Enjoy complimentary customisation on priority with our Enterprise License!
The Urban Air Mobility Market size is estimated to grow by USD 5.28 billion at a CAGR of 27.5% between 2022 and 2027. The market's expansion relies on various factors, such as the rising utilization of eVTOL aircraft in military settings, the necessity for effective logistics and last-mile delivery solutions, and the increasing demand for environmentally friendly and noiseless aircraft. These elements collectively contribute to the market's growth by driving the adoption of eVTOL aircraft across diverse sectors. Military applications showcase the aircraft's versatility and reliability, while the logistics sector benefits from its efficiency and maneuverability in urban environments. Moreover, the emphasis on green energy aligns with the global push for sustainability, further propelling the market forward. These factors underscore the eVTOL aircraft's increasing relevance and adoption across multiple industries, driving its market growth.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
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).
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.
The autonomous segment was valued at USD 741.48 million in 2017. 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.
To understand geographic trends Download Report Sample
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.
The market encompasses a wide range of services and technologies aimed at revolutionizing urban transportation. These include goods delivery services utilizing last-mile delivery vehicles and cargo air vehicles to alleviate congestion on the ground. Flying taxi services and personal air vehicles promise to transform how people move around metropolitan areas, reducing traffic congestion and boosting productivity. Infrastructure development is key to supporting these services, with a focus on air shuttles and air metro systems. Mergers & acquisitions are shaping the ecosystem, with companies vying for a foothold in this burgeoning market. Platform operations and platform architecture are crucial for ensuring the seamless operation of these services, ultimately improving transportation businesses and benefiting the metropolitan economy. 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 market 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 the growth of the 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.
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 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market is rapidly evolving with advancements in electric aircraft, intelligent aerial vehicles, and sustainable transportation systems. Companies like Microsoft are leveraging cloud-based computing systems to enhance collaborations and develop smart strategies for UAM services. Air taxis and air shuttles are revolutionizing public transportation by offering on-demand mobility and reducing urban congestion. Shared automated vehicles and last mile delivery solutions are improving passenger experience and cargo efficiency. With a focus on sustainable solutions, the industry is exploring vertical takeoff and landing vehicles (eVTOL) and refurbishing existing infrastructures to accommodate urban aviation services.
Furthermore, the market is poised for significant growth, driven by advancements in transportation technologies and electric power. Advanced air mobility solutions, including air shuttles and air metro services, are reshaping urban transportation. Companies like Jaunt Air Mobility are setting up eVTOL assembly plants to meet the demand for autonomous vehicles in intercity and intracity settings. Courier services and aerial delivery drones are enhancing logistics capabilities, especially during emergencies. The industry is focused on improving load-carrying capacity and runway efficiency to support the growth of UAM and urban air taxi services.
Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.5% |
Market growth 2023-2027 |
USD 5.28 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
23.78 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 48% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.