While few all-electric aircraft have entered service, a new report is estimating the size for the emerging market to reach $9.566 billion by 2027, up from just $9.45 million in 2021, representing a 4.6 percent compound annual growth rate.
The market research, released by Valuates Reports, cites multiple factors for the swelling values such as ramping up on aircraft deliveries coupled with the lower operating and maintenance costs that electric aircraft will present. According to the company, the 2021 revenues were entirely accounted for by reported pre-certification sales of EHang's EH216 eVTOL aircraft.
“The industry is undergoing a massive transformation, with traditional components such as hydraulic, mechanical, and pneumatic systems being replaced with electrical ones that provide better operational efficiency while also significantly reducing carbon emissions,” the report noted, saying growing environmental concerns are increasing demands for these changes and pointing to calls of organizations such as the International Civil Aviation Organization, the U.S. FAA, and the European Union Aviation Safety Agency for such progress.
In addition, there is a growing demand for low-maintenance and lightweight aircraft.
Deployment of urban air mobility aircraft and increased use of electric aircraft for cargo and special mission activities are propelling interest in the market, the report stated.
The report acknowledges the limitations of current battery technologies and electric propulsion systems. “However, several organizations, government agencies, investors, and others are looking for ways to collaborate to develop all-electric aircraft with adequate range and payload capacity, which will outweigh the constraints,” it said.
As with traditional aircraft, the report anticipates North America will be the most lucrative region during the forecast period with early adoption of urban air mobility vehicles.
This story was updated on January 5 to correct earlier data covering estimated electric aircraft sales in 2020, replacing this with what Valuates Reports says is a more accurate baseline figure for 2021.