ELECTRIC AIRCRAFT MARKET ANALYSIS

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 manoeuvrability, 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.

The Global Electric Aircraft Market is estimated to account for US$ 24,485.3 Mn in terms of value by the end of 2030.

Recent Developments:

In October 2022, NASA launched the X-57 Maxwell, an electric plane, with successful deployment of two 400-pound rechargeable lithium ion batteries in the plane's cabin. The X-57 project's principal purpose is to provide the aircraft's electrically powered design, air safety procedure, and technology with industries, standards bodies, and regulators in order to inform certification methods for all-electric propulsion in growing electric aircraft markets.

Market Driver:                                                      

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.

Restraint:

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.

Figure 1. Global Electric Aircraft Market, Revenue Share (%), By Region, 2021

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.

Market Opportunity:

• 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. For instance, in July 2020, Etihad Airways and Boeing launched sustainable test flights that will improve airplane efficiency, reduce fuels, and cut CO2 emissions.

Figure 2: Global Electric Aircraft Market (US$ Mn) Analysis and Forecast, 2022 - 2030  

Global Electric Aircraft Market was valued at US$ 7,369.5 Mn in 2021 and is expected to reach US$ 24,485.3 Mn by 2030, growing at a CAGR of 14.5% between 2022 and 2030.         

Major players operating in the Global Electric Aircraft Market are 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.