Electric and Hybrid Propulsion Systems in Aviation: Market Trends and Outlook Global Occupant Monitoring Systems (OMS) Market – 20 26 - 20 36 Page 1 of 4 © M eticulous R esearch | sales@meticulousresearch.com The aircraft electric propulsion system market is still relatively young, but it is expanding quickly as the aviation industry searches for realistic ways to reduce emissions, noise, and long - term operating costs. In 2025, the global market size stood at USD 12.24 billion. A year later, in 2026, the v alue is expected to rise to USD 14.38 billion. Looking further ahead, the market is forecast to reach USD 76.58 billion by 2036, growing at a compound annual growth rate of 17.3% between 2026 and 2036. This growth reflects a clear shift in how aircraft propulsion is being designed. Traditional combustion - based engines are no longer the only option being considered for future aircraft programs. Electric propulsion systems, which rely on electric motors po wered by batteries, fuel cells, or hybrid - electric gen erators, are increasingly being integrated into both experimental and commercial aircraft platforms. While full electrification remains challenging for large aircraft, hybrid and hydrogen - electric systems are already proving their value across several segm ents. Why the Market Is Expanding One of the biggest reasons behind this market’s expansion is the global push toward aviation decarbonization. Airlines, regulators, and aircraft developers are under pressure to reduce emissions while maintaining performance and safety standards. Electric propulsion systems offer a practical pathway toward these goals, particularly when combined with existing power sources in hybrid configurations. Fuel efficiency is another important factor. Rising and volatile fuel prices have made operators more sensitiv e to long - term operating costs. Electric and hybrid - electric propulsion systems help reduce fuel consumption, especially on short - and medium - haul routes, which improves cost predictability over an aircraft’s lifetime. At the same time, noise reduction has become a growing concern, particularly around urban airports. Electric motors operate far more quietly than conventional engines, making them better suited for operations in populated areas. This advantage is especiall y important for emerging applications such as urban air mobility and regional point - to - point travel. Market Structure and Technology Landscape Aircraft electric propulsion systems are not a single component but a combination of several interconnected technologies. These include electric motors, power electronics such as inverters and converters, energy storage systems, and thermal management solu tions. The focus today is not just on individual components but on how efficiently they can be integrated into a single propulsion unit. The market covers a wide power range. Smaller systems are designed for light aircraft and training platforms, while lar ger systems are being developed for regional turboprops and future narrow - body aircraft. As power requirements increase, achieving a high power - to - weight ratio becomes critical. This is why manufacturers are investing heavily in lightweight materials and m ore compact propulsion architectures. Digital technologies are also playing a Global Occupant Monitoring Systems (OMS) Market – 20 26 - 20 36 Page 2 of 4 © M eticulous R esearch | sales@meticulousresearch.com growing role. Energy management software is being used to balance power output, extend component life, and reduce maintenance needs. Predictive monitoring helps operators identify issues before they lead to downtime, which is particularly valuable for high - frequency operations. Market Highlights and Segment Performance From a regional perspective, Europe holds the largest share of the aircraft electric propulsion system market in 2026. This position is supported by strict environmental regulations and long - term investment in clean aviation technologies. The region has be come a major testing ground for hybrid - electric and hydrogen - electric aircraft concepts. North America, however, is expected to grow at the fastest pace during the forecast period. The region is seeing strong momentum in electric general aviation and rapid development of electric vertical takeoff and landing aircraft. This combination is drivi ng demand for compact, high - performance electric propulsion systems. When the market is analyzed by propulsion type, hybrid - electric systems hold the largest share in 2026, accounting for roughly 45 – 50% of total revenue. These systems are currently the most practical solution for reducing emissions without sacrificing range or payload. They allow aircraft to use electric power during specific flight phases while relying on conventional power sources when needed. Hydrogen - electric propulsion systems are expected to record the fastest growth rate over the forecast period. Their appeal lies in their ability to support zero - emission flight while offering higher energy density than battery - only solutions. This makes th em particularly suitable for regional aircraft applications. Aircraft Type Trends By aircraft type, the eVTOL and urban air mobility segment represents the largest share of the market in 2026, accounting for around 40 – 45% of total revenue. Electric propulsion is essential for vertical - lift aircraft because it delivers high torque, rapid response, and low noise. These features are critical for safe and efficient operations in urban environments. The commercial aircraft segment, including regional and narrow - body aircraft, is also gaining traction. While full electric propulsion remains li mited for larger aircraft, hybrid - electric systems are increasingly being adopted to improve fuel efficiency and reduce emissions on short - and medium - haul routes. Modular propulsion designs are helping make maintenance easier and allowing systems to be up graded over time. Global Occupant Monitoring Systems (OMS) Market – 20 26 - 20 36 Page 3 of 4 © M eticulous R esearch | sales@meticulousresearch.com Key Trends Influencing the Market One of the most important trends shaping the aircraft electric propulsion system market is the move toward distributed electric propulsion. Instead of relying on one or two large engines, these designs use multiple smaller electric propulsors placed across the aircraft. This improves aerodynamic efficiency and adds redundancy, which enhances safety. Flight demonstrations conducted in 2026 have shown that distributed propulsion concepts can work in real - world conditions. As a result, these systems are becomi ng more relevant for future aircraft designs, particularly for eVTOL platforms and next - generation narrow - body aircraft. Another major trend is the development of megawatt - class electric motors. These motors are capable of delivering between 1 MW and 5 MW of continuous power, which is necessary for larger aircraft during demanding phases such as takeoff and climb. Advances i n cooling methods and superconducting technologies are helping reduce weight and heat generation, making these high - power systems more practical. Long - Term Market Outlook The aircraft electric propulsion system market is expected to continue growing steadily through 2036. The combination of regulatory pressure, technological progress, and changing operational requirements is reshaping how aircraft propulsion is designed and deployed. While challenges remain, particularly around energy storage and infrastructure, electric propulsion systems are increasingly viewed as a core element of aviation’s future. As these technologies mature, their role will expand beyond niche applica tions and into mainstream commercial aviation. Download Sample Report Here: https://www.meticulousresearch.com/download - sample - report/cp_id=6344 Key Questions Answered in the Report: What is the projected CAGR of the aircraft electric propulsion system market from 2026 to 2036? How does the growth of this market compare to other segments of the aviation industry? What role does fuel efficiency play in driving demand for electric and hybrid - electric aircraft propulsion? How does urban air mobility (UAM) create new opportunities for electric propulsion systems? Global Occupant Monitoring Systems (OMS) Market – 20 26 - 20 36 Page 4 of 4 © M eticulous R esearch | sales@meticulousresearch.com What role do AI - driven energy management systems and digital twins play in modern electric propulsion systems? How is thermal management and lightweight material design improving the efficiency of electric propulsion? Why is the hydrogen - electric segment expected to grow faster than other propulsion types? Which aircraft segment holds the largest share of the market, and what are the reasons? What are the main challenges for widespread adoption of aircraft electric propulsion systems? How do energy density and battery limitations affect the deployment of fully electric aircraft? Contact Us: Meticulous Research® Email - sales@meticulousresearch.com Contact Sales - +1 - 646 - 781 - 8004 Connect with us on LinkedIn - https://www.linkedin.com/company/meticulous - research