Electric Aircraft Market Overview
The global electric aircraft market size is projected to observe an extensive growth in the coming years due to increasing stringent emission norms related to aircraft industry coupled with increased investment in more efficient power electronics and high energy density batteries, and the requirement for new aircraft to meet the global air traffic demand. In addition, lower cost of ownership for the electric aircraft, is expected to boost the market in the near future.
On the basis of technology, the electric aircraft market is segmented into solar hybrid aircraft, fuel powered hybrid aircraft, and all-electric aircraft. Solar hybrid aircraft is expected to hold the major share in the market owing to the governments’ initiatives to increase the adoption of solar power to decrease air pollution, and prices of aircrafts as the prices of solar cells are expected to decrease in near future across the globe.
Additionally, all-electric aircraft is expected to increase steadily in near future owing to growing usage of autonomous systems, improved aircraft performance, reduced gas emissions and airport noise, and reduced maintenance and operational costs. Also, the demand for fuel-efficient and eco-friendly aircraft is anticipated to be the fundamental driving factor that forces original equipment manufacturers (OEMs) to opt for more fuel-efficient alternatives in the electric aircraft market.
In North America, the U.S. is expected to be the largest electric aircraft market during the forecast period. The Environmental Protection Agency (EPA) in the U.S. had declared regulations for greenhouse gas emissions by aircraft. An aircraft accounts for more than 11% of all U.S. transportation greenhouse gas emissions and nearly 4% of entire U.S. greenhouse gas emissions. The EPA is looking forward to develop stringent regulations to minimize the emission from aircrafts. Also, technological progresses and rising research and development expenses by the market players are anticipated to increase the market share in the forecast period. Additionally, Asia-Pacific is anticipated to restore its technology platform in the forecast period owing to the rising military spending by governments to boost economic growth.
Electric Aircraft Market Dynamics
Surge in government rules and regulations with respect to aircraft emission has raised the overall electric aircraft market. This factor leads the OEMs to focus on these aircraft to capture newer markets in developed and developing countries, and also the growing demand for use of fuel cells in electric aircraft, technologically advanced battery materials, and leading-edge asynchronous propeller technology to meet the wide requirements of consumers are expected to increase the market share, globally in the forecast period.
An increase in the growth of electric aircraft market is primarily driven by growing need for improved aircraft performance with usage of electric technology to cutdown carbon emission. Also, rising regulatory environment norms which include country level emission regulations and carbon emission policies proposed by many countries are benefiting the market. Additionally, with the growing number of the airline passengers leads to see extensive numbers of aircraft orders in the market. These aircrafts provide benefits for instance increased safety, better maneuverability, and less noise.
Norway is planning to adopt aircraft powered by electricity to curb down on aviation’s contribution towards greenhouse gas emissions by 2040. Also, Norway government wants aircraft manufacturers to make a 30-seat airliner powered by electric motors, which can be introduced in service as early as 2025 to meet their regional demands. Furthermore, in May 2018, Zunum Aero, a Boeing Co. and JetBlue Airways backed startup, anticipated to deliver its first hybrid-electric plane by 2022. Thus, it is expected that the electric aircraft market is expected to witness a considerable growth in near future owing to the growing demand for fuel efficient eco-friendly aircraft.
Electric Aircraft Market Competitive Landscape
The electric aircraft market is competitive and is characterized by the presence of a considerable number of established manufacturers in the market. The major players in the industry are Airbus S.A.S., Boeing Co., Safran SA, Rolls-Royce Holding PLC, Raytheon Company, United Technologies Corporation, Thales Group, Zodiac Aerospace SA, and Honeywell International Inc.