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Press Release: Electric Aircraft Market to Reach US$ 3731.3 Million by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Electric aircraft is a type of aircraft, which is powered by electric motors. Electricity can be supplied through various methods such as solar cells, fuel cells, ultra capacitors, batteries, ground power cables, batteries, and others. Batteries are the most commonly used energy carrier by electric aircraft due to its high capacity. Earlier, batteries were very heavy and inconvenient to use. However, due to advancements in technologies, demand for rechargeable and lighter batteries have increased. There are many advantages offered by electric aircraft such as reduced risk of fire and explosion, improved and enhanced maneuverability, increased safety, and others. Electric aircraft also helps in protecting the environment by eliminating the need for using fossil fuels to run the engine of the aircraft. The electric aircraft market is expected to maintain steady growth during the forecast period, owing to the introduction of a battery-powered electric propulsion system in the aerospace industry. Furthermore, advancements in technologies such as shifting preference to turbo-electric propulsion from gas turbines and also shift from hydraulic landing gear to electric gear can provide lucrative growth opportunities for the market.
The global electric aircraft market is expected to witness significant growth during the forecast period (2020–2027) due to rising environmental concerns, increasing awareness regarding safety issues, and increased research & development in the aerospace industry. The use of electric aircraft helps in reducing maintenance and aircraft cost by saving fuel combustion, and also helps in reducing air and noise pollution. For instance, in September 2020, Airbus introduced a new concept for zero-emission by using hydrogen as a primary source of power. In fact, most of the electric aircraft are low in weight and have less harmful emission of gases. For instance, in June 2020, The European Aviation Safety Agency (EASA) completed the type-certification of Pipistrel aircraft built by an aerospace company in Slovenia. Pipistrel aircraft is powered by an electric motor that helps in reducing noise pollution and emission of harmful gases in order to improve the sustainability of the aviation. Moreover, electric aircraft are developed with highly innovative technologies that ensure proper safety and have less impact on the environment. For instance, in November 2019, Etihad Airways, an Abu Dhabi-based second-largest airline, announced a partnership with Boeing, the U.S.-based aerospace company. Through this partnership, companies focused on innovation and minimizing the impact of aviation on the environment. Furthermore, in 2020, Etihad Airways and Boeing launched sustainable test flights that will improve airplane efficiency, reduce fuels, and cut CO2 emissions.
Lack of skilled resources is expected to hamper the electric aircraft market growth. There is a requirement of high technical expert resources who know how to repair batteries in case of any danger. Furthermore, it is mandatory to prevent the degradation of batteries in order to maintain the performance of the batteries. These factors are expected to hamper the market growth during the forecast period.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 1111.6 Mn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 18.9% | 2027 Value Projection: | US$ 3731.3 Mn |
| Geographies covered: |
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| Companies covered: |
Boeing, Airbus, Raytheon Technologies Corporation, Honeywell International Inc., Thales Group, Lockheed Martin Corporation, Zunum Aero, YUNEEC, Elektra Solar GmbH, PIPISTREL, BYE AEROSPACE, DELOREAN AEROSPACE, LLC, Joby Aviation, Siemens, Safran, Bombardier, TTTech Computertechnik AG, and AgustaWestland |
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Electric Aircraft Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 pandemic is expected to slow down growth of the market during the forecast period. Due to the Covid-19 pandemic, many industries have witnessed a significant negative shift in their businesses. As every country has banned international and domestic travel, there is a decline in air travelers. Most of the people are staying at home and following social distancing to contain the spread of coronavirus. Many airline companies are forced to slow down their airline projects due to loss in the airline industry. For instance, in September 2020, Raytheon Technologies Corporation, the U.S.-based aerospace & defense company, slowed down their hybrid-electric airline project called project 804 due to the coronavirus pandemic. Furthermore, in June 2020, according to The International Air Transport Association (IATA), the global air transport industry is expected to experience a loss of US$ 84,300 million in 2020. These factors are expected to have a huge negative impact on the electric aircraft market.
North America is expected to hold dominant position in the global electric aircraft market during the forecast period
Statistics:
North America held dominant position in the global electric aircraft market in 2019, accounting for 41.2% share in terms of value, followed by Europe and Asia Pacific.
Figure 1: Global Electric Aircraft Market Share (%), By Region, 2019
North America is expected to account for the largest market share during the forecast period, owing to the presence of key players in the region such as Boeing, Raytheon Technologies Corporation, Honeywell International Inc., Thales Group, and Lockheed Martin Corporation. For instance, in September 2019, Boeing, a U.S.-based largest aerospace company and Safran, a French-based high technology group, announced joint investment in Electric Power Systems International Inc., a U.S.-based company that supply electric power to develop highly automated batteries for electric aircraft.
Europe region is expected to exhibit highest growth during the forecast period, owing to the use of highly advanced materials such as gamma-titanium aluminides with improved mechanical properties. These advanced engines help electric aircraft to reduce its fuel consumption, carbon emissions, noise pollution, and others. For instance, on September 21, 2020, Airbus launched the first zero emission commercial aircraft. This aircraft uses hydrogen in synthetic fuels to reduce the harmful emission.
Ultralight aircraft segment is expected to drive the market growth during the forecast period
Among type, the ultralight aircraft segment is expected to hold dominant position in the global electric aircraft market during the forecast period. The possession of ultralight aircraft is economically viable due to its simple design and building. Moreover, rising safety concerns during training period have also increased demand for this aircraft. For instance, in September 2018, Lift Aircraft Inc. launched ultralight aircraft equipped with various safety measures.
Figure 2: Global Electric Aircraft Market Value (US$ Mn) Analysis and Forecast, 2017 - 2027
The global electric aircraft market was valued at US$ 1111.6 Mn in 2019 and is expected to reach US$ 3731.3 Mn by 2027 at a CAGR of 18.9% between 2020 and 2027.
Major players operating in the global electric aircraft market include Boeing, Airbus, Raytheon Technologies Corporation, Honeywell International Inc., Thales Group, Lockheed Martin Corporation, Zunum Aero, YUNEEC, Elektra Solar GmbH, PIPISTREL, BYE AEROSPACE, DELOREAN AEROSPACE, LLC, Joby Aviation, Siemens, Safran, Bombardier, TTTech Computertechnik AG, and AgustaWestland.
Electric aircraft is driven by the use of electric motors and are equipped with electrical systems. These aircraft are light in weight with less fuel usage and reduced emissions. The non-propulsive power systems such as mechanical, hydraulic, and pneumatic are replaced with an electrical system that helps in reducing the operating cost of the electric aircraft. The absence of heavy machines that require proper maintenance provides better efficiency and it makes electrical system a suitable option for both aircraft manufacturers and aircraft carriers. Electric aircraft are highly innovative with respect to technology and functioning. Electric aircraft uses different sources of energy in order to preserve non-renewable energy and it is considered better than traditional aircraft, which is expected to drive the market growth during the forecast period.
Market Dynamics
The global electric aircraft market is expected to grow significantly during the forecast period, owing to the increasing airline passengers. This is attributed to the rising disposable income of people in emerging and developed countries. For instance, in China, according to the National Bureau of Statistics (NBS), rural and urban per capita disposable income reached US$ 5,658.45 from US$ 2,107.2 in 2018. Moreover, according to the U.S. Bureau of Economic Analysis (BEA), disposable personal income increased to US$ 16,706.40 million in December 2019 from US$ 16,675.80 million in November 2019 in the U.S. Furthermore, the tourism industry continues to expand and it became vital for manufacturers to find alternatives that will not only boost the capacity of electric aircraft and also protect the environment from air, noise, and ground pollution due to increased air traffic. For instance, regulatory bodies such as International Civil Aviation Organization (ICAO), International Air Transport Association (IATA), and Federal Aviation Administration (FAA) introduced several regulatory policies to minimize carbon emission. Furthermore, in February 2020, Thales Group launched PUREFLYT, a flight management system (FMS) that is designed to provide safety, security, reduces the consumption of fuel, and increase operational efficiency. Due to this, electric aircraft manufacturers are integrating a single electric system into planes instead of a heavy mechanical system that consist of several individual parts.
Moreover, several global players across different regions are focusing on developing new products with new features and technologies to gain a competitive edge in the market. Industries are focusing on developing new products with new features to cater to the demand from the end users. For instance, in April 2019, Collins Aerospace, a subsidiary of Raytheon Technologies Corporation, the largest supplier of aerospace & defense products, launched The Grid, the most advanced electric power system laboratory. Various systems such as high-power generators are designed and tested in this laboratory.
Key features of the study:
Detailed Segmentation
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