17-Nov-2022 | Software and Services

Navi Mumbai, November 17, 2022 -According to a new report published by  Statzy Market Research, titled, The " Urban Air Mobility Marketthe market for urban air mobility is currently worth USD 2.6 billion and is projected to grow to USD 28.3 billion by 2030, with a CAGR of around 34.3% for the forecast period of 2022-2030.

Recent technological developments, the use of UAMs in various civil and commercial applications, and significant investments in developing countries are the driving forces behind the urban air mobility business. Due to recent technological advances in urban air mobility, several cities are projected to adopt the new generation of transportation employing unmanned technologies. The market for urban air mobility is dominated by a number of businesses, including Leonardo S.P.A.(Italy), Workhorse Group (United States), Eve air mobility (United States), Opener (United States), and Kittyhawk (United States), among others.

The COVID-19 outbreak has had an effect on the UAM supply chain. The spread of COVID-19 in the US and Europe is anticipated to have a negative effect due to lockdowns at UAM vehicle research and development centres. In December 2020, for instance, Uber sold its elevate division to Joby Aircraft, a company that was about to launch on-demand aviation in a few cities by 2023. As a result of the Asian Pacific lockdown, many entrepreneurs in the UAM sector have seen their sales decline. Many businesses have struggled to stay active in the field as a result of development delays and financial constraints. The commercialization of UAM appears to have been postponed by a year in comparison to pre-COVID-19 circumstances.

Urban Air Mobility Market Key Highlights from the Report

  • The growing interest in alternate forms of transportation for urban mobility By 2037, the International Air Transport Association (IATA) predicts that there will be 8.2 billion people using aircraft worldwide.
  • By 2050, the UN predicts that 68% of people would reside in urban settings. Numerous traffic and mobility challenges brought on by the increasing number of vehicles in cities are increasing the demand for alternate forms of transportation. In this sense, UAM aircraft like eVTOLs, VTOLs, and STOLs have proven to be strong alternatives.
  • In order to avoid traffic, some eVTOL aircraft is best suited for shorter flights over busy cities. Additionally, eVTOL planes aid in the middle- and last-mile cargo transportation and health care services. As ride-sharing aircraft, these planes are being brought to the market. When compared to helicopters, an eVTOL ride is less expensive.
  • According to Uber Elevate, completely electric air taxis would operate for about USD 700 per hour in the near future, which is at least 35% less expensive than a similarly used single-engine helicopter.
  • The general perception that a considerable number of jobs will be lost as a result of the increased use of new aircraft for tasks like air taxis, air ambulances, cargo deliveries, and last-mile delivery is another psychological barrier.
  • Additionally, travellers only use UAM for longer trips since they are concerned about security checks. Government agencies and airlines are attempting to increase public awareness of these barriers.
  • Achieving net-zero carbon emissions for the aviation sector by 2050 is one of the IATA's goals. Sustainable aviation fuels (SAF) and cutting-edge new propulsion technologies would be used to accomplish this (such as electric and hydrogen).
  • New propulsion technologies, including hydrogen, might take up 13% of the market, while efficient advancements will make up the remaining 3%, according to the IATA.

 All industry players are committed to addressing their environmental impact by modifying their policies, goods, and activities by implementing practical steps with distinct deadlines in response to zero-emission expectations.

  • The IATA report on Net-Zero Carbon Emissions by 2050, which was released in October 2021, estimates that SAF output will be 91 billion litres, or 17% of the entire fuel consumption.
  • By 2040, SAF production will reach 229 billion litres (39% of total fuel requirement), and electric and/or hydrogen aircraft for the regional market (50–100 seats, 30-90 min flights) will be available.
  • By 2030, there will be hydrogen aircraft for the short-haul market (100–150 seats, 45–120 minute flights). 

Given these patterns, the demand for sustainable fuel aircraft, such as UAM aircraft, will rise in the upcoming years due to rising environmental concerns.

  • Advanced aerial mobility raises a number of cybersecurity issues, including the introduction of adversarial or erroneous data utilised for safety-critical decisions and/or machine learning, attacks on vehicle/air traffic control (ATC) datalinks, threats to onboard networks and code, and more. 
  • Advanced aerial mobility's susceptibility will be dependent on the performance of other intricate, software-intensive systems like ATC, GPS, and different kinds of shared communication systems. 
  • New methods of cybersecurity are needed in order to successfully model and design for safety in urban air mobility. However, R&D is required to create new strategies to protect automated aerial vehicles from cyber attacks. The paradigm shifts that have been suggested for assuring safety are equally applicable to cybersecurity.

Among the major players in the UAM market ecosystem are the businesses that supply the platforms and necessary ground infrastructure. Investors, funders, academic researchers, integrators, service providers, and licencing organisations are the main market influencers.

From 2025 to 2030, the platform-based air taxis segment is anticipated to grow at the greatest CAGR.

Due to the last mile delivery process being the most crucial and needing to be carefully controlled for quick shipping, it is anticipated that this sector will dominate the market throughout the projection period.

From 2025 to 2030, the platform-based air taxis segment is anticipated to grow at the greatest CAGR. 

The market has been divided into categories based on platform, including last-mile deliveries, personal aerial vehicles, freight air vehicles, air taxis, shuttles, and metros. Due to the last-mile delivery process being the most crucial and needing to be carefully controlled for quick shipping, it is anticipated that this sector will dominate the market throughout the projection period.

  1. In the anticipated period, the propulsion systems section is anticipated to increase at the fastest rate.
  2. Numerous power sources that can be employed to power unmanned systems are responsible for the rise in the market. Batteries, cells that employ a combination of fuels, solar energy, chemical energy, and fuel-powered engines are a few examples of these. The range and altitude of UAM platforms are influenced by the propulsion systems employed.
  3. During the projection period, Europe is anticipated to have the fastest-growing urban air mobility market.
  4. During the forecast period, the market for urban air mobility in Europe is anticipated to develop at the fastest rate. 

Countries in this region, such as Germany, the United Kingdom, and France, are investing heavily in the development and acquisition of UAM systems for use in commercial operations. The market for urban air mobility in Europe is expanding as a result of these nations' rising levels of automation and globalisation.

Vertical and Leonardo worked together to develop the fuselage for Vertical's VX4 electric aircraft in January 2022. In order to meet Vertical's market-leading pre-order book, the agreement is for an initial six certification aircraft, but it may scale up to mass production of 2,000 VX4s annually.

Competitive Outlook (Revenue, USD Billion; 2021-2030)

  • Wisk Aero (US)
  • Lilium (Germany)
  • EHang (China)
  • Jaunt Air Mobility (US)
  • Volocopter
  • EHang (Malaysia)
  • AEROTREE (Malaysia)

Regional Outlook (Revenue, USD Billion, 2021-2030)

  • Germany
  • the United Kingdom
  • France
  • Malaysia

Outlook based on vehicle type (Revenue, USD Billion; 2021-2030)Based on platform

  • personal aerial vehicles
  • freight air vehicles
  • air taxis
  • shuttles
  • metros

Based on systems

  • aerostructures
  • avionics
  • propulsion systems
  • electrical systems
  • software.

Market Trends: Numerous traffic and mobility challenges brought on by the increasing number of vehicles in cities are increasing the demand for alternate forms of transportation. In this sense, UAM aircraft like eVTOLs, VTOLs, and STOLs have proven to be strong alternatives. 

For a sample report please visit: Global Urban Air Mobility Market 

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