The urban air mobility market size was USD 2.90 billion in 2020. The market is projected to grow from USD 3.01 billion in 2021 to USD 8.91 billion in 2028 at a CAGR of 16.77% during the 2021-2028 period. This vital information is presented by Fortune Business Insights™, in its report titled, “Urban Air Mobility Market, 2021-2028.” Factors such as increasing urbanization and degrading traffic conditions will boost the market during the forecast period. Also, the rising demand for creating faster, cleaner, safer, and interconnected transportation will fuel the growth of the market.
The report focuses on providing a detailed insight into the inner working of the urban air mobility sector by uncovering the segments and subsegments for the market. Factors such as R&D capabilities and optimization of the manufacturing process for the dominant players are covered. Besides, ongoing market trends and upcoming industry developments are noted. The report also focuses on several growth factors that have contributed for the growth of the market over the past years.
Drivers & Restraints
Rising Demands for Green Solutions to Bolster Market Growth
Rising demand for alternative modes of transport and rocketing road traffic is expected to boost the urban air mobility market growth during the forecast period. Also, the growing urban population and increasing growing urban population will fuel the growth of the market. Additionally, utilization of autonomous UAMs is expected to bore lower pollution, short travel times, and decrease demand on current transportation infrastructure. These factors will boost market growth.
However, factors such as rising security concerns, high initial investment, and limited government support in terms of the regulatory framework will limit the market during the forecast period.
COVID-19 Pandemic to Usher Unparalleled Challenges for the Market Leading to Limited Growth
The ongoing COVID-19 pandemic has significantly harmed the supply chain of the urban air mobility sector. Constant lockdowns and volatility in raw material pricing have hampered the development cycle for UAMs, further delaying the launching of new products. Many dominant players have lost gross business revenues due to lockdowns and restrictions on people’s movements. These measures have led to delays in development and lower revenue generation for the prominent players.
List of Key Players Present in the Market
- Textron Inc. (U.S.)
- Uber Technologies Inc. (U.S.)
- Airbus SE (Netherlands)
- Ehang (China)
- Safran SA (France)
- Volocopter (Germany)
- Lilium Aviation GmbH (Germany)
- Carter Aviation (U.S.)
- AIRSPACEX (U.S.)
- Aurora Flight Sciences (U.S.)
North America to Hold Largest Market Share Due to Presence of Dominant Players
North America will capture the largest urban air mobility market share during the forecast period, owing to the increasing presence of dominant players coupled with rising adoption measures. Also, rising air traffic among residents will fuel the demand for air taxis and airport shuttle services. Factors such as last-mile and freight services coupled with eVTOL aircraft will boost the market growth.
Europe will register the fastest-growing market during the forecast period due to the region being the breeding ground for a majority of technology innovations. Rising investment opportunities, as well as the presence of prominent players, will foster growth for the market.
Vehicle Type, Range, Operation, End User, and Region are studied for the Market
Based on vehicle type, the market is segmented into air taxis, air metro, air ambulance, last-mile delivery, and others.
By range, the market is divided into intercity and intracity.
In terms of operation, the market is broken down into including piloted, hybrid, and autonomous.
By end user, the market is fragmented into ride-sharing companies, scheduled operators, e-commerce companies, hospitals and medical agencies, and private operators.
In terms of geography, the market is categorized into North America, Europe, Asia Pacific, and the Rest of the World.
Product Development to be at the Forefront for Developing a Sustainable Market
The market for urban air mobility is still at a budding stage with the dominant players competing for capturing a larger consumer base. The market is expected to grow at a steady rate by strategies such as collaboration, mergers & acquisitions, and developing and launching novel products to capture an attentive audience. For example, in May 2021, Volocopter revealed the Voloconnect. It is an electric vertical take-off and landing aircraft (eVTOL), which is designed for connecting suburbs and cities. This product will integrate with Volocopter’s existing intra-city aircraft series.
- July 2021: Klein Vision Flying Car completed its maiden intercity trip. The ride was recorded at 35 minutes and took around 3 minutes to transform from a car to an aircraft.