Market Trends of Aircraft Battery Industry
The Lithium-ion Battery Segment is Projected to Showcase the Highest Growth During the Forecast Period
Lithium-ion (or Li-ion) batteries are smaller in size, require low maintenance, and are environmentally safer than nickel-cadmium batteries. Thus, the use of lithium-ion batteries is likely to increase at a higher rate compared to other types during the forecast period.
The demand for Li-ion batteries is driven by the rising air passenger traffic, which, in turn, drives the procurement of new aircraft with batteries for various purposes. For instance, in January 2024, IATA announced that in 2023, the global revenue passenger kilometers rose by 36.9% compared to 2022, and the global air traffic was at 94.1% of the pre-pandemic levels.
Global aircraft original equipment manufacturers (OEMs) such as Airbus, Boeing, and others have been increasingly receiving aircraft orders. Currently, lithium-ion batteries are being used in Boeing B787 Dreamliner aircraft and Airbus A350 for starting and as an emergency power source. In 2023, Airbus and Boeing announced that they received orders for 313 B787s and 300 A350s, respectively. This factor is expected to drive the demand for commercial aviation. Commercial aircraft programs and military aircraft like Lockheed Martin F-35 Lightning II aircraft also deploy Li-ion batteries. The F-35 fighter jet utilizes Li-ion batteries for flight control actuation backup power.
Various companies are developing new battery technologies that efficiently power various business jet models. For instance, in October 2023, Airwolf Aerospace acquired supplemental type certificates (STCs) for the installation of its lithium-ion batteries in business jets and turboprops, including Cessna Citation, Embraer Phenom, Cessna Caravan, and Pilatus PC-12 aircraft. Such factors are expected to drive the demand for aircraft batteries during the forecast period.
Asia-Pacific will Witness the Highest Growth During the Forecast Period
Asia-Pacific is expected to experience the highest growth owing to the robust procurement of commercial aircraft from the various airlines due to the increasing region's air passenger traffic, which, in turn, drives the demand for new aircraft. For instance, according to IATA, in 2023, the region’s revenue passenger kilometer Y-o-Y growth was 60.7% compared to 2022. In 2023, IATA also mentioned that the region’s airlines recorded a growth of 126.1% in international traffic compared to 2022, maintaining the strongest Y-o-Y rate among the regions.
To cater to this rising demand, various airlines in China, India, Japan, and South Korea are ordering new narrowbody and widebody aircraft OEMs as a part of fleet expansion and modernization programs. For instance, according to Boeing, Asia-Pacific will receive 8,595 aircraft deliveries during 2022-2041. About 76% of the delivered aircraft are expected to be single-aisle aircraft, and approximately 50% of aircraft will be delivered to airlines in China.
The growth in military spending of the countries in the region due to the ongoing geopolitical tensions between the countries is expected to propel the investment of the armed forces into the procurement of new-generation military aircraft to strengthen their aerial capabilities. For instance, in March 2023, the Indian Defence Ministry approved procuring 70 locally made HTT-40 basic trainer aircraft for USD 388.5 million. HAL India announced that the HTT-40 is powered by a lithium-ion battery developed specifically for military aviation.
The general aviation market is also expected to boost its growth as helicopters and business jets are being procured for various civil and commercial applications. For instance, in January 2024, Adani Group awarded a contract to Pilatus to deliver six PC-24 aircraft. In March 2023, Travira Air awarded a contract to Leonardo to deliver additional AW139 helicopters for offshore applications. Overall, developments such as these are expected to drive the demand for aircraft batteries in the region during the forecast period.
