Hybrid Aircraft Market Size, Share, By Aircraft Type, Component, Power Source, Mode of Operation, Lift Technology, and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the target market is expected to increase at a rate of USD 16.1 Billion.
• In 2024, the hybrid aircraft market size was estimated to be worth USD 3.2 Billion.
• The market's CAGR rate is 19.4%.

Hybrid aircraft represents a significant innovation in aviation technology, integrating both conventional and electric propulsion systems to enhance efficiency and sustainability. By leveraging electric power alongside traditional duel sources, hybrid aircraft can reduce fuel consumption and emissions while maintaining operational capabilities. The focused market is witnessing rapid advancements in hybrid electric propulsion technologies, lightweight materials, and also autonomous flight systems. The adoption of hybrid aircraft is fueled by diverse applications which ranges from commercial air transport and air cargo to defense and emergency services.    

Key Takeaways:

• Regulatory pressures and environmental policies such as Federal Aviation Administration’s goal for net-zero aviation emissions by 2050 are accelerating the adoption of hybrid aircraft designs. 
• North America is anticipated to boost the target market expansion as the U.S. is projected to be the largest industry, and with initiatives aimed at reducing greenhouse gas emissions and promoting urban air mobility.

Growing Demand for Sustainable Aviation Accelerates Aimed Market Growth

The increasing global focus on reduce carbon emissions and the aviation industry’s commitment to sustainability are major fueling factors. Governments and regulatory bodies are pushing for greener technologies which prompts airlines to adopt hybrid aircraft as a viable solution to meet emission reduction targets.

• For instance, in January 2025, Daher has opened a new technology center, named Fly’in, dedicated to sustainable aviation. Located at Tarbes-Lourdes-Pyrénées Airport in France, the 2,100-square-meter facility complements Daher’s existing technology centers in Toulouse and Nantes. Fly’in will serve as a platform for research, development, prototyping, and testing of sustainable aviation technologies. This includes the EcoPulse aircraft demonstrator, a joint project with Safran and Airbus exploring high-voltage electric hybridization.

Advancements in Electric Propulsion Technology is Anticipated to Support Targeted Market Growth

There is an increasing awareness among consumers and industries regarding the importance of safety, which drives demand for hybrid aircraft products that can prevent accidents and enhance operational efficiency.  

• For instance, in November 2024, VoltAero in Saint Agnant, France announced the completion of its final assembly facility and headquarters at Rochefort Airport. VoltAero will produce the company’s Cassio electric-hybrid aircraft family at its new facility. VoltAero’s first production model, the Cassio 330, will feature four to five seats and 330 kilowatts of electric-hybrid propulsion power. The Cassio 480, with six seats, and the Cassio 600, accommodating up to twelve passengers, are slated to follow, offering 480 and 600 kilowatts of power, respectively. 

Restraints:

Competition from Fully Electric Aircraft Can Hamper the Target Market Growth

As battery technology continues to improve, fully electric aircraft may become more viable alternatives to hybrid models. This competition could impact demand for hybrid aircraft if fully electric options prove more efficient or cost-effective in the long run.   

• Counterbalance Statements: Hybrid aircraft combine traditional fuel engines with electric propulsion systems, allowing for greater operational flexibility. They can operate in a wider range of conditions and distances compared to fully electric aircraft, which may be limited by battery capacity and charging infrastructure. This versatility makes hybrid solutions particularly appealing for regional and urban air mobility applications where operational demands vary significantly.

Opportunities:

Main Opportunity for Targeted Market Expansion is the Environmental Sustainability Initiatives:

• Globally, the governments are implementing stringent emissions regulations and sustainability goals, such as the FAA's commitment to achieving net-zero aviation emissions by 2050. Hybrid aircraft can help airlines meet these regulatory requirements, creating a strong market demand for such technologies.  
• For instance, in November 2024, the U.S. research agency NASA has launched a program to develop ideas for environmentally sustainable commercial airliners that will be used in 2050. NASA’s Advanced Aircraft Concepts for Environmental Sustainability (AACES) 2050 initiative has made five grants worth USD 11.5 million to Aurora Flight Sciences, Electra, JetZero, Pratt & Whitney, and the Georgia Institute of Technology. 

Aircraft type, component, power source, mode of operation, lift technology, and region are the categories in which the hybrid aircraft market is segmented.

Aircraft Type:

By aircraft type, the target market is categorized into unmanned aerial vehicles, advanced air mobility, regional transport aircraft, business jets, light and ultralight aircraft, and others. The sector for business jets is anticipated to hold the largest hybrid aircraft systems market share over the forecast period. Hybrid business jets combine conventional fuel engines with electric propulsion systems, enabling reduced emissions and improved fuel efficiency. 

• For instance, in June 2024, Sirius Aviation in Baar, Switzerland has introduced two new hydrogen-powered luxury business jets, the Sirius CEO-JET and the Sirius Adventure Jet. Developed with BMW Group Designworks, these aircraft aim to provide eco-friendly alternatives to traditional private jets, significantly reducing CO2 emissions. 

Component:

By component, the hybrid aircraft market is segmented into batteries & fuel

cells, electric motors, generators/engines, aerostructures, avionics, software, and others. Electric motors is the segment with the largest intended market share among the specified preferences since they enable hybrid aircraft to run more silently than traditional aircraft. Additionally, this is particularly beneficial for applications involving urban air transportation where noise pollution is an issue.

Power Source:

By power source, the market is segmented into fuel hybrid, hydrogen hybrid, and electric hybrid. The segment that dominates the hybrid aircraft market share among the given preferences is fuel hybrid as the integration of fuel hybridization in the hybrid aircraft market represents a promising avenue toward achieving more sustainable aviation practices.

• For instance, in September 2023, in an aviation industry first, VoltAero has flown the proprietary electric-hybrid powertrain for its Cassio family of aircraft with 100% sustainable fuel provided by TotalEnergies. Conducted from VoltAero’s development facility at Royan, France, the milestone flight utilized the hybrid powertrain’s electric mode and its internal combustion engine, which was fueled by TotalEnergies’ Excellium Racing 100, made from bioethanol produced from waste that originates in French vineyards.

Mode of Operation:

By mode of operation, the hybrid aircraft market is segmented into (piloted, and autonomous). The piloted category is the one with the largest target market share among the specified preferences since the transition to hybrid-electric propulsion systems enables lower greenhouse gas emissions and fuel consumption.

Lift Technology:

Hybrid aircraft market by Lift Technology is categorized into (conventional takeoff and landing (CTOL), short takeoff and landing (STOL), vertical takeoff and landing (VTOL), and others). Among the targeted market share, the conventional takeoff and landing (CTOL) category is emphasized as the most significant because hybrid CTOL aircraft employ electric motors for takeoff and landing, which are usually the most fuel-intensive flight operations. Comparing this hybrid method to traditional aircraft, the former lowers overall pollutants and fuel usage.  

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region is expected to lead the market driven by the significant advancements in hybrid propulsion technologies and a strong focus on sustainable aviation practices.

Europe: Europe is anticipated to maintain a strong position in the Hybrid Aircraft Market due to the presence of numerous manufacturers and favorable government policies supporting the development of hybrid electric aircraft.

• For instance, in September 2024, Swedish hybrid-electric airplane maker Heart Aerospace has unveiled its first full-scale demonstrator, the Heart Experimental 1 (Heart X1), which will serve as a platform for the testing and development of the company’s regional 30-passenger ES-30 aircraft. Initially, the 32-metre wingspan X1 will be used for ground-based testing, focusing on charging operations, taxiing and turnaround procedures, with a fully electric first flight planned in Q2 2025.

Hybrid Aircraft Market Report Scope:

Segmentation:

By Aircraft Type:

• Unmanned Aerial Vehicles
• Advanced Air Mobility
• Regional Transport Aircraft
• Business Jets
• Light and Ultralight Aircraft
• Others

By Components:

• Batteries & Fuel Cells
• Electric Motors
• Generators/Engines
• Aerostructures
• Avionics
• Software
• Others

By Power source:

• Fuel Hybrid
• Hydrogen Hybrid
• Electric Hybrid

By Mode of Operation:

• Piloted
• Autonomous

By Lift Technology:

• Conventional Takeoff and Landing (CTOL)
• Short Takeoff and Landing (STOL)
• Vertical Takeoff and Landing (VTOL)
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Some of the major key players operating in hybrid aircraft market growth includes, Airbus SE, Boeing, Embraer S.A., and others. The competitive landscape of the hybrid aircraft market is dynamic, with established aerospace companies and innovative startups actively pursuing opportunities created by the shift towards sustainable aviation solutions.

For instance, in February 2022, NASA and GE Aviation announced a new partnership to mature a megawatt-class hybrid electric engine that could power a single-aisle aircraft. GE Aviation has selected Boeing to modify the plane that will test the propulsion system in the air. The NASA-GE partnership is part of NASA’s Electric Powertrain Flight Demonstration (EPFD) project. The five-year, USD 260 million effort is being funded by investments from NASA, GE Aviation, Boeing, and other partners.

List of Key Players in the Market:

• Airbus SE
• Boeing
• Embraer S.A.
• General Electric (GE) Aviation
• Rolls-Royce Holdings
• Textron Inc.
• ZeroAvia
• Ampaire Inc.
• Karem Aircraft
• Safran S.A.
• Wisk Aero
• Pipistrel Aircraft
• VoltAero
• BAE Systems
• Skyplan Logistics Limited

• In September 2024, Heart Aerospace, a hybrid-electric aircraft manufacturer and Loganair a U.K. regional airline, have announced an exclusive partnership aimed at decarbonizing regional air travel across the U.K. Under this agreement, Loganair and Heart Aerospace will work together to explore and develop use-cases for hybrid-electric aircraft within Loganair's extensive network in Scotland and the rest of the U.K.Headquartered at Glasgow Airport, Loganair is the U.K.'s largest regional airline by passenger numbers and fleet size, primarily operating domestic flights.
• In September 2024, according to AeroTime research article, within the world of aviation, the launch of commercial eVTOL (electric Vertical Take-off/Landing) flights is starting to loom large on the radar screen. As it does, one aircraft is seeking to capture a particular slice of the advanced air mobility market, one that none of its rivals can challenge – that is, and the provision of electric flights for seven people flying at up to 250 knots (450kph) and with a stage length of around 500 miles (800km). That aircraft is the Horizon Aircraft Cavorite X7.
• In July 2024, American Airlines announced that it has entered into a conditional purchase agreement with clean aviation innovator ZeroAvia for 100 hydrogen-electric engines intended to power regional jet aircraft with zero inflight emissions save for water vapor. ZeroAvia is working on commercial aero plane engines that run on hydrogen (fuelled by fuel cells), which could result in nearly zero emissions while in flight. In addition to constructing an engine for larger aircraft like the Bombardier CRJ700, which American uses on several regional routes, the business is also conducting flying tests of a 20-seater prototype.
• In February 2023, AURA AERO, a pioneer in decarbonized aviation, has signed an agreement with Thales, leader for embedded avionic systems, in order to jointly develop a new generation connected avionics solution, adapted to electric and hybrid regional aviation. The level of innovation introduced by these new aircraft is not only about their new propulsion modes. It is part of an overall logic that has already been adopted by other industries like the automotive industry, aimed at taking advantage of a greater balance between material, software, connectivity and services.

Analyst View:

Hybrid aircraft market is expected to continue its upward trajectory as sustainability becomes a central focus in aviation in upcoming years. Further, with increasing investments in technology development, supportive regulatory frameworks, and growing consumer demand for eco-friendly travel options, hybrid aircraft are well-positioned to play a critical role in the future of aviation.

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