The global urban air mobility (UAM) market, which is expected to be valued at $895.0 million in 2023, would grow to $6,889.4 million by 2030, at a CAGR of 33.9% during the forecast period (2023–2030). The major drivers for the industry are the increasing road traffic in major cities and surging number of product launches.
.jpg "Urban Air Mobility Market")
In 2023, passenger would be the larger bifurcation in the urban air mobility market, under segmentation by aircraft type. This is attributed to the fact that passenger flights would be more in demand than cargo delivery services. Additionally, the fare for low-altitude passenger flights would be higher than for cargo and last-mile delivery services.
The intercity bifurcation, based on range, is expected to witness faster growth in the market, as with technological advancements in the fuselage, battery, and motors, the rage of electric vertical take-off and landing (eVTOL) aircraft would increase, thereby allowing them to travel from one city to another.
The market is predicted to be dominated by the autonomous bifurcation, on the basis of operation type, till 2030. This is because, compared to piloted aircraft, autonomous variants are better suited for cargo and passenger services. Further, infrastructure providers, aircraft manufacturers, and airspace integration researchers would increasingly fund autonomous UAM services, thereby leading to the growth of this bifurcation.
North America is predicted to be the largest market for urban air mobility in 2023, through to 2030, as the major cities in the U.S. are witnessing high traffic congestion, owing to which people here would rapidly opt for airport shuttle and air taxi services. Moreover, cargo and last-mile services, with eVTOL aircraft, are expected to be extensively provided in the U.S.
.jpg "Urban Air Mobility Market")
A key trend in the urban air mobility market presently is the high number of investments being done by major companies, in startups working in the domain. The investors include firms that are already leading the ground transportation niche as well as those which offer conventional passenger and cargo aircraft. For instance, Toyota Motor Corp. invested $394 million in Joby Aviation LLC in January 2020, with the aim of foraying into the future market; Joby Aviation is engaged in the development of eVTOL aircraft. In the same vein, in December 2019, Hanwha Systems Co. Ltd. invested $25 million in Overair Inc., which is pursuing the development of fully electric air taxis, named Butterfly.
One of the major factors driving the urban air mobility market is the increasing road traffic in highly populated cities, which leads to the wastage of time and impacts economic growth. For instance, in the U.S., 90 hours, on an average, are spend by people in traffic jams each year, which increases their transportation expenditure by over $1,000. Additionally, the number of human deaths in road crashes has gone up sharply in the past few years, owing to the rising number of vehicles on the roads, especially in developing countries, such as Indonesia, India, and China. This is eventually predicted to result in a high demand for autonomous aerial mobility, which would help the market prosper.
.jpg "Urban Air Mobility Market")
Since the urban air mobility market is a future opportunity, major companies hoping to make a fortune are entering into partnerships and joint ventures, to give them the maximum chance of success.
For instance, in January 2020, Uber Technologies Inc. began a partnership with Hyundai Motor Co. to offer ridesharing services via its air taxis. With this partnership, Hyundai became the first automaker to join the Elevate initiative of Uber. Under the terms, Hyundai will manufacture and deploy the aerial vehicles, while Uber will offer customer interface, support service, and connections to ground transportation through an aerial network.
Similarly, in December 2019, Kitty Hawk launched the Wisk joint-venture with The Boeing Company, to develop and manufacture Cora, which would be an all-electric, self-flying eVTOL air taxi with a two-person capacity. Kitty Hawk plans to initially launch the services in New Zealand.
Key players in the global urban air mobility industry are The Boeing Company, Airbus SE, Uber Technologies Inc., Textron Inc., Lilium GmbH, Zipline Inc., EHang Holdings Ltd., Volocopter GmbH, Kitty Hawk Corp., and Airspace Experience Technologies Inc.
The report offers comprehensive market segmentation analysis along with market estimation for the period 2023–2030.
Based on Aircraft Type
Based on Range
Based on Operation Type
Geographical Analysis
Get a bespoke market intelligence solution
Our dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws
