Global eVTOL Market - 2024-2031

Global eVTOL Market reached US$ 1.2 billion in 2023 and is expected to reach US$ 40.50 billion by 2031, growing with a CAGR of 55.25% during the forecast period 2024-2031.

The development and expansion of battery technology are crucial factors propelling the growth of the eVTOL (electric Vertical Takeoff and Landing) aircraft market. As batteries increase in capacity, reduce in weight and enable expedited charging, eVTOLs can traverse greater distances with diminished downtimes, enhancing their practicality and attractiveness for urban air mobility and other uses. The technical advancement improves operational efficiency and broadens the potential applications for eVTOLs, ranging from passenger drones to freight delivery systems, thus propelling market expansion.

The creation of regulatory frameworks and assistance from aviation authorities is essential for the expansion of the eVTOL sector. Regulatory entities including the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) are formulating norms and certificates tailored to eVTOL operations. This legislative clarity is crucial for guaranteeing safety, uniformity and public confidence in eVTOL aircraft.

Government activities and policies that facilitate the adoption of breakthrough aviation technologies are significantly influential. As laws become further defined and supportive, they will promote the broader adoption and commercial operation of eVTOL aircraft, propelling market expansion in the forthcoming years.

Europe is anticipated to be the most rapidly expanding area in the eVTOL Aircraft market, due to several factors that enhance the region's growth potential. The region has had substantial economic growth, leading to increased air travel demand and an expanding commercial aviation sector. The increasing focus on sustainable aviation practices, along with the advent of urban air mobility and sophisticated air mobility solutions, will propel the market for eVTOL aircraft.

Dynamics

Rising Investments in the Market

Prominent aircraft manufacturers, including Boeing Company, Airbus SE and Bell Helicopter, are engaged in active eVTOL development initiatives. Major aircraft suppliers, including GE Aviation, Raytheon Technologies Inc., Honeywell International and Rolls Royce PLC, are significantly investing in eVTOL-related technologies, such as electric motors and hybrid-electric powertrain components. Furthermore, automotive behemoths, including Toyota, Hyundai and Daimler AG, have invested in and are collaborating on the development of their own eVTOL projects.

Recently in 2024, Toyota allocated around US$ 400 million to Joby Aviation, an eVTOL company. Additionally, composite material producers like Hexcel and Toray Advanced Composites are collaborating with original equipment manufacturers on sophisticated lightweight materials utilized in many components of vertical take-off and landing aircraft. Consequently, substantial expenditures from diverse sectors are expected to enhance the growth of the eVTOL aircraft market.

Sustainable and Quiet Air Travel

Concerns over clean energy and climate change are intensifying due to increasing CO2 emissions, largely attributed to population expansion, as highlighted in the current Energy Information Administration International (EIA) Energy Report. The Air Transport Action Group (ATAG) emphasizes that aviation accounts for around 2% of global CO2 emissions and has pledged to reduce these emissions by 50% by 2050. Innovations like hybrid and electric hydrogen eVTOL (electric Vertical Takeoff and Landing) aircraft are essential for shifting from fossil fuels to sustainable aviation fuel.

eVTOLs provide environmentally friendly and quieter transportation options, featuring zero emissions during electric propulsion and diminished noise relative to conventional aircraft, so addressing environmental and public apprehensions. This combined benefit is enhancing worldwide backing for sustainable aircraft technologies.

eVTOL manufacturers are utilizing sustainable aviation fuels and sophisticated noise models created by the FAA, NASA and US Department of Defense to comply with rigorous environmental regulations. Prominent corporations are innovating low-emission and noise-reduction solutions. Airbus's CityBus Next GEN aircraft demonstrates innovations with its quieter, zero-emission eVTOL design, establishing new standards for sustainable air transport.

Safety Concerns

In eVTOL aircraft, attaining the optimal equilibrium of dimensions, mass and power is essential. These aircraft necessitate energy-dense batteries to fulfill substantial power requirements during takeoff, landing and flight in crosswinds, while maintaining compactness and lightness. Nevertheless, augmenting the quantity of rechargeable batteries to enhance power density concurrently elevates the payload and thermal output. High-capacity, rapid-charging batteries can generate substantial thermal emissions, reaching up to 100 kilowatts, posing risks of overheating, malfunction or potential accidents.

Battery safety is a critical issue, as overcharging or voltage surges can result in thermal runaway, cell deterioration and fires, jeopardizing aircraft reliability and passenger safety. The incident involving Lilium GmbH's loss of its Phoenix demonstration in a recent ground fire highlights the necessity of stringent fire protection protocols, particularly during battery installation and maintenance.

Segment Analysis

The global eVTOL market is segmented based on lift technology, propulsion, system, mode of operation, range, maximum take-off weight (MTOW), application and region.

Efficiency, Versatility and Market Impact of Vectored Thrust

Vectored thrust eVTOLs employ a combination of fixed wings and rotors or fans that can be directed to provide both vertical lift and forward propulsion. This design facilitates efficient cruise flight and improved maneuverability. Vectored thrust systems may exhibit increased complexity; yet, they provide benefits for performance and range. The Archer Aviation Maker exemplifies a vectored thrust electric vertical takeoff and landing (eVTOL) aircraft.

Vectored thrust, as an EVTOL lift technique, holds the predominant market share owing to its remarkable attributes. Its capacity to alter the direction of propulsive power improves maneuverability, rendering it suitable for various applications in the urban air mobility industry. It provides enhanced stability and versatility through meticulous control during takeoff, landing and hovering. Moreover, its demonstrated efficacy and recognized application in traditional aircraft instill confidence in makers and operators, reinforcing its market supremacy.

Geographical Penetration

Regulatory Support and Sustainable Urban Mobility in Europe

Europe's strategy for the eVTOL aircraft market is bolstered by robust regulatory backing, emphasizing safety and environmental sustainability as its core principles. The region's established aerospace sector is progressing in eVTOL technology, supported by definitive and favorable regulations from the European Union Aviation Safety Agency (EASA). European cities, recognized for their dedication to minimizing urban traffic and endorsing sustainable transportation options, provide optimal conditions for the integration of eVTOL aircraft, thereby preparing the industry for significant expansion.

The eVTOL aircraft market in UK is anticipated to expand significantly due to the plan aimed at attaining net-zero emissions by 2050, which encompasses the advancement of zero-emissions air transport, including eVTOL aircraft, to transform urban mobility. The eVTOL aircraft industry in Germany is projected to have substantial growth between 2024 and 2030. Germany's strong automotive and engineering industries are crucial in advancing eVTOL aircraft technology and infrastructure, facilitating market expansion.

Competitive Landscape

The major global players in the market include Kitty Hawk, Lilium, Ehang, Volocopter GmbH, Beta Technologies, Joby Aviation, Urban Aeronautics Ltd., Airbus SE, Elbit Systems Ltd. and Bell Textron, Inc.

Sustainability Analysis

The eVTOL market is leading a sustainability revolution in aviation, emphasizing the decarbonization of conventional aerospace technologies and the development of innovative, eco-friendly operational models. The aviation sector contributes roughly 2% of global carbon emissions and eVTOL technology presents a viable solution through carbon-neutral aircraft intended for urban air mobility (UAM) and advanced air mobility (AAM).

These aircraft seek to mitigate urban congestion, diminish noise pollution and provide more environmentally friendly options for passenger and cargo transport. The realization of this ambition hinges on the establishment of enabling infrastructure, including vertiports and charging stations, as well as securing public approval through collaborative and efficient design.

Substantial obstacles remain, notably governmental authorization for autonomous operations and the incorporation of automated traffic management systems. The market features more than 300 start-ups and significant investment, with certain companies valued above US$ 1 billion; nonetheless, the development of scalable infrastructure and the management of public and regulatory issues will dictate the rate of adoption.

Initial uses are anticipated to concentrate on package delivery, with passenger flights progressively becoming feasible. The eVTOL market signifies a pivotal advancement towards a sustainable aviation framework; yet, its enduring success will depend on technological innovation, smart partnerships and broad urban acceptability.

Technological Advancement

The eVTOL market has had substantial progress, with several businesses advancing in technology, certification and collaborations. Joby Aviation is advancing its eVTOL prototype, including six electric motors, a maximum speed of 320 km/h and minimal noise emissions, with testing expected to conclude in 2024, having the US Air Force as a launch customer.

Volocopter aims to launch its commercial air taxi service during the 2024 Paris Olympic Games, emphasizing air rescue capabilities with its VoloCity multicopter. Archer Aviation has collaborated with the US Air Force and United Airlines to introduce their "Midnight" aircraft, intended for passenger transport between major airports, while Beta Technologies is developing the ALIA-250 eVTOL, aiming for certification by 2026 for both cargo and passenger transport.

Moreover, foreign entities such as EHang and Wisk Aero are pioneering advancements in autonomous and self-operating air taxis. EHang's EH216-S obtained type approval in China, signifying a significant advancement in autonomous passenger transportation. Concurrently, Wisk Aero, supported by Boeing, is concentrating on fully electric, unmanned aerial taxis.

Companies such as Elroy Air are broadening their focus by creating hybrid-electric drones for cargo transportation, while Lilium is advancing its e-jet, with the objective of linking cities through regional air mobility. The eVTOL sector is positioned for swift expansion due to varied technological innovations and collaborations, utilizing electric propulsion, autonomous systems and urban air transportation solutions.

By Lift Technology

• Vectored Thrust
• Multirotor
• Lift Plus Cruise

By Propulsion

• Battery-Electric
• Hybrid-Electric
• Hydrogen-Electric

By System

• Batteries & Cells
• Electric motors/Engines
• Aero structures
• Avionics
• Software
• Others

By Mode of Operation

• Piloted
• Autonomous
• Semi-Autonomous

By Range

• 0-200 Km
• 200-500 Km
• Others

By Maximum Take-off Weight (MTOW)

• <250 Kg
• 250-500 Kg
• 500-1500 Kg
• >1500 Kg

By Application

• Commercial
  • Air Taxi
  • Delivery Drones
  • Others
• Military
  • Cargo Transport
  • Combat Mission
  • Others
• Emergency Medical Service
  • Air Ambulance
  • Medical Cargo Transport
  • Others
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2024, BETA Technologies, Inc. announced the successful execution of early piloted transition flights with a prototype of its Alia 250 eVTOL aircraft. The successful transition flight represented a major milestone in eVTOL aircraft development, demonstrating the critical ability to effortlessly switch from vertical takeoff to horizontal flight.
• In April 2024, Guangzhou EHang Intelligent Technology Co. Ltd. stated that its EH216-S, an unmanned electric vertical takeoff and landing (eVTOL) aircraft, accomplished a significant milestone by executing its initial autonomous flight during the DRIFTx event in Abu Dhabi on April 25, 2024. This occasion signified the aircraft's inaugural flight in the region.
• In March 2024, Airbus S.E. introduced its newest prototype of electric vertical take-off and landing (eVTOL) aircraft, named the CityAirbus NextGen. This advanced aircraft features a wingspan of 40 feet (about 12 meters) and is meant to seat a pilot and three passengers.

Why Purchase the Report?

• To visualize the global eVTOL market segmentation based on lift technology, propulsion, system, mode of operation, range, maximum take-off weight (MTOW), application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the eVTOL market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global eVTOL market report would provide approximately 94 tables, 97 figures and 214 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies