Global Urban Air Mobility Market Research Report: Forecast (2023-2028)

Market Definition

The aviation industry constantly strives to develop new systems that redefine comfort, efficiency, & cost-effectiveness, which is why urban air mobility systems are gaining traction. These systems have been recognized as an effective solution to address road congestion while transporting people & cargo from one place to another quickly, safely, and comfortably.

Market Insights & Analysis: Global Urban Air Mobility Market (2023-28)

The Global Urban Air Mobility Market size was valued at USD 2.98 Billion in 2022 and is projected to grow at a CAGR of around 36.98% during the forecast period, i.e., 2023-28. The market's growth is driven primarily by the exponentially rising population and an expanding vehicle fleet, leading to increasing road congestion, i.e., augmenting the need for alternative transportation like urban air mobility solutions.

In this regard, governments of different countries worldwide are substantially investing in the market and generating growth opportunities for the leading players to research & develop technologically advanced urban air mobility networks. Data shows that numerous emerging start-ups & aerospace companies are indulging in expanding the air mobility space, and the market is witnessing an increasing number of new prototypes to address traffic issues.

Moreover, improving economic conditions, changing living standards, and growing inclination toward air travel are other prominent aspects instigating the leading players to develop & increase the volume of air fleet or efficient air travel across locations. Furthermore, the alarming concerns over the fluctuating & degrading environmental conditions are also playing a crucial role in propelling the development of eco-friendly solutions like Electric Vertical Take-Off & Landing (eVTOL) aircraft to utilize electricity to fly. For instance:

• In June 2021, American Airlines reported investing in the development of Vertical Aerospace in line with its commitment to environmental sustainability.

Global Urban Air Mobility Market Driver

Surge in Vehicle Fleet Size Resulting in Massive Road Congestion: A sudden surge in population growth and the expanding number of vehicles significantly strain existing infrastructure, resulting in frequent traffic congestion. Citing challenges posed by road congestion, flying taxis, and autonomous aerial vehicles are being explored as they utilize the airspace to provide faster and more efficient travel options within cities. As a result, these innovative transportation modes, as a means to improve the overall efficiency of urban transportation networks, are gaining prominence worldwide, particularly across densely populated areas. Thus, the market outlook for urban air mobility seems promising during the forecast period.

Global Urban Air Mobility Market Opportunity

A Game-Changer for Goods Delivery and Emergency Management: The emerging applications of Unmanned Aerial Systems in transporting consumer goods, medical supplies, and emergency equipment seem promising for the market. This technology could revolutionize emergency management by enhancing response times, alleviating traffic congestion, and minimizing pollution. In addition, UAS can be utilized in fire rescue operations, swiftly delivering critical medical supplies and assisting in life-threatening situations requiring air ambulances. This subsequently highlights the potential for substantial growth in the urban air mobility market as governments, organizations, and communities recognize the value of these systems in enhancing safety and efficiency during critical situations.

Global Urban Air Mobility Market Possible Restraint

Reliability and Safety of Autonomous Software Systems Paired with Susceptibility to Cyber Threats: As Urban Air Mobility (UAM) advances rapidly and seems promising for transforming transportation and emergency management, it also brings along new complexities to the market players. The reliance on autonomous software systems raises concerns regarding their reliability, safety, and susceptibility to cyber threats, making it imperative to ensure rigorous testing, validation, and certification processes to guarantee the dependability and resilience of these software systems. In addition, comprehensive regulations and standards must be established to govern their development, operation, and maintenance to foster trust and confidence in UAM technology.

Global Urban Air Mobility Market (2023-28): Segmentation Analysis

The Global Urban Air Mobility Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified:

Based on the Component:

Platform

• Air Taxi
• Passenger Arial Vehicle
• Cargo Arial Vehicle
• Air Ambulance
• Last Mile Delivery
• Air Shuttles

Infrastructure

• Charging Stations
• Traffic Management
• Vertiports
• Maintenance Facilities

Of all components, the demand for Air Taxis is anticipated to display the fastest growth in the Global Urban Air Mobility Market during the forecast period. It predominantly ascribes to the growing government support through massive investments & favorable policies, i.e., encouraging leading players to construct prototypes on air taxis with advanced technologies, including highly efficient batteries, sophisticated manufacturing techniques, & autonomous vehicles.

Besides, companies like Boeing, Airbus, & Hyundai, among others, are actively working on developing Electric Vertical Take-Off & Landing (eVTOL) aircraft that can operate through electricity and transport people & cargo across different locations. In line with developing environment-friendly air taxis for mobility, manufacturers are working on bringing quiet, comfortable, & carbon-free aircraft that could meet the emission levels and address the traffic issues over the coming years.

• In June 2023, Airbus and Munich Airport International officially established a partnership by signing a Memorandum of Understanding to introduce comprehensive solutions to cities and regions worldwide that are keen on fostering advanced air mobility (AAM) ecosystems. Airbus is actively developing CityAirbus NextGen, an electric vertical take-off and landing (eVTOL) aircraft, in addition to providing crucial support and service options for the aircraft. Munich Airport, on the other hand, is offering its expertise in ground infrastructure services and solutions to complement the AAM ecosystem.

Based on Operation:

• Piloted
• Autonomous

Here, autonomous operations are anticipated to witness the fastest-growing demand during 2023-28. It owes principally to various benefits of developing these aircraft equipped with advanced technologies like the Internet of Things (IoT) & Artificial Intelligence (AI) to enhance cost-effectiveness and eliminate human errors.

On the other hand, Piloted operations are anticipated to acquire the largest share of the Global Urban Air Mobility Market during the forecast period, primarily due to the increasing number of rollouts for technologically advanced eVTOL systems for military & commercial aircraft in the market.

Global Urban Air Mobility Market Regional Projection:

Geographically, the Global Urban Air Mobility Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Of all regions globally, North America dominated the Urban Air Mobility Market with the largest share in recent years, and the same trend is likely during 2023-28. It owes principally to the extensive presence & active participation of prominent aircraft manufacturers like Boeing in developing urban air mobility technologies as a novel transportation mode.

• In August 2022, Aurora Flight Sciences, a subsidiary of Boeing, entered into a subaward agreement with the University of California San Diego to contribute to a groundbreaking NASA University Leadership Initiative (ULI) project. This collaboration attempts to drive innovation in urban air mobility (UAM) by focusing on the advancement of vehicle design.

On the other hand, the Europe Urban Air Mobility Market outlook indicates tremendous growth during 2023-28. It owes to rapid initiatives by governments of different European countries through massive investments & numerous R&D activities toward developing urban air mobility systems. Besides, countries like Germany, France, & the UK, among others, are prominent investors in the market owing to the extensive presence of leading aircraft manufacturers like Airbus investing heavily in making prototypes for evaluation.

• In May 2022, Airbus announced the Air Mobility Initiative (AMI) in Munich, bringing together companies, universities, and municipalities to advance urban air mobility. Supported by Bavaria and Germany, AMI aims to develop projects focused on electric vertical take-off and landing (eVTOL) aircraft, unmanned traffic management (UTM) services, and airport-city integration. The initiative seeks to transform air transportation by promoting sustainable and efficient travel solutions within and between cities.

Global Urban Air Mobility Industry Recent Development:

• In April 2023, Aurora Flight Sciences unveiled the latest version of its SKIRON Expeditionary small UAS (SKIRON-X). This advanced unmanned aircraft system falls under the Group 2 category and combines the benefits of an electric vertical take-off and landing (eVTOL) setup with the extended endurance offered by a fixed-wing design.

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