The global sales of electrified aircraft propulsion are estimated to be worth USD 8,978.5 million in 2025 and are anticipated to reach a value of USD 28,201.9 million by 2035. Sales are projected to rise at a CAGR of 12.1% over the forecast period between 2025 and 2035. The revenue generated by electrified aircraft propulsion in 2024 was USD 8,064.2 million. The industry is anticipated to exhibit a Y-o-Y growth of 11.5% in 2025.
Electrified aircraft propulsion is the term given to systems powered by electric or hybrid-electric technology, and these systems aim to reduce emissions and operational costs. The most important components in these systems include batteries, fuel cells, electric motors, and power electronics. These are aimed at addressing the growing demand for environmentally friendly air travel. EAP technologies form the core of hybrid, fully electric, and hydrogen-powered aircraft, which seek to make aviation more sustainable.
Presently, propulsion systems dominate the EAP market. Hybrid-electric and electric aircraft require advanced propulsion systems that efficiently convert electrical energy to propulsion. This technology is important to improve fuel efficiency and reduce emissions. The future of efficient propulsion systems using electric motors, power electronics, and optimized energy management systems is critical for the migration of the aviation industry to greener options
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 8,978.5 million |
| Industry Value (2035F) | USD 28,201.9 million |
| CAGR (2025 to 2035) | 12.1% |
This market is expected to provide an incremental opportunity of USD 19,223.4 million and will grow 3.1X by 2035, driven by the growing demand for sustainable aviation solutions, increased investment in electric propulsion technologies, and improvement in battery and fuel cell technologies. The market for electrified aircraft propulsion is likely to grow exponentially in the next few years as governments and private sectors continue investing in further research, infrastructure development, and related development.
Key components of an electrified aircraft propulsion system are batteries, fuel cells, electric actuators, generators, motors, power electronics, and distribution devices. Such systems are very important in addressing the increased demand for reducing carbon footprint in aviation.
The mentioned elements are crucial for hybrid-electric, fully electric, and hydrogen-powered aircraft. With airlines making efforts to decrease their carbon footprint, such propulsion systems are rapidly becoming the next alternative to jet engines. In the future, therefore, technological advancements and support from regulatory frameworks will continue propelling the electrified aircraft propulsion market at an aggressive rate.
The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and current year (2025) for the electrified aircraft propulsion market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
In the first half (H1) from 2024 to 2034, the business is predicted to surge at a CAGR of 11.7%, followed by a slightly higher growth rate of 11.1% in the second half (H2).
| Particular | Value CAGR |
|---|---|
| H1 | 11.7% (2024 to 2034) |
| H2 | 11.1% (2024 to 2034) |
| H1 | 12.6% (2025 to 2035) |
| H2 | 11.6% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase slightly to 12.6% in the first half and remain relatively moderate at 11.6% in the second half. In the first half (H1) the market witnessed an increase of 90 BPS while in the second half (H2), the market witnessed an increase of 50 BPS.
Rising Investment from Aerospace Companies Accelerates Electric Propulsion Development
Major aerospace companies are making major investments in electric propulsion technologies, pushing the Electrified Aircraft Propulsion market ahead. In 2024, GE Aerospace allocated USD 2.7 billion for research and development, focusing on engine architecture and hypersonic that will be critical for future competition in electric aviation.
Similarly, Airbus is committed to demonstrating the world's first commercial aircraft powered by hydrogen by 2035. Its ZEROe project is exploring several configurations and technologies. These significant investments are accelerating innovation in key technologies, such as high-efficiency electric motors, solid-state batteries, and fuel cells; expanding development capacity; and pushing the market toward large-scale commercialization.
Battery Energy Density Limitations Impede Electric Aircraft Performance
One major constraint in the Electrified Aircraft Propulsion market is the current limits of battery energy density. At present, lithium ion is the most popular battery type used in aviation and the energy density achieved is about 250 Wh/kg. Such an energy density is not enough to sustain a huge passenger aircraft and long distance travel.
For commercial aviation, this will be more or less having energy density above 500 Wh/kg. While promising, solid-state batteries are still in the early stages of development. Electric aircraft are likely to be used for short-range flights and regional air mobility applications until significant breakthroughs are made in battery technology.
Hydrogen-Powered Aircraft Development Offers Zero-Emission Aviation Potential
Hydrogen-powered aircraft is a very promising development and is rapidly gaining momentum as an alternative to traditional fuel-powered and electric propulsion systems. The ZEROe project by Airbus aims to develop a zero-emission aircraft by 2035 through various configurations and technologies. Hydrogen fuel cells have greater energy density compared to the present battery technologies and are thus very viable for large-scale commercial aviation.
In addition, the hydrogen-powered aircraft emit nothing but water vapor as exhaust, thereby greatly reducing greenhouse gases. With the expansion of infrastructures for hydrogen production, storage, and distribution, hydrogen-powered aircraft will obviously be brought in to the fore in achieving net-zero aviation through investment from both government and private sectors to advance research and development.
Hybrid-Electric Aircraft Prototypes Gain Momentum for Sustainable Aviation Solutions
Hybrid-electric aircraft prototypes are growing rapidly because manufacturers are interested in the ability to combine such benefits of electric motors with traditional gas turbines to make aircraft more efficient and sustainable. In 2022, Rolls-Royce unveiled its hybrid-electric aircraft prototype, which Rolls-Royce calls the "Spirit of Innovation," which is designed to explore the benefits of hybrid-electric propulsion for regional aircraft.
This hybrid system utilizes an electric motor to assist the gas turbine, which makes it a possible system for reduced fuel consumption and carbon emissions. Hybrid-electric technology is considered a bridging technology that allows aircraft to tap into existing fuel infrastructure while transitioning toward more sustainable flight options. It is anticipated that as improvements in battery technology, fuel cells, and hybrid propulsion systems continue, hybrid-electric aircraft will play a key role in driving speedier decarbonization of aviation.
The global electrified aircraft propulsion system market recorded a CAGR of 11% during the historical period between 2020 and 2024. The growth of electrified aircraft propulsion market was positive as it reached a value of USD 8,064.2 million in 2024 from USD 5,312.3 million in 2020.
From 2020 to 2024, the Electrified Aircraft Propulsion market was constrained by energy storage limitation, high development costs, and infrastructure constraints. One of the biggest hurdles was battery energy density, which limited the range of electric aircraft, and the high costs of hybrid-electric propulsion systems were a drag on large-scale adoption.
Charging and hydrogen refueling infrastructure also constrained large-scale commercialization of electric aircraft. However, significant technological breakthroughs in solid-state batteries, megawatt-class fuel cells, and superconducting electric motors enabled getting over those blocks. Industry collaboration, government funding, and regulatory incentives expedited the pacing of more efficient propulsion systems that paved the way to sustain flying.
During the period from 2025 to 2035, market growth is going to be quite high due to the advancement in AI-powered power management, high-energy-density batteries, and hydrogen-electric propulsion. Hybrid-electric and all-electric aircraft adoption will be driven throughout the regional and urban air mobility markets, based on the investment growth in charging infrastructure and hydrogen production.
Predictive maintenance, driven by AI, and digital twin technology will help the operations be more efficient. Carbon reduction regulations will push electrified aviation even more. The market will shift toward zero-emission commercial flights, and the top technology development companies are Airbus, Rolls-Royce, and GE Aviation.
Tier 1 companies comprise market leaders with a market revenue of above USD 400 million capturing a significant market share of 55% in the electrified aircraft propulsion market. These market leaders are characterized by extensive expertise in manufacturing across a range of packaging formats and have a wide geographic reach, with a strong foundation of consumers.
They offer an extensive range of series, which includes recycling and manufacturing with the latest technology to meet regulatory requirements and deliver quality. Prominent companies within Tier 1 include Airbus, Rolls-Royce and GE Aviation.
Tier 2 and other includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 50 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 2 share segment.
They are small-scale players and have limited geographical reach. Tier 2, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the industry analysis for the electrified aircraft propulsion market for different countries. Market demand analysis on key countries is provided. The USA is anticipated to remain at the forefront in North America, with a value share of 75% through 2035. In East Asia, Japan is projected to witness a CAGR of 11.8% by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| USA | 10.9% |
| ASEAN | 11.8% |
| Japan | 11.3% |
| Germany | 12.1% |
| UK | 12.4% |
The United States Department of Energy has invested more than USD 500 million in developing advanced batteries for better energy storage solutions in electric aviation. Megawatt-class fuel cell integration is another example of where GE Aviation and Honeywell Aerospace are leading companies towards sustainable regional and urban air mobility solutions.
Another growth driver is power conversion systems where improvements in efficiency go above 98% in the development of next-generation inverters and converters. In focus is the effort to support the electrification thrust through investments in electric aircraft charging infrastructure and hydrogen refueling infrastructure.
Once the prime aerospace companies start investing in high-energy-density batteries and AI-optimized power distribution networks, the USA will well be positioned to lead the world in transitioning commercial and regional aviation toward zero emissions.
The ASEAN Electrified Aircraft Propulsion market is expected to grow at a CAGR of 11.8%, reaching USD 668.4 million by 2035. Demand is expected in hybrid-electric and fully electric aircraft that are highly regarded to be applicable for short-haul and regional connectivity. The ASEAN region highly aims at power conversion and power distribution technologies aimed at the integration of electric propulsion into urban air mobility (UAM) and regional air travel.
In this regard, governments in Singapore and Malaysia, among others, are investing in electrified aviation infrastructure. An estimated amount greater than 1 billion USD in sustainable transportation projects was pledged. Thailand is set to expand its plan to create extensive electric aircraft charging networks in response to UAM growth, with Indonesia shifting more towards power storage solutions, advancing its lithium-ion battery manufacturing industries.
IATA has predicted the rise of ASEAN air passenger traffic to an increase of up to 20% by the year 2035, while at the same time driving low-emission cost-efficient electric solutions in aviation. With growing regulatory support and investments in the power generation and energy storage, ASEAN is emerging as the key player in the electrified aircraft propulsion industry.
Japan's Electrified Aircraft Propulsion market will grow at 11.3% CAGR to reach USD 2,624.1 million by 2035, driven by next-generation power storage and power conversion technologies that underpin the ambitious carbon neutrality of the country. The Japanese government has invested a total of USD 700 million in next-generation battery research under the Ministry of Economy, Trade, and Industry (METI), including both solid-state and hydrogen fuel cell storage solutions for aviation.
Hybrid propulsion systems, designed for regional air travel, are being actively developed by major aerospace companies that include Mitsubishi Heavy Industries and Honda Aircraft Company. High-efficiency power distribution networks are also being led by Japan, using AI-integrated smart grids to optimize real-time energy management of electric aircraft.
The country, in fact, has plans for the development of a national hydrogen supply chain, which will aim to convert 30% of domestic flights into hydrogen-electric by 2040. Japan is poised to be a primary mover when high-energy-density batteries and power management systems become established technologies that can prop an electrified aircraft power plant, thus opening the next stage of sustainable aviation.
The section contains information about the leading segments in the industry. By Component, Batteries segment is estimated to grow at a CAGR of 10.7% throughout 2035. Additionally, Power Conversion application is projected to expand at 11.4% by 2035.
| Component | Value Share (2035) |
|---|---|
| batteries | 35% |
Batteries will hold the highest market share in Electrified Aircraft Propulsion because they form an integral part of power storage and energy delivery for hybrid-electric and fully electric aircraft. Lithium-ion and solid-state are the favored types of batteries in aviation with more than 400 Wh/kg of energy density because they offer high efficiency, rapid charging capability, and possibly extended ranges in flights.
The new battery systems that Airbus and Rolls-Royce are launching begin investment into further improvement in terms of higher energy efficiency and lower emissions. Developing the propulsion system further is spurred by increased regulatory pressure toward carbon-neutral aviation, better safety management of the battery, and its thermal management.
Compared to other components, fuel cells offer promising energy efficiency but face challenges in hydrogen storage and refueling infrastructure. Solar cells, though sustainable, lack the power density needed for commercial electric aviation. Motors and power electronics are a necessary part of propulsion, but the performance depends on high-capacity batteries or fuel cells.
Electric actuators and pumps replace traditional hydraulic systems and enhance energy efficiency, but generators are used in hybrid-electric configurations and not as an energy source. Power distribution devices optimize the flow of energy but rely on advanced storage solutions, which reinforces the centrality of batteries as the most demanded component for electrified aircraft propulsion.
| Application | Value Share (2035) |
|---|---|
| Power Conversion | 40% |
Power conversion leads the Electrified Aircraft Propulsion market, primarily because of its critical function in efficiently transforming electrical energy stored in systems, including batteries and fuel cells, into usable propulsion power for aircraft. With a 42% market share, power conversion converts stored energy into propulsion power with minimal loss to ensure high-performance electric motors and hybrid and fully electric propulsion efficiency.
This increased focus on optimizing energy conversion is driving innovations in inverters, converters, and high-voltage DC distribution networks, which are critical to the improvement of overall performance and range of electric aircraft.
Though power conversion will continue to lead the market, power generation and distribution, along with power storage, are significant components of electric aviation. While not as high in share as power conversion, power generation-which supports hybrid-electric aircraft by providing onboard generators-is vital to complement battery and fuel cell power.
Finally, power distribution, which assures the proper energy management through systems, requires large-scale integration with power conversion technology to be truly effective. The foundation of power storage is with batteries and fuel cells, though it still needs to overcome hurdles related to energy density and weight. All these applications are important to electrified propulsion, though power conversion really stands out as the key enabler of electric aircraft performance.
Electrified Aircraft Propulsion is a very fast-evolving marketplace, driven by technology thrusts from the aerospace and sustainability thrusts toward achievement. Hybrid electric and fully electric propulsion systems are going to help the aviation industry achieve a move more rapidly away from carbon-based sources and increase fuel efficiency.
Innovations in battery technologies, that is, solid-state and lithium-ion ones, are fueling the shift to electricity for aircraft. This will allow longer ranges of flight and improved performance. Advances in hydrogen fuel cells and power conversion systems will further accelerate growth of the market.
Heavy investment in these electrification technologies is from leaders like Airbus, Rolls-Royce, and GE Aviation as they move into advanced propulsion, focusing on more high-energy-density batteries, the lightest of electric motors possible, and maximizing power management in order to lower operational cost, increase the energy efficiency and thereby improve the aircraft's performance as a whole.
As a consequence, the electric aircraft market is experiencing rapid energy efficiency improvements in the sector. This is set to propel it into widespread use in regional and urban air mobility sectors. On top of that, regulatory compliance and drive toward zero-emission flight solutions further drive innovation and push the market toward electrification.
Diversification of key players to various geographies and collaboration will be the essential strategies for further growth in the market. Companies are increasingly targeting emerging markets, considering that there is a growing need for electric aviation there, mainly because of urbanization and strong environmental concerns.
Furthermore, start-ups and small size companies that are entering the market with a message of competition and innovation solution are apt to create a dynamic scope for Electrified Aircraft Propulsion - Good technological development and enormous support from the government are aptly going to drive it into a new age for decades-long growth and sustainability in the aviation industry.
Recent Industry Developments
The global electrified aircraft propulsion industry is projected to witness a CAGR of 12.1% between 2025 and 2035.
The global electrified aircraft propulsion industry stood at USD 8,064.2 million in 2024.
The global electrified aircraft propulsion industry is anticipated to reach USD 28,201.9 million by 2035 end.
The key players operating in the global electrified aircraft propulsion industry Airbus, Rolls-Royce and GE Aviation.
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