More Electric Aircraft Market

Market Overview

The global more electric aircraft market had a size value of USD 1,729 million in 2021, which is anticipated to advance to USD 5,591 million with a CAGR of 15.8% during the forecast period. Depending on the needs of various industries, like tourism, logistics, and defense, aircraft are utilized to move goods and passengers worldwide. Aircraft comprise a significant portion of an organization's investment due to the astronomical expenses of maintenance and operation and the astronomical acquisition costs. An electric aircraft is a form of aviation powered by electricity, often via one or more electric motors that propel the aircraft's propellers.

There are many ways to generate electricity, with batteries being the most popular. More electric aircraft (MEA) is a technology aiming to maximize electrical power use in an airplane's onboard systems. The research and trials on implementing more electric aircraft technology have concluded that more electric aircraft technology can provide numerous benefits to an aircraft, including weight reduction and reduced environmental effects.

Aviation businesses are embracing partial or complete electrification of aircraft functions to solve the environmental issues given by conventional jet-fuel-based aircraft and comply with the constraints and requirements set by aviation regulators worldwide. More electric aircraft technology gradually replaces hydraulic and pneumatic power with electric power, reducing aircraft mass, fuel consumption, greenhouse gas emissions, and assembly and maintenance expenses. During the forecast period, the global more electric aircraft market is anticipated to be propelled by improved aircraft performance and increased demand for environmentally friendly aircraft. However, high capital needs and the dependability of aircraft electrical systems are expected to impede the more electric aircraft market expansion over the forecast period. In addition, developments in battery solutions and electronic components, as well as the creation of alternative power sources, are anticipated to create profitable prospects for the more electric aircraft market in the coming years.

Market Dynamics

Global More Electric Aircraft Market Drivers

Increased Demand for High-Performance Fuel-Efficient and Less Polluting Aircraft

In a traditional airplane, non-electric power sources, such as pneumatic, mechanical, and hydraulic power, are utilized to power various aircraft components, such as the leading-edge wing heating and cabin environmental control. These applications require traditional jet fuel, hence decreasing the fuel efficiency of the aircraft. Electric power sources are increasingly embraced by aircraft customers as secondary power systems to power various aircraft components and improve the aircraft's fuel efficiency. More Electric Aircraft (MEA) technology increases the aircraft's performance by using electric and hybrid-electric power sources. Increased use of more electric aircraft technology to improve an aircraft's performance and fuel efficiency is one of the reasons driving the growth of the more electric aircraft market over the forecast period.

Global air and noise pollution have prompted regulatory agencies and businesses to adopt sustainability measures and technologies. The surge in demand for sustainable technologies, such as more electric aircraft technology for pollution reduction, can be ascribed to government actions worldwide. In February of 2021, the European Commission, for instance, announced the Clean Aviation European Partnership plan. Government assistance and technology development enable aviation sector firms to adopt MEA technologies to reduce aircraft emissions of hazardous gases. Implementing MEA technology for applications such as aircraft electrification aids in the reduction of air and noise pollution created by aircraft operations, which is a crucial driver for the growth of the market for more electric aircraft throughout the forecast period.

Global More Electric Aircraft Market Restraints

High Capital Investment to Restrict Market Growth

Original equipment manufacturers (OEM) of increasingly electric aircraft must make substantial initial capital investments to create production capabilities, acquire cutting-edge integration platforms and technical equipment, train staff, and install the machinery. These high starting expenses are a barrier to the admission of new enterprises and startups, ultimately inhibiting the market's growth. In January 2020, Toyota Motor Corporation financed USD 394 million in aerospace business Joby Aviation for manufacturing an all-electric aircraft capable of vertical takeoff and landing.

The high capital need for MEA technology provides a constraint for new market entrants in the aviation sector, as it is challenging for diverse MEA startups to secure funds for developing supplier networks and obtaining certifications. The requirement for substantial capital expenditures to develop a manufacturing and support infrastructure for more electric aircraft restrains the expansion of the more electric aircraft market throughout the forecast period.

Global More Electric Aircraft Market Opportunities

Development of Alternative Power Sources to Boost Market Opportunities

For operation, aircraft avionics equipment requires electrical energy, which can be supplied by an alternating current (ac) generator. Modern generators utilize alternative power sources like hydrogen cells, biofuel, and other power sources to give power to aircraft loads and maintain safe operations and passenger comfort. Honeywell, for example, announced the construction of a 1-megawatt generator powered by aviation biofuel in March 2021. The generator can charge batteries or power high-power electric motors in commuter aircraft, air taxis, and unmanned aerial vehicles. These electrical power generators utilizing alternate power sources supply additional power to the aircraft's onboard equipment. Integration of alternative power sources is expanding due to such causes, which also promotes introducing more electric aircraft technology by boosting the aircraft's electrical load-bearing capacity.

Regional Analysis

The regional segmentation of the global more electric aircraft market includes North America, Asia-Pacific, Europe, and LAMEA.

Why is Europe and North America Projected to be the Most Lucrative Market during the Assessment Period?

Europe is estimated to hold the largest share in the regional market, with a CAGR of 15.5% during the forecast period. European nations are focusing their labor power on creating and developing more electric aircraft technology for the European aviation industry. During the forecast period, the market for more electric aircraft in Europe will expand due to an increase in investments and research and development activities in the civil, defense, and commercial aviation industries for the development of power electronics, high-density electric motors, electro-hydrostatic actuators, and other technological advancements in the aviation industry.

A surge in collaboration and partnerships across the European region to produce fuel-efficient and high-performance jets for the extensive European aviation traffic is a crucial feature driving the regional demand for more electric aircraft. Private European aviation firms such as Airbus, Leonardo, and Safran and aerospace research institutions collaborate on multiple research initiatives to create breakthrough aircraft technologies. In addition, the rise in demand for aircraft with low fuel consumption and high performance, as well as the rise in the number of aerospace research projects in the region, are among the factors driving the expansion of the market for more electric aircraft throughout the forecast period.

North America will hold the second-largest share of USD 1,812 million with a CAGR of 15.8% during the forecast period. Increased demand for military and non-military aerial intelligence, surveillance, and reconnaissance (ISR) solutions in North America, specifically the United States, as a result of increased capabilities such as autonomous technology of the aerial systems. The presence of significant aviation firms in the region and the increase in demand for military and private aircraft drive the growth of the market for more electric aircraft in the region over the forecast period.

Due to an increase in demand for military and civilian aircraft in the U.S. market, the market for more electric aircraft is growing. The substantial defense expenditures of North American nations to develop sophisticated aircraft technologies, such as the unmanned aerial vehicle (UAV) to transmit vital information and neutralize the danger, drives the deployment of more electric aircraft technologies in the region. In addition, the increased demand for low-fuel-consumption jets is fueling the implementation of more electric aircraft solutions, accelerating the deployment of more electric aircraft.

Asia-Pacific will advance the highest CAGR. Increasing aviation traffic in the Asia-Pacific region necessitates renovating and improving the region's existing aircraft infrastructure. In addition, the rising demand for air travel in the Asia-Pacific region would expand the market for more electric aircraft over the forecast period. Government, public, and private aviation sectors produce breakthrough aircraft technologies through their coalition, partnership, and collaboration. In addition, the advancement of alternative energy sources like fuel cells in the region contributes to expanding the market for electric aircraft.

Segmental Analysis

The global more electric aircraft market is classified based on aircraft system, application, type, end-user, and region.

On the Basis of Aircraft Systems

The segmentation based on aircraft systems includes propulsion systems and airframe systems.

Propulsion system aircraft is anticipated to hold the largest market share growing at a CAGR of 15.3% during the forecast period. Propulsion systems provide the power necessary to accelerate an aircraft and overcome air resistance during flight. The advancement of new technology has led to the creation of hybrid-electric and all-electric aircraft propulsion systems. Due to the high-performance features associated with electric and hybrid-electric propulsion systems, aircraft manufacturers are progressively adopting these modern technologies.

An airplane with an electric or hybrid-electric propulsion system operates quietly, with minimal greenhouse gas emissions, and at a high level of performance. In addition to increasing fuel efficiency, safety, and passenger space, electrical propulsion systems for airplanes also improve fuel economy. The increase in demand for fuel-efficient, less polluting, and high-performance aircraft propulsion systems is the primary driver of this segment's growth over the forecast period.

The airframe system is estimated to grow at the highest CAGR. Multiple aircraft components are housed within the airframe system, which enables the aircraft to fly at various operating levels and accommodates its performance. Aircraft manufacturers worldwide are changing and updating the airframe system to improve the aircraft's performance. The demand for airframe systems with higher capability has increased due to increased mission capabilities, decreased operational costs, and environmental friendliness.

On the Basis of Application

The segmentation based on application includes power generation, power distribution, power conversion, and energy storage.

The power distribution segment is expected to have the most market share during the forecast period, advancing a CAGR of 16.5%. The aircraft's power distribution system comprises A.C. and D.C. buses, wires, and electronic control switches. Increased use of electric aircraft technology has resulted in a shift away from conventional mechanical systems and toward electrical components to minimize the weight of the aircraft's wiring and enhance its performance. Advancements in technology, such as high-temperature superconducting technologies, help reduce the weight of an aircraft's power distribution system. Several aviation behemoths are developing dependable and lightweight distribution systems to keep up with the market's desire for more electric aircraft.

Power generation is anticipated to have the second-largest share. In aircraft, power is generated by alternators or generators, often propelled by the aircraft engine but powered by an auxiliary power unit, ram air turbine, or hydraulic motor. The aviation industry is shifting toward electric power generation systems due to the increase in global air traffic and the demand for optimized performance delivery. 

On the Basis of Aircraft Type

Based on aircraft type, the fragments include fixed-wing and rotary-wing.

Fixed-wing more electric aircraft are most likely to have the largest share during the forecast period advancing a CAGR of 16.4%. Fixed-wing aircraft are propelled by a high-velocity jet or screw propeller and have heavier-than-air fixed wings that generate the sufficient push for takeoff. The fixed-wing aircraft has roomy cabins, a smoother ride, and the capacity to operate at high altitudes. Fixed-wing aircraft have become increasingly popular due to their enhanced convenience and spacious cabins. 

Government laws and public awareness of the need to reduce global pollution have prompted the aviation sector to collaborate on developing low-polluting fixed-wing aircraft. Globally, military and defense customers make extensive use of fixed-wing aircraft, and the development of hybrid electric and all-electric propulsion systems has functioned as an additional impetus for the expansion of fixed-wing military aircraft.

Rotary-wing aircraft are used for short-distance service and are propelled by rotor blades. The thrust of the rotary-wing aircraft is generated by the blade's revolution over a vertical mast, allowing it to take off and land on diverse surfaces. The development of rotor design, aircraft propulsion technologies, and safe onboard equipment for rotary-wing aircraft drives the expansion of the market for rotary-wing aircraft.

On the Basis of End-User

The segmentation based on end-user includes civil and military.

The civil sector is expected to hold the enormous market share growth with a CAGR of 15.7% during the forecast period. The civil end-user segment is comprised of commercial and private applications. The civil end-use includes the transportation of passengers and freight via aircraft. As air traffic increases, aircraft manufacturers are boosting the quantity and quality of their production to assist air transportation. Civil aerospace manufacturers have included more electric technologies due to the increased safety regulations imposed by the aviation governing organizations. Producers in the civil aviation sector are developing new products and solutions for sustainable air travel.

Military organizations and defense agencies employ fixed-wing and rotary-wing aircraft for combat and non-combat operations. Fighters, bombers, patrol, reconnaissance, transport, and multirole aircraft are among the different types of military aircraft. The military clients of the aviation industry are boosting the electrification of aircraft to reduce the complexity and cost of maintenance and operation. The military forces collaborate with business organizations to produce multipurpose aircraft with cutting-edge capabilities.

Recent Developments

• In 2022, BAE Systems PLC's ARCHER 155mm mobile howitzer got shortlisted by the Swiss government for going into the final round of competition for its future artillery system.
• In 2022, BAE Systems PLC will develop software that autonomously configures tactical networks for mission-critical communications as part of the Mission-Integrated Network Control (MINC) program.
• In 2022, Bombardier Inc. introduced the Global 8000 aircraft, the world's fastest and longest-range purpose-built flagship jet for a new era of business aviation.