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Urban Air Mobility Market Share, Analysis And Forecast To 2030
(MENAFN- Straits Research)
Increasing traffic congestion, especially in the world's largest cities, increases the demand for faster modes of intracity transportation. The idea of urban air mobility is becoming more popular in this setting. In response to traffic congestion, urban air mobility (UAM) describes using small, highly automated aircraft to transport people or cargo at lower altitudes in urban and suburban areas. Common examples include conventional helicopters, vertical-takeoff and landing (VTOL) aircraft, electrically propelled vertical-takeoff and landing (eVTOL), and unmanned aerial vehicles (UAVs). The Advanced Air Mobility (AAM) concept includes more use cases than intracity passenger transportation and urban air mobility. This quickly evolving mode of transportation provides on-demand mobility across the country, seamless regional mobility, on-demand mobility in remote and densely populated areas, efficient and environmentally responsible human and unmanned passenger and freight transportation, and on-demand mobility.
Market Dynamics
Advancements in Aviation Technology and Autonomous Driving Propel the Demand for Urban Air Mobility
The advancement of aviation technologies allows metropolitan areas to provide convenient and cost-effective on-demand transportation for people and goods. Urban Air Mobility (UAM) is a transportation idea that has the potential to fundamentally alter how people move throughout society. Utilizing the existing vehicle transportation infrastructure, urban air transit that is highly accessible, swift, and cost-effective is proposed to relieve ground traffic. UAM depends on developments in advanced aerospace manufacturing that will reduce production costs, new business models like application-based ride-sharing, and technological advancements like distributed electric propulsion.
It will be crucial to boosting the credit of vehicle automation and autonomous vehicle operations to realize the autonomous UAM vision. Autonomy is necessary for a transportation system to be economically viable and capable of meeting the massive anticipated demand. Significant improvements in the technological readiness of steady, controllable, vertical takeoff and landing (VTOL) vehicles and highly autonomous flight will be the main drivers of the urban air mobility market.
Additionally, 8.2 billion people may use aircraft globally by 2037, according to data from the International Air Transport Association (IATA). According to the UN, 68% of people will reside in cities by 2050. The demand for alternative forms of transportation has increased due to the numerous traffic and mobility issues brought on by the growing use of vehicles in cities. In this sense, UAM aircraft like eVTOLs, VTOLs, and STOLs have developed into valuable alternatives. Such factors will drive the global market for urban air mobility in the coming years.
Growing Environmental Concerns Give Rise to Lucrative Market Opportunities
The transportation sector, the second most polluting industry, is responsible for significant energy consumption. The substantial greenhouse gas emissions from this sector are harming the climate. Urban air mobility, which uses electric vertical takeoff and landing (eVTOL) aircraft, may offer a practical solution to these problems. Unmanned vehicle adoption by cities for next-generation transportation will likely create lucrative new market opportunities for this sector. One of the International Air Transport Association (IATA) objectives is to achieve net-zero carbon emissions for the aviation industry by 2050. This would be done using cutting-edge new propulsion technologies and sustainable aviation fuels (SAF).
In response to zero-emission expectations, all industry participants are committed to reducing their environmental impact by changing their policies, products, and activities by implementing doable steps with clear deadlines. The IATA Study on Net-Zero Carbon Emissions by 2050 predicts that SAF output will reach 91 billion liters by 2035. Electric and/or hydrogen aircraft will be available for the regional market by 2040, and SAF production will reach 229 billion liters. Short-range hydrogen aircraft will be economically feasible by 2030. These trends suggest that as environmental concerns grow, there will be a rise in the demand for sustainable fuel aircraft, such as UAM aircraft, in the years to come.
Regional Insights
North America will command the highest market share, expanding at a CAGR of 16.88% over the forecast period. The Federal Aviation Administration (FAA), which bases its planning efforts around five different categories of activity: aircraft, airspace, operations, infrastructure, and community, is taking into consideration AAM (air-to-air missile) and UAM (urban air mobility). The National Aeronautics and Space Administration (NASA) and the FAA collaborate on their Advanced Air Mobility National Campaign. The FAA claimed that the initial UAM ecosystem would use already-existing helipads, routes, and Air Traffic Control (ATC) services, all of which were practical given the characteristics of the aircraft. The FAA published a draft interim guidance in March 2022 to make it simpler to construct and manage facilities (like Vertiport) that will be used by eVOTL aircraft for their initial operations.
In 2021, United Airlines made a financial commitment to the UAM manufacturing firm Archer. Through a SPAC partnership with Atlas Crest Investment Corporation, Archer aims to raise USD 1.1 billion. The company plans to develop the battery pack that will power the piloted eVTOL UAM, which will have a maximum speed range of 60 to 150 mph and a capacity for four people. Before the launch of a fully-fledged UAM network, many acquisitions or strategic alliances that are currently underway are likely to be completed. This is because UAM is expected to change many end-user sectors. Therefore, these elements may promote the growth of the UAM market in North America.
Europe will likely advance at a CAGR of 16.85% and hold USD 1,724 million by 2030. Congestion in Europe's transportation system results in a potential annual loss of productivity of EUR 100 billion. The European Union (EU) is encouraging the development of UAM demonstrators with the aid of the European Innovation Partnership in Smart Cities and Communities' UAM Initiative. The European Union wants to build multi-stakeholder city demonstration projects, focusing on developing a deployment strategy and roadmap to win over more people to the UAM concept and exchanging innovative ideas to enhance eVTOL performance. The European Union has established a multi-stage roadmap for adopting the UAM concept in the region.
As of 2018, there were 17 contender cities in the UAM Initiative (creating 12 demonstrators, with two cross-border including several towns). The UAM program aims to improve multimodal interfaces, enhance travel effectiveness and efficiency, and reduce traffic congestion and CO2 emissions. It accomplishes this by utilizing real-time data and information and native digital applications. The development and acquisition of cutting-edge UAM systems for commercial operations are also receiving significant funding from countries in this region, including Germany, the United Kingdom, and France. The growing levels of automation and globalization in these countries are driving an expansion in the market for urban air mobility.
Key Highlights
The global urban air mobility market had a revenue holding of USD 1,740 million in 2021. It is expected to reach USD 6,232 million by 2030, growing at a CAGR of 17.29% during the forecast period (2022–2030).
By vehicle type, the global urban air mobility market includes Piloted and Autonomous. The Autonomous section is projected to advance at a CAGR of 20.14% and hold the largest market share over the forecast period.
By application, the global urban air mobility market includes Passenger Transport and Freighter. The Passenger Transport section is projected to advance at a CAGR of 20.98% and hold the largest market share over the forecast period.
By region, the global urban air mobility market includes North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America owns the maximum shares.
Competitive Players in the Market
Airbus SE
Volocopter GmbH
Embraer SA
Honeywell International Inc.
Hyundai Motor Group
Jaunt Air Mobility Corporation
Karem Aircraft Inc.
Opener Inc.
PIPISTREL d.o.o.
Safran SA
Textron Inc.
Market News
In 2022, Airbus SE and VRM Switzerland are working to create a VR training tool for the twin-engine H145 helicopter. This ground-breaking new training tool will provide H145 pilots with a cost-effective, portable training option with realistic flight behavior, full-body immersion, and VR's 3D vision and high-resolution environment.
Global Urban Air Mobility (UAM) Market: Segmentation
By Vehicle Type
Piloted
Autonomous
By Application
Passenger Transport
Freighter
By Regions
North America
Europe
Asia-Pacific
Latin America
The Middle East and Africa
Market Dynamics
Advancements in Aviation Technology and Autonomous Driving Propel the Demand for Urban Air Mobility
The advancement of aviation technologies allows metropolitan areas to provide convenient and cost-effective on-demand transportation for people and goods. Urban Air Mobility (UAM) is a transportation idea that has the potential to fundamentally alter how people move throughout society. Utilizing the existing vehicle transportation infrastructure, urban air transit that is highly accessible, swift, and cost-effective is proposed to relieve ground traffic. UAM depends on developments in advanced aerospace manufacturing that will reduce production costs, new business models like application-based ride-sharing, and technological advancements like distributed electric propulsion.
It will be crucial to boosting the credit of vehicle automation and autonomous vehicle operations to realize the autonomous UAM vision. Autonomy is necessary for a transportation system to be economically viable and capable of meeting the massive anticipated demand. Significant improvements in the technological readiness of steady, controllable, vertical takeoff and landing (VTOL) vehicles and highly autonomous flight will be the main drivers of the urban air mobility market.
Additionally, 8.2 billion people may use aircraft globally by 2037, according to data from the International Air Transport Association (IATA). According to the UN, 68% of people will reside in cities by 2050. The demand for alternative forms of transportation has increased due to the numerous traffic and mobility issues brought on by the growing use of vehicles in cities. In this sense, UAM aircraft like eVTOLs, VTOLs, and STOLs have developed into valuable alternatives. Such factors will drive the global market for urban air mobility in the coming years.
Growing Environmental Concerns Give Rise to Lucrative Market Opportunities
The transportation sector, the second most polluting industry, is responsible for significant energy consumption. The substantial greenhouse gas emissions from this sector are harming the climate. Urban air mobility, which uses electric vertical takeoff and landing (eVTOL) aircraft, may offer a practical solution to these problems. Unmanned vehicle adoption by cities for next-generation transportation will likely create lucrative new market opportunities for this sector. One of the International Air Transport Association (IATA) objectives is to achieve net-zero carbon emissions for the aviation industry by 2050. This would be done using cutting-edge new propulsion technologies and sustainable aviation fuels (SAF).
In response to zero-emission expectations, all industry participants are committed to reducing their environmental impact by changing their policies, products, and activities by implementing doable steps with clear deadlines. The IATA Study on Net-Zero Carbon Emissions by 2050 predicts that SAF output will reach 91 billion liters by 2035. Electric and/or hydrogen aircraft will be available for the regional market by 2040, and SAF production will reach 229 billion liters. Short-range hydrogen aircraft will be economically feasible by 2030. These trends suggest that as environmental concerns grow, there will be a rise in the demand for sustainable fuel aircraft, such as UAM aircraft, in the years to come.
Regional Insights
North America will command the highest market share, expanding at a CAGR of 16.88% over the forecast period. The Federal Aviation Administration (FAA), which bases its planning efforts around five different categories of activity: aircraft, airspace, operations, infrastructure, and community, is taking into consideration AAM (air-to-air missile) and UAM (urban air mobility). The National Aeronautics and Space Administration (NASA) and the FAA collaborate on their Advanced Air Mobility National Campaign. The FAA claimed that the initial UAM ecosystem would use already-existing helipads, routes, and Air Traffic Control (ATC) services, all of which were practical given the characteristics of the aircraft. The FAA published a draft interim guidance in March 2022 to make it simpler to construct and manage facilities (like Vertiport) that will be used by eVOTL aircraft for their initial operations.
In 2021, United Airlines made a financial commitment to the UAM manufacturing firm Archer. Through a SPAC partnership with Atlas Crest Investment Corporation, Archer aims to raise USD 1.1 billion. The company plans to develop the battery pack that will power the piloted eVTOL UAM, which will have a maximum speed range of 60 to 150 mph and a capacity for four people. Before the launch of a fully-fledged UAM network, many acquisitions or strategic alliances that are currently underway are likely to be completed. This is because UAM is expected to change many end-user sectors. Therefore, these elements may promote the growth of the UAM market in North America.
Europe will likely advance at a CAGR of 16.85% and hold USD 1,724 million by 2030. Congestion in Europe's transportation system results in a potential annual loss of productivity of EUR 100 billion. The European Union (EU) is encouraging the development of UAM demonstrators with the aid of the European Innovation Partnership in Smart Cities and Communities' UAM Initiative. The European Union wants to build multi-stakeholder city demonstration projects, focusing on developing a deployment strategy and roadmap to win over more people to the UAM concept and exchanging innovative ideas to enhance eVTOL performance. The European Union has established a multi-stage roadmap for adopting the UAM concept in the region.
As of 2018, there were 17 contender cities in the UAM Initiative (creating 12 demonstrators, with two cross-border including several towns). The UAM program aims to improve multimodal interfaces, enhance travel effectiveness and efficiency, and reduce traffic congestion and CO2 emissions. It accomplishes this by utilizing real-time data and information and native digital applications. The development and acquisition of cutting-edge UAM systems for commercial operations are also receiving significant funding from countries in this region, including Germany, the United Kingdom, and France. The growing levels of automation and globalization in these countries are driving an expansion in the market for urban air mobility.
Key Highlights
The global urban air mobility market had a revenue holding of USD 1,740 million in 2021. It is expected to reach USD 6,232 million by 2030, growing at a CAGR of 17.29% during the forecast period (2022–2030).
By vehicle type, the global urban air mobility market includes Piloted and Autonomous. The Autonomous section is projected to advance at a CAGR of 20.14% and hold the largest market share over the forecast period.
By application, the global urban air mobility market includes Passenger Transport and Freighter. The Passenger Transport section is projected to advance at a CAGR of 20.98% and hold the largest market share over the forecast period.
By region, the global urban air mobility market includes North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America owns the maximum shares.
Competitive Players in the Market
Airbus SE
Volocopter GmbH
Embraer SA
Honeywell International Inc.
Hyundai Motor Group
Jaunt Air Mobility Corporation
Karem Aircraft Inc.
Opener Inc.
PIPISTREL d.o.o.
Safran SA
Textron Inc.
Market News
In 2022, Airbus SE and VRM Switzerland are working to create a VR training tool for the twin-engine H145 helicopter. This ground-breaking new training tool will provide H145 pilots with a cost-effective, portable training option with realistic flight behavior, full-body immersion, and VR's 3D vision and high-resolution environment.
Global Urban Air Mobility (UAM) Market: Segmentation
By Vehicle Type
Piloted
Autonomous
By Application
Passenger Transport
Freighter
By Regions
North America
Europe
Asia-Pacific
Latin America
The Middle East and Africa
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