Urban Air Mobility (UAM) Market Forecasts to 2030 - Global Analysis By Solution (Platform and Infrastructure), Platform Type, Range, Operation Mode, Mobility Type, End User and By Geography

According to Stratistics MRC, the Global Urban Air Mobility (UAM) Market is accounted for $3.61 billion in 2024 and is expected to reach $11.28 billion by 2030 growing at a CAGR of 20.9% during the forecast period. The development and operation of aircraft systems intended for air transportation in urban areas are included in the Urban Air Mobility (UAM) market. Electric vertical take-off and landing (eVTOL) aircraft and drones are used to reduce ground traffic congestion for short-distance travel within cities and metropolitan areas. The goal of UAM solutions is to offer safe, effective, and environmentally friendly commuter alternatives. Applications for these solutions range from emergency services and logistics to passenger transportation.

According to the U.S. Environmental Protection Agency, an average passenger car emits 4.7 metric tons of CO2 each year.

Market Dynamics:

Driver:

Increasing traffic congestion

Growing urban traffic congestion is a major problem that has led to the growth of the Urban Air Mobility (UAM) business. Traditional ground transportation finds it difficult to keep up with the growth of cities, which results in lengthier commutes and more environmental problems. By using electric vertical takeoff and landing (eVTOL) aircraft, UAM provides a promising alternative that can reduce emissions and travel times by avoiding clogged roads. Growing governmental and private sector investments are supporting this move towards air travel, which aims to improve urban mobility while tackling the urgent problems of pollution and traffic congestion in areas with high population densities.

Restraint:

Limited battery capacity

In the Urban Air Mobility (UAM) sector, limited battery capacity is a serious problem since it limits the payload and range of electric vertical take-off and landing (eVTOL) aircraft. The high energy requirements for lengthy flights, frequent operations, or heavy freight cannot be met by current battery technology, which restricts the practicality of UAM for large metropolitan networks. Efficiency and scalability are impacted by short battery life, which also leads to longer charging periods and more operational downtime. Additionally, aircraft performance is impacted by battery weight, resulting in a trade-off between range and carrying capacity. To overcome this, advances in lightweight, high-density batteries are essential for UAM expansion.

Opportunity:

Rising investment and partnerships

Growing collaborations and investment are essential to the growth and scalability of the Urban Air Mobility (UAM) business. Businesses such as Hyundai and Joby Aviation are actively working together to improve operational frameworks and infrastructure. For example, Hyundai and the Singapore Economic Development Board have partnered to support advanced air mobility research and development. Furthermore, key partnerships like Australia's Skyway and Skyportz initiative concentrate on developing the necessary infrastructure for UAM. These collaborations ensure that UAM can successfully integrate into current urban transportation systems by promoting legislative frameworks in addition to technology developments.

Threat:

Demand for skilled pilots and training programs

The Urban Air Mobility (UAM) business faces significant challenges due to the need for qualified pilots and extensive training programs. To negotiate the intricacies of urban airspace, the sector needs pilots with specific skills, yet there is a talent shortage due to the current pilot workforce's small size. Meeting safety and regulatory requirements requires extensive training programs, which raises operating expenses for UAM providers. Due to the time-consuming nature of hiring and training skilled pilots, this need also increases the amount of time needed for market scalability. High training expenses may further put off potential pilots, making the scarcity worse and postponing the deployment of UAM.

Covid-19 Impact

The COVID-19 epidemic has had a major effect on the market for urban air mobility (UAM), disrupting many industries, including aviation. Due to supply chain issues and decreased funding, the pandemic initially caused project delays and halted research activities. The impetus created before the epidemic was hampered by this halt, which happened during a crucial stage when UAM was still developing. But the pandemic also brought attention to the necessity of creative mobility options to reduce traffic in cities and enhance emergency response times. UAM is rapidly gaining traction again as communities hunt for alternatives to conventional modes of transportation, which is encouraging further investment and research.

The rotary-wing segment is expected to be the largest during the forecast period

The rotary-wing segment is estimated to be the largest, due to growing urbanization, gridlock, and the demand for quicker and more effective modes of transit. By adding a new dimension to travel, easing traffic on the highways, and providing quicker and more convenient options, UAM has the potential to completely transform urban transportation. The market for UAMs is expanding due to developments in autonomous flight systems, electric propulsion, and battery technology. The development and commercialization of UAM solutions are also being accelerated by rising governmental and private sector investments.

The military segment is expected to have the highest CAGR during the forecast period

The military segment is anticipated to witness the highest CAGR during the forecast period, due to the need for creative logistical solutions, quick reaction times, and increased operational efficiency. UAM technologies are being investigated by military organizations more and more for uses including supply delivery in urban areas, medical evacuations, and troop transport. Faster deployment and help in emergency situations are made possible by the ability to avoid ground congestion. UAM is a strategic priority for upcoming military operations and modernization initiatives since developments in electric vertical takeoff and landing (eVTOL) aircraft also support military objectives of lowering logistical footprints and enhancing sustainability.

Region with largest share:

Asia Pacific is expected to have the largest market share during the forecast period because of the expanding middle class, increased traffic, and fast urbanization. Since UAM has the potential to completely transform urban transportation, nations including China, India, Japan, and South Korea are aggressively funding its research and development. Because of the region's large geographic extent and varied topography, UAM is a desirable option for effective connectivity between urban and rural areas. The Asia Pacific UAM market is also expanding at a rapid pace thanks to favourable government regulations and a flourishing startup and existing business community.

Region with highest CAGR:

North America is projected to witness the highest CAGR over the forecast period, owing to significant government backing, technological developments, and large expenditures from both well-established aerospace firms and start-ups. The region is an ideal location to test UAM technologies because of its developed aviation sector, strong regulatory environment, and substantial population density in large cities. The need for efficient and sustainable transportation options is also being fueled by growing worries about air pollution and traffic congestion, which is driving the UAM market's expansion in North America.

Key players in the market

Some of the key players profiled in the Urban Air Mobility (UAM) Market include Textron Inc., Uber Technologies Inc, Airbus SE, Ehang, Safran SA, Volocopter, Lilium Aviation GmbH, Carter Aviation, AIRSPACEX, Aurora Flight Sciences, Embraer SA, Joby Aviation Inc., Pipistrel Group, Boeing Company, Wisk Aero LLC, Workhorse Group Inc., and Kitty Hawk.

Key Developments:

In April 2023, Joby Aviation, Inc., a leading eVTOL aircraft manufacturer, announced the third extension of its contract with the United States Air Force under the Agility Prime program. The contract extension, valued at $55 million, brings Joby's existing contract to $131 million. Joby will continue to provide and operate up to nine of its five-seat aircraft, known for their low noise levels and zero operating emissions.

In March 2023, Lilium Aviation GmbH, a leader in all-electric vertical take-off and landing (eVTOL) jets, forged a strategic partnership with Air-Dynamic SA, a prominent private jet and helicopter company based in Switzerland. Under the definitive agreement, Air-Dynamic SA committed to purchasing up to five Lilium Jets and secured the orders by depositing.

In January 2019, Aurora Flight Sciences announced the successful test of an autonomous passenger air vehicle prototype in Virginia. By leveraging this prototype technology, the company also sought to construct and manufacture eVTOL aircraft with enhanced reliability and safety.

Solutions Covered:

• Platform
• Infrastructure

Platform Types Covered:

• Rotary-Wing
• Fixed-Wing Hybrid
• Fixed-wing

Ranges Covered:

• Intracity (>100 km)
• Intercity (<100 km)

Operation Modes Covered:

• Piloted
• Autonomous

Mobility Types Covered:

• Air Taxis
• Air Shuttles & Air Metros
• Personal Air Vehicles
• Cargo Air Vehicles
• Air Ambulances & Medical Emergency Vehicles
• Delivery Drones

End Users Covered:

• Ridesharing Companies
• Scheduled Operators
• Hospital
• Military
• E-commerce Companies
• Private Operators
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
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