Electric Propulsion Systems Market - By Propulsion (Hybrid, Full-electric), By Component (Electric Motor, Battery, Controller/Inverter, Propeller/Thruster), By Application & Forecast, 2024 – 2032

Electric Propulsion Systems Market Size

Electric Propulsion Systems Market was valued at USD 9.4 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. Innovations in battery technology drive extended range and faster charging capabilities, enhancing the appeal of electric propulsion systems across industries.

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The integration of smart connectivity features further optimizes efficiency and performance, while advancements in material science contribute to lighter and more durable components, facilitating broader adoption and market expansion. For instance, in October 2023, Wright Electric set its sights on a pivotal advancement in aircraft battery technology, aiming to achieve a breakthrough in battery performance. The company is dedicated to developing high-energy batteries with heightened energy density. Wright Electric seeks to surpass the conventional 250Wh/kg energy density found in traditional lithium batteries with a target of reaching up to 1,000Wh/kg.
 

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The economic incentive to transition to electric propulsion systems is growing with increasing fuel costs. Electric systems offer a cost-effective alternative, significantly reducing operating expenses over the lifetime of the vehicle or equipment. This cost advantage becomes particularly compelling for fleet operators and businesses with high fuel consumption, prompting them to invest in electric solutions to mitigate the impact of rising fuel prices on their bottom line. Consequently, the demand for electric propulsion systems surges as organizations seek to optimize operational efficiency and maintain competitiveness in a volatile energy market.

The initial high cost of electric propulsion systems presents a significant barrier to their adoption. While the long-term operational savings are evident, the upfront investment can be prohibitive for many consumers and businesses. This cost disparity often leads potential buyers to opt for traditional, cheaper alternatives despite the potential long-term benefits of electric propulsion. Additionally, the perceived risks associated with the relatively new technology may further deter some organizations from making the transition. Consequently, overcoming the challenge of high initial costs is crucial for accelerating the mass adoption of electric propulsion systems.

Electric Propulsion Systems Market Trends

Innovations in electric propulsion systems increasingly prioritize scalability and modular designs, allowing for easier integration across various platforms and applications. This growth enables more flexible and customizable solutions, catering to diverse market needs while streamlining manufacturing processes and reducing development lead times. For instance, in February 2024, Lilium commenced the setup for mass production of its electric propulsion system destined for the Lilium Jet eVTOL aircraft. Cutting-edge assembly equipment is being installed to facilitate the serial production of these propulsion units.
 

The electric jet propulsion unit, a cornerstone technology for Lilium, is essential for optimizing Lilium Jet's performance, operational costs, and passenger comfort. This system incorporates electric jet engines seamlessly integrated into the propulsion mounting system situated at the rear portion of the wings and front canards.

In response to market demands, electric propulsion systems are undergoing a shift toward modular and scalable designs. This strategy offers manufacturers greater flexibility in configuring systems to suit different vehicle sizes and power demands. By modularizing components such as motors, inverters, and batteries, production processes become more streamlined and cost-effective, while still allowing for customization to meet varied customer requirements. This evolution promotes efficiency and innovations in the development and implementation of electric propulsion solutions across multiple industries.

Electric Propulsion Systems Market Analysis

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Based on propulsion, the market is divided into hybrid and full-electric. In 2023, the full-electric segment accounted for a market share of around 65%. The full-electric segment within the market is experiencing rapid expansion. Full-electric vehicles are becoming more practical and appealing to consumers with advancements in battery technology and charging infrastructure. This growth is driving investments and innovations in full-electric propulsion systems, paving the way for a sustainable future in transportation.

For instance, in January 2024, Archer Aviation, renowned for its expertise in electric Vertical Takeoff and Landing (eVTOL) aircraft, announced substantial progress in the advancement and testing of its battery packs, specifically designed for its Midnight aircraft. Through a strategic partnership with the National Aeronautics and Space Administration (NASA), Archer is pioneering breakthroughs in battery technology, aimed at elevating safety standards, and optimizing performance for both advanced air mobility and space exploration endeavors.

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Based on application, the electric propulsion systems market is categorized into aerospace, marine, automotive, and industrial machinery. In 2023, the aerospace segment accounted for a market share of around 34% and is expected to exceed USD 5 billion by 2032. In the aerospace sector, electric propulsion systems are revolutionizing the industry. With a focus on efficiency and sustainability, aerospace companies are increasingly turning to electric propulsion for satellites, spacecraft, and even aircraft. This trend toward electrification is driven by the need to reduce emissions, enhance operational capabilities, and lower the overall costs, shaping the future of aviation and space exploration.

For instance, in May 2024, Heart Aerospace, a renowned Swedish manufacturer of electric aircraft, revealed a significant partnership with Honeywell. The objective is to seamlessly integrate Honeywell's state-of-the-art flight control technology into Heart's latest innovation, the ES-30 regional electric aircraft. Featuring cutting-edge technology, the ES-30 boasts a 200-kilometer electric range with zero emissions. Furthermore, it can accommodate up to 30 passengers on an extended hybrid range of 400 kilometers. For longer journeys, the aircraft offers the option of covering a maximum distance of 800 kilometers with 25 passengers onboard.

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Europe dominated the global electric propulsion systems market with a major share of over 36% in 2023 due to increasing environmental consciousness and government incentives. Major European space agencies, such as ESA and national agencies, are actively investing in the development of advanced electric propulsion technologies. Additionally, the presence of leading aerospace companies and research institutions in Europe, combined with favorable government policies and funding initiatives, will further propel the adoption of electric propulsion systems for various space missions and satellite applications in the region.

Countries like U.S. is expected to experience significant growth in the electric propulsion system market due to the presence of major aerospace companies, increasing investments in space exploration missions, and the rising demand for small satellites and cubesats. The region's focus on developing advanced propulsion technologies, coupled with supportive government initiatives and funding for space programs, will drive the adoption of electric propulsion systems in the coming years.

In Asia Pacific, the market is experiencing rapid growth, fueled by increasing urbanization and environmental concerns. Countries, such as China, Japan, and South Korea, are investing heavily in electric vehicle infrastructure and technology, driving the demand for electric propulsion systems across automotive, aerospace, and marine sectors. This trend reflects a shift toward sustainable transportation solutions in the region.

Electric Propulsion Systems Market Share

L3 Harris, Safran, and Thales are prominent players in the market holding market share above 16%, each offering a unique range of solutions catering to aerospace and defense applications. With a focus on innovation and reliability, these companies compete to secure contracts for electric propulsion systems in satellites, spacecraft, and unmanned aerial vehicles.

L3 Harris, Safran, and Thales compete fiercely in the electric propulsion systems industry, leveraging their technological expertise and global reach. These companies strive to capture market share by developing cutting-edge propulsion solutions for commercial and military aircraft, satellites, and other aerospace applications, while also emphasizing customer service and aftermarket support.

Electric Propulsion Systems Market Companies

Major players operating in the electric propulsion systems industry are

• Accion Systems Inc.
• Airbus Defence and Space
• Busek Co. Inc.
• General Electric
• Honeywell Aerospace
• L3 Harris
• Mars Space Ltd.
• Mitsubishi Electric Corporation
• Safran
• Sitael S.p.A.
• Thales

Electric Propulsion Systems Industry News

• In November 2023, Bellwether Industries, at the forefront of Urban Aerial Mobility (UAM), initiated a strategic alliance with Schubeler, renowned worldwide for its expertise in electric propulsion technology. This partnership signifies a noteworthy advancement in the progression of Advanced Air Mobility (AAM) and electric Vertical Takeoff and Landing (eVTOL) solutions.
   
• In August 2023, Pulsar Fusion, a propulsion startup headquartered in England, forged a partnership with the University of Michigan to delve into electric Hall-effect thruster technology. Supported by funding from the UK Space Agency, this collaboration seeks to propel forward the development of in-space electric propulsion systems, offering superior efficiency compared to conventional combustion engines.

The electric propulsion systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (Units) from 2021 to 2032, for the following segments

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Market, By Propulsion

• Hybrid
• Full-electric

Market, By Component

• Electric Motor
• Battery
• Controller/Inverter
• Propeller/Thruster

Market, By Application

• Aerospace
• Marine
• Automotive
• Industrial Machinery

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA