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 rapid growth, from $8.5 billion in 2021 to $23.5 billion by 2031, driven by demand for short-range routes, technological advancements, and efforts to reduce environmental impact.
Key growth factors include advances in batteries and propulsion systems, and a push to lower aviation's carbon footprint and operational costs.
Significant challenges for the market include the weight and charging frequency of batteries, as well as limited supporting infrastructure.
eVTOLs (vertical takeoff and landing) are expected to retain the largest market share, while conventional electric aircraft are forecast to have the highest compound annual growth rate.

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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.