Hybrid Electric Aircraft Market Size, Share & Industry Analysis, By Platform (Commercial Aircraft, Military Aircraft, Business Jets, Urban Air Mobility), By Operation (Pilot Operated and Autonomous), By Engine Configuration (Turbine Engine With Electric Motor and Piston Engine With Electric Motor), By Component (Aerostructures, Engine, Avionics, Electric Motor, Batteries & Fuel Cells, Generator, Others), By Lift Technology (CTOL, STOL, and VTOL), and Regional Forecast, 2024-2050

The global hybrid electric aircraft market size was valued at USD 2.80 billion in 2023 and is projected to grow from USD 3.31 billion in 2024 to USD 465.60 billion by 2050, exhibiting a CAGR of 21.7% during the forecast period. North America dominated the hybrid electric aircraft market with a market share of 37.14% in 2023. 

Hybrid electric aircraft is a revolutionary development in the aviation sector. It combines traditional aviation fuel with electric power to improve efficiency and reduce environmental impact. This aircraft utilizes a hybrid electric powertrain, which combines lithium-ion batteries with traditional fuel sources to increase flight range compared to pure electric aircraft. This aircraft can significantly reduce fuel consumption and emissions by integrating electric propulsion systems, offering a more sustainable alternative for aviation. This innovative approach not only improves fuel efficiency but also reduces noise levels. This makes hybrid electric aircraft more environmentally friendly and suitable for future aviation needs.

The imperative for environmentally friendly aviation solutions and the growing need to mitigate carbon emissions are significant catalysts for the hybrid electric aircraft market growth. Hybrid aircraft offer a way to reduce the carbon footprint of air travel and reduce fuel costs, which is in line with the industry's push toward environmental responsibility. Additionally, technological advances are enhancing the feasibility and performance of hybrid aircraft, making them more attractive for both commercial and military applications.

Furthermore, the market expansion is further fueled by escalating environmental regulations, rising fuel expenses, and a global shift toward environmentally friendly transportation options, all prompting the aviation industry to adopt hybrid aircraft. In summary, combining environmental concerns, technological advancements, and the operational benefits of hybrid aircraft is driving the market growth in this sector.

The widespread of COVID-19 caused broad disturbances in worldwide supply chains, influencing the accessibility of basic components and materials required for the advancement of hybrid aircrafts. Lockdowns and confinements driven to delays in fabricating and testing forms, abating down the in general pace of improvement

Hybrid Electric Aircraft Market Trends

Emergence of Urban Air Mobility to Boost Market Growth

In response to air traffic congestion, the use of highly automated small aircraft to transport passengers and cargo at low altitudes in urban and suburban areas was developed. Urban Air Mobility typically refers to existing and new technologies, such as helicopters, Vertical Take-off and Landing Vehicles (VTOL), Electric Vertical Take-off and Landing Vehicles (eVTOL), and Unmanned Aerial Vehicles (UAVs).

Due to rapid urbanization and globalization, it is estimated that by 2050, more than 70% of the European population and more than 80% of the North American population will live in urban areas. Due to this, increasing mobility and infrastructure issues will become a major consequence for the developed cities and areas, with increasing congestion and pollution exerting a damaging impact on health and the environment. According to the European Institute of Innovation and Technology, these consequences cause Europe's economic loss of 130 billion per year.

A rise in urban air mobility initiatives and options brings about a need for skilled and licensed pilots to fly such technologically advanced aircraft. Subsequently, there is an increase in the demand for appropriate and compatible aircraft to match the necessities of these technologically advanced aircraft. This adds to the surge in demand for technologically advanced and well-equipped components, such as hybrid aircraft, to support the demand of pilots operating urban air mobility. For instance,

• In June 2023, Israel tested the country’s first E-VTOL taxis and drones in urban air space. These were carried out as a part of Israel’s national air drone initiative (NADI). These eVTOL autonomous aircraft flight tests were carried out in a managed urban air space involving heavy cargo loads.


• In November 2022, Pacific Group, a Vietnam-based multi-industry corporation, placed an order of 10 units of SD-05 eVTOL from SkyDrive to increase the urban air mobility options in the country. The eVTOL is a fully electric, two-seater aircraft equipped with a flight speed of 100km/h for 10-km-long flights.

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Hybrid Electric Aircraft Market Growth Factors

Increasing Replacement of Conventional Aircraft with Sustainable Aircraft to Boost Market Growth

The maintenance and operations of an older aircraft can be costly compared to an updated fleet. Hence, it has been imperative for the airlines to ensure that the fleet is regularly updated. However, with the ongoing focus of regulatory authorities and aircraft operators on implementing sustainable aviation solutions, replacing conventional old aircraft with eco-friendly aircraft will not only boost the market but also ensure cost savings for the operator and ensure the operation's sustainability. Additionally, military operations across the globe have begun to implement hybrid aircraft. Numerous nations are consistently exerting efforts to enhance their infrastructural capabilities to adapt to aircraft requirements.

Furthermore, the utilization of hybrid aircraft results in a comprehensive reduction in emissions, fuel savings, and aircraft noise, thereby optimizing performance and reducing expenses.

Increase in Environmental Concerns Due to Prevalence of Vision by IATA as a Commitment to Fly Net Zero by 2050 Fuels Market Growth

With the escalating environmental concerns in the aviation industry owing to the industry's inadequate contribution toward greenhouse gas emissions and their significant impact on climate change, it is imperative to invest in and develop sustainable aviation. Therefore, this brought forth a change by major market players in the industry who have now initiated products and the replacement of conventional aircraft with hybrid aircraft.

Furthermore, numerous airlines have initiated the procurement of hybrid aircraft to support IATA's vision of flying with zero emissions by 2050. In October 2021, the International Air Transport Association (IATA) approved a resolution for the global air transport industry to transform from conventional aircraft to fly by net zero emissions by the year 2050. New entrants have begun developing hybrid-electric aircraft to meet the demand for replacing conventional fleets. Numerous start-ups from around the world have started the prototyping process to standardize the development of hybrid electric aircraft. In December 2023, Meave Aerospace, a Netherlands-based aviation startup, announced the development of an 80-seater hybrid electric plane.

Increasing Demand for Shuttle Services and Air Taxis to Reduce Travel Time and Avoid Traffic Conjunctions to Boost Market Growth

With the emergence of electric vertical take-off and landing planes, the aviation industry is nearing the actual edge of a revolution. These aircraft, powered by electric motors and batteries, offer numerous advantages over conventional aircraft, including normal sensibility, cost-effectiveness, and the potential for metropolitan air flexibility. The utilization of air taxis is regarded as a transformative reality that has the potential to alter the perception of air travel among individuals. In the coming years, eVTOLs, urban air mobility, and hybrid aircraft will be at the forefront of all changes that will take place in the future of aviation.

Numerous corporations have initiated significant investments in the development and acquisition of these aircraft owing to the numerous advantages offered by these aircraft. These aircraft offer high performance, lower noise, low carbon emission, and an overall better travel experience.

For instance, in December 2023, Electra, Aura Aero, and Heart Aerospace manufactured aircraft with a 30-passenger carrying capacity based on gas-electric hybrid aircraft. A company based in Dallas has initiated a contract to order 300 hybrid electric aircraft.

RESTRAINING FACTORS

Lack of infrastructure Support and Stringent Regulations and Certifications of Airworthiness Hinder Market Growth

One major obstacle to the elevated future of mobility is the absence of infrastructure supporting urban air mobility. By cutting down on travel times and expenses for both passengers and cargo, hybrid aircraft seek to improve transportation in urban and suburban regions. However, the biggest obstacle is that there isn't the necessary infrastructure in place to support the widespread use of electric vertical take-off and landing (eVTOL) aircraft for transportation.

A seamless mobility-as-a-service platform, unmanned air traffic management systems, and ground infrastructure are among the critical infrastructure components needed to address this problem.

In conclusion, while developments in eVTOL technology are encouraging for hybrid aircraft, a major obstacle that needs to be overcome to fully realize the potential of UAM is a lack of suitable infrastructure. This obstacle must be addressed through cooperative efforts between industry participants, governments, and regulatory bodies.

Hybrid Electric Aircraft Market Segmentation Analysis

By Platform Analysis

Commercial Aircraft Segment Dominated Due to Rising Advancements in Propulsion and Battery Technologies

By platform, the market is segmented into commercial aircraft, military aircraft, business jets, and urban air mobility.

The commercial aircraft segment dominated the market in 2023. Advancements in battery technology and electric propulsion systems have improved the efficiency and range of hybrid aircraft, making them increasingly viable for commercial use. Furthermore, rising fuel costs and concerns about energy security have also contributed to the growing interest in this aircraft as they offer potential cost savings and reduced reliance on fossil fuels.

The business jets segment is expected to grow at the highest growth rate during the forecast period. The increasing demand for short-haul range connectivity, technological advancements, and the shift toward more sustainable modes of transportation are driving forces behind the rising demand for hybrid aircraft business jets. As the industry continues to innovate and develop cleaner and more efficient aircraft solutions, the demand for hybrid electric business jets is expected to grow significantly in the coming years.

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By Operation Analysis

Pilot-operated Segment Dominated the Market Due to Stringent Environment-related Regulations

By operation, the market is divided into pilot-operated and autonomous.

The pilot-operated segment held the major market share in 2023. The pilot-operated segment can catalyze accelerating the growth of the hybrid electric aircraft market by addressing safety, operational, and market acceptance considerations. Moreover, as regulatory bodies and stakeholders prioritize environmental concerns and sustainability initiatives, the demand for hybrid aircraft in the pilot-operated segment is expected to escalate further in the coming years.

The autonomous segment is projected to grow at the highest rate during the forecast period. Integration of autonomous technology can differentiate hybrid aircraft from traditional aircraft designs, offering unique value propositions to customers and operators. Autonomous systems enable innovative features, such as unmanned cargo delivery, aerial taxi services, and remote sensing applications, creating new revenue streams and business opportunities for manufacturers and service providers. 

By Engine Configuration Analysis

Piston Engine With Electric Motor Segment Dominated Due to Increased Hybrid Propulsion System Deliveries

By engine configuration, the market is segmented into turbine engine with electric motor and piston engine with electric motor.

In 2023, the piston engine with electric motor segment was the largest segment of the market due to increased demand for hybrid propulsion systems across several sectors, such as commercial, military, and general aviation. Hybrid propulsion systems combine piston engines' efficiency with electric motors' environmental benefits. Aircraft can achieve significant fuel savings and reduce emissions by utilizing electric power during certain flight phases, such as take-off and climb, and relying on the piston engine for cruise. This aligns with growing environmental concerns and regulatory pressures to minimize aviation's carbon footprint.

Hybrid-electric propulsion systems represent a convergence of traditional turbine engine technology with advanced electric propulsion technology. This intersection drives innovation in aircraft design, powertrain integration, energy management systems, and battery technology. Manufacturers and aerospace companies are investing in research and development to optimize hybrid-electric propulsion solutions, leading to efficiency, performance, and safety advancements.

By Component Analysis

Growing Demand for Flexibility and Structural Efficiency of Aerostructures Supported Segment Growth

By component, the market is segmented into aerostructures, engine, avionics, electric motors, batteries & fuel cells, generators, and others.

In 2023, the aerostructures segment was the largest segment of the market, followed by the engine segment. Aerostructures in hybrid electric aircraft often utilize composite materials due to their lightweight properties and high strength-to-weight ratio. Composite materials allow for greater design flexibility and structural efficiency, enabling manufacturers to optimize aerodynamics and reduce overall weight. As hybrid-electric aircraft require lightweight structures to maximize efficiency and range, the demand for advanced composite aerostructures is growing rapidly.

Moreover, as hybrid-electric aircraft rely on electric propulsion for propulsion and auxiliary systems, the demand for efficient and reliable generators is increasing to meet the power requirements of these systems.

By Lift Technology Analysis

CTOL Segment Held the Largest Market Share Due to Rising Investments in Hybrid Electric Technology

Based on lift technology, the market is divided into CTOL (Conventional Take-off and Landing), STOL (Short Take-off and Landing), and VTOL (Vertical Take-off and Landing).

The CTOL segment held the largest share of the market in 2023 due to increased investments in hybrid electric aircraft development, further fueling segment growth. CTOL lift technology enables hybrid aircraft to take off and land conventionally, making them suitable for various applications and operating environments.

The STOL segment is anticipated to grow at a substantial rate due to the emergence of Urban Air Mobility (UAM) concepts and the need for efficient, environmentally friendly transportation solutions within urban environments. Furthermore, advancements in hybrid electric propulsion systems have improved the efficiency and performance of STOL-equipped aircraft, making them more viable for commercial and general aviation applications. As a result, there is a growing interest from both manufacturers and operators in integrating STOL lift technology into their hybrid electric aircraft platforms, driving the growth of this segment within the market.

REGIONAL INSIGHTS

Based on region, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.

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North America dominated the hybrid electric aircraft market share, accounting for 37.14% of the market in 2023. The market in North America is expected to grow significantly during the forecast period owing to the rise in implementation of hybrid aircraft, particularly in the U.S., gaining traction due to their potential to revolutionize air travel by reducing carbon footprints and operating costs. The hybrid aircraft segment, which combines propellers, fuel-powered engines, and batteries, plays a significant role in the U.S. market, offering unique design possibilities and operational efficiencies not achievable with traditional fuel-powered aircraft, which is expected to fuel the market growth.

Europe is expected to witness substantial growth in the market during the forecast period due to the presence of key market players contributing significantly to the region's efforts to achieve more environmentally friendly and efficient air transportation solutions.

Asia Pacific is anticipated to be a significant region during the forecast period. The rise in air travel driven by economic growth, urbanization, and rising disposable incomes, significantly increasing the demand for hybrid aircraft deliveries in countries, such as India and China, is encouraging the growth of the market.

List of Key Companies in Hybrid Electric Aircraft Market

Key Players Focus on Providing a Variety of Services to Survive in the Market

This market is consolidated, with numerous global and a handful of regional players in this industry. It is observed that international and regional players have a variety of product portfolios with a very high focus on providing the best possible hybrid aircraft for superior quality. Top players in the aviation industry are Airbus SE, Honeywell International Inc., and other listed companies in the ranking analysis. The global presence of Airbus SE, Honeywell International Inc., Northrop Grumman Corporation (U.S.), the Boeing Company (U.S.), and Lockheed Martin Corporation (U.S.) is anticipated to lead the market.

The hybrid electric aircraft market consists of other prominent players, including Archer Aviation Inc., Embraer S.A., Joby Aviation, Inc., PIPISTREL (Textron Aviation), and others. They focus on acquisitions, collaborations, and new product launches to sustain their market positions.

List of Key Companies Profiled:

• Airbus SE (Netherlands)


• Ampaire Inc. (U.S.)


• Archer Aviation Inc. (U.S.)


• Aura Aero (France)


• Electra Aero Inc. (U.S.)


• Embraer S.A. (Brazil)


• Heart Aerospace (Sweden)


• Honeywell International Inc. (U.S.)


• Joby Aviation, Inc. (U.S.)


• Lockheed Martin Corporation (U.S.)


• Northrop Grumman Corporation (U.S.)


• PIPISTREL (Textron Aviation) (U.S.)


• The Boeing Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024 – VoltAero, a France-based aerospace company, partnered with Safran Electrical & Power to supply the electrical wiring on VoltAero’s Cassio 330 electric-hybrid certification aircraft, confirming Safran’s role as a leading partner in VoltAero’s clean-sheet e-airplane.


• December 2023, Airbus SE unveiled a new hybrid electric aircraft and completed their first flight for 100 minutes above the sky in France. The aircraft was first launched at the Paris Air Show in 2019. Airbus, Safran, and Daher developed the EcoPulse to reduce carbon emissions and lower noise levels.


• November 2023 - Wright Electric collaborated with Axter Aerospace to unveil the maiden flight of an 800kW hybrid-electric crop duster aircraft. The aircraft featured 800 kW of combined shaft horsepower.


• June 2023 - Airbus SE unveiled EcoPulse hybrid-electric aircraft for the first time in public ahead of the technology demonstrator’s first flight. The EcoPulse is a Daher TBM light aircraft modified with a hybrid-electric powertrain and six electrically-driven propellers along the wing that Airbus, Daher, and Safran are developing.


• June 2023 - Safran Helicopter Engines signed a memorandum of understanding with Aura Aero to motorize the project of the electric regional aircraft. The partners are expected to cooperate to evaluate turbo-generators developed by Safran.

REPORT COVERAGE

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The report provides detailed information on the market and focuses on leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the above factors, it contains several factors that have contributed to the sizing of the global market in recent years.

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