Japan Flying Cars Market - 2024-2031

Japan Flying Cars Market reached US$ 10.24 million in 2023 and is expected to reach US$ 130.42 million by 2031, growing with a CAGR of 37.45% during the forecast period 2024-2031.

The growth of urbanization, increasing demographic rates, heightened concerns regarding driver and vehicle safety and a growing demand for eco-friendly automobiles are identified as key drivers of this market's quick rise over the projection period. Furthermore, the increase in disposable income and enhancement of living standards are anticipated to expedite the expansion of this market.

The Japanese flying car sector is set for substantial expansion, underscored by Lift Aircraft's recent demonstration in Tokyo in partnership with Marubeni Corporation. Since their partnership in 2021, Marubeni and Lift have collaborated to customize aerial vehicles for Japan's urban and transportation requirements. This collaboration highlights Japan's dedication to implementing advanced mobility solutions that tackle urban congestion and promote environmental sustainability.

Japan's flying car industry adheres to Federal Aviation Administration (FAA) ultralight standards under Part 103, which impose restrictions on speed and occupancy, hence rendering flying vehicles a feasible and attainable solution for urban applications. The absence of training prerequisites for operators increases market accessibility, facilitating widespread adoption as the technology evolves and conforms to local regulatory standards.

Dynamics

Government Support and Strategic Industrial Collaboration

SkyDrive, a prominent Japanese eVTOL maker, won a US$ 82 million grant from the Ministry of Economy, Trade and Industry's Next Generation Air Mobility Field project, providing a substantial enhancement. This governmental initiative seeks to promote innovation and tackle societal issues by assisting high-growth potential firms. These activities emphasize Japan's dedication to promoting the flying vehicle industry as a fundamental aspect of next-generation urban mobility solutions.

Industrial collaborations enhance market expansion, as demonstrated by SkyDrive's relationship with Suzuki for the mass production of aerial vehicles. Beginning in Spring 2024, SkyDrive vehicles are being produced at Suzuki's facility in Iwata City, Shizuoka, by the newly formed company, Sky Works Inc. This alliance combines automotive manufacturing knowledge with advanced eVTOL technology, enabling an annual production capacity of up to 100 vehicles and establishing Japan as a Japan leader in scalable flying car production.

High Cost

The high costs pose a considerable constraint on Japan's flying car business, with electric vertical takeoff and landing (eVTOL) vehicles priced at around US$ 1.5 million (¥200 million) each. These costs encompass batteries but omit recurring operational and maintenance charges. The absence of a unified definition for flying cars by the Land, Infrastructure, Transport and Tourism Ministry, which are generally electric-powered, equipped with autopilot and capable of vertical takeoff and landing, exacerbates issues related to cost efficiency and regulation.

The SD-05 eVTOL, intended for operational deployment for the 2025 Osaka-Kansai Expo, illustrates the significant cost barrier. The vehicle is engineered to accommodate two individuals-one pilot and one passenger-with a limited maximum range of 10 kilometers. Although it features advanced technology and the capacity to revolutionize urban transportation, its cost and maintenance expenses restrict accessibility, highlighting the necessity for significant investment in cost-reduction innovations and supportive policies to enhance market scalability.

Segment Analysis

The Japan flying cars market is segmented based on type, mode of operation, capacity, propulsion and application.

Passenger Drones Are Revolutionizing Aerial Mobility

Passenger drones are referred to as passenger unmanned aerial vehicles (UAVs). The swift progress of unmanned aerial technology, the escalating need to address road congestion and the rising investment interest in the production of eco-friendly unmanned aerial vehicles are expected to enhance the utilization of passenger drones. Moreover, passenger drones are autonomous and do not necessitate human intervention for operation, hence further diminishing their operational expenses and positively influencing the adoption of passenger drones.

In February 2023, the Chinese company EHang successfully conducted the inaugural passenger-carrying autonomous flight of an air taxi in Japan. The Guangzhou-based autonomous aerial vehicle (AAV) company commemorated the remarkable achievement of its EH216 eVTOL (electric vertical take-off and landing) aircraft at Tanoura Beach in Oita City. The EH216 operated with two passengers and no pilot, while personnel from Japan's Ministry of Land, Infrastructure, Transport and Tourism monitored the events.

Competitive Landscape

The major Japan players in the market include SkyDrive, Toyota, Cartivator, AeroVironment and Suzuki.

Sustainability Analysis

The market for flying automobiles, propelled by electric vertical takeoff and landing (eVTOL) vehicles, presents significant sustainability advantages, notably through the eradication of exhaust emissions. Battery-electric vehicles are regarded as a means to mitigate air pollution, offering an eco-friendly alternative to traditional automobiles. Nonetheless, whereas eVTOLs directly mitigate car emissions, their extensive implementation could have considerable indirect environmental consequences.

The increasing number of flying automobiles may result in the extension of urban regions, accompanied by infrastructure development that facilitates more dispersed and expansive communities. These modifications may intensify sustainability issues, including increased automobile reliance and extended travel distances, especially in low-density regions.

The ecological sustainability of flying automobiles is jeopardized by the probable loss of essential greenfield land. Historically, highway growth has led to urban sprawl, frequently resulting in the loss of agricultural land, forests and wetlands, which are vital for environmental services like carbon sequestration and flood mitigation.

If flying cars lead to additional degradation of natural areas, the environmental advantages of diminished automobile emissions may be counterbalanced by the ecological harm resulting from extensive development. The severity of this issue is already apparent in the ongoing depletion of greenfields due to commercial and residential development and the introduction of flying cars may aggravate this trend, complicating long-term sustainability.

Technological Advancements

Japan's flying car market is witnessing significant advancements, particularly with the development of electric Vertical Take-Off and Landing (eVTOL) aircraft. eVTOLs are emerging as a viable alternative to conventional aircraft, presenting reduced operational costs compared to helicopters, the capacity to operate at lower altitudes than airplanes and zero CO2 emissions. This renders them not just an environmentally sustainable choice but also a potentially life-preserving mode of transportation during emergencies, such as natural catastrophes.

The potential of eVTOLs to deliver on-demand air mobility may transform urban transportation and improve disaster response efficacy. SkyDrive, a prominent entity in Japan's flying car sector, is advancing towards the commercial introduction of its eVTOL, the SD-05, in 2025. The SD-05 is engineered to accommodate a pilot and two passengers, featuring a range of 10 kilometers and a maximum cruising speed of 100 kph. This advancement is set to enhance the expanding ecosystem of urban air mobility (UAM) solutions in Japan, demonstrating the nation's dedication to leading in this technical innovation.

By Type

• Flying Car
• Passenger Drones

By Mode of Operation

• Manned Flying Car
• Unmanned Flying Car

By Capacity

• 2 Seater
• 4 Seater
• Others

By Propulsion

• ICE
• Electric
• Others

By Application

• Civil
• Commercial
• Military

Key Developments

• In June 2023, Suzuki Motor Corp, a Japanese automotive manufacturer, formed a partnership with SkyDrive Inc to jointly develop electric vertical take-off and landing (eVTOL) aircraft, sometimes referred to as "flying cars." Manufacturing operations will occur at a Suzuki Group facility in central Japan, with production set to begin in the spring of the upcoming year, as stated in Suzuki's official announcement.

Why Purchase the Report?

• To visualize the Japan flying cars market segmentation based on type, mode of operation, capacity, propulsion and application, 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 flying cars 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 Japan flying cars market report would provide approximately 30 tables, 29 figures and 181 pages.

Target Audience 2024

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