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The EVTOL aircraft market is estimated to grow by USD 5,433.3 million at a CAGR of 39.53% between 2022 and 2027. The growth of the market depends on several factors, including the demand for enhanced customer service, the increasing requirement for clean and quiet aircraft, and the increasing use of eVTOL aircraft for military applications.
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The increasing requirement for clean and quiet aircraft is notably driving the market growth, although factors such as operating power and heat management challenges may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing requirement for clean and quiet aircraft is notably driving the market growth. Airplanes emit around 100 times more CO2 per hour than a shared bus or train ride, and the emissions of global aviation are around 1 billion tons of CO2 per year. The worldwide aviation sector is responsible for around 2% of all CO2 emissions caused by humans. These figures are projected to rise much more, as the size of the global aircraft fleet and air travel grows. Hence, there has been an increasing demand for eVLOT aircraft to reduce the aviation industry's carbon impact.
Organizations and governing bodies, such as the International Civil Aviation Organization, the Federal Aviation Administration, and the European Union Aviation Safety Agency, have called for sustainable aircraft fuel alternatives, estimating that by 2050, aircraft-generated emissions will have tripled in volume. EVTOL aircraft engines do not produce the sounds associated with jet or combustion engines, thus, no aircraft noise levels are produced by this aircraft. Thus, such factors will boost the growth of the electric vertical take-off and landing (eVTOL) aircraft market in focus during the forecast period.
The development of drone infrastructure is an emerging trend in the market. Drones have revolutionized the commercial aerospace domain, given their easy deployment, low associated maintenance costs, relatively high mobility, and hovering ability. Drones are being widely deployed in areas such as wireless coverage and remote sensing, search and rescue operations, delivery of goods, security and surveillance, precision agriculture, and civil infrastructure inspection, among others.
Drones are instrumental in search and rescue (SAR) operations and can expedite rescue and recovery activities during natural or man-made disasters such as floods. Moreover, they can provide timely disaster warnings and transport medical supplies to areas that are otherwise inaccessible. During disasters such as the release of toxic gases, wildfires, and avalanches, drones are deployed to support and hasten SAR operations by providing prompt coverage of a large area without any risks to the security or safety of personnel. Thus, such factors will boost the market growth and trends during the forecast period.
The operating power and heat management challenges are the major issues impeding the market growth. The conventional aircraft design employs a fluctuating frequency alternating current (AC) as the source of power generation, which, however, is not applicable to light designs to some extent since they require a controlled frequency AC with controlled voltage along with 270 V direct current (DC) power distribution architecture. This includes distribution topology and generation and power conversion due to the high electrical power consumption when compared with traditional aircraft.
Moreover, electrically powered systems generate a significant amount of heat, which, in the absence of proper thermal management, can have catastrophic results. Traditional design systems direct the excess heat generated to a heat sink, however, high amounts of heat can initiate oxidizing reactions and degrade the fuel. The other option available is the ambient air, but while venting out the heat, it has to pass through other systems of the aircraft, which can lead to damage to these systems. Therefore, these challenges will hamper the growth of the global electric vertical take-off and landing (eVTOL) aircraft market during the forecast period.
The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Lilium GmbH - The company involved in developing proprietary technology that powers all-electric vertical take-off and landing jets that includes 5-seat technology demonstrators. The key offerings of the company include eVTOL aircraft.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Our market growth analysis report includes data that is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the cargo segment will be significant during the forecast period. Most of the eVTOL aircraft are designed for end-consumers for urban air mobility, medical assistance, and personal use. In 2020, JumpAero announced it was working on a small, one-seater to allow the rapid deployment of emergency services. This type of vehicle is not a replacement for land vehicles or helicopters, but a new tool since electric motors are faster than others.
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The cargo segment was valued at USD 400.66 million in 2017 and continued to grow until 2021. Companies are collaborating to create this aircraft that not only save lives but also has reduced environmental impact. These aircraft can offer a range of options, including EMS. Medical service providers and manufacturers are collaborating to deliver emergency missions with effective and secure solutions. For instance, in July 2022, UK-based vertical aerospace announced its partnership with aerospace, defense, and security company Babcock International to use its aircraft for aerial EMS and cargo. The companies intend to establish a joint working group to examine potential applications for the VX4 in critical services such as responding to accidents and providing emergency transport between hospitals, as well as assisting the armed forces with medium-range logistics delivery and casualty evacuation services by leveraging Babcock's experience in this area. As part of their agreement, the two businesses will also build modular MRO solutions to increase VX4 availability and enable efficient maintenance during the forecast period. Thus, such collaborations will drive the growth of the global market through the cargo segment during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to companies is Europe. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Europe was the largest segment of the global market in 2022 and will continue to remain the largest segment during the forecast period. The market in Europe is expected to experience a positive growth rate due to increased investment in commercial drones Western European countries such as the UK, Germany, France, Spain, and Italy. The expansion of the market to other European countries such as Iceland, Norway, Ireland, and Switzerland will also likely drive the market in Europe during the forecast period.
European countries are developing infrastructure for eVTOL aircraft. For instance, in April 2022, the world's first demonstration of a hub for flying taxis and autonomous freight drones, Air-One, was opened in the city of Coventry by the UK eVTOL infrastructure developer Urban-Air Port. With support from the UK government and further assistance from the industry leader in air mobility, Supernal and Air-One will run from its location at Westminster Car Park in the center of Coventry for at least one month. According to Urban-Air Port, the project will serve as the model for more than 200 vertiports that are expected to be built around the world over the next five years. This will have a positive impact on the growth of the regional market.
The market is poised to transform urban transportation with electric propulsion systems enabling quiet, emission-free vertical flight. Designed for maneuverability in tight spaces, EVTOLs promise point-to-point transportation autonomously, easing urban traffic congestion and offering efficient aerial logistics and emergency response. Advanced power electronics and energy management systems optimize efficiency and reliability, reducing noise pollution and carbon emissions. However, safety remains paramount, necessitating rigorous testing, certification, and regulatory approvals.
EVTOL manufacturers, technology firms, and transportation providers collaborate to navigate commercialization challenges and innovate battery technologies for longer flight durations. With public trust contingent on robust safety measures and regulatory compliance, investments in infrastructure and charging networks are crucial for widespread market acceptance and the realization of sustainable urban air mobility.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
EVTOL Aircraft Market Scope |
|
Market Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.53% |
Market growth 2023-2027 |
USD 5,433.3 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
33.01 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, ARC Aerosystems, Archer Aviation Inc., BETA Technologies Inc., EHang Holdings Ltd., Elbit Systems Ltd., Elroy Air, Embraer SA, Joby Aviation Inc., Karem Aircraft Inc., Lilium GmbH, Moog Inc., SkyDrive Inc., Textron Inc., The Boeing Co., Urban Aeronautics, Vertical Aerospace Group Ltd., Volocopter GmbH, Wisk Aero LLC, and Zhejiang Geely Holding Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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