Air Taxi Market Analysis

Air Taxi Market Overview

Air Taxi Market Size was valued at USD 0.8 Billion in 2022. The air taxi market industry is projected to grow from USD 1.04 Billion in 2023 to USD 6.88 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.58% during the forecast period (2023 - 2032).  During the course of the forecast period, the air taxi market is anticipated to increase due to market drivers like the growing desire for an alternate means of transportation and the increasing issue of traffic congestion in urban areas.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

A Memorandum of Understanding (MoU) for a planned strategic alliance was inked by NetJets and Lilium NV. Additionally, the agreement gives Net Jets the authority to buy up to 150 Lilium aircraft. About USD 450 million was invested by the Boeing startup in Wisk Aero, an advanced air mobility (AAM) startup. It is anticipated that the investment will help Wisk build and certify sixth generation eVTOL aircraft. Wisk Aero, a startup supported by Boeing, closed its first agreement to run flying taxis in the US. In accordance with their partnership, Wisk will provide Blade Urban Air Mobility Inc. with up to 30 eVTOL aircraft.

Air Taxi Market Trends

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  Increased road congestion is driving the market growth

  
  

Increased road congestion is expected to lead to further growth in the flying taxi sector. Traffic congestion is the state of having a large number of people or cars in one area. The surge in traffic has created a new revenue stream for airports, airlines, cities, hotels, and other businesses, thanks to flying taxis. They also provide a fresh way for cargo and passengers to arrive on time. A report published by INRIX, a US-based pioneer in transportation analytics solutions, claims that the COVID-19 epidemic is still causing social and economic unrest. For instance, the 2021 Global Traffic Scorecard rated and detected traffic patterns and congestion in more than 1,000 cities in 50 different nations. The average American motorist lost 36 hours as a result of traffic congestion in 2020, which is a 10-hour increase over 2020 but 63 hours less than before the pandemic. Due to traffic congestion, Americans lost 3.4 billion hours in 2021. As a result, the market for flying taxis is expanding due to increased traffic congestion.

The need for an alternate form of transportation has increased globally with the development of cutting-edge technologies in the transportation sector, such as automated automobiles and trains. This has caused businesses in the aviation industry to concentrate on launching flying taxis all over the world. To this end, numerous companies have collaborated to explore novel ideas for the advancement of flying taxis. For instance, in addition to Audi, Airbus S.A.S. has unveiled CityAirbus, an electric taxi that can land and take off vertically. Other innovations include the full-scale flight test of VAHANA, an all-electric, self-piloting, vertical takeoff and landing aircraft. These improvements are being made in response to the growing demand for alternate modes of transportation, which will ultimately fuel market expansion over the course of the forecast period.

The development and implementation of flying taxis can be facilitated by government funding and investment opportunities. Grants for research, financial aid, and tax breaks are a few ways to motivate businesses to invest in the infrastructure and technology needed for flying taxis operations. Furthermore, the market's expansion can be expedited by government backing, which offers financial resources for R&D and commercialization. For flying taxis to function properly, an infrastructure of support is needed. This includes creating charging stations, landing pads, and air traffic control systems specifically designed for urban air transportation. Governments have the ability to fund the development and upkeep of this infrastructure, opening doors for market participants to work together. It is anticipated that these aspects of the government's backing will present substantial chances for the market to expand. Thus, driving the Air Taxi market revenue.

Air Taxi Market Segment Insights

Air Taxi Range Insights

The Air Taxi Market segmentation, based on range includes Intercity (100 Kilometers to 400 Kilometers) and Intracity (20 Kilometers to 100 Kilometers). The intercity (100 kilometers to 400 kilometers) segment dominated the market. The objective of this segment is to offer a balance between speed and convenience for regional travel by facilitating more rapid and efficient transportation between cities. Reducing travel time and offering a more direct and seamless connection between cities within the designated distance range are the main goals.

Air Taxi Mode of Operation Insights

The Air Taxi Market segmentation, based on mode of operation, includes Optionally Piloted and Piloted. The piloted category generated the most income because more money is being invested in the creation of cutting-edge transportation systems by both public and commercial entities. The market is further impacted by the introduction of innovative aircraft that are initially operated by pilots. For instance, in June 2017, the American technology company Workhorse Group Inc.—whose mission is to supply affordable and environmentally friendly solutions to the commercial transportation industry—unveiled the specifications and concept of its Surefly helicopter at the Paris Air Show 2017.

Air Taxi Type Insights

The Air Taxi Market segmentation, based on type, includes taxi Platform Services, Taxi MRO Services, and Taxi Pilot Training Services. The taxi platform services category generated the most income. Bookings, scheduling, and other logistical aspects of flying in an flying taxis are made easier with the help of air taxi platform services, which offer the technology and infrastructure required to link customers and operators.

Figure 1: Air Taxi Market, by Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Air Taxi Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American flying taxis market area will dominate this market. Several key elements that will offer a big opportunity to the market in the region are high disposable income, a high percentage of high-income individuals, and a variety of product launches relevant to the market in the nation. Furthermore, the target market's expansion in this area is anticipated to be further supported by the existence of significant service providers operating in the nation.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Air Taxi Market Share By Region 2023 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe air taxi market accounts for the second-largest market share because of the increased funding for flying taxis startups and the development of 5G and other telecommunications technology. The development and regional commercialization of flying taxis is the focus of numerous aviation enterprises in Europe. Further, the German air taxi market held the largest market share, and the UK air taxi market was the fastest growing market in the European region

The Asia-Pacific Air Taxi Market is expected to grow at the fastest CAGR from 2023 to 2032. The significant rise in growth can be ascribed to substantial expenditures made by various flying car businesses, including Macchina Volantis, an Australian industry participant preparing to construct a prototype of its five-seat, road-drivable electric aircraft. China, Singapore, and Japan are among the nations making significant investments in the research and development of flying taxis as the world's population continues to rise. Moreover, China’s flying taxis market held the largest market share, and the Indian air taxi market was the fastest growing market in the Asia-Pacific region.

Air Taxi Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the air taxi market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, flying taxis industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global air taxi industry to benefit clients and increase the market sector. In recent years, the air taxi industry has offered some of the most significant advantages to medicine. Major players in the flying taxis market are attempting to increase market demand by investing in research and development operations, including Airbus S.A.S., Uber Technologies, Beechcraft Corporation (subsidiary of Textron Aviation), Dassault Systèmes, Hyundai Motor Company, EHANG, Boeing, Volocopter GmbH, Embraer, and Lilium.

Hyundai is a brand of car manufacturer, Hyundai Motor Co. The firm develops, designs, builds, and sells automobiles, powertrains, chassis, SUVs, buses, trucks, MPVs, and hydrogen-powered vehicles. Hyundai also offers credit card processing and auto financing. In addition to Europe and Asia Pacific, it operates in North and South America.

Uber Technologies, Inc. operates as a ride-hailing service provider. Through its technological platforms, which include webpages and mobile applications, it provides services. Uber arranges for the transportation of passengers by drivers or independent contractors. The business provides pick-up and drop-off services at airports all over the world. The company offers grocery, meal, and food delivery services via its technological platform. Uber provides logistics and freight services as well. It links users with public transit systems and offers services for daily commuting to the corporate sector.

Key Companies in the air taxi market include

• Airbus S.A.S.


• Uber Technologies


• Beechcraft Corporation (subsidiary of Textron Aviation)


• Dassault Systèmes


• Hyundai Motor Company


• EHANG


• Boeing


• Volocopter GmbH


• Embraer


• Lilium

Air Taxi Market Segmentation

Air Taxi Range Outlook (USD Billion, 2018-2032)

• Intercity (100 Kilometers to 400 Kilometers)


• Intracity (20 Kilometers to 100 Kilometers)

Air Taxi Mode of Operation Outlook (USD Billion, 2018-2032)

• Optionally Piloted


• Piloted

Air Taxi Type Outlook (USD Billion, 2018-2032)

• Air Taxi Platform Services


• Air Taxi MRO Services


• Air Taxi Pilot Training Services

Air Taxi Regional Outlook (USD Billion, 2018-2032)

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific

Rest of the World

• Middle East


• Africa


• Latin America