Electric Aircraft Market Size to Achieve a Valuation of US$ 40.11 billion, at 25.1% CAGR by 2031, Experiences Surging Focus on Development of Urban Air Mobility Infrastructure
The Insight Partners
The report runs an in-depth analysis of market trends, key players, and future opportunities. The environmental regulations and carbon neutrality goals; urban air mobility infrastructure development; cost reduction and operational efficiency benefits; and government support and investment initiatives; are some of the major drivers of market growth.
US & Canada, May 26, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the global electric aircraft market is observing significant growth opportunities owing to the increasing development of urban air mobility infrastructure across different regions.
The electric aircraft market share is rapidly expanding, driven by the global push for sustainable aviation, reduced carbon emissions, and advancements in battery technology. Electric aircraft, powered by electric propulsion systems, are gaining traction for regional transport, urban air mobility, and pilot training. Increasing investments from governments and aerospace companies, along with rising fuel costs, are accelerating innovation and commercialization.
To explore the valuable insights in the Electric Aircraft Market report, you can easily download a sample PDF of the report - https://www.theinsightpartners.com/sample/TIPAD00002146/
Overview of Report Findings
1. Market Growth: The electric aircraft market is expected to reach US$ 8.76 billion in 2024 and is expected to reach US$ 40.11 billion by 2031; it is estimated to record a CAGR of 25.1% from 2025 to 2031. The demand for fixed wing electric aircraft is one of the major factors driving the growth for electric aircraft market. Some of the major applications of electric aircraft includes urban air mobility, demand for emergency medical services, demand for cargo delivery operations, and development of vertiport infrastructure across different regions is one of the major factors driving the market growth for electric aircraft market.
2. Growing Demand from Carbon Neutrality Goals: Governments of various countries are imposing certain regulations to control the emissions release from the aircraft operations, thus compelling engine manufacturers to opt for alternative engine power solutions such as batteries or fuel cells.
3. Adoption of Air Taxis due to Development of Urban Air Mobility: The government of several countries have been investing huge amount of funds for the development of urban air mobility infrastructure including the adoption of EVTOL aircraft and construction of vertiports for UAM transportation operations. This is further propelling the demand for electric aircraft market across different regions. The urban air mobility industry is fueled by recent technological advancements, UAMs usage in different civil and commercial applications, and considerable investments in emerging nations. Several cities are expected to adopt the new generation of transportation using eVTOL aircraft due to recent technological breakthroughs in urban air mobility. The eVTOL aircraft are most suitable for shorter trips across congested cities to avoid traffic. The aircraft also help with middle-mile and last-mile cargo delivery and medical services. Therefore, the adoption of air taxis is growing. The air taxis used for urban air mobility are mostly electric powered. Hence, they do not cause atmospheric pollution. The urban air mobility industry is at the early stage, which is expected to drive the adoption of air taxis in the coming years. In the first quarter of 2020, Toyota had invested US$ 394 million in Joby Aviation eVTOL Aircraft. In addition, in March 2022, Airbus and The Helicopter Company (THC) signed an agreement to introduce urban air mobility and continue expanding helicopter activities in Saudi Arabia. This comes as an additional step toward co-creating an urban air mobility ecosystem in the country. In January 2022, Boeing made an investment of worth US$ 450 million in Wisk Aero to support the development of future pilotless flying taxis. Further, Joby Aviation is planning to achieve the certification for its aircraft from the Federal Aviation Administration (FAA) along with its plan to launch commercial operations and passenger service up by 2024. Asia-Pacific is one of the key markets for urban air mobility and premium transportation as various countries such as China, India, Singapore, and South Korea have significant investments and heavy road traffic.
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