million passengers carried in 2021.

According to the Bureau of Economics, personal income increased by $1.97 trillion (10.5 percent) and disposable personal income (DPI) by $2.13 trillion in April 2020. The number of air travelers is rapidly increasing across a number of nations due to rising disposable income and improving the tourism industry.

Global Hybrid Electric Jet Market Opportunities:

Increasing Logistics Application in various industries.

With the increasing demand of product in the international market, the requirement for an efficient and safe air service is expected to grow extremely in the upcoming years. For instance According to International Air Transport Association (IATA), the trade association for the world's airlines, Airlines transport more than 52 million metric tons of goods every year & nearly 90% of cargo in international trade is shipped via sea route and only around 0.5% is transported by air in 2020 compared to 2019.  Nevertheless, his transport by air cargo results to nearly 35% of world trade by value or about US$ 6 trillion in value.

Temperature-sensitive medications are shipped by Air freight in the finest condition. Considering temperature- sensitive space and fast delivery speeds in aircraft, vaccines are generally shipped by air. On March 20, 2023, As per the World Health Organization (WHO), over 3 million child deaths are prevented every year by help of vaccination programs.

For instance in the year 2020, 100,000 thermometers, 29 million face masks, and 3 million gloves were all shipped by Amazon Air. Employees throughout Europe received all of these products during the COVID-19 pandemic. So, in the near future, air drug delivery could open up a lot of opportunities for electric aircraft.

The North-eastern and Himalayan states' 41 recognized fruits and vegetables will receive a 50% air transport subsidy from the Indian Union Ministry of Food Processing Industries (MoFPI) to any location in India beginning in November 2020. The e-commerce behemoth Amazon debuted its freight service, "Amazon Air," in India in January 30, 2023. It has 2 cargo aircraft with a 20,000 package capacity. Electric aircraft are predicted to have a lot of prospects as e-commerce shipments increase.

Emergence of Futuristic Air Mobility

The goal of advanced air mobility is to create a system of convenient, safe, and inexpensive air travel that makes use of highly automated aero planes that fly at lower altitudes while carrying people or goods. Air taxis, commercial intercity, cargo delivery, public services, and private/recreational vehicles are examples of services that fall under the category of advanced air mobility. Given the increasing demand for this type of air mobility and the congested urban areas, this represents a significant market opportunity for manufacturers of electric aircraft.

Global Hybrid Electric Jet Market Trends:

Increasing Investment in Electric Aviation

In order to help the aviation industry reach its goal of having net-zero CO2 emissions by the year 2050, electric aircraft have a significant potential to reduce emissions, noise, and operating costs across a variety of different applications. For instance in January 26, 2023, the U.S. Air Force chose Electra Aero, Inc. for an US$ 85 million Strategic Funding Partnership to create electric short takeoff and landing (eSTOL) aircraft. The creation of a full-scale, pre-production eSTOL aircraft prototype is part of this strategic funding partnership. Government funding, private investment, and matching Small Business Innovation Research (SBIR) funding will all contribute to the funding.

In August 2020, for carbon-neutral hybrid electric aviation, the Department of Energy (DOE) announced funding of $33 million. The Australian government granted Dovetail Electric Aviation a grant of A$ 3 million ($2 million) in January 19, 2023 to help it convert turbine-powered aircraft to electric-powered ones.

In July 2022, ZeroAvia, a developer of hydrogen-electric aircraft, announced that it had secured US$ 30 million in additional funding. The US$ 68 million in Series B funding, the third round of equity financing for new companies received by ZeroAvia will be used to launch its fleet of 40 to 80-seat aircraft by 2026.

In May 2021, for its ecosystem for electric aviation, the electric aviation startup Beta Technologies, an aerospace manufacturer only developing electric vertical raised US$ 368 million in Series A funding, the second stage of startup financing. Australian Minister for Industry, Science, and Technology Edham Nurredin Husic announced the release of grants totaling US$ 44 million in January 19, 2023 to support Australian businesses in various research projects involving electric aviation. Rory Roberts, an associate professor of mechanical engineering at Tennessee Tech, was awarded a US$ 1.06 million federal grant in November 2021 for the study of electric aviation.

For Instance, in December 2021, Researchers at Embry-Riddle Aeronautical University received a US$ 625,000 grant from the Federal Aviation Administration (FAA) to improve the safety of a new class of electric propulsion-powered aircraft. Therefore, increasing funding and investment for electric aircraft research and development (R&D) significantly accelerates the market's expansion.

Working Towards Substantial Aviation

In order to achieve the decarbonization goal of the aviation industry, a multi-faceted approach is essential. This involves a combination of various technologies and strategies. Firstly, enhancing infrastructure and operations is crucial to optimize energy efficiency, reduce emissions, and improve overall sustainability. Secondly, the adoption of sustainable aviation fuel (SAF) is paramount. SAF is derived from renewable sources and offers a significant reduction in carbon emissions compared to conventional jet fuel. Lastly, technological innovation plays a pivotal role in the decarbonization journey, encompassing advancements in electric and hybrid aircraft, hydrogen-powered engines, and air traffic management systems. By integrating these diverse solutions, the aviation industry can make substantial progress towards its decarbonization objectives.

For instance, in November 2022, a research and development agreement between Airbus and the Renault Group was signed with the intention of utilizing synergies to quicken both companies' electrification roadmaps.

Global Hybrid Electric Jet Market Restraints:

High Costs & Poor Infrastructure

The initial rollout is being hampered by the high production and maintenance costs of eVTOLs because it is unclear how much money will be spent overall. The majority of the production costs are related to the acquisition of novel materials required to build effective and lightweight electric aircraft. In the coming years, it's anticipated that many countries' outdated infrastructure will become a significant issue. Although developing nations such as India, Nigeria, Malaysia, and China show great promise for the development of electric aircraft, their development is limited by the lack of a modern infrastructure.

Battery Constraint for Electric Aircraft

The battery technology needed for electric aircraft is still in its early stages in terms of commercial viability. Battery limitations are often present in electric vertical take-off and landing (eVTOL) aircraft. High-power cell discharging and lightning-fast charging capabilities are required for eVTOLs. Batteries used in electric aircraft require extremely careful thermal management due to high load conditions at takeoff and landing. The lack of an energy-dense battery that is small and light is acting as a significant limiting factor when taking into account the weight, size, and power. Due to this constraint, many manufacturers have decided to choose a hybrid alternative that offers access to fuel that is high in energy.

Commercial airline applications need power in the range of 450–500 Wh/kg, whereas the majority of commercially available batteries fall in the 150–250 Wh/kg range. Only 124 miles can be covered by the plane operated by Heart Aerospace on a single charge, despite having over 5 tons of lithium-ion batteries on board. Therefore, such aircraft are not suitable for lengthy international travel. Additionally, lithium batteries have the potential to easily cause short circuits, generate dangerous heat, and ignite uncontrollable fires. For this reason, lithium-ion batteries have been outlawed for use in airplanes by reputable aviation authorities, including those in the U.S.

Figure 2. Global Hybrid Electric Jet Market, By End User

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Global Hybrid Electric Jet Market Segmentation:

Hybrid Electric Jet Market, By Type (Ultralight Aircraft and Light Jets), By End User (Military and Commercial), and By Region

Global Hybrid Electric Jet Market: Key Developments

On February 6, 2023, The AirCraft company revealed about Pangea* hybrid-electric airliner family with the SY30J becoming the first member of the family. The design work on this family of airplanes started over a year ago. The airplane has been presented to some airlines with favorable reviews. Stay tuned for more updates coming in the months to come

On November 30, 2022, Airbus and Renault Group, worldwide leaders in the aerospace and automotive industries, have signed a research and development agreement which aims at enhancing transversalities and synergies to accelerate both companies’ electrification roadmaps, improving their respective range of products.

In July 2022, ZeroAvia, Developer of hydrogen-electric aircraft announced that it had secured US$ 30 million in additional funding.

In December 2021, Researchers at Embry-Riddle Aeronautical University received a US$ 625,000 grant from the Federal Aviation Administration (FAA) to improve the safety of a new class of electric propulsion-powered aircraft. Therefore, increasing funding and investment for electric aircraft research and development (R&D) significantly accelerates the market's expansion.

In August 2020, for carbon-neutral hybrid electric aviation, the Department of Energy (DOE) announced funding of $33 million. The Australian government granted Dovetail Electric Aviation a grant of $ 3 million ($2 million) in January 19, 2023 to help it convert turbine-powered aircraft to electric-powered ones.

Global Hybrid Electric Jet Market: Key Companies Insights

The Global Hybrid Electric Jet Market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the Global Hybrid Electric Jet Market are Pipistrel Group, Airbus, Bye Aerospace, Aerospace Limited, Yuneec Holding Limited, Leonardo S.p.A., Faradair Aerospace Limited, Boeing, Digisky S.R.L., Groupe Gorge, Eve Air Mobility, Joby Aviation, Vertical Aerospace, and Lilium N.V., others.

*Definition: The hybrid electric jets are the aircrafts powered with the electric motors. The electricity is supplied through several methods such as batteries, solar cells, ultra capacitors, fuel cells, and power beaming. Electrified hybrid aircrafts are cleaner as compared to conventional models.