Urban Air Mobility (UAM) Market Analysis By Component (Infrastructure, Platforms), By Operations (Piloted and Autonomous) By Range (Intercity and Intracity) And Segment Forecasts, 2024 - 2034

Report Summary

Market Overview

The Urban Air Mobility (UAM) market is projected to grow at a CAGR of 34.2% from 2024 to 2030, to reach USD 18.99 billion by 2030, up from USD 3.58 billion in 2023. The market is still at a nascent stage and is expected to witness the first ray of commercialization by 2023.

The Urban Air Mobility (UAM) is an emerging form of air transportation service in low-altitude airspace. UAM is an industry term used to describe the system that enables on-demand, highly automated, passenger or cargo-carrying air transportation services within and around a metropolitan environment.  The increase in demand for an alternative mode of transportation in Urban Mobility is one of the key factors which are driving the growth of UAM market. Also, the demand from companies for an efficient mode of logistics and transportation is expected to further aid in the growth of the UAM market. The growth in urban population, increase in the need to better manage limited natural resources together with increase in focus on environmental sustainability are the major factors for the rise in demand for smart city solutions. The increase in Smart City initiatives will increase the need of UAM and the players in the market will have to cater to such demand. As of February 2019, more than USD 1 billion investment has been made. This significant investment by the stakeholders in air mobility sector, will aid to the growth of the Urban Air Mobility market.

Global Urban Air Mobility (UAM) Market Size, 2024-2034 (USD Million)

Key Aspects of the Report

• Region and country wise statistics of Urban Air Mobility from the period 2024-2034.
• Statistical analysis has been conducted on obtaining the individual share of these segments.
• Regulatory framework related to the adoption of organic farming in each region.
• Regional presence of Urban Air Mobility manufacturers and the recent development of these companies have been mapped.
• Demand and Supply GAP Analysis
• Regional Competitors Pricing Strategy
• Market share analysis of the top industry players
• Strategic recommendations for the new entrants
• 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.

Key Developments in the Urban Air Mobility Market

• The fastest growing region in Urban Air Mobility is Europe. The cities in Europe are facing more challenges to mobility in urban areas. Countries like Germany and France are heavily invested in the development and procurement of advanced eVTOL systems for commercial operations.  Also the increasing trend of automation, especially in Germany is expected to fuel the market in the coming future.
• London is the most congested city in Europe. This congestion drives on an average spending of 72 hours stuck in traffic every year. According to research studies, as population grows across the globe, it is estimated that 68% of the world’s population is anticipated to live in urban areas by 2050. Thus, solution to such problems is on priority.
• In September 2018, British start-up Vertical Aerospace built and launched the first eVTOL to take off in U.K. The company is planning to launch its first air Taxi service by 2022. Similarly, London based start-up Autonomous Flight built a prototype passenger drone capable of flying from London to Heathrow Airport in just 12 minutes.
• The infrastructure for Urban Air Mobility plays a crucial role for the growth of Air Taxis, Air Shuttles and other air mobility platforms. In Landing, Recharging pads and vertiports must be in plce before the wide spread adoption of UAM. London based company Skyports has already began buying rooftop space in London in preparation.
• There are 120 eVOTL prototypes in development around the globe with companies heavily invested in urban air mobility. For instance, Uber has partnered with NASA to launch its own urban air transportation by 2023
• The rapid package delivery from local distribution hubs to a receiving vessel is Last-mile delivery. As per research, this market is expected to have a viable market in 2030 with number of vehicles up to 40,000 and USD 4.2 fare per trip. The profit expected to gain from this market in its first year is USD 8 Billion.
• The use of Air Metro is resembled by current public transit options such as subways and buses with pre-determined routes, regular schedules, and set stops in high traffic areas across each city. It is estimated that Air Metro may have a viable market in 2028, with USD 0.9 billion profit in the first year. By 2030, it is projected that the number of vehicles would reach up to 23,000 from 4,100 in 2028.
• The price per trip is anticipated to be high in initial year amounting to USD 50 and by 2030, it is expected to decrease up to USD 30 per trip. The number of passenger trip is anticipated to be 130 Million in 2028 and is expected to rise up to 740 Million in 2030.
• The number of passenger drones in operation worldwide is estimated to be 3,000 in 2025 and is expected to grow significantly up to 100,000 by 2050. The flagship pilot projects are scheduled to go live in the early 2020s in major cities across the globe including Dubai, Singapore, Los Angeles and Dallas. Over the years the market is expected to increase exponentially and serve air taxis, airport shuttles and intercity flight services.
• The continuous evolution of technologies which may enhance the productivity of the human driver/passenger while in transit include Virtual Reality/ Augmented Reality, Large screens, new interiors in ground vehicles and other teleconferencing technologies. This increase in productivity will result in decrease in value of travel time, thereby affecting the demand for Urban air mobility.

Companies considered and profiled in this market study

Manufacturers who have developed an Aircraft Prototype: AIRSPACEX, Airbus A3, CityAirbus (Airbus Helicopters), Aurora Flight Sciences (A Boeing Company), Bartini, Carter Aviation, Lilium Aviation, Passenger Drone, Vimana, Volocopter, Joby Aviation, Workhorse, Terrafugia and Kitty Hawk / Zee Aero

Manufacturers who have designed an Aircraft Concept/CAD: AviaNovations, Delorean Aerospace, hopFlyt, Hoversurf, Jetpack Aviation, Japan Aerospace Exploration Agency, XTI Aircraft, VerdeGo Aero, Embraer and Pipistrel

Market Dynamics

• The increase in ground traffic gridlock results in longer commute and significant economic costs. According to research studies, annual hours wasted due to traffic congestion are estimated to increase by 6% between 2013 and 2030. The total economy-wide annual costs across Germany, France, United Kingdom, and the United States are anticipated to increase in value from USD 200 billion in 2013 to USD 293 billion in 2030
• This increase in congestion costs would spur the consumer demand for better transportation services which will be satisfied by providing urban air mobility services. The advocates of UAM points to the success of Airbus’ subsidiary, Voom, which provides its services in Sao Paulo, Brazil, operating through an app-based on-demand helicopter service.
• Through this app, the user can book its journey on a helicopter affordably and is up to 80% less than traditional helicopter services, thereby becoming the world’s first truly on-demand helicopter booking platform. Operators like Blade and Skyride charges approximately USD 30 per passenger mile for a 2-seat eVOTL aircraft while Voom charges approximately USD 10 per passenger mile.
• The critical aspect of UAM service is leveraging economies of scale. Manufacturers are aiming to take advantage of economies of scale from a large number of daily operations. They are focusing on mass-producing their vehicles to lower per unit costs as well as automate their aircraft flight operations to reduce pilot and support personnel costs.
• For instance, the Boeing Company published a report proposing that self-piloted electric VTOL configurations could minimize overall operating costs per seat mile by 26% opposed to piston-engine helicopters. The decrease of the expenses in self-piloted electric VTOL configurations could reduce overall operating costs per seat mile by 26% compared to piston-engine helicopters used today.
• This reduction of the costs was attributed to decrease in fuel and maintenance costs associated with electric propulsion, no costs for onboard piloting or equipment to support an onboard pilot and cost reductions enabled from advanced manufacturing processes.
• The Air Ambulance market consists of the travel to/from hospitals for emergencies and potential hospital visits in the city. The market size for Air Ambulance is relatively limited, but the services are of high value. According to research study conducted by NASA (10,000 iterations of Monte Carlo simulations), the median cost of operating an eVTOL Air Ambulance is approximately USD 9,000 per transport and hybrid air ambulance is approximately USD 9,800 as compared to 10,000 iterations for rotary wing helicopter, and for ground ambulance, it resulted in USD 500, approximately 80% is fixed cost.
• The five-seat eVTOL in the short term will cost approximately USD 6.25 per passenger mile, however, in the long term, high operational efficiency, autonomy, technology improvements may reduce the cost up to 60%
• The growth for the Air Ambulance segment is expected to be slow in the short term, due to technology constraints. On the contrary, Hybrid VTOL aircraft is a more attractive option to serve air ambulance market.
• Airport Shuttle and Air Taxis are expected to grow significantly since the markets are viable with a significant total available market value of USD 500 Billion at the market entry price points. In US, Air taxi market has a potential demand of approximately 55,000 daily trips which can be served by 4,000 aircraft. For the initial years of operations, the annual market value is projected to be around USD 2.5 Billion, based on near term market entry assumptions.
• Autonomous cars are expected to provide strong competition, but large demand for UAM services can be achieved by high network efficiency, increased importance of time travel, autonomous eVOTL, technology improvements and increased availability for infrastructure/capacity.  

Global Urban Air Mobility (UAM) Market Taxonomy:

Segments covered in the report:

This report forecasts volume and revenue growth at a global, regional & country level, and provides an analysis on the industry trends in each of the sub-segments from 2023 to 2030. For the purpose of this study, Eternity Insights have segmented the Urban Air Mobility market on the Component, Operations, Range and Region:

By Component Outlook (Revenue, USD Million; 2023-2030)

• Infrastructure
  • Charging Stations
  • Vertiports
  • Traffic Management
• Platforms
  • Air taxis
  • Air Shuttles
  • Air Metro
  • Last-mile delivery
  • Air Ambulance
  • Personal Aerial Vehicle
  • Cargo Aerial Vehicle
  • Others

By Operations Outlook (Revenue, USD Million; 2023-2030)

• Piloted
• Autonomous

By Range Outlook (Revenue, USD Million; 2023-2030)

• • Intercity (100 Kilometers to 400 Kilometers)
  • Intracity (20 Kilometers to 100 Kilometers)

By Regional Outlook (Revenue, USD Million; 2023-2030)

• • North America
    1. U.S.
    2. Canada
    3. Mexico
  • Europe
    1. Germany
    2. UK
    3. France
  • Asia Pacific
    1. Japan
    2. China
    3. India
    4. South Korea
    5. Australia
  • Latin America
    1. Brazil
  • Middle East and Africa (MEA)
    1. UAE
    2. Saudi Arabia
    3. South Africa