Emerging eVTOL Technology: Creating Growth Opportunities in the Urban Air Mobility Landscape

Feasibility Study of Operational Costs for eVTOL Aircraft versus Traditional ICE Aircraft

Urban air mobility (UAM), also known as advanced air mobility (AAM), is among the fastest-growing emerging industries in the mobility landscape. In 2018, approximately 100 electric vertical take-off and landing (eVTOL) aircraft concepts were registered with the Vertical Flight Society (VFS), and, as of late 2022, this number was in the region of approximately 700 concepts (about a 120% year-over-year [YoY] average growth). Although an emerging industry with recent explosive growth, there is still uncertainty surrounding the expected operational cost of UAM aircraft as well as MRO structure, certification, and regulation.

The MRO industry is well-established for traditional internal combustion engine (ICE) aircraft, with approximately $80 billion spent globally in 2022. However, due to the fundamental design differences in eVTOL versus ICE aircraft, this is a particular area of major growth opportunities in the emerging UAM space.

This study compares the maintenance, repair, and overhaul (MRO) elements of ICE and eVTOL aircraft, assessing the operational cost feasibility of eVTOL aircraft, and concluding with growth opportunities in the emerging eVTOL aircraft space. Owing to limited data on the operational costs of eVTOL aircraft and their composition, this study details the modeling approach to derive operational cost estimates.