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The Global Urban Air Mobility (UAM) Market size is estimated to grow by USD 5,280.25 million between 2022 and 2027 accelerating at a CAGR of 27.5%. The growth of the market depends on several factors, including the increasing use of eVTOL aircraft in military applications, the need for efficient logistics and last-mile delivery modes, and the growing need for green energy and noise-free aircraft
This urban air mobility market research report extensively covers market segmentation by type (autonomous and piloted), application (delivery and passenger mobility), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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 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 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 the growth of the global urban air mobility (UAM) market during the forecast period.
A major trend in the urban air mobility (UAM) 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 the growth of the (UAM) market 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.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Urban Air Mobility Market Customer Landscape
Vendors 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. The company 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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 741.48 million in 2017 and continued to grow until 2021. 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 48% 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 services 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.Â
During the COVID-19 outbreak in 2020, customers became dependent on online purchases of most products. A massive disruption in supply chains led to consumers spending less time in offline stores and more time in online stores, thus, positively impacting the growth of the market in focus. Moreover, last-mile logistics companies are partnering with retail outlets to enable hyperlocal deliveries. Many retailers have converted their unused facilities in stores to last-mile delivery warehouses. All these factors will positively impact the growth of the market in North America during the forecast period.
The urban air mobility (UAM) market research 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.Â
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Urban Air Mobility Market Scope |
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Report Coverage |
Details |
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Page number |
155 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 27.5% |
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Market growth 2023-2027 |
USD 5,280.25 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
23.78 |
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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 48% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airbus SE, Archer Aviation Inc., Bartini Inc., EHang Holdings Ltd., Embraer SA, Geely Auto Group, Honeywell International Inc., Joby Aviation Inc., Kitty Hawk Corp., Lilium GmbH, Lockheed Martin Corp., Moller International, Moog Inc., Raytheon Technologies Corp., The Boeing Co., Volocopter GmbH, Wingcopter GmbH, Wisk Aero LLC, Workhorse Group Inc., and Textron Inc. |
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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. |
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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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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