Urban Air Mobility Market Size, Share, Trends, Companies & Industry

Updated on : Sep 16, 2024

[409 Pages Report] The urban air mobility (UAM) market is estimated to be USD 4.6 billion in 2024 and is projected to reach USD 23.5 billion by 2030, at a CAGR of 31.2% between 2024 and 2030, and USD 41.5 billion by 2035, at a CAGR of 12.1% from 2030 to 2035. Rapid urbanization, growing road traffic in major cities, and increasing urban population are driving the demand for alternative transportation solutions. The adoption of UAM industry can reduce traffic congestion and travel time while improving overall mobility by utilizing the vertical dimension of cities. It can also enhance accessibility, bridging gaps in underserved communities and providing a rapid transportation option for emergency services like medical evacuations. Significant investments in research & development are being made to advance UAM technology, infrastructure, and sustainability. Governments and regulatory bodies have actively started to establish a supportive policy framework that balances safety, innovation, and public interests. Conducting pilot projects and feasibility studies in select cities has yielded valuable insights to guide broader UAM implementation.

Urban Air Mobility Market Forecast to 2029

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Urban Air Mobility (UAM) Market Trends

Driver: Rise in urban congestion

As urban areas experience growth in terms of population and economic development, the resulting traffic congestion has become a pressing concern. Conventional ground transportation methods, including cars, buses, and trains, are constrained by the capacity of existing road networks, leading to inefficiencies in the movement of individuals and goods. The increasing urban congestion is a significant driver for the adoption of UAM. UAM utilizes urban airspace to offer faster and more efficient transportation by bypassing congested roads. This will reduce travel time and increase the overall capacity of transportation networks. Vertical Take-Off and Landing (VTOL) aircraft, such as flying taxis and electric-powered drones, can use existing infrastructure like rooftops to avoid ground traffic, reducing travel time and increasing transportation capacity. UAM provides direct point-to-point transportation, enabling faster and more convenient travel, particularly in areas with limited public transportation or road networks. Integrating UAM into urban transportation planning establishes a multi-modal transportation system that optimizes existing infrastructure, enhancing mobility. For example, Joby Aviation's (US) eVTOL aircraft aims to provide efficient urban air transport solutions to address urban congestion.

Restraints: High Initial Investment

The adoption of UAM helps bypass congested road networks by utilizing airspace. This offers alternative routes that are less affected by traffic and reduces travel times and environmental impact. However, the development and deployment of UAM technologies require significant financial resources. These investments encompass research & development, advanced aircraft manufacturing, infrastructure development, regulatory compliance, and safety certifications. This level of investment can be an entry barrier for new players and small companies, restraining market growth and innovation. The development of advanced UAM vehicles, such as eVTOL aircraft, entails high costs. These aircraft require state-of-the-art technology, materials, and systems, leading to high production costs. The construction of necessary infrastructure, including vertiports and charging stations, involves substantial capital expenditure. This infrastructure is crucial for the efficient operation of UAM services but demands significant investment from private companies as well as public organizations. In 2023, Joby Aviation (US), despite raising significant capital from investors, encountered challenges in scaling up its operations and meeting regulatory requirements. The company had to secure additional funding to continue its development efforts and ensure compliance with safety standards.

Opportunity: Growing demand for shorter travel time and efficient transportation

As urbanization progresses and the population surges, the demand for current transportation infrastructure escalates, resulting in lengthier commutes and heightened congestion. Extended commutes not only diminish productivity but also contribute to stress. Traditional transportation systems, like cars and buses, often grapple with traffic congestion, significantly elongating travel durations. They also contribute to air pollution and greenhouse gas emissions substantially. UAM aims to tackle these issues by enabling individuals to bypass traffic and swiftly travel from one point to another using eVTOL vehicles. These vehicles can operate in urban settings, utilizing rooftops and other urban spaces for take-off and landing, thereby reducing reliance on traditional road networks. Also, they run on electric power, producing zero emissions during operation. Miami has initiated a pilot program in partnership with a prominent UAM company to offer air taxi services for daily commuters. The initial phase concentrated on linking downtown Miami with Miami International Airport, a route well-known for heavy traffic and lengthy travel durations. The UAM service slashed the average travel time from 45 minutes to 10 minutes, presenting a noteworthy enhancement in efficiency and convenience.

Challenges: Cybersecurity conerns

UAM systems rely heavily on software for crucial functions such as flight control, navigation, and communication, leaving them vulnerable to a range of cyber threats. These include unauthorized access to onboard networks, hacking of communication links between vehicles and air traffic control (ATC), and the introduction of malicious data that can compromise safety-critical decisions. Safeguarding flight systems from cyberattacks is vital, as any breach could result in unauthorized changes to flight paths or loss of vehicle control. Data security is also crucial, as UAM operations generate significant data, including passenger information and flight plans, which must be safeguarded from breaches to prevent disruptions and maintain trust. Furthermore, the communications networks in UAM are a significant vulnerability. Secure and reliable communication between vehicles and control centers is essential for safe operations and cyberattacks on these networks can lead to misinformation and potential safety incidents, underscoring the need for robust cybersecurity measures. To address these cybersecurity concerns, a comprehensive approach is necessary, involving advanced security protocols, continuous monitoring, and regular system audits. Collaborative efforts between UAM developers, cybersecurity experts, and regulatory bodies are essential to establish comprehensive standards and best practices.

Urban Air Mobility Market Ecosystem

In the UAM market ecosystem, key stakeholders range from major UAM platform and infrastructure solution providers to private enterprises, distributors, suppliers, retailers, and end customers like airlines and aircraft operators. Influential forces shaping the industry include investors, funders, academic researchers, distributors, service providers, and defense procurement authorities. This intricate network of participants collaboratively drives market dynamics, innovation, and strategic decisions.

Urban Air Mobility Market Segmentation

Based On Mobility Type, Air Taxis Segment To Lead Uam Market In 2024

Air taxis are projected to lead the UAM market. They offer a faster and more convenient solution to urban congestion. Air taxis offer a solution to the increasing road congestion in densely populated cities. eVTOL aircraft can bypass ground traffic, providing faster and more efficient transportation in cities. By using eVTOL, travel time can be reduced significantly, and commuters can spend less time on the road. Significant investments are being made in supportive infrastructure, including vertiports and technology related to eVTOLs. Air taxis very much resemble the already well-thriving rideshare service; hence, they are likely to be more accessible and easier to adapt to consumers. This is one of the leading reasons for the rapid growth of this segment of the UAM market. Key UAM market players, such as Joby Aviation (US), Archer Aviation (US), and Volocopter GmbH (Germany), are advancing rapidly in the development of air taxi services. These companies are securing regulatory approvals and forming strategic partnerships with airlines and urban transportation authorities. These are positioning air taxis as the leading mobility type segment of the UAM market.

Based On Platform Architecture, Rotary Wing Segment To Lead Uam Market In 2024

Rotary-wing eVTOLs currently lead the UAM market due to several advantages. Their designs are based on technology that provides vertical lift, similar to traditional helicopters and are more aligned with existing regulatory frameworks, accelerating the certification process and paving an easier way to market entry. Since they can perform vertical take-offs and landings, rotary-wing eVTOLs are best suited for urban areas with limited space, minimizing the need for developing runway infrastructure. They provide good versatility and maneuverability, finding wide applications in passenger transportation, emergency medical services, and cargo delivery. Rotary-wing designs are less mechanically complex than tilt-wing or fixed-wing UAM platforms, potentially lowering production costs, maintenance costs, and overall operational costs. The best examples of rotary-wing aircraft are helicopters and multicopters. The VTOL capabilities of helicopters make them suitable for navigating congested urban routes. Improvements in electric and hybrid propulsion technologies are increasing the sustainability of helicopters and decreasing their noise emissions. Multicopters use electric propulsion systems, which contribute to reduced emissions and noise levels than traditional combustion engines. Numerous corporations are currently engaged in the development of these aircraft as part of the UAM revolution, with the goal of offering efficient and sustainable transportation solutions within metropolitan areas.

Urban Air Mobility Market Regional Analysis

North America To Have Largest Share In 2024 In Uam Market

North America is estimated to lead the UAM market in 2024 due to innovations in eVTOL aircraft and related systems in the country. The region has a strong regulatory framework, as the Federal Aviation Administration has actively contributed to developing favorable regulations and certification processes for UAM operations. High investments by venture capital and private sectors in infrastructure developments such as vertiports and charging stations are also accelerating market growth. High levels of urban congestion in major cities have created a higher demand for effective means of transportation. Initiatives such as government and industry-led public-private partnerships and pilot programs are increasing UAM adoption in North America. In February 2023, Joby Aviation announced a partnership with the Department of Defense (DoD) (US) to provide eVTOL aircraft for government use. Joby's advanced technology will enhance operational efficiency and support various DoD missions, and this partnership emphasizes the impact of technological advancements on the US UAM market. In March 2023, the National Research Council Canada (NRC) partnered with Horizon Aircraft, an eVTOL manufacturer based in Canada, to test and validate its innovative hybrid-electric aircraft.

Urban Air Mobility Market by Region

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Top Urban Air Mobility Companies - Key Market Players

Major players in the UAM market include Lilium Aviation GmbH (Germany) , Archer Aviation Inc. (US), Eve Holdings, Inc. (Brazil), Airbus (France), and EHang (China) , Lilium Gmbh (Germany), Archer Aviation Inc. (US), Eve Holding, Inc. (Brazil), Airbus (France), Ehang (China), Vertical Aerospace (UK), Textron Inc. (US), Joby Aviation (US), Ferrovial (Spain), Skyports Infrastructure Limited (UK), Wisk Aero LLC (US), Jaunt Air Mobility (US), Wingcopter (Germany), BETA Technologies (US), and Volocopter Gmbh (Germany).  

Urban Air Mobility Market Report Scope

Urban Air Mobility Market Highlights

This research report categorizes the Urban Air Mobility markets based on solution, mobility type, platform architecture, range, mode of operation, end user

Recent Developments

• In July 2024, Saudia Group (Saudi Arabia) and Lilium GmbH (Germany) signed a binding sales agreement for 50 Lilium Jets, with options to purchase 50 more.
• In July 2024, Southwest Airlines Co. (US) and Archer Aviation Inc. (US) signed a memorandum of understanding (MOU) to develop operational plans for electric air taxi networks utilizing Archer’s eVTOL aircraft at California airports where Southwest operates.
• In July 2024, Stellantis N.V. (Netherlands) and Archer Aviation, Inc. (US) announced that Archer had received an investment of USD 55 million from Stellantis under the strategic funding agreement between the two companies following the achievement of its transition flight test. 
• In June 2024, Joby Aviation (US) acquired the autonomy division of Xwing (US), a leader in developing autonomous technology for aviation.
• In March 2024, Airbus (Netherlands) launched its full electric CityAirbus NextGen prototype. The two-tonne class CityAirbus, with a wingspan of approximately 12 meters, has been developed to fly with an 80-km range and reach a cruise speed of 120 km/h.

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