Aircraft Electrification Market Size

The global aircraft electrification market was valued at USD 8.3 billion in 2024 and is estimated to grow at a CAGR of 14.2% from 2025 to 2034.

The increasing focus on sustainability is driving electrification in aviation. The industry faces pressure to reduce its carbon footprint due to growing global concerns about climate change. Airlines, passengers, and governments are prioritizing environmentally responsible practices, leading to demand for green technologies. Electric aircraft, with lower emissions and potential for renewable energy integration, align with these environmental goals.

For instance, BAE Systems is leveraging decades of expertise in flight controls and propulsion to develop reliable, safety-critical systems for hybrid and all-electric aircraft. The company is focused on three key enabling technologies to lead the emerging electrified aviation market and deliver sustainable solutions. Consumers are also more aware of their environmental impact, choosing airlines that offer cleaner travel options. This shift is accelerating investments in research and development, pushing the market towards eco-friendly solutions in the aviation sector.

Governments worldwide are implementing environmental regulations to reduce aviation's carbon emissions. Policies such as carbon taxes, emissions caps, and targets for net-zero emissions are driving innovation in the aviation sector. For instance, At the 77th IATA AGM, airlines like Air India, SpiceJet, Vistara, and IndiGo discussed a strategy to achieve net-zero carbon emissions by 2050. The plan includes eliminating emissions through sustainable aviation fuels, new aircraft technologies, and efficient operations. It also emphasizes the development of zero-emission energy sources like electric and hydrogen power.

For emissions that can't be directly eliminated, the strategy calls for carbon capture, storage technologies, and credible offsetting schemes. These regulations encourage the adoption of electric and hybrid aircraft as a direct path to compliance. Manufacturers are developing electric propulsion systems to meet these standards, while airlines are aligning their fleets with government policies. These regulatory frameworks are accelerating the transition to cleaner aviation technologies.