Urban Air Mobility Market

Global Urban Air Mobility Market Size (2023 to 2028)

The urban air mobility market size was valued at USD 4.51 billion in 2023 and is expected to reach USD 18.56 billion by 2028, with an estimated CAGR of 32.70% during the forecast period 2023-2028.

MARKET DRIVERS:

Increasing urban population and rising prominence to reduce the traffic congestion in the cities are escalating the growth rate of the market. With the rising population, traffic congestion is becoming worse in urban areas, where the need to adopt urban air mobility is becoming popular. Urban air mobility demand is increasing at a higher rate from both businesses and individuals for faster and more efficient ways to transport goods and services. The increasing demand for ground-based alternatives like aerial transportation to reduce travel time is increasing day to day. In metropolitan cities, traffic congestion causes severe losses for companies as productivity is reduced proportionally. Also, when people are caught in traffic, the fuel gets wasted, which is becoming a concern with the rising crisis around the world.

Focus on the development of new intelligent aerial vehicles using advanced technologies for mobility is likely to fuel the urban air mobility market. Wisk, one of the most advanced air mobility companies in the world, secured USD 450 million from Boeing Company for its 6th generation eVTOL aircraft, the first to get certified as autonomous. It is an electric aircraft that can accommodate passengers and can be a self-flying air taxi in the US if it receives FAA certification. The eVTOL is manufactured with several advanced features that enable it to operate in urban areas without the need for specialized infrastructure. The eVTOL is an alternative to traditional ground-based transportation that is efficient and reliable in routing and scheduling.

The UAM will become a means of transport in the coming years with the increasing demand for eco-friendly transportation. It is estimated that 60% of the world’s population will live in urban areas by 2029, which amplifies the need to reduce carbon emissions and adopt new mobility solutions. Major companies are focusing on the development of commercial urban air services that are anticipated to propel the market share.

The launch of electric vertical takeoff and landing aircraft is one of the key opportunities for the market to grow eventually in the foreseen period. These aircraft impose significant opportunities to adopt sustainable development in urban transportation. Also, stringent government regulations to lower carbon emissions by reducing the use of fossil fuels and increasing prominence for electrical-powered vehicles are enhancing the growth rate of the UAM market. Increasing R&D activities and growing investments in the development of aerial vehicles are accounted for in prompting the market value. Hyundai and Uber made an agreement to launch Uber air taxis by the end of 2030. Urban mobility will rely on air taxis in the future, and this partnership will enhance urban air mobility.

MARKET RESTRAINTS:

The high cost of the UAM for installation and maintenance is restricting the market growth rate. In addition, the difficulty in getting certifications from government organizations is impeding the market share. Lack of complete knowledge of the innovative features of the traditional aviation process of certification is also a factor that is hampering the growth rate of the urban air mobility market. The need to establish new standards and procedures is increasing day by day, which promotes the rigorous testing, evaluation, and validation of newly launched aerial vehicles. These new standards and protocols will elevate the production rate of aerial vehicles in the coming years.

MARKET CHALLENGES:

The lack of skilled people to operate urban air mobility as it is featured with highly technological developments is inhibiting the growth rate of the urban air mobility market. Urban air mobility devices need high-quality support from people with high knowledge in various technological fields. Hence, finding skilled personnel in the military forces is a big challenge for the key players.

IMPACT Of COVID-19 On the URBAN AIR MOBILITY MARKET:

The urban air mobility market share totally declined due to COVID-19 in 2020. Lockdown restrictions and supply chain disruptions were two major factors that hindered the growth rate of the market in the pandemic era. All the activities were halted, and the demand for air mobility was completely affected negatively. However, the market share started to rise once the lockdown restrictions were eased. All the activities were resumed by the end of 2020 when the market share started to bounce back at a faster rate. Key strategies by the market players evolved the growth opportunities for the adoption of air ambulances during the COVID-19 emergency.

REPORT COVERAGE:

This research report on the global urban air mobility market has been segmented and sub-segmented into the following categories.

Global Urban Air Mobility Market - By Solution:

• Infrastructures

• Charging Stations
• Vertiports
• Air Traffic Management Facilities
• Maintenance Facilities

• Platforms

• Aerostructures
• Avionics
• Electrical Systems
• Propulsion Systems
• Software

The infrastructure segment is leading with the dominant share of the market with the rising need to adopt various technological developments in developed and developing countries. Investments from the government authorities to improve the infrastructure, along with the traffic management regulations, are escalating the growth rate of this segment.

Global Urban Air Mobility Market - By Mobility Type:

• Air Taxis
• Air Shuttles and & Air Metros
• Personal Air Vehicles
• Cargo Air Vehicles
• Air Ambulances & Medical Emergency Vehicles

Air ambulances & medical emergency vehicles are gaining traction over the market share. Traffic congestion in urban areas is becoming a concern, and the demand to adopt air ambulances has been growing at a higher rate in the past few years. The air taxi segment is likely to have the strongest growth opportunities in the coming years as key players are focusing on adopting new technologies.

Global Urban Air Mobility Market -By Range:

• Intercity (> 100 km)
• Intracity (< 100 km)

Intercity(>100 Km) segment is likely to hit the highest CAGR by the end of 2028. Increasing disposable income and growing expenditure on luxury things are ascribed to bolster the growth rate of the market. Intracity (<100 km) is expected to have significant growth opportunities in the near future.

Global Urban Air Mobility Market -By Platform Operation:

• Piloted
• Autonomous

• Remotely Piloted
• Fully Autonomous

The pilot segment is greatly inclined to have a positive growth rate during the foreseen period, whereas the autonomous segment is expected to have significant growth opportunities. Increasing prominence for convenient and efficient transportation techniques is likely to leverage the segment’s growth.

Global Urban Air Mobility Market -By Platform Architecture:

• Rotary-wing
• Fixed-wing Hybrid
• Fixed-wing

The rotary wing segment is leading with the dominant share of the market. Rotary wings play a major role in providing stability while taking off and landing vertically. Growing prominence for eVTOL is enhancing the demand for rotary wings. It also provides safety for the passenger to enable a smooth travel experience. Thus, the growth rate of the rotary wing segment is increasing enormously.

Global Urban Air Mobility Market - By End User:

• Ridesharing Companies
• Scheduled Operators
• E-commerce Companies
• Hospitals & Medical Agencies
• Private Operators

The scheduled operators segment has the prominent growth rate in the market, whereas the hospitals & medical agencies segment is likely to have a prominent growth rate throughout the forecast period.

Global Urban Air Mobility Market - By Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

North America is leading with the largest share of the urban air mobility market. The US is a highly developed country with an increasing urban population every year. Traffic congestion is a major concern for the people in the US. On average, an American commuter will waste time and fuel, which costs around $1377 per year. In addition, Americans waste 8 billion hours every year only due to traffic congestion. These statistics imply that urban air mobility is at a faster rate. The rapid adoption of innovative technological advancements is amplifying the growth rate of the market in the US, as UAM can reduce traffic congestion and is a better way to commute in small electric aircraft.

Asia Pacific is next in holding a prominent share of the market. The increasing population in urban areas is a major factor that has caused the market to grow enormously in this region. China has been leading with the highest market share in the past few years. China is a topmost country in adopting highly advanced technology, especially in launching unmanned aerial vehicles. This country planned to accelerate the applications of drones and increase air mobility in urban areas. Advanced technologies are replacing traditional means of transportation.

Europe is deemed to have the highest CAGR throughout the forecast period with the rising per capita income. The Civil Aviation Authority’s future air mobility regulatory sandbox was organized in the UK to meet sustainable transportation needs. The organization is working closely with top companies to bring a clean, safe, and practicable electric air taxi ecosystem.

Latin America and the Middle East & Africa are set to have huge growth opportunities in the foreseen years.

KEY MARKET PLAYERS:

Pipistrel Group, EHang, Lilium, Workhorse Group Inc., Kitty Hawk, Volocopter GmbH, Neva Aerospace, Airbus, The Boeing Company, Opener

RECENT HAPPENINGS IN THE MARKET:

• On May 30, 2023, CityAirBus NextGen was developed by Airbus SE, which is a realistic idea to promote efficient air transport, especially in urban areas. This will be an alternative to the existing means of transportation with the advanced technology that can be moved into the sky to reach their destination in less time.
• On January 02, 2024, Ehang, a global leader in urban air mobility, successfully completed the demonstration of EHang’s EH216-s passenger aerial vehicle in China. This demonstration is paving the way to integrate air mobility in urban areas. This vehicle is a pilotless passenger-carrying vehicle that has received certification from the Civil Aviation Administration of China (CAAC).