Urban Air Mobility Market
Industry: Automotive
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP34652
The global urban air mobility market is estimated to value at US$27.1 Bn by the end of 2031 from US$3.9 Bn recorded in 2023. The market growth is expected to secure a CAGR of 29.7% in the forthcoming years from 2024 to 2031.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Urban Air Mobility Market Size (2024E) |
US$5.1 Bn |
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Projected Market Value (2031F) |
US$27.1 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
29.7% |
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Historical Growth Rate (CAGR 2018 to 2023) |
12.3% |
Urban air mobility (UAM) market share refers to the use of small, highly automated aircraft to transport passengers or cargo within urban and suburban areas. UAM is a subset of the broader Advanced Air Mobility (AAM) concept, which is being developed by the Federal Aviation Administration (FAA), the National Aeronautics and Space Administration (NASA), and industry partners.
UAM specifically targets the transportation of people and cargo within metropolitan and urban areas. This Concept of Operations (ConOps) offers an evolving vision to guide further research on how to effectively integrate UAM operations into the National Airspace System (NAS) if demand and volume surpass current capabilities.
A convergence of technologies is set to make urban air mobility more practical and popular compared to traditional helicopter services. The key innovation is the electric vertical take-off and landing (eVTOL) aircraft design, which utilizes multiple electric-powered rotors instead of the single large rotor found on typical helicopters.
This design makes eVTOLs more economical to operate and maintain, as well as quieter, potentially increasing their acceptance at more landing and take-off locations.
The mobility sector is increasingly embracing vehicle-to-everything (V2X) communication, with startups focusing on over-the-air (OTA) updates for software enhancements and robust cybersecurity measures to manage the complexity of in-vehicle systems.
For instance, Nauto, an AI-powered platform for fleet and driver safety, offers real-time solutions to predict, prevent, and mitigate high-risk events. As a provider of advanced driver-assistance systems (ADAS) and driver monitoring system (DMS) technology, Nauto delivers a variety of products, including predictive collision alerts, driver behavior alerts, self-guided coaching, manager-led coaching, incident reporting, and on-demand video.
Integration of autonomous flight systems is a key market trend, with companies like Wisk Aero, and Joby Aviation working on self-piloting aircraft. This technology aims to enhance safety, reduce operational costs, and increase the scalability of UAM services.
For instance, SkyDrive is a company focused on manufacturing and developing eVTOL aircraft and cargo drones. In 2025, the Japanese firm plans to introduce its flying car in Osaka, allowing consumers to request a ride and be transported to their destination.
The vehicle features a seating capacity for three people, a maximum take-off weight of 1,406 kg, a cruising speed of up to 100 km/h, and a range of 15 km. In addition to the flying car, the company is also working on Skylift, a cargo drone designed to automate the aerial transport of heavy materials, with a maximum payload of 30 kg per flight.
The several key factors and developments have shaped the market landscape. Firstly, technological advancements have been crucial. Companies like Airbus SE, Volocopter GmbH, and Joby Aviation Inc. have made substantial progress in developing electric vertical take-off and landing (eVTOL) aircraft.
These vehicles promise reduced emissions and noise compared to traditional helicopters, making them more suitable for urban environments. Improved battery technology and lightweight materials have also played a vital role in enhancing the feasibility and efficiency of these aircraft.
Various regions and countries have been exploring and implementing policies to integrate eVTOLs into existing airspace management systems. This regulatory clarity is essential for attracting investment and fostering the growth of UAM infrastructure.
Strategic partnerships and investments have accelerated market expansion. Companies like Uber Technologies Inc., which launched Uber Air, and partnerships between aerospace giants and tech startups have propelled research and development efforts. These collaborations aim to address challenges such as vehicle certification, infrastructure development, and operational safety.
Growing Demand for Alternate Modes of Transportation in Urban Mobility
With the rapid urbanization and increasing population density in cities, traditional ground transportation systems are becoming increasingly congested.
According to the United Nations, in 2022 over 55% of the world's population resides in urban areas, a figure projected to rise to 68% by 2050. This urban influx strains existing infrastructure, leading to longer commute times, increased pollution, and diminished quality of life.
One of the key factor of UAM is the need to reduce traffic congestion in major cities. For example, in the United States, the average commuter spends about 54 hours annually in traffic jams, according to the Texas A&M Transportation Institute.
In megacities like Los Angeles, this figure even higher. With the continued urbanization and technological progress, UAM is poised to become an integral part of the urban transportation landscape, offering efficient, green, and innovative solutions for the future of urban mobility.
Zero Emission and Noise Free Mandates
Traditional transportation methods, particularly those relying on internal combustion engines, contribute to greenhouse gas emissions and urban noise pollution.
In response, many cities and countries have implemented stringent regulations to reduce emissions and noise levels, creating a favorable environment for the adoption of UAM solutions.
For instance, the European Union has set ambitious targets to achieve climate neutrality by 2050, which includes reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
To meet these targets, European cities are exploring innovative transportation solutions like electric vertical take-off and landing (eVTOL) aircraft. These eVTOLs are designed to be zero-emission and significantly quieter than traditional helicopters and airplanes.
Companies like Volocopter, and Lilium are developing eVTOLs that promise to reduce urban noise pollution while offering efficient and sustainable transportation options.
Quest for the Right Technology in Urban Air Mobility Market
UAM encompasses various types of aerial vehicles, each tailored to specific use cases such as passenger transport, cargo delivery, emergency services, and more.
The technology for these applications must address a range of factors including safety, efficiency, noise levels, infrastructure compatibility, and regulatory compliance.
One primary challenge is developing propulsion systems that are both efficient and environmentally friendly. Electric vertical takeoff and landing (eVTOL) aircraft, for instance, rely heavily on advanced battery technology.
However, current battery technology faces limitations in energy density, which affects the range and payload capacity of these vehicles.
According to a report by the National Renewable Energy Laboratory (NREL), achieving the necessary energy density for long-range eVTOL flights requires significant advancements in battery technology.
For example, Joby Aviation’s eVTOL aims to achieve a range of up to 150 miles on a single charge, but this necessitates batteries with an energy density far beyond what is commercially available today.
Rapid Advancements in Electric Propulsion, Autonomous Flight Systems, and Battery Technology
Electric propulsion systems, notably quieter and cleaner than traditional combustion engines, are central to UAM's sustainability goals. These systems leverage electric motors powered by batteries, eliminating the emissions associated with fossil fuels and reducing noise levels, making UAM more acceptable in urban environments.
Autonomous flight systems complement electric propulsion by enabling safe and reliable operations without the need for constant human intervention.
Advances in artificial intelligence and sensor technology enable autonomous take-off, navigation, and landing, crucial for managing complex urban airspace and ensuring passenger safety. For example, companies like Wisk Aero and Ehang are developing autonomous air taxis capable of transporting passengers across cities, demonstrating the feasibility of integrating autonomous systems into UAM.
The evolution of battery chemistry and energy density has accelerated, with lithium-ion batteries becoming lighter, more powerful, and cheaper over time.
Such advancements are essential for extending the operational range of UAM vehicles, reducing recharging times, and enhancing overall efficiency. For instance, Volocopter's eVTOL aircraft has demonstrated significant progress in battery technology, achieving flight times suitable for urban commuting.
Consumer Demand for Convenience
Urbanization accelerates and cities become more congested, consumers increasingly seek efficient and time-saving transportation options. This shift in demand opens significant opportunities for UAM services, which promise faster and more direct transportation solutions compared to traditional ground-based methods.
One key aspect of consumer demand for convenience is time-efficiency. For example, a commute that takes hours by car or public transport could be significantly reduced to minutes by air taxi services. This time saving is particularly appealing to business travelers, commuters, and individuals seeking efficient transportation for time-sensitive activities.
Moreover, consumer demand for convenience is also intertwined with environmental considerations. As concerns over climate change and urban pollution mount, there is a growing preference for sustainable transportation solutions.
|
Category |
Projected CAGR through 2031 |
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Vehicle Type – Air Taxis |
32.6% |
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Operation - Autonomous |
34.1% |
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End User - Scheduled Operators |
30.4% |
40% Market Share Concentrated in Air Taxis
The air taxis segment accounted for more than 40% of the global market revenue in 2023 and is likely to maintain its dominance during in the forthcoming years recording a CAGR of 32.6%.
The increasing urban population and the consequent demand for efficient transportation solutions are driving the growth of the air taxi segment. The surge in urbanization necessitates innovative transportation solutions to mitigate traffic congestion and reduce travel times.
Air taxis offer a viable alternative to ground-based transportation, potentially cutting travel times significantly. For example, a study by Uber Elevate estimates that a 60-minute car journey in a congested city could be reduced to just 15 minutes using an air taxi.
Investments, and partnerships from major aerospace and technology companies further bolster the air taxi segment's growth. Industry giants such as Airbus, Boeing, and Uber Technologies are heavily investing in the development and commercialization of air taxi services.
Autonomous Systems Poised to Experience Rapid Growth
Autonomous systems integrate advanced sensors, artificial intelligence (AI), and real-time data processing capabilities to navigate complex urban airspace more safely than traditional piloted aircraft.
For instance, companies like Ehang, and Volocopter are pioneering autonomous passenger drones that utilize AI algorithms to ensure safe navigation and obstacle avoidance, reducing the risk of human error.
Unlike piloted aircraft, autonomous drones operate with minimal infrastructure and can be deployed more frequently and flexibly. This scalability is particularly appealing in urban areas where demand for rapid, point-to-point transportation solutions is high.
Autonomous operation is estimated to expand at a CAGR of 34.1% in terms of value in the forthcoming years.
Scheduled Operators to Experience Highest Growth Rate
Advancements in technology are making UAM more feasible and attractive. The development of electric vertical takeoff and landing (eVTOL) aircraft, which are quieter, more efficient, and environmentally friendly compared to traditional helicopters, is accelerating the adoption of UAM.
Governments and aviation authorities worldwide are recognizing the potential benefits of UAM and are working on creating frameworks to facilitate its integration into the current airspace.
The Federal Aviation Administration (FAA) in the United States, for example, has been collaborating with UAM companies to develop certification processes and air traffic management systems. Scheduled Operators is estimated to expand at a CAGR of 30.4% in terms of value in the forthcoming years.
|
Region |
CAGR through 2031 |
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North America |
28.4% |
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East Asia |
33.7% |
North America’s Significant Revenue Share Prevails
North America is the most significant shareholder in the global market and is expected to grow at a CAGR of 28.4% during the forecast period.
The region has long been a leader in aerospace and aviation technology, with a robust ecosystem of research institutions, aerospace manufacturers, and tech companies driving advancements in UAM.
One major factor contributing to North America's dominance in the UAM market is the substantial investment from both private and public sectors. The region has seen significant venture capital funding, with Joby Aviation alone raising over $800 million in investments by 2021.
Additionally, governmental bodies like NASA are actively involved in research and development, further bolstering the industry's growth. NASA's Advanced Air Mobility (AAM) National Campaign, for example, aims to promote the safe and efficient integration of UAM vehicles into the national airspace.
Moreover, North America has a high concentration of urban centers with the infrastructure to support UAM operations.
Cities like Los Angeles, and New York have been identified as potential early adopters due to their high population densities and traffic congestion issues, which make the case for alternative transportation solutions like UAM compelling.
For example, the Los Angeles Department of Transportation has been collaborating with UAM companies to explore the feasibility of urban air transportation, highlighting the readiness of North American cities to embrace this technology.
East Asia Likely to Exhibit Notable CAGR
East Asia’s market is projected to secure a CAGR of 33.7% in the forecast period from 2024 to 2031.
Cities like Tokyo, Seoul, Beijing, and Shanghai are among the world's most densely populated urban areas, experiencing significant traffic congestion and pollution. As these cities continue to grow, the demand for efficient and sustainable transportation solutions increases.
Government support and policy initiatives are also critical in accelerating UAM adoption in East Asia.
Countries such as Japan, South Korea, and China have been proactive in creating regulatory frameworks and providing funding for UAM projects. For instance, Japan's Ministry of Economy, Trade, and Industry (METI) has outlined a roadmap for the commercialization of flying cars by the mid-2020s, with pilot projects already underway.
Similarly, China's Civil Aviation Administration has been working on regulations to facilitate the development of UAM technologies, with several cities conducting test flights and trials.
Technological advancements and a strong innovation ecosystem further bolster the growth prospects of UAM in East Asia.
The region is home to leading technology companies and research institutions that are at the forefront of developing autonomous flying vehicles, battery technologies, and advanced air traffic management systems.
Strategic partnerships and collaborations are pivotal, with firms such as Uber Technologies Inc. collaborating with aerospace giants to integrate their ride-sharing platforms with UAM services.
Additionally, some companies, including Volocopter GmbH and Lilium Aviation GmbH, are securing regulatory approvals and certifications to ensure their aircraft meet stringent safety standards, thereby gaining a competitive edge.
Market expansion through mergers and acquisitions is another key strategy, enabling companies like Ehang to broaden their technological capabilities and geographic reach.
June 2024
Saudi Arabia's General Authority for Civil Aviation (GACA) has launched the self-driving air taxi experience for the first time during the Hajj season. The inaugural trial, conducted at the holy sites, featured the vertical take-off of the EHang EH216 autonomous air vehicle, which is the world’s first air taxi licensed by a civil aviation authority. The service aims to transport pilgrims, facilitate emergency travel, carry medical equipment, and provide logistical support for goods.
June 2024
Airbus, and Avincis have entered a Memorandum of Understanding (MoU) to jointly develop Advanced Air Mobility (AAM). Their collaboration aims to explore the deployment of electric vertical take-off and landing (eVTOL) aircraft across Europe. The partnership will focus on defining operational concepts for eVTOLs in Europe and other global markets.
January 2024
FlyBlade (India) Private Limited has finalized a business combination agreement with Direct Selling Acquisition Corp., a special purpose acquisition company, and other relevant parties. Following the completion of this transaction, the newly merged entity is anticipated to operate under the name Hunch Technologies Limited. Its common shares are projected to be listed on the New York Stock Exchange under the symbol HNCH.
May 2022
Blade Air Mobility, Inc. has announced a definitive agreement through its wholly-owned European subsidiaries to acquire the commercial passenger transport operations of three urban air mobility market operators in Europe. These include Monacair SAM, Héli Sécurité, and another prominent helicopter operator based in the South of France. Additionally, Blade plans to establish branded passenger terminals at various airports and vertiports across France, Monaco, and Switzerland, which will be used by these air carriers.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Solution
By Vehicle Type
By Range
By Operation
By Region
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Urban air mobility (UAM) is gaining traction due to worsening traffic congestion, environmental concerns favoring sustainable transport options, the potential for time savings and supportive infrastructure developments these factors are surging the demand for urban air mobility.
Some of the key players operating in the market are Airbus SE, Wisk Aero LLC, Volocopter GmbH, Ehang, Joby Aviation Inc., Textron Inc., Uber Technologies Inc., Safran SA, and Lilium Aviation GmbH etc.
The air taxis segment recorded a significant market share in 2023.
The UAM market addresses urban transportation challenges through innovative eVTOL aircraft, aiming to reduce congestion, lower emissions, enhance travel efficiency are estimated to present opportunities for the market players.
North America is set to account for a significant share of the market.
