While electric aircraft are still an obscure topic for many people, a recent report indicates their market will grow rapidly over the next several years as today’s prototypes develop and move into production.
According to the report from Allied Market Research, the electric aircraft industry generated $8.5 billion worldwide in 2021, and is anticipated to reach $23.5 billion by 2031, with a compound annual growth rate of 10.9 percent from 2022 to 2031.
A number of factors are expected to drive growth. These include a rise in demand for short-range routes, advances in batteries and electric propulsion systems, and continuing efforts to reduce the carbon footprint and operational cost of aviation.
Despite certain favorable trends, a number of challenges remain for the electric aircraft market, such as the large, heavy batteries required for power and the need to charge them frequently. Limited infrastructure supporting electric-powered aircraft also limits the market’s growth.
Among electric-powered aircraft, the vertical takeoff and landing segment, or eVTOLs held the highest share of the market in 2021 and are expected to remain in the lead during the forecast period, the report said.
Conventional aircraft that take off and land on runways are projected to have the highest compound annual growth rate, totaling 12.5 percent, between 2022 and 2031. Allied attributed this to rising demand for small aircraft in tourism and private aviation operations.
