The electric aircraft market is rapidly emerging as a game-changer in aerospace, powered by sustainability ambitions and steep technological advancements. According to MRFR, the market value for electric aircraft is estimated at USD 19.62 billion in 2024, and is forecast to reach USD 94.82 billion by 2035, growing at a robust compound annual growth rate (CAGR) of 15.4%.

This surge is underpinned by two major forces. First, environmental pressure: airlines and aircraft manufacturers are increasingly under regulatory and societal pressure to lower emissions. Electric propulsion, whether through batteries, fuel cells, or hybrid-electric systems, promises a meaningful cut in carbon output, especially for regional and short-haul routes. Second, battery technology is catching up — improvements in energy density, weight optimization, and power management have made electric-powered flight more viable. MRFR’s report highlights battery-powered aircraft as a core power-source segment, underscoring this shift.

Yet, many in the industry still refer to the “more electric aircraft market” — and it’s important to draw a distinction. The more electric aircraft market is not about propulsion, but about electrifying traditional subsystems: replacing hydraulics, pneumatics, and mechanical components with electric ones. MRFR’s separate analysis (More Electric Aircraft Market) shows that this market was worth USD 5.742 billion in 2024 and is projected to grow to USD 22.11 billion by 2035, with a CAGR of 13.04%.

The relationship between these two markets — the electric aircraft market and the more electric aircraft market — is synergistic. While the electric aircraft market is driving a more fundamental shift in how aircraft are powered, the more electric architecture helps reduce weight, improve efficiency, and pave the way for full electrification by enabling electric subsystems that consume less energy. Together, they shape the future of aviation.

Geographically, the MRFR report forecasts strong regional dynamics: North America leads the electric aircraft market today, thanks to strong aerospace OEMs, capital availability, and regulatory support. Meanwhile, Asia-Pacific is expected to grow fastest over the forecast period, driven by increasing aerospace infrastructure, rising demand for sustainable transport, and supportive policies.

From a business-model perspective, the electric aircraft market also unlocks entirely new segments. Think electric air taxis, regional commuter e-planes, and even military applications leveraging hybrid or fully electric flight. Infrastructure players (like airports and energy companies) have a role too: building charging stations, developing portable or fixed-base charging for aircraft, and integrating renewable energy.

Despite the optimism, challenges remain. Battery energy density, range limitations, and certification hurdles are significant. However, for forward-looking OEMs, operators, and investors, MRFR’s projection to nearly USD 95 billion by 2035 signals a massive opportunity — one that can redefine aviation for the better.