Zero Emission Aircraft Market, By Aircraft Type (eVTOL Aircraft , Electric & Hybrid Electric , and Hydrogen Powered), By Range (Short-Haul, Medium-Haul, and Long-Haul), By Application (Passenger Transportation , Cargo and Freight , and Military and Defense), By Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)

Published In : Mar 2024

Code : CMI6785

Pages :160

Formats :

Excel and PDF

Industry : Aerospace and Defense

Market Concentration and Competitive Landscape

Zero Emission Aircraft Market Concentration By Players

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Rising Fuel Costs

The aviation industry is heavily dependent on jet fuel to power aircraft and this accounts for a significant portion of operating costs for airlines. Over the past decade, fuel prices have witnessed high volatility driven by geopolitical uncertainty in West Asia and other factors influencing global crude oil markets. In some years, fuel costs alone have wiped out airline profits. The unpredictability of fuel prices poses major challenges for business planning and price competitiveness. Zero emission aircraft powered by hydrogen fuel cells or electric batteries promise to insulate the industry from these fuel market fluctuations. While hydrogen and electricity will have their own production and distribution costs, they are likely to be more stable over time in comparison to jet fuel whose prices are tied directly to global crude oil markets. By diversifying their energy sources, airlines can achieve greater budgeting certainty and better manage operating risks. This is attractive from a financial standpoint and could influence investment decisions on new aircraft fleets. As fuel economies continue to improve, total cost of ownership might favor hydrogen and electric options over conventional fueled aircraft.

Higher international refined fuel prices, driven by OPEC cuts and global demand, coupled with a weaker Australian dollar, raised petrol prices in Australia's major cities to 195.6 cpl in the September quarter, up by 12.7 cpl from the previous quarter. ACCC's report highlights the impact of these factors on prices. The increase was primarily due to higher international petrol prices and currency exchange rates. While prices reached record nominal levels, they were lower in real terms compared to previous years. Smaller capital cities saw relatively smaller price hikes, with Hobart at 198.5 cpl, Canberra at 197.4 cpl, and Darwin at 192.6 cpl.

Key Players Insights