Electric Aircraft Market To Triple in Next Decade, Report Says

Research points to short-haul transport and environmental trends driving growth.

Friday, May 05, 2023 at 05:17 PM ET

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The market for electric aircraft like the BETA Technologies CX300 is expected to grow significantly, according to a research-company report.. [Courtesy: BETA Technologies]

Key Takeaways:

The electric aircraft market is projected for substantial growth, from $8.5 billion in 2021 to $23.5 billion by 2031 at a 10.9% compound annual growth rate.
Growth is driven by increasing demand for short-range routes, advancements in batteries and electric propulsion, and efforts to reduce aviation's carbon footprint and operational costs.
Key challenges include the weight and frequent charging requirements of batteries, as well as limited infrastructure to support electric-powered aircraft.
While eVTOLs currently hold the largest market share, conventional electric aircraft are expected to achieve the highest growth rate due to rising demand in tourism and private aviation.

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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.