CAGR: 34.1%Current Market Size: USD 2.5 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global urban air mobility market is expected to grow from USD 2.5 billion in 2022 to USD 26.1 billion by 2030, at a CAGR of 34.1% during the Projection period 2023-2030. The growth of the urban air mobility market is mainly driven by the growing urban population.
Urban air mobility (UAM) is a service that provides on-demand, highly automated, unpiloted air transportation for passengers or freight. The new approach has simplified city travel by avoiding road congestion and traffic delays. UAM assists in the transportation of one to two passengers as well as the delivery of small products to doorsteps in less time. UAM also assists in rescue operations, emergency medical evacuations, ground traffic flow evaluation, humanitarian missions, and a variety of other activities. The growing problem of traffic congestion, particularly in larger cities, drives the demand for speedier routes of intracity mobility. In this context, the concept of urban air transportation is gaining traction by the day. Several R&D expenditures are being made in the urban air mobility industry, with many start-ups and aerospace players targeting this market as one with great growth potential. As a result, these factors will drive market expansion throughout the Projection period. Aviation technology advancements are offering the possibility of providing quick, efficient on-demand transportation for persons and freight in metropolitan regions. Urban Air Mobility (UAM) is a transportation idea with the potential to completely transform social mobility. It provides highly economical, accessible, and quick urban air transportation, reducing ground-based congestion by offloading existing vehicle transportation infrastructure. UAM is counting on advancements in technology like as distributed electric propulsion, new business models such as application-based ride-sharing, and trends in advanced aerospace manufacturing to cut production costs. Increased credit for vehicle automation and autonomous vehicle operations is crucial to realising the autonomous UAM objective.
Sample Request: - Global Urban Air Mobility Market
Market Dynamics:
Drivers:
The rising demand for alternative modes of transportation is a major element driving the market's expansion. According to study, the majority of the population will relocate to metropolitan areas within a few years, and the usage of vehicles will also increase, thus avoiding traffic would be preferable. According to International Air Transport Association (IATA) projections, the number of passengers requiring air travel would more than quadruple in a few years. These aircraft are favored for short journeys and aid in the rapid delivery of medical services, fueling the market's growth.
Restraints:
People believe that expanding types of air transportation such as air taxis, air ambulances, last-mile delivery, and cargo deliveries would result in the loss of many employees. Passengers are concerned about their safety and security in this method of transportation and choose it only for long-distance travel. This means of transportation appears to be adopted mostly by the younger generation and the wealthy, but metropolitan areas remain unwilling to implement it. According to the study, several psychological and potential cultural barriers are preventing full acceptance of the notion and stifling business expansion.
Opportunities:
Transportation causes numerous environmental concerns because it consumes a big amount of energy and is the second-largest polluter. The greenhouse gas emitted by this field is also affecting the climate. Urban Air Mobility solves this challenge by using electric vertical takeoff and landing (eVTOL) aircraft. Several development and technological advances are planned, which will raise the use of Urban Air Mobility in various cities and promise a strong growth prospect for the market. IATA intends to deploy sustainable aviation fuels (SAF) and new innovative propulsion technologies to help achieve zero carbon emissions, creating a market opportunity.
Challenges:
Because urban air mobility is primarily reliant on software, it is fraught with cyber security risks. The cost of implementing this technology is prohibitively expensive, and additional investments are required. Some of the primary cyber dangers that the Urban Air Mobility system has yet to address include attacks on ATC datalinks and threats to onboard networks and code. Many additional security-related models and designs are needed. To implement cybersecurity safety proposals, new advanced technology safeguards for aerial vehicles are required, which will cost a significant amount of money. All of these factors are impeding market expansion.
Segmentation Analysis:
The global urban air mobility market has been segmented based on vehicle type, range, application, and region.
By Vehicle Type
The vehicle type segment is air taxis, air ambulances, air metro, last-mile delivery, and others. Air taxis segment led the largest share of the urban air mobility market with a market share of around 38.4% in 2022. The rapid technological advancement in the market might be contributed to the segment's rise. Furthermore, the segment's growth is fueled by the highly efficient batteries and modern manufacturing techniques employed in the air tax.
By Range
The range segment is intercity and intracity. The intercity segment led the largest share of the urban air mobility market with a market share of around 43.3% in 2022. Intercity flights are outfitted with technology that allows them to carry 20 to 40 kg of hand luggage and transport 2 to 4 passengers across distances ranging from 50 to 250 kilometers, boosting the segment's growth.
By Application
The application segment is passenger transport and freighter. The passenger transport segment led the largest share of the urban air mobility market with a market share of around 68.3% in 2022. The urban population is rapidly increasing over the world. As a result, the number of on-road passenger vehicles in urban areas increases year after year, exacerbated by traffic congestion. The rising traffic on the roadways, particularly during peak hours, greatly increased commuters' time to travel by vehicle. Most countries' existing road infrastructure are incapable of handling peak-hour traffic without requiring commuters to wait in line. This is a waste of citizens' time and a challenge to governments. Increasing on-road passenger vehicle volumes that use fossil fuels harm the environment significantly.
Global Urban Air Mobility Market - Sales Analysis.
The sale of the urban air mobility market expanded at a CAGR of 32.1% from 2016 to 2022.
With the number of on-road passenger vehicles increasing year after year, traffic congestion difficulties are increasing, particularly during peak hours. The increasing volume of traffic on the roads has greatly increased commuters' time to travel by roads. Most countries' existing road infrastructure are incapable of handling peak-hour traffic without requiring commuters to wait in line. This is not merely wasting citizens' time and testing governments. Furthermore, rising on-road passenger vehicle volumes, which aid in the combustion of fossil fuels, are significantly harming the environment. With traffic congestion and urban road mobility providing significant challenges, the government and technology businesses are beginning to consider UAM as a viable option for passenger and other freight transportation.
There is a large time savings because the UAM is a safe and efficient air transportation system in which passenger-carrying air taxis operate above inhabited regions. The fundamental hurdles that all countries adopting urban air mobility must overcome are political, economic, social, technological, and legal concerns. UAM operations are economically scaled to accommodate high-demand activities while keeping fixed costs to a minimum. Significant investments have been made by research institutes, industry, academics, and governments. The primary function of urban air mobility is to facilitate intracity transit, hence relieving pressure on existing urban mobility solutions.
Thus, owing to the aforementioned factors, the global urban air mobility market is expected to grow at a CAGR of 34.1% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the urban air mobility market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region dominated the urban air mobility market and held a 37.6% share of the market revenue in 2022.
Global Urban Air Mobility Market - Country Analysis:
Germany's urban air mobility market size was valued at USD 1.95 billion in 2022 and is expected to reach USD 20.5 billion by 2030, at a CAGR of 34.2% from 2023 to 2030. During the Projection period, the European urban air mobility market is expected to grow at the fastest rate. Countries in this region, including as Germany, are making significant investments in the development and procurement of advanced eVTOL systems for commercial use.
China’s urban air mobility market size was valued at USD 2.02 billion in 2022 and is expected to reach USD 21.6 billion by 2030, at a CAGR of 34.5% from 2023 to 2030. The government also intends to launch larger-scale air mobility operations for the 2025 Osaka-Kansai Japan World Expo. Government intentions to adopt UAM transportation are encouraging corporations to invest in the technology. EHang struck a strategic agreement with Shenzhen East General Aviation (Heli-Eastern), a helicopter service provider, in September 2021 to research and deploy UAM operations in Shenzhen, China's authorised integrated airspace for helicopters and AAVs. As a response to the State Council of China's Guidelines of the National Comprehensive Transportation Network Plan, the firms collaborated to develop a pilot project centred on integrated airspace for UAM operations in the Greater Bay Area.
India's urban air mobility market size was valued at USD 1.5 billion in 2022 and is expected to reach USD 15.9 billion by 2030, at a CAGR of 34.4% from 2023 to 2030. Many expenditures have been made in the research and development of urban air mobility vehicles, presenting a growth opportunity during the Projection period in the region.
Key Industry Players Analysis:
To increase their market position in the global urban air mobility market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
34.1% |
Market Size |
2.5 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Vehicle Type, By Range, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Bell Textron Inc., Volocopter GmbH, Airbus SE., Uber Technologies, Inc., Guangzhou EHang Intelligence Technologies Co. Ltd, Lockheed Martin Corporation, Lilium Aviation GmbH, Carter Aviation Technologies LLC, AirspaceX, and The Boeing Company. |
By Vehicle Type |
|
By Range |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Urban Air Mobility Market By Vehicle Type:
Global Urban Air Mobility Market By Range:
Global Urban Air Mobility Market By Application:
Global Urban Air Mobility Market By Region:
Global urban air mobility market is expected to reach USD 26.1 billion by 2030.
The urban air mobility market is projected to have a CAGR of 34.1%.
The rising demand for alternative modes of transportation is a major element driving the market's expansion. According to the study, the majority of the population will relocate to metropolitan areas within a few years, and the usage of vehicles will also increase, thus avoiding traffic would be preferable.
Leading market players active in the global urban air mobility market are Volocopter, Bell Helicopter, Airbus, Kitty Hawk, Boeing, Terrafugia, Pipistrel, Joby Aviation, Neva Aerospace among others.
Based on the range, the global urban air mobility market has been segmented into intercity and intracity.
Political Factors- The urban air mobility Market should evaluate current trade legislation when deciding where to expand its activities, and management should choose locations with free or flexible trade agreements. The area in issue is currently lowering trade barriers to create a more welcoming environment for foreign business players, which boosts its appeal for the urban air mobility Market, which is looking for prospects for international firm expansion. Before deciding whether or not to expand, the urban air mobility Market should thoroughly investigate the suitable taxation rules. Tax policy will more benefit industries that are high on the government's priority list.
Economic Factors- Rising inflation reduces the purchasing power of money and inhibits people from spending on goods and services, thereby limiting the urban air mobility Market's ability to grow revenue. Exchange rate fluctuations can have an impact on a company's profitability. This study should be conducted by the urban air mobility Market in order to correctly assess exchange rate variations and avoid unforeseen trade and business performance consequences. A high interest rate necessitates the urban air mobility Market to make interest-only payments, which raises the overall cost of the loans obtained.
Social Factors- The research and development trend in the chosen industry or region illustrates how proactive organisations are in providing cutting-edge solutions to their consumers' needs. In addition to giving value to customers, the urban air mobility Market must gain a better knowledge of how new technological advances can benefit the organisation. In markets defined by disruptive technology, significant investment in research and development would be necessary. However, the urban air mobility Market must take a long-term perspective and not expect a quick return on its R&D investments.
Technological Factors- The development of renewable technologies to lessen dependency on natural resources has become a prominent trend in various industries. In order to capitalise on this environmental trend, the urban air mobility Market should assess how effectively a country's technological infrastructure supports the usage of renewable technologies. Certain governments around the world provide enticing incentives for the use of renewable energy sources. The urban air mobility Market may achieve its goals for sustainable company development by seizing the opportunity and investing in renewable energy sources.
Environmental Factors- As a result of stringent environmental legislation in a number of nations, businesses are under pressure to limit their environmental impact. As a result, the urban air mobility Market should encourage ethical consumption among its target market, work to improve its brand's sustainability reputation, and ensure full compliance with local and international environmental laws, as failure to do so could result in severe, reputation-damaging criticism from relevant stakeholders. Because of better brand impression, this investment will result in increased stakeholder satisfaction and a broader consumer base.
Legal Factors- Employment law encompasses a wide range of regulations that protect employees' rights, such as the right to a fair wage, equality, equity, inclusion, justice, and physical and mental safety. While some countries do not police employment laws effectively, others impose severe fines for violating any of the listed employee rights. When entering or operating in such nations, the urban air mobility market should ensure the safety of the working environment. Appropriate procedures must be in place to prevent both direct and indirect discrimination. Good adherence to employment rules will help the urban air mobility Market strengthen its employer brand reputation, which is critical for attracting and maintaining top talent in the ongoing struggle for talent.
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