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The Global Urban Air Mobility Market Anticipated to Generate a Revenue of $45,86,312.6 Thousand, Growing at a CAGR of 89.8% from 2020 to 2027 - Research Dive

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The global urban air mobility market is estimated to be valued at $45,86,312.6 thousand by 2027, surging from $17,600.0 thousand in 2019 at a noteworthy CAGR of 89.8%.

Impact Analysis of COVID-19 on the Urban Air Mobility Market

The global urban air mobility industry has experienced a negative impact during the COVID-19 pandemic. The global outbreak affected almost every industry in multiple ways including supply chain disruptions, production & demands directly, and progress of ongoing projects in the market. On the other hand, some of the notable urban air mobility solution providers like Volocopter, a pioneer in urban air mobility (UAM), are following multiple strategies during the COVID-19 crisis. For instance, in December 2020, Volocopter announced to officially launch air taxi services in Singapore in year 2022. The company collaborated with the Civil Aviation Authority of Singapore (CAAS) and Economic Development Board of Singapore (EDB) in order to make air taxi services available in the Southeast Asia region. These factors may lead to favorable conditions for investors post the COVID-19 outbreak is handled.

Global Urban Air Mobility Market Analysis

The market growth of the global urban air mobility market is mainly driven by the notable adoption of UAM vehicles in medical emergencies. Key factors including inherent electric efficiency and lower noise signature make aircrafts excellent for healthcare use. Furthermore, the increasing prevalence of chronic diseases across the globe combined with incorporation of eVTOL (electric vertical take-off and landing) aircrafts for emergency medical services (EMS) are some of the major factors for the lucrative growth of urban air mobility market.

The higher cost of research & innovations, along with high initial investments in the infrastructure may hamper the growth of the global urban air mobility market during the analysis period.

The global urban air mobility industry may expand enormously owing to the technological advancements and higher investment in the R&D. Leading companies including Hyundai Motor Company, Uber, Lilium GmBH are highly active in novel innovations. For example, in December 2019, Hyundai Motor Company, a South Korean multinational automotive manufacturer, announced the investment of around $52 billion for the innovations of flying cars, electric vehicles (EVs), and other mobility solutions. These factors may further offer market opportunities for the global urban air mobility industry in the future.

Global Urban Air Mobility Market, Segmentation

The global urban air mobility market is segmented based on platform, range, platform operations, platform architecture, and region.

Platform:

The platform segment is further classified into air taxis, air shuttles & air metro, personal air vehicles, cargo air vehicles, air ambulance & medical emergency vehicles, and last-mile delivery vehicles. Among these, the air taxi sub-segment is expected to have the largest market share and it is predicted to cross $18,66,002.9 thousand by 2027, with an increase from $7,064.9 thousand in 2019. Air taxis are small or medium-sized commercial aircrafts that carry passengers to places, not serviced by scheduled large airlines. Air taxis majorly include all commercial multi-engine helicopters, single-engine aircraft, and non-turbo jet airplane, with the maximum take-off weight of around 8,618 kg or less and 9 or less passenger seats. Enormously growing traffic congestion in developed cities namely Los Angeles, Tokyo, and Munich already have market opportunities for eVTOL aircrafts in the form of urban air taxis. On the other hand, elements like stringent regulations regarding the pilot certifications may obstruct the growth, in the coming years.

Platform Operations:

The platform operations segment is further divided into piloted and autonomous. The autonomous sub-segment is projected to have a lucrative growth in the global market and register a revenue of $28,05,598.9 thousand during the forecast period.

Autonomous urban air mobility vehicle is an unmanned aircraft that does not allow human intervention in flight management. Also, these autonomous aircrafts provide high-speed, on-demand, and efficient air transportation within a metropolitan area. Leading aviation & space organizations namely Uber, NASA, and Airbus S.A.S have been researching on this concept of urban air mobility, which has the capability to serve meaningful ‘travel trip time saving’ unlike on-road transportation facilities.

Range:

The range segment is further divided into intercity and intracity. The intercity sub-segment is projected to have the highest growth in the global market and generate a revenue of $31,85,822.5 thousand by 2027.

Over time, autonomous flight technology, 5G communication networks, innovations in electric propulsion will spawn intercity flights. Intercity aircrafts allow airlines to put airports among the densely populated urban areas, minimize the space required for airport runways, and open up direct travel for passengers. Owing to the above-stated factors, the global intercity urban air mobility subsegment may generate maximum share in the projected period.

Platform Architecture:

The platform architecture segment is further classified into fixed-wing hybrid and rotary wing.  Among these, the fixed-wing hybrid is anticipated to have a significant CAGR and is projected to surpass $14,99,314.4 thousand by 2027, with the surge from $5,358.6 thousand in 2019.

The fixed-wing hybrid aircraft mainly involves a combination of the key advantages of both multi-rotor platforms and fixed-wing drones. These fixed-wing hybrid drones are a versatile option for a broad range of military and commercial aerial applications. Also, the are capable of vertical take-off and landing, without a requirement of a runway or launcher, i.e. such aircrafts can be operated mostly in any location. Owing to the above-mentioned key features, the demand for fixed-wing platform architectures is anticipated to surge, which may ultimately propel the sub-segment’s growth in the coming years.

 Region:

The urban air mobility market for the Asia-Pacific region is expected to have a dominating market share. This market registered a revenue of $8,060.8 thousand in 2019 and is further projected to reach up to $20,68,427.0 thousand by 2027. The robust presence of key players namely Ehang and Hyundai across the Asia-Pacific region and their focus on product innovations will result in the overall growth of the market. For example, in January 2020, Hyundai Motor Company and Uber Technologies, Inc. announced an aerial ridesharing partnership. As per this agreement, both companies will work together on a ‘new full-scale air taxi model’. These company initiatives may create a significant impact on the urban air mobility market in the Asia-pacific region in the analysis period.

Key Players in the Global Urban Air Mobility Market

Some of the leading global urban air mobility market players are –

  1. Ehang
  2. Lilium Gmbh
  3. Airbus
  4. Wisk Aero LLC.
  5. Bell Textron
  6. Volocopter GmbH
  7. Workhorse Group Inc.
  8. Joby Aviation
  9. Kitty Hawk
  10. Archer Aviation

Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.

Porter’s Five Forces Analysis for the Global Urban air mobility Market

  • Bargaining Power of Suppliers: Companies involved in the urban air mobility business are high in number. Thus, the negotiation power of UAM aircraft service provider decreases. Hence,
    the bargaining power of the supplier is high.
  • Bargaining Power of Buyer: Buyers have moderate bargaining power, mainly because of the limited number of urban air mobility service providers. Thus, the buyer can choose the service that best fits its preferences. 
    The bargaining power of the buyer is moderate.
  • Threat of New Entrants: The startups entering this market are providing advanced solutions to the clients. Moreover, these organizations are mainly focusing on the implementation of multiple strategies, brand development, product innovation and many others.  
    Thus, the threat of the new entrants is high.
  • Threat of Substitutes:  There is no substitute available for the urban air mobility aircrafts.
    Therefore, the threat of substitute is low.
  • Competitive Rivalry in the Market: The ventures operating in the global urban air mobility industry are opting for multiple businesses development strategies to stronghold their market position in the industry. Also, the key players like Ehang, Airbus and others are investing heavily to provide integrated services to the customers.
    Therefore, competitive rivalry in the market is high. 
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