Aircraft Electrification Market Report 2026

The aircraft electrification market size has grown rapidly in recent years. It will grow from $7.33 billion in 2025 to $8.28 billion in 2026 at a compound annual growth rate (CAGR) of 12.9%. The growth in the historic period can be attributed to growing regulatory pressure to reduce aviation emissions, rising fuel costs driving interest in alternative propulsion systems, advancements in electric motor and power electronics technologies, increased research investments in hybrid-electric aircraft architectures, development of early partial turboelectric and hybrid prototypes.

The aircraft electrification market size is expected to see rapid growth in the next few years. It will grow to $12.65 billion in 2030 at a compound annual growth rate (CAGR) of 11.2%. The growth in the forecast period can be attributed to rising adoption of hybrid and fully electric propulsion concepts in commercial and regional aviation, advancements in high-energy-density batteries enabling broader electrification, increasing airline focus on operating cost reduction through electric systems, expansion of government incentives supporting sustainable aviation technologies, integration of electric power for non-propulsive aircraft systems to improve overall efficiency. Major trends in the forecast period include rising adoption of hybrid-electric propulsion systems, integration of advanced battery technologies in aircraft, development of lightweight electric motors for aircraft efficiency, increasing use of solar-assisted aircraft power systems, focus on modular electric power systems for retrofitting existing fleets.

The increasing demand to lower the carbon footprint is driving the aircraft electrification market. A carbon footprint measures the total volume of greenhouse gases, particularly carbon dioxide, emitted by activities such as individual actions or the production and transportation of goods over a certain period. Reducing carbon footprints can be achieved by altering the methods used in these activities. Aircraft electrification represents one such change that can significantly decrease carbon footprints. Electric aircraft utilize electricity instead of fuel, which reduces harmful gas emissions into the atmosphere, thus minimizing the carbon footprint. For instance, in December 2023, data from Earth System Science Data (ESSD) Copernicus, a Germany-based interdisciplinary journal, revealed that international aviation and shipping carbon emissions, which account for 2.8% of global emissions, are expected to rise by 11.9% in 2023, with aviation emissions increasing by 28% from 2022, reaching a total of 1.2 Gt CO2. Therefore, the growing demand to reduce carbon footprints will propel the growth of the aircraft electrification market.

Companies in the aircraft electrification market are emphasizing high-power generator technology to develop efficient hybrid-electric propulsion systems for heavy-lift aircraft. A key element of these systems is a high-power turbogenerator that integrates with propulsion and operational systems to deliver electrical power to electric engines, supporting more sustainable and efficient flight. For example, in April 2023, Honeywell, a US-based aerospace technology company, created a 1-megawatt generator selected to power FLYING WHALES' LCA60T, a French-Canadian hybrid-electric rigid airship designed for heavy-load transportation. The Honeywell generator will be incorporated into the LCA60T’s hybrid propulsion system, combining electric and turbine power that uses jet fuel and sustainable aviation fuel (SAF). This represents one of the most powerful and efficient generators in aviation, featuring high power density and efficiency, contributing to a low environmental footprint and enabling unique hovering capabilities for heavy-lift operations in remote regions. The LCA60T is expected to begin flights in 2025, with plans to manufacture 150 aircraft over the next decade, marking a major step toward sustainable aviation in the cargo sector.

In March 2024, Ampaire Inc., a US-based provider of hybrid-electric aircraft propulsion systems for commercial and defense applications, acquired Magpie Aviation Inc. for an undisclosed amount. This acquisition aims to broaden Ampaire’s product capabilities and market presence by integrating Magpie’s technology, patents, and government contracts, thereby enhancing its hybrid propulsion solutions and advancing its leadership in electrified aviation. Magpie Aviation, a US-based developer of innovative electric aviation technologies, specializes in advancements such as the world’s first automated towing connections between airborne aircraft and holds multiple pending patents as well as key government contracts, including those with the U.S. Air Force.

Major companies operating in the aircraft electrification market are Safran S.A., Thales Group, Raytheon Technologies, General Electric Company, BAE Systems, Honeywell International Inc, Moog Inc, Textron Inc, Eaton, EaglePicher Technologies, Ge India, Nabtesco Corporation, The Boeing Company, Airbus Se, Catl, Byd Auto, Electroflight, Transair Flight Equipment, Custom Cells Itzehoe Gmbh, Saft Company, Wamtechnik Sp. Z O.O., Zenith Aircraft Company, Beta Technologies, Heart Aerospace, Universal Hydrogen, Wright Electric, Magnix, Ampaire, Bye Aerospace, Embraer S.A, Desaer, Collins Aerospace, Zeroavia, Agusta Westland.

North America was the largest region in the aircraft electrification market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aircraft electrification market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on batteries, electric motors, and power electronics have increased production costs for aircraft electrification systems, affecting component-heavy segments such as batteries, fuel cells, and electric actuators. Regions such as North America, Europe, and Asia-Pacific are most impacted due to cross-border supply chains for high-value components. However, tariffs have also incentivized local manufacturing, spurred investments in domestic production of advanced batteries and power systems, and encouraged the development of cost-efficient electric propulsion technologies, providing potential long-term benefits for the market.

The aircraft electrification market research report is one of a series of new reports that provides aircraft electrification market statistics, including Feed yeast industry global market size, regional shares, competitors with an aircraft electrification market share, detailed aircraft electrification market segments, market trends and opportunities, and any further data you may need to thrive in the aircraft electrification industry. These aircraft electrification market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Aircraft electrification involves the utilization of electric motors to power aircraft propeller engines, aiming to reduce air pollution. This method focuses on employing electric power for non-propulsive systems, aiming to enhance efficiency and alleviate the workload on engines by modifying operational systems or procedures.

Key components in aircraft electrification encompass batteries, fuel cells, solar cells, electric actuators, pumps, generators, motors, power electronics, and distribution devices. Batteries convert chemical energy into electrical energy and serve various purposes in aircraft, including ground and emergency power, enhancing DC bus stability, and fault clearing. Aircraft electrification technologies include more electric, hybrid electric, and fully electric systems, categorized by platform into fixed-wing, rotary-wing, unmanned aerial vehicles (UAVs), and advanced air mobility.

The countries covered in the aircraft electrification market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aircraft electrification market consists of sales of partial turboelectric, turboelectric, parallel hybrid and series hybrid. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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