![Zero-emission Aircraft Market Size zero emission aircraft market overview](https://s3.mordorintelligence.com/zero-emission-aircraft-market/zero-emission-aircraft-market-size-image-1735465069020.webp)
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Market Size (2025) | USD 6.76 Billion |
Market Size (2030) | USD 9.50 Billion |
CAGR (2025 - 2030) | 7.02 % |
Fastest Growing Market | North America |
Largest Market | North America |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Zero-Emission Aircraft Market Analysis
The Zero-emission Aircraft Market size is estimated at USD 6.76 billion in 2025, and is expected to reach USD 9.50 billion by 2030, at a CAGR of 7.02% during the forecast period (2025-2030).
The aviation industry is undergoing a transformative shift toward sustainable operations, driven by technological innovations and infrastructure development. According to the International Air Transport Association (IATA), global air passenger traffic is expected to reach 4.0 billion passengers in 2024, highlighting the urgent need for sustainable aviation solutions. The industry's commitment to sustainability has led to increased investment in zero-emission aircraft technologies, with major manufacturers and startups alike focusing on developing electric and hydrogen-powered aircraft. This transformation requires significant changes in airport infrastructure, maintenance facilities, and energy supply chains to support the new generation of aircraft.
The technological landscape of zero-emission aircraft is rapidly evolving, with multiple propulsion technologies being developed simultaneously. Industry experts project that alternative propulsion options, including battery-electric and hydrogen-powered aircraft, could account for 21-38% of flights by 2050. This transition is supported by substantial investments from both private and public sectors, as evidenced by the UK government's announcement in February 2023 of a £113 million investment in electric flying taxis and hydrogen-powered aircraft development. These investments are crucial for accelerating the development of necessary technologies and infrastructure.
Infrastructure development has become a critical focus area for the zero-emission aircraft market ecosystem. The World Economic Forum estimates that hydrogen and electric aircraft could require 600-1,700 terawatt-hours of clean energy by 2050, necessitating significant expansion of renewable energy capacity. This has led to initiatives such as the UK's Zero Emission Flight Infrastructure (ZEFI) program launched in March 2023, which aims to prepare airports for the integration of battery and hydrogen-powered aircraft. The program includes comprehensive infrastructure planning and modeling for both gaseous and liquid hydrogen-fueled aircraft operations.
The market is witnessing increased collaboration between traditional aerospace companies and innovative startups, leading to rapid technological advancement. In May 2023, Alaska Airlines demonstrated this trend by providing a Bombardier Q400 to ZeroAvia for hydrogen-electric propulsion system retrofitting, while in March 2023, Gayo Aviation in Dubai signed a letter of intent for 10 electric seaplanes from Jekta, highlighting the growing commercial interest in zero-emission aircraft. These partnerships are essential for addressing technical challenges and accelerating the commercialization of zero-emission aircraft technologies, particularly in developing the necessary charging infrastructure and maintenance capabilities for electric and hydrogen-powered aircraft.
Zero-Emission Aircraft Market Trends
Stringent Emission Regulations Adopted by Several Countries Driving the Shift Toward the Zero-Emission Aircraft Concept
The aviation industry's contribution to global emissions has prompted governments worldwide to implement stringent regulations, serving as a primary catalyst for zero-emission aircraft development. The aviation industry currently accounts for 3.5% of anthropogenic climate change, with a significant proportion of emissions occurring at altitude. These regulations have evolved into comprehensive frameworks, including carbon taxes, emissions trading schemes, and fuel-efficiency standards, pushing manufacturers toward innovative zero-emission aircraft solutions. The International Civil Aviation Organization (ICAO) has established the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), requiring airlines to offset their emissions through carbon credits or sustainable aviation fuel investments.
In 2023, the regulatory landscape has seen significant advancement, particularly in Europe, where the European Commission's climate neutrality goals aim for at least a 55% net reduction in greenhouse gas emissions by 2030. The European Union has introduced financial incentives to encourage sustainable aviation fuel development, including grants, subsidies, and tax credits. In a notable development from 2023, Alaska Airlines demonstrated their commitment to these regulations by presenting a Bombardier Q400 regional turboprop to ZeroAvia for retrofitting with a hydrogen-electric propulsion system, marking a significant step toward expanding zero-emission aircraft technology. These regulatory pressures have prompted major manufacturers like Airbus to accelerate their zero-emission aircraft market development, with plans to introduce the world's first hydrogen-powered commercial aircraft by 2035.
Revival in Passenger Traffic Will Lead to the Growth of Zero-Emission Aircraft in the Coming Years
The resurgence in global air passenger traffic has created an urgent need for sustainable aviation solutions, driving the development and adoption of zero-emission aircraft technologies. According to the International Air Transport Association (IATA), global air passenger traffic is expected to reach 4.0 billion passengers by 2024, surpassing pre-pandemic levels. This growth in aviation operations, coupled with economic and demographic expansion, has intensified the focus on developing sustainable aviation technologies. The industry's commitment to achieving net-zero carbon emissions by 2050, as pledged at the 77th IATA Annual General Meeting, has created a strong impetus for zero-emission aircraft development.
The increasing passenger traffic has catalyzed significant investments in green aviation technology throughout 2023. Major industry players are actively developing hydrogen-electric fueled powertrain technology to replace conventional engines in commercial planes across all size categories. In July 2023, Barclays made a strategic equity investment in ZeroAvia, a hydrogen-electric aviation company aiming to power 40-80 seat aircraft with zero-emission engines by 2026. The company is also developing infrastructure at airport sites and demonstrating its Hydrogen Airport Refueling Ecosystem (HARE) in preparation for passenger and cargo routes. These developments, coupled with Airbus's commitment to having their first zero-emission (ZEROe) aircraft ready by 2035, demonstrate how the revival in passenger traffic is driving innovation and investment in zero-emission aircraft technology.
Segment Analysis: Application
Commercial and General Aviation Segment in Zero-emission Aircraft Market
The commercial and general aviation segment dominates the zero-emission aircraft market with approximately 100% market share in 2024, as it remains the primary focus for zero-emission aircraft technology implementation. This segment's dominance is driven by an increasing focus on reducing carbon emissions and rising spending on research and development from aircraft original equipment manufacturers (OEMs). Major aircraft manufacturers are actively developing various zero-emission aircraft technologies, with Airbus leading the way through its three different hydrogen-powered 'ZEROe' concept aircraft, including a turbofan design with passenger capacity up to 200, a turboprop design for up to 100 passengers, and a blended-wing body design. The segment's growth is further supported by the aviation industry's commitment to achieving net-zero carbon emissions, aligning with the Paris Agreement's objectives to limit global warming. Additionally, the development of sustainable aviation fuel (SAF) infrastructure and increasing investments in electric and hydrogen propulsion systems are strengthening this segment's market position.
![Market Analysis of Zero-emission Aircraft Market: Chart for Application](https://s3.mordorintelligence.com/zero-emission-aircraft-market/zero-emission-aircraft-market-Zero-emission-Aircraft-Market-Market-Share-by-Application-Segment-2024-1736965440315.webp)
Military Aviation Segment in Zero-emission Aircraft Market
The military aviation segment currently shows no market presence in the zero-emission aircraft market, as developments are not expected to materialize during the forecast period. However, significant developments are underway in the military sector, particularly with the UK Ministry of Defense's commitment to achieving net-zero emissions by 2040. The Royal Air Force's initiatives in sustainable aviation fuel testing and the United States Air Force's plans to reach net-zero carbon emissions by 2046 indicate future potential for this segment. These developments are expected to set precedents for the rapid integration and adoption of zero-emission technologies, especially in developed economies such as Europe and North America, before expanding to other regions globally.
Zero-emission Aircraft Market Geography Segment Analysis
Zero-emission Aircraft Market in North America
North America represents a significant portion of the global zero-emission aircraft market, holding approximately 33% market share in 2024. The region's prominence is driven by its robust aviation infrastructure and strong focus on developing zero-emission aircraft technologies for both commercial and military applications. The United States, being the largest aviation market with the highest number of aircraft fleets and airports, leads the regional development initiatives. The region's growth is particularly notable in the advancement of sustainable aviation technologies, with major manufacturers and startups actively pursuing innovative propulsion systems. The presence of established aerospace companies and research institutions has created a conducive environment for technological innovation in this sector. Additionally, supportive government policies and increasing private sector investments have accelerated the development of zero-emission aircraft technologies. The region's commitment to reducing aviation-related emissions has led to significant investments in research and development of advanced aircraft engines and sustainable aviation solutions. Furthermore, the strong collaboration between industry stakeholders, including airlines, manufacturers, and technology providers, has created a robust ecosystem for zero-emission aircraft market development.
![Market Analysis of Zero-emission Aircraft Market: Forecasted Growth Rate by Region](https://s3.mordorintelligence.com/zero-emission-aircraft-market/zero-emission-aircraft-market-Zero-emission-Aircraft-Market-Forecasted-Five-Year-Growth-Rate-By-Region-1736520749647.webp)
Zero-emission Aircraft Market in Europe
Europe has established itself as a pioneering force in the zero-emission aircraft market, demonstrating a steady growth rate of approximately 5% annually from 2019 to 2024. The region's leadership position is reinforced by its comprehensive approach to aviation sustainability and a strong regulatory framework supporting emission reduction initiatives. European nations have collectively implemented ambitious climate action plans, particularly focusing on aviation sector decarbonization. The region's success is built upon its advanced aerospace manufacturing capabilities and strong research and development infrastructure. Major European aircraft manufacturers have taken significant strides in developing hydrogen-powered and electric aircraft technologies, positioning the region at the forefront of zero-emission aviation innovation. The presence of specialized research centers and testing facilities has further accelerated technological advancement in this sector. Moreover, the strong collaboration between government bodies, research institutions, and private sector companies has created a robust ecosystem for sustainable aviation development. The region's commitment to achieving climate neutrality has driven substantial investments in zero-emission aircraft technologies and supporting infrastructure.
Zero-emission Aircraft Market in Rest of the World
The Rest of the World region is projected to experience robust growth in the zero-emission aircraft market, with an expected growth rate of approximately 7% during the 2024-2029 period. This region, encompassing Asia Pacific, Latin America, and the Middle East & Africa, is witnessing increasing adoption of advanced aviation technologies and a growing focus on sustainable air transportation. Countries in these regions are actively developing their aerospace capabilities and implementing supportive policies for zero-emission aircraft development. The rising air passenger traffic in emerging economies has created a strong impetus for sustainable aviation solutions. Major aviation hubs in these regions are investing in infrastructure development to support zero-emission aircraft operations. The collaboration between international manufacturers and local aerospace companies has facilitated technology transfer and knowledge sharing in the sector. Additionally, increasing environmental awareness and stricter emission regulations have prompted airlines in these regions to explore zero-emission alternatives. The growing focus on developing indigenous aerospace capabilities has also contributed to the market's expansion in these regions.
Zero-Emission Aircraft Industry Overview
Top Companies in Zero-Emission Aircraft Market
The zero-emission aircraft market features established aerospace giants like Airbus SE and Boeing Company alongside innovative specialists such as ZeroAvia, Heart Aerospace, and Beta Technologies. Companies across the spectrum are heavily investing in research and development to advance electric and hydrogen propulsion technologies, with many focusing on developing sustainable aviation fuel (SAF) capabilities. Strategic partnerships and collaborations are becoming increasingly common as companies seek to combine expertise in aircraft design, propulsion systems, and infrastructure development. Operational agility is demonstrated through the rapid prototyping and testing of new aircraft designs, while product innovation is evident in the development of various aircraft types, from small electric aircraft to larger hydrogen-powered commercial planes. Market players are also expanding their geographical presence through strategic partnerships with airports, energy providers, and government agencies to establish the necessary infrastructure for zero-emission aircraft operations.
Dynamic Market with High Entry Barriers
The zero-emission aircraft market exhibits a fragmented structure with a mix of established aerospace conglomerates and specialized startups driving innovation. Global players like Rolls-Royce and Airbus leverage their extensive research capabilities and established supply chains to maintain competitive advantages, while regional specialists focus on specific market segments such as electric vertical takeoff and landing (eVTOL) aircraft or small commercial planes. The market is characterized by significant technological barriers to entry, though government support and increasing environmental regulations are creating opportunities for new entrants with innovative solutions.
Merger and acquisition activity in the sector is primarily driven by established aerospace companies seeking to acquire innovative technologies and capabilities from startups. Strategic partnerships are becoming increasingly common, particularly in developing charging infrastructure and hydrogen fuel systems. The market shows signs of gradual consolidation as larger players seek to strengthen their position in specific technology segments while maintaining flexibility to adapt to rapidly evolving technological standards and regulatory requirements.
Innovation and Infrastructure Drive Market Success
Success in the zero-emission aircraft market increasingly depends on companies' ability to develop comprehensive ecosystem solutions rather than just aircraft platforms. Incumbent players must focus on building strategic partnerships across the value chain, from energy suppliers to airport operators, while investing in scalable manufacturing capabilities and establishing early market presence through demonstration projects. The ability to secure regulatory approvals and certifications while maintaining cost competitiveness will be crucial for market success, as will the development of robust after-sales support networks and maintenance capabilities.
For new entrants and contenders, differentiation through specialized technology solutions and focus on underserved market segments presents significant opportunities. The risk of substitution from conventional aircraft remains moderate due to increasing environmental regulations and corporate sustainability commitments, though infrastructure development challenges could impact adoption rates. Success will largely depend on companies' ability to secure sustainable funding, develop strategic partnerships for infrastructure development, and demonstrate clear operational and environmental advantages over existing solutions. Regulatory support through incentives and mandates will continue to play a crucial role in shaping market dynamics and competitive positions.
Zero-Emission Aircraft Market Leaders
-
PIPISTREL d.o.o.
-
Airbus SE
-
Aurora Flight Sciences (The Boeing Company)
-
Joby Aero, Inc.
-
Lilium GmbH
- *Disclaimer: Major Players sorted in no particular order
![PIPISTREL d.o.o., Bye Aerospace, Aurora Flight Sciences, Eviation, Joby Aviation, NASA, Lilium GmbH.](https://s3.mordorintelligence.com/zero-emission-aircraft-market/zero-emission-aircraft-market_1630674184741_Capture1.webp)
Zero-Emission Aircraft Market News
- In July 2021, Airbus Helicopters conducted the full-scale demonstrator flight of its electric helicopter. CityAirbus has a multi-copter configuration that features four ducted high-lift propulsion units. Its eight propellers are driven by electric motors at around 950 rpm to ensure a low acoustic footprint.
- In July 2021, Beta Technologies completed the longest crewed test flight of its Alia aircraft yet, clocking in at 205 miles (330 kilometers). The all-electric Alia was operating in airplane mode on only three of its five available battery packs.
Zero-Emission Aircraft Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
-
5.1 Application
- 5.1.1 Commercial and General Aviation
- 5.1.2 Military Aviation
-
5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Rest of World
6. COMPETITIVE LANDSCAPE
-
6.1 Company Profiles
- 6.1.1 Bye Aerospace
- 6.1.2 Ampaire Inc.
- 6.1.3 PIPISTREL d.o.o.
- 6.1.4 Airbus SE
- 6.1.5 Eviation
- 6.1.6 ZeroAvia, Inc.
- 6.1.7 Heart Aerospace
- 6.1.8 Lilium GmbH
- 6.1.9 Aurora Flight Sciences (The Boeing Company)
- 6.1.10 Wright Electric
- 6.1.11 Joby Aero, Inc.
- 6.1.12 NASA
- 6.1.13 Rolls-Royce plc
- 6.1.14 Avinor AS
- 6.1.15 Equator Aircraft AS
- 6.1.16 BETA Technologies, Inc.
- 6.1.17 Evektor, spol. s r. o.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Zero-Emission Aircraft Industry Segmentation
The aviation sector is investing in green technology. A global effort is underway with international airlines pouring millions into innovation being developed by green tech pioneers. Zero-emission aircraft is one such concept that has gained popularity in recent past.
The zero-emission aircraft market is segmented by application and geography. By application, the report has been segmented into commercial and general aviation, and military aviation. The report also covers the market sizes and forecasts in major regions. The market sizing and forecasts have been provided in value (USD million).
Application | Commercial and General Aviation |
Military Aviation | |
Geography | North America |
Europe | |
Rest of World |
Zero-Emission Aircraft Market Research FAQs
How big is the Zero-emission Aircraft Market?
The Zero-emission Aircraft Market size is expected to reach USD 6.76 billion in 2025 and grow at a CAGR of 7.02% to reach USD 9.50 billion by 2030.
What is the current Zero-emission Aircraft Market size?
In 2025, the Zero-emission Aircraft Market size is expected to reach USD 6.76 billion.
Who are the key players in Zero-emission Aircraft Market?
PIPISTREL d.o.o., Airbus SE, Aurora Flight Sciences (The Boeing Company), Joby Aero, Inc. and Lilium GmbH are the major companies operating in the Zero-emission Aircraft Market.
Which is the fastest growing region in Zero-emission Aircraft Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Zero-emission Aircraft Market?
In 2025, the North America accounts for the largest market share in Zero-emission Aircraft Market.
What years does this Zero-emission Aircraft Market cover, and what was the market size in 2024?
In 2024, the Zero-emission Aircraft Market size was estimated at USD 6.29 billion. The report covers the Zero-emission Aircraft Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Zero-emission Aircraft Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Zero-emission Aircraft Market Research
Mordor Intelligence brings its decade-long expertise in advanced technology market analysis to deliver comprehensive insights into the zero-emission aircraft market. Our detailed research thoroughly examines the evolving landscape of zero emission aircraft technology. This provides stakeholders with crucial data about the latest innovations in Zero Emission Aircraft (ZEA) development. The report offers an in-depth analysis of how zero emissions aircraft are reshaping the aviation industry's future. This is supported by extensive primary and secondary research methodologies.
Industry stakeholders can leverage our strategic insights to make informed decisions about investments and technological advancement opportunities in the ZEA sector. The report provides a detailed analysis of regulatory frameworks, technological breakthroughs, and emerging opportunities within the zero emission aircraft market. For convenient access, all insights are available as a downloadable report PDF. It features comprehensive data visualizations, competitive landscape analysis, and future market projections. These enable businesses to develop effective growth strategies in this transformative sector.