More Electric Aircraft Market By Aircraft Type (Fixed-Wing Aircraft, Rotary-Wing Aircraft, Unmanned Aerial Vehicles (UAVs)), By System (Power Generation System, Power Distribution System, Power Conversion System, Energy Storage System), By Application (Commercial Aviation, Military Aviation, Business and General Aviation, Urban Air Mobility), By End-User (Aircraft Manufacturers, Airlines, Military and Defense), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the More Electric Aircraft Market was valued at USD 4.6 billion in 2024-e and will surpass USD 9.8 billion by 2030; growing at a CAGR of 13.6% during 2025 - 2030. 

The more electric aircraft (MEA) market is poised for significant growth as the aviation industry seeks to reduce its environmental impact and improve operational efficiency. The MEA concept involves replacing conventional mechanical and hydraulic systems in aircraft with electrically powered systems. This shift not only reduces the weight of the aircraft but also improves fuel efficiency, cuts operating costs, and lowers emissions, contributing to a more sustainable future for air travel. With growing pressure to meet stricter environmental regulations and enhance fuel economy, airlines and aircraft manufacturers are increasingly adopting more electric technologies in the design and operation of aircraft.

The rise in the demand for electric propulsion, hybrid-electric engines, and integrated power systems is reshaping the aviation landscape. As advancements in battery technology and power electronics continue to improve, the feasibility of fully electric and hybrid-electric aircraft becomes more viable. This trend is especially pronounced in the commercial aviation, urban air mobility, and military aviation sectors, where reduced emissions and operational cost savings are highly sought after. The market is expected to witness continuous innovation as manufacturers strive to meet evolving environmental and regulatory standards while enhancing aircraft performance.

Fixed-Wing Aircraft Are Largest Owing to Widespread Commercial Use and Technological Maturity

Fixed-wing aircraft represent the largest segment in the more electric aircraft market, primarily due to their widespread use in commercial aviation and the technological maturity of electric systems. These aircraft are used extensively for passenger and cargo transport, making them the primary focus for the adoption of electric technologies. The integration of electric systems in fixed-wing aircraft offers several advantages, including improved fuel efficiency, reduced emissions, and lower maintenance costs.

The commercial aviation industry is increasingly adopting more electric systems in new aircraft designs, such as electric power generation and distribution systems, to meet sustainability goals and regulatory requirements. As battery technology improves, the feasibility of fully electric fixed-wing aircraft for short- to medium-haul routes is becoming more promising. The demand for electric-powered fixed-wing aircraft is expected to grow, as they play a crucial role in reducing the carbon footprint of the aviation industry.

Power Generation System Is Largest Owing to Demand for Efficient and Sustainable Energy Sources

The power generation system is the largest segment in the more electric aircraft market, driven by the need for more efficient, reliable, and sustainable energy sources for aircraft operations. Power generation systems in MEAs typically include hybrid engines, generators, and electric motors that replace traditional jet engines' mechanical and hydraulic systems. This transition to electric-powered systems is essential for improving fuel efficiency and reducing overall emissions.

As airlines and aircraft manufacturers prioritize sustainability, power generation systems have become critical components in enabling aircraft to operate with reduced fuel consumption and fewer environmental impacts. Innovations in electric and hybrid-electric propulsion systems are expected to continue driving the growth of this segment, as they play a vital role in making more electric aircraft a viable option for commercial, military, and general aviation. The adoption of these systems is expected to accelerate as they offer enhanced energy efficiency, lower operating costs, and compliance with increasingly stringent environmental regulations.

Commercial Aviation Application Is Largest Owing to Increased Focus on Sustainability

Commercial aviation is the largest application segment in the more electric aircraft market. The push for greener aviation solutions and the need to reduce operational costs have led commercial airlines to adopt more electric technologies. Electric propulsion systems, energy-efficient power generation, and integrated electrical systems are becoming more common in the design of new commercial aircraft, as they offer a significant reduction in fuel consumption and emissions.

In addition to environmental benefits, more electric systems also provide cost-saving opportunities for airlines in terms of maintenance and operation. These advancements are particularly relevant in an era where the aviation industry is under pressure to meet ambitious sustainability targets. The growing interest in electric and hybrid-electric aircraft for short and medium-haul flights is expected to continue driving the adoption of more electric aircraft within the commercial aviation sector. The segment’s expansion is expected to accelerate as the industry strives to reduce its carbon footprint and improve overall efficiency.

Aircraft Manufacturers End-User Is Largest Owing to Role in Design and Production

Aircraft manufacturers are the largest end-user segment in the more electric aircraft market, as they are directly responsible for the design, development, and production of aircraft equipped with more electric systems. These manufacturers play a crucial role in integrating advanced electric technologies into new aircraft models, driving the market’s growth. By adopting more electric technologies, aircraft manufacturers can meet the increasing demand for eco-friendly aviation solutions and capitalize on the growing trend toward sustainability in aviation.

The focus on reducing aircraft weight, improving fuel efficiency, and enhancing performance has led manufacturers to invest heavily in electric propulsion systems and other electrification technologies. As the demand for electric-powered and hybrid-electric aircraft increases, aircraft manufacturers are expected to continue to be the largest end-users of more electric systems, driving innovation and adoption across the industry.

Urban Air Mobility Is Fastest Growing Owing to Innovation and Demand for Sustainable Transportation

Urban air mobility (UAM) is the fastest-growing segment in the more electric aircraft market, owing to the increasing interest in electric vertical takeoff and landing (eVTOL) aircraft and other electric aircraft solutions for urban transportation. UAM focuses on using electric aircraft for short-range, on-demand flights within urban areas, aiming to alleviate congestion and reduce travel times. The ability to integrate more electric systems into UAM vehicles is pivotal in making these aircraft viable for widespread use in cities.

As cities become more congested and transportation needs evolve, the demand for urban air mobility solutions is expected to grow. Electric-powered UAM aircraft are seen as a potential solution for reducing traffic congestion and pollution. The development of eVTOL and other electric aircraft for urban air mobility is progressing rapidly, making it the fastest-growing segment in the market. This trend reflects the increasing demand for sustainable, efficient, and high-performance transportation solutions in urban environments.

North America Is Largest Region Owing to Strong Aerospace Industry and Technological Advancements

North America is the largest region in the more electric aircraft market, driven by the strong aerospace industry in the United States and Canada. The region has seen significant investments in the development and integration of electric propulsion systems in both commercial and military aviation. Leading aircraft manufacturers and defense contractors in North America are at the forefront of innovation in more electric aircraft technologies, helping to establish the region as the largest market for MEAs.

The U.S. government and private companies are also investing in urban air mobility initiatives, which is further propelling the adoption of electric aircraft technologies. As the region focuses on sustainability and energy efficiency, North America is expected to continue dominating the more electric aircraft market, with ongoing advancements in electrification and propulsion systems driving its growth.

Leading Companies and Competitive Landscape

The more electric aircraft market is highly competitive, with key players such as Boeing, Airbus, General Electric, Honeywell, and Rolls-Royce leading the way in the development of advanced electric technologies. These companies are investing heavily in research and development to create more efficient and sustainable electric propulsion systems, as well as hybrid-electric solutions for aviation.

The competitive landscape is characterized by strong collaboration between aerospace manufacturers, electric propulsion system developers, and government agencies. As the demand for sustainable aviation solutions grows, companies in the more electric aircraft market are focusing on improving energy efficiency, reducing emissions, and lowering operating costs. Innovation and technological advancements in battery technology, power generation, and propulsion systems will continue to drive the market, ensuring that competition remains intense as industry players work to secure their position in the growing market.

List of Leading Companies:

• Airbus SE
• Boeing Company
• Honeywell International Inc.
• Safran S.A.
• Raytheon Technologies Corporation
• Rolls-Royce Holdings Plc
• GE Aerospace
• Leonardo S.p.A.
• Thales Group
• BAE Systems Plc
• Mitsubishi Heavy Industries Ltd.
• Embraer S.A.
• Collins Aerospace
• Moog Inc.
• Parker Hannifin Corporation

Recent Developments:

• In December 2024, Airbus announced advancements in hybrid-electric propulsion technology for future aircraft models.
• In November 2024, Boeing unveiled a new electrified power distribution system for next-generation commercial aircraft.
• In October 2024, Rolls-Royce successfully tested an all-electric aircraft propulsion system, setting a new efficiency benchmark.
• In September 2024, Safran and Honeywell partnered to develop next-generation electrical power generation systems for aviation.
• In August 2024, Thales introduced a lightweight energy storage system designed for electric and hybrid-electric aircraft.

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