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The Urban Air Mobility Market size is estimated to grow by USD 10.31 billion at a CAGR of 36.5% between 2023 and 2028. Market growth is driven by the rising use of eVTOL aircraft as well as ultralight aircraft in military settings, the need for efficient logistics and last-mile delivery solutions, and the demand for environmentally friendly, noiseless aircraft. These factors contribute to the adoption of eVTOL aircraft across various sectors, enhancing efficiency and sustainability
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The market share growth of the autonomous segment will be significant during the forecast period. Autonomous urban air mobility refers to the use of unmanned aerial vehicles or drones for transportation in urban environments. This technology aims to provide cities with a safe, efficient, and sustainable air transportation option by reducing traffic congestion and increasing mobility.
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The autonomous segment was valued at USD 857.2 million in 2018. The concept of self-driving/autonomous urban air mobility is still in its early stages of development, and its widespread adoption depends on overcoming the technical and regulatory hurdles. However, the market for autonomous aircraft is anticipated to grow, creating opportunities for investors and benefiting a variety of sectors along the way, thereby driving the demand for urban air mobility during the forecast period.
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North America is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The urban air mobility market in North America is expected to grow steadily during the forecast period, primarily because of the growth of e-retailing, the focus on segment-specific service offerings, and the adoption of the premium delivery service model. The growing network of last-mile connectivity options is also a factor driving the use of urban air mobility services in North America. The demand for last-mile delivery is driven by online purchases that are usually delivered to customers' doorsteps. Purchases that are delivered using last-mile delivery services are increasingly preferred to physical shopping by many people due to the convenience and time-saving benefits. Many traditional retailers are also switching to the last-mile delivery model to gain accessibility to cater to consumers in different geographical regions. These factors have led to a direct increase in the demand for last-mile delivery services.
The autonomous aerial vehicles market is rapidly evolving, driven by flying cars and air taxis that promise to revolutionize urban mobility. Federal Aviation Administration (FAA) regulations and FAA Rulemaking Committees are critical in shaping the future of these technologies, including Uber Air and electric aircraft. As battery-powered UAM vehicles gain traction, they offer a sustainable alternative to traditional ICE cars with reduced CO2 emissions. In this dynamic sector, air metro and air ambulance services are seeing growth, supported by significant R&D investments from aerospace players. These innovations are powered by electric motors, fly-by-wire systems, and advanced control systems and sensors. The Ministry of Land is also involved, ensuring the integration of these technologies into existing infrastructure. The air taxis segment, air ambulance segment, and other vehicle type segments are expanding as companies invest in electric aircraft and push the boundaries of urban air mobility.
The increasing use of eVTOL aircraft in military applications is notably driving market growth. Urban air mobility is increasingly being seen as a future option for affordable, rapid, and sustainable travel, addressing both congestion and environmental issues faced by modern cities. Advances in technology have encouraged more than 120 startups and aerospace companies to develop urban air mobility vehicles known as eVTOLs (electric vertical take-off and landing vehicles), all envisioning the potential of Urban air mobility in the future. The electric vertical take-off and landing (eVTOL) aircraft have multiple benefits in the military due to their freedom to operate from anywhere, options to fly manually or autonomously, reduced noise levels, and elimination of the need for runways. Thus, the above-mentioned factors will boost urban air mobility market growth during the forecast period.
A major trend in the market is the growing adoption of technological advances. Large packages or goods need to be collected directly by the customer during their delivery due to their high value. These packages cannot be delivered outside homes, which poses a challenge for delivery services companies. Therefore, delivery providers are providing their customers with web and mobile-based last-mile delivery management applications to manage the delivery schedule of large or heavy cargo or packages. These applications allow the real-time management of package delivery and electronic rescheduling and alert the customer in the case of delays due to inclement weather or traffic issues through email, electronic messages, or voice calls.
Big data is also playing a significant role in last-mile delivery optimization, where companies such as DHL use big data analytics to come up with an optimum delivery route using GPS and traffic-related data to make timely deliveries. Other technologies that have already witnessed wide-scale implementation in last-mile logistics include automation, online delivery status updates, real-time order tracking, and delivery time estimations. All these technological advances are expected to positively influence urban air mobility market growth during the forecast period.
Limitations of existing battery technology is one of the major challenges impeding the market growth. A flight requires a tremendous amount of energy and achieving it is difficult due to the technological limitations of the battery industry. The electrification of cars was successful due to the focus on increasing their affordability and making them more compact. In an aircraft, the main concern is weight and not cost or volume. There is a great need to increase the storage capacity of the battery without increasing the weight of the aircraft. For designing an eVTOL aircraft with commercial payload-range characteristics, a battery needs to have a minimal energy density of 500Wh/kg, whereas most commercial batteries can only deliver 30%-50% of this.
In addition to high energy density, high re-charging speeds, and long battery lifecycles will be crucial to underpinning the economics of battery-powered aircraft. Thus, such limitations in existing battery technology will hamper the growth of the global UAM market during the forecast period.
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.
Workhorse Group Inc. - The company offers urban air mobility such as passenger eVTOL as its key offerings. They design and build high-performance electric vehicles and aircraft. The company also develops cloud-based, real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency.
The Urban Air Mobility market growth analysis report also includes detailed market growth and trends 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. Data 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 Urban Air Mobility market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The rise of battery-powered UAM vehicles is transforming urban areas with advancements in advanced air mobility. This innovation impacts various vehicle type segments, including air shuttles, personal air vehicles, and cargo air vehicles. Urban air mobility technology enhances transport and tourism by offering on-demand mobility solutions and improving last-mile delivery vehicles. Regulatory authorities and aircraft operators are crucial in shaping this evolving ecosystem, ensuring sustainable solutions and compliance. Shared mobility and shared automated vehicles are gaining traction, integrating with public transportation and goods delivery services. Key industry players, such as Hyundai Motor, are investing heavily in electric power and vehicle automation to enhance platform operations and platform architecture. With a focus on R&D spending, collaborations, and mergers & acquisitions, the urban aviation services sector is set to revolutionize the metropolitan economy and social mobility, boosting productivity in metropolitan areas and beyond.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 36.5% |
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Market growth 2024-2028 |
USD 10.31 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
26.88 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 52% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airbus SE, Archer Aviation Inc, Bartini Inc., Bell Textron Inc., EHang Holdings Ltd., Embraer SA, Geely Auto Group, Honeywell International Inc., Joby Aviation Inc., Kitty Hawk Corp., Lockheed Martin Corp., Moller International, Moog Inc., RTX Corp., Textron Inc., The Boeing Co., Volocopter GmbH, Wingcopter GmbH, Wisk Aero LLC, and WORKHORSE GROUP INC. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market forecasting 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 Urban Air Mobility market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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