NEW YORK, Nov. 28, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The global urban air mobility (UAM) market size is estimated to grow by USD 10.31 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 36.5% during the forecast period. Increasing use of evtol aircraft in military applications is driving market growth, with a trend towards technological advancements. However, limitations of existing battery technology poses a challenge. Key market players include Airbus SE, Archer Aviation Inc, Bartini Inc., Bell Textron Inc., EHang Holdings Ltd., Embraer SA, Geely Auto Group, Honeywell International Inc., Joby Aviation Inc., Kitty Hawk Corp., Lockheed Martin Corp., Moller International, Moog Inc., RTX Corp., Textron Inc., The Boeing Co., Volocopter GmbH, Wingcopter GmbH, Wisk Aero LLC, and WORKHORSE GROUP INC..

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Market Driver

The Urban Air Mobility (UAM) market is experiencing significant growth with trends like autonomous aerial vehicles and flying cars gaining momentum. The Federal Aviation Administration (FAA) is working on rulemaking committees for air taxis and air ambulances, paving the way for advanced air mobility. Uber Air, UAM market leaders, are investing in battery-powered electric vehicles to reduce CO2 emissions. R&D investments from start-ups and aerospace players in eVTOL, electric aircraft, and autonomous segments are driving innovation. Urban areas face traffic congestion, and UAM offers sustainable solutions with electric motors, batteries, fly-by-wire systems, sensors, and control systems. Urban aviation services include air taxis, air metro, cargo, emergencies, and last-mile delivery. The Ministry of Land, Infrastructure, Transport, and Tourism are collaborating with aircraft operators to develop infrastructure. Industry players like Hyundai Motor, Volocopter, and others are launching electric-powered vertical takeoff and landing vehicles. The ecosystem includes on-demand mobility, urban air mobility services, and shared automated vehicles. The UAM market covers various vehicle types, including air taxis, air ambulance, cargo air vehicles, and personal air vehicles. Strategies include mergers & acquisitions, collaborations, and technology advancements in stability, load-carrying capacity, range, and vehicle automation. Urban air mobility offers social mobility and productivity enhancements for metropolitan economies. 

The urban air mobility market is witnessing a significant shift towards advanced technology for real-time package tracking. Consumers can now manage and modify their retail deliveries using online tools, ensuring greater transparency and control. However, for large or heavy packages, direct customer pick-up is necessary due to their high value. Delivery providers address this challenge by offering web and mobile-based last-mile delivery management applications, enabling customers to manage the scheduling of such deliveries effectively. 

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Market Challenges

• The Urban Air Mobility (UAM) market is experiencing significant growth with the development of autonomous aerial vehicles like flying cars. However, challenges persist, including regulatory hurdles from the Federal Aviation Administration (FAA) and industry players like Uber Air. CO2 emissions are a concern, making battery-powered UAM vehicles an attractive alternative to ICE cars. Air taxis, air metro, and air ambulance segments lead the market. R&D investments from start-ups and aerospace players in eVTOL, electric aircraft, and autonomous segments are driving innovation. Urban areas face traffic congestion and productivity losses, making UAM an attractive sustainable solution for transportation businesses. FAA Rulemaking Committees are working on vehicle type segment and air taxi segment regulations. Hyundai Motor and Volocopter are leading players with electric power vehicles like the SA-1 vertical takeoff and landing vehicle. The ecosystem includes aircraft operators, advanced air mobility, cargo, emergencies, metropolitan areas, and infrastructure development. Collaborations, mergers & acquisitions, and technology advancements in electric motors, batteries, fly-by-wire systems, sensors, and control systems are shaping the future of urban aviation services, including on-demand mobility, goods delivery services, and shared automated vehicles. Regulatory authorities, cargo, and tourism industries are also exploring UAM opportunities. Drones are also part of the UAM development. Industry players are focusing on stability, load-carrying capacity, range, platform architecture, and vehicle automation for autonomous vehicle operations. Social mobility and vehicle autonomy are key considerations for urban air mobility.
• The urban air mobility (UAM) market for electric vertical takeoff and landing (eVTOL) aircraft is experiencing significant hype, yet the conversion of aerospace company designs into functional commercial models faces challenges. The energy requirements for flight are substantial, and current battery technology struggles to provide the necessary power with minimal weight. The success of electric cars was achieved through affordability and compactness, but in aviation, weight is the primary concern. To create a commercially viable eVTOL aircraft, batteries must have a minimum energy density of 500Wh/kg. However, most commercial batteries can only deliver 30-50% of this, posing a significant hurdle for the industry.

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Segment Overview 

This urban air mobility (uam) market report extensively covers market segmentation by

1. Type 
   • 1.1 Autonomous
   • 1.2 Piloted
2. Application 
   • 2.1 Delivery
   • 2.2 Passenger mobility
3. Geography 
   • 3.1 North America
   • 3.2 Europe
   • 3.3 APAC
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Autonomous- Autonomous Urban Air Mobility (UAM) refers to the utilization of unmanned aerial vehicles (UAVs) or drones for transportation in urban areas. This technology intends to offer cities a secure, productive, and eco-friendly air transportation alternative by alleviating traffic congestion and enhancing mobility. Autonomous UAVs are equipped with advanced technologies such as sensors, navigation systems, and artificial intelligence algorithms, enabling them to operate independently. Morgan Stanley Research's latest BluePaper reveals that investment in autonomous flying aircraft is gaining momentum, with implications for passenger travel, military and defense applications, and freight and package transportation. The report anticipates a USD1.5 trillion total addressable market for autonomous aircraft by 2040, generating opportunities for investors and benefiting multiple sectors, thereby fueling the demand for UAM throughout the forecast period.

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Research Analysis

The Urban Air Mobility (UAM) market refers to the emerging transportation sector that utilizes autonomous aerial vehicles, such as flying cars and air taxis, for urban mobility. The Federal Aviation Administration (FAA) is working on rulemaking committees to establish regulations for this new mode of transportation. UAM offers several advantages over traditional ICE cars, including reduced CO2 emissions and traffic congestion. The market is segmented into vehicle type, including battery-powered UAM vehicles and eVTOL (electric vertical takeoff and landing) aircraft. Key segments include air taxis, air ambulance, and last-mile delivery. R&D investments from start-ups and aerospace players are driving innovation in this sector. Technological advancements include electric motors, batteries, fly-by-wire systems, sensors, and control systems. The UAM market is expected to significantly impact urban areas, offering efficient and eco-friendly transportation solutions.

Market Research Overview

Urban Air Mobility (UAM) is an emerging market that focuses on the use of autonomous aerial vehicles, including flying cars, for transportation in urban areas. The Federal Aviation Administration (FAA) is working on rulemaking committees to integrate UAM into the national airspace system. UAM offers sustainable solutions for urban transportation, reducing CO2 emissions compared to ICE cars. Battery-powered UAM vehicles, such as air taxis, air metro, air ambulance, and last-mile delivery vehicles, are gaining popularity. R&D investments from start-ups, aerospace players, and regulatory authorities are driving the development of eVTOL, electric aircraft, and autonomous segment of UAM. Urban areas face traffic congestion and productivity losses, making UAM an attractive alternative for on-demand mobility and urban aviation services. Cargo, emergencies, and tourism are among the sectors that can benefit from UAM. The ecosystem includes aircraft operators, advanced air mobility, and transportation technologies. Collaborations, mergers & acquisitions, and technology development are key strategies among industry players. Urban air mobility offers a range of vehicle types, including air taxis, air shuttles, personal air vehicles, cargo air vehicles, medical emergency vehicles, and last-mile delivery vehicles. Platforms, such as Uber Air, are developing operations, architecture, and range for UAM vehicles. The market includes piloted and autonomous vehicles, intercity and intracity travel, rotary wings and fixed wings hybrid, and vehicle automation. Urban air mobility offers stability, load-carrying capacity, and R&D spending opportunities. The market also includes social mobility and vehicle autonomy aspects. Infrastructures, cities, and transportation businesses are exploring the potential of UAM to address fuel costs and sustainability concerns. Drones are also a part of the UAM development.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• • Autonomous
  • Piloted
• Application
• • Delivery
  • Passenger Mobility
• Geography
• • North America
  • Europe
  • APAC
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio