Urban Air Mobility Market Analysis

Urban Air Mobility Market Overview

Urban Air Mobility Market Size was valued at USD 2.904 Billion in 2023. The urban air mobility market industry is projected to grow from USD 3.83328 Billion in 2024 to USD 26.7662 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 27.49% during the forecast period (2024 - 2032). The main market drivers will be the soaring road traffic in key cities and the rising number of product launches.

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

Urban Air Mobility Market Trends

• Increasing investment in urban air mobility is anticipated to stimulate the market growth

The market CAGR is anticipated to increase as a result of the increasing investment in the urban air mobility sector. The urban air transportation market has strong development potential, and there are several R&D investments in this sector from aerospace businesses. For instance, according to American Airlines, a significant airline headquartered in the United States, the company will invest in Vertical Aerospace in June 2021. American has agreed to pre-purchase up to 250 aircraft as part of the investment, with the option to order a further 100 aircraft. This pre-order commitment might total $1 billion. American Airlines anticipates investing an additional $25 million via a PIPE transaction in the vertical. As a result, it is anticipated that increasing investment in the market for urban air mobility will increase demand.

Furthermore, smart city technology is being used by cities to improve public safety, energy efficiency, pollution reduction, and traffic flow on existing roadways. It is also being used to gather data for traffic engineering and infrastructure upgrades. Urban driving is being transformed into on-demand Mobility as a Service (MaaS), which assists in reducing congestion and improving mobility. Intelligent transportation systems, open data frameworks, and AI-assisted apps are facilitating this transformation. Smart cities gather information from all available sources, including traffic signals, public safety cameras, and embedded devices on public transit. They then use artificial intelligence (AI) to analyze the information gathered and share it through open data pools. Additionally, this makes sure that conditions are continually being watched and can be used for emergency response, traffic management, route planning, and public safety. The management of the smart cities marketplace will be managed by a partnership of 10 partners, lead by VITO, EIT Urban Mobility stated on September 22, 2022.  In order to increase the market for smart and sustainable city solutions, this important economic initiative aims to bring together cities, Small and Medium Enterprises (SMEs),  investors, industriesacademia, and other smart city projects.

Technological breakthroughs are shaping the urban air mobility market. Technology advances when new knowledge is discovered and used to create new goods. For instance, Bell, a US-based helicopter manufacturer, unveiled an updated design for its Nexus air taxi in January 2020. The new '4EX' version has a longer wing than its predecessor and fewer ducted fans. The entire air taxi is powered by electricity. The product's progress is the decrease in the number of fans from the six utilised in the previous model. Thus, driving the urban air mobility market revenue.

Urban Air Mobility Market Segment Insights

Urban Air Mobility Operation Insights

The urban air mobility market segmentation, based on type includes piloted and autonomous. The autonomous segment dominated the market. This category's growth in the urban air mobility market is primarily being driven by the fact that autonomous aircraft are more suitable for passenger and freight services than manned aircraft. Additionally, massive expenditures are being made in autonomous UAM services by the aircraft manufacturing industry, researchers studying airspace integration and infrastructure providers.

Urban Air Mobility Architecture Insights

The urban air mobility market segmentation, based on architecture, includes inter-city and intra-city. The inter-city category generated the most income due to the market for urban air mobility's technological improvement. In order to increase the load-carrying capacity and range, the new startup businesses entering the urban air mobility market are bringing forth new concepts, designs, and technologies. Modern urban air mobility vehicles have seating for 4 to 5 people and a payload capacity of 200 to 300 kg.

Figure 1: Urban Air Mobility Market, by Architecture, 2022 & 2032 (USD Billion)

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

Urban Air Mobility Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American urban air mobility market area will dominate this market. This is explained by the fact that residents of major North American cities will choose air taxi and airport shuttle services more frequently due to the worsening traffic congestion. Additionally, eVTOL aircraft are anticipated to be used extensively in the U.S. for last-mile and cargo services, which would help the market in the area grow.

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: URBAN AIR MOBILITY MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe urban air mobility market accounts for the second-largest market share due to the strong presence of large businesses and numerous government initiatives in Europe for urban air travel. The market's revenue growth is also aided by adopting new technology, such as electric propulsion and larger batteries for vertical takeoff and landing systems. Further, the German urban air mobility market held the largest market share, and the UK urban air mobility market was the fastest growing market in the European region

The Asia-Pacific Urban air mobility Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific area's growing population, fast urbanization, and increased traffic congestion in numerous cities in this region drive the need for urban air mobility. As a result, the need for quick transit systems is growing in this area. In addition, it is projected that over the coming years, increasing R&D expenditures and a growing emphasis on enhancing air mobility will drive the expansion of the Asia-Pacific urban air mobility market. Moreover, China’s urban air mobility market held the largest market share, and the Indian urban air mobility market was the fastest growing market in the Asia-Pacific region.

Urban Air Mobility Key Market Players & Competitive Insights

Leading market players are making significant investments in R&D to broaden their product offerings, which will spur further expansion of the urban air transportation market. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organisations. Market participants are also engaging in a number of strategic actions to increase their footprint. The urban air mobility industry must provide affordable products if it is to grow and thrive in an increasingly competitive and challenging market environment.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the urban air mobility industry to benefit clients and increase the market sector. In recent years, the urban air mobility industry has offered some of the most significant advantages to market. Major players in the urban air mobility market attempting to increase market demand by investing in research and development operations include Airbus Group (France), Boeing (US), Volocopter GmbH (Germany), Honeywell International Inc. (US), Aurora Flight Sciences (US), Embraer SA (Brazil), PIPISTREL (Slovenia), Bell Helicopter Textron Inc. (US), Neva Aerospace (UK), Delorean Aerospace LLC (US), Kitty Hawk (US), Lilium (Germany), EHang (China), Workhorse Group Inc. (US) and Joby Aviation (US).

Manufacturing and providing transit services are both done by Volocopter GmbH. The company creates manned electric helicopters and sells flying air taxi services to address the growing transportation problem. Germany is where Volocopter services its clients. In February 2022, Volocopter GmbH partnered with DB Schenker to start Velodrome. Essentially, this is a delivery service for heavy objects. It is electric, unscrewed, and can haul up to 200 kg of stuff. In addition to its unrivaled payload, the aircraft's range of up to 40 kilometers enables many urban delivery trips within a single day.

Product manufacturers Kitty Hawk Corporation makes aerospace goods. The business creates, develops, and constructs aircraft. Kitty Hawk serves customers in the US. Kitty Hawk is an aerospace firm that creates eVTOL vehicles that make airtaxis accessible, common, and environmentally friendly. In December 2019, Wisk, a joint company between Kitty Hawk and The Boeing Company, was established to design and produce Cora, a two-person, all-electric, self-flying eVTOL air taxi. Kitty Hawk intends to introduce the services in New Zealand at first.

Key Companies in the urban air mobility market include

• Airbus Group (France)


• Boeing (US)


• Volocopter GmbH (Germany)


• Honeywell International Inc. (US)


• Aurora Flight Sciences (US)


• Embraer SA (Brazil)


• PIPISTREL (Slovenia)


• Bell Helicopter Textron Inc. (US)


• Neva Aerospace (UK)


• Delorean Aerospace LLC (US)


• Kitty Hawk (US)


• Lilium (Germany)


• EHang (China)


• Workhorse Group Inc. (US)


• Joby Aviation (US)

Urban Air Mobility Industry Developments

January 2023: In a move towards bringing electric vertical take-off and landing (eVTOL) cars to market, Geely Aerofugia, a division of the Chinese manufacturer Geely, has completed a test flight of its flying car prototype, the AE200. In August 2022, this business debuted a full-size demonstration of its five-seater eVTOL, the TF-2.

September 2021: Trinity Air Medical Inc. was purchased by US-based Blade Air Mobility Inc. for $23 million. With this acquisition, Blade Air Mobility will become the largest dedicated organ air transport company in the United States thanks to Trinity's sizable flight volume and Blade's quickly growing MediMobility business. Blade Air Mobility will also be able to purchase more dedicated aircraft, increasing availability and lowering costs for the hospitals we all work with. An air and ground transportation company located in the US is called Trinity Air Medical Inc.

Urban Air Mobility Market Segmentation

Urban Air Mobility Operation Outlook (USD Billion, 2018-2032)

• Piloted


• Autonomous

Urban Air Mobility Architecture Outlook (USD Billion, 2018-2032)

• Inter-City


• Intra-City

Urban Air Mobility 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