Continuing to make remarkable progress thanks to rapid technological advancements and other factors, the global electric vertical takeoff and landing (eVTOL) market is projected to post significant growth in the upcoming years. According to Market Research Future (MRFR), the market value of eVTOL will reach $4 billion by 2030, with a compound annual growth rate (CAGR) of 30.30%. North America will account for the largest share of the market.
Dubbed as the transport of the future in urban air mobility (UAM), eVTOL is the next generation of autonomous electric aircraft that offers a host of advantages. Some of these include fast travel, enhanced safety, and reduced noise. eVTOLs also offer sustainable solutions to increasing road traffic congestion and pollution in cities. As it is, the market stands to benefit from the rising demand for fast, but eco-friendly modes of transportation.
Another salient factor that will lead to the expansion of eVTOL market size is the growing participation of private companies across the globe. Coupled with developments in the research and development (R&D) sector, this will drive the market significantly. However, lack of infrastructures for vertiport stations, high expenses associated, and absence of regulations is expected to hinder the growth of the eVTOL industry.
Regional Analysis: North America Domination
This decade, North America will represent the biggest market share in the eVTOL global market.
Augmented by the presence of key players like Joby Aviation, TERRAFUGIA, and A³ by Airbus, the region is anticipated to grow at a CAGR of 29.54%. Further investments of the United States Armed Forces are expected to fuel growth. In January, it was announced that radar company Metawave landed a contract to advance the US Air Force’s new autonomous eVTOL.
Canada is also expected to make significant contributions in the coming years. One of its ways to drive the demand for eVTOL aircraft is by tapping on the Canadian military. Meanwhile, Europe is set to obtain a notable market share with increased collaboration between companies. For instance, British start-up Urban-Air Port has partnered with Hyundai to develop an airport for flying cars in Coventry in central England.
Also forecasted to secure more market share is the Asia-Pacific. By 2030, APAC’s eVTOL market value will hit $800 million, expanding at a CAGR of 31.88%. China and India are anticipated to play crucial roles, backed by the fast technological developments in the region. Hyundai’s collaboration with Uber to develop an eVTOL aircraft for Uber air taxi services and Toyota Japan’s investment in Joby Aviation is expected to have a large impact on the APAC market.
Opportunities: Acquisitions, Partnerships and Consortiums
To boost the user base and increase competition in the eVTOL market, established players are embracing different strategies including acquisitions, partnerships, and consortiums. US developer Astro Aerospace (OTC:ASDN) has recently announced its acquisition of Horizon Aircraft, a Canadian company developing its own fleet of eVTOLs. The move aims to further establish Astro as a global leader in the market.
German company Lilium has partnered with Spanish multinational company Ferrovial to develop a vertiport network across Florida, with future expansions to cover strategic locations in major cities. This is in conjunction to its previously planned vertiport development at Lake Nona with Tavistock Development Company. Lilium has also announced its plan to continuously expand its vertiport partnerships in the coming years.
American eVTOL developer Joby Aviation is set to merge with a special purpose acquisition company (SPAC) Reinvent Technology Partners, bringing its market value to $5.7 billion. In December last year, Joby Aviation also signed a multi-year commercial partnership with Uber. This will allow the company to use Uber’s app once its air taxi enters service mid-2020. Archer Aviation has also announced its merger with another SPAC, the Atlas Crest Investment Corp.
Meanwhile, consortiums are big steps towards the development of operations of air taxi services in the future. The United Kingdom Air Mobility consortium, which includes Brazil’s Embraer Eve, UK’s National Air Traffic Services, infrastructure operator Sky Sports, and two eVTOL developers in Europe, among others, will be generating data relevant to the introduction of flying taxis in London.
Another consortium, the Paris urban air mobility initiative, has around 30 companies to work in establishing the city as a leader in urban air mobility. The additional partners have different fields to focus on, including vehicle development, operations, and urban infrastructure. The group is looking at the upcoming 2024 Olympic and Paralympic Games as an opportunity for public flight demonstrations.
Market Segmentation: Expanding Air Taxi Segment
Out of the types of eVTOL, the air taxis segment is predicted to expand the most, achieving 29.98% CAGR by 2030. This year, the market size is expected to reach $817 million, with the electric segment being the highest contributor. Air taxis are small commercial aircraft designed for short flights. Due to their size, their takeoff and landing sites could be located within city limits. An air taxi is also bound to produce less noise than a conventional aircraft.
Mobility aircraft companies have already conducted successful trials for their air taxis. Volocopter of Germany has been conducting public demonstrations of its VeloCity air taxi in Stuttgart, Dubai, Helsinki, and Singapore since 2018. VeloCity features a two-seater cabin, 18 rotors, and can travel up to 22 miles per single charge. Volocopter is currently seeking Federal Aviation Administration (FAA) approval for the US launch of its air taxi.
Fellow German developer Lilium is close to acquiring certification for its air taxi. The Lilium Jet can seat five passengers in its egg-shaped cabin, with four powerful rotating wings. It is meant for longer-range regional trips with a range of 186 miles. Lilium Jet has already completed its first vertical test flight in 2019. Currently, Lilium is working on a 1.28-acre transportation hub for its aerial taxi service in Florida.
Joby Aviation has recently obtained a new certification agreement with the FAA for S4, its all-electric air taxi. Meanwhile, California-based Wisk has its air taxi Cora – a self-lying two-seater powered by 12 independent lifting propellers with a cruise speed of 100 mph. China’s eHang is working hard on the EH216, the startup’s autonomous eVTOL which has logged more than a thousand test flights in New Zealand and California.
