Rising demand for alternative modes of transport and rocketing road traffic is expected to boost the urban air mobility industry growth during the forecast period. Also, growing urban population and increasing growing urban population will fuel the growth of the industry. Additionally, utilization of autonomous UAMs is expected to bore lower pollution, short travel times, and decrease demand on current transportation infrastructure. These factors will boost the industry growth.
However, factors such as rising security concern, high initial investment, and limited government supportive in terms of regulatory framework will limit the industry during the forecast period.
The urban air mobility market size was USD 2.90 billion in 2020. The industry is projected to grow from USD 3.01 billion 2021 to USD 8.91 billion in 2028 at a CAGR of 16.77% during the 2021-2028 period. Factors such as increasing urbanization and degrading traffic conditions will boost the industry during the forecast period. Also, rising demand for creating a faster, cleaner, safer, and interconnected transportation will fuel the growth of the industry.
COVID-19 Pandemic to Usher Unparalleled Challenges for the Industry Leading to Limited Growth
The ongoing COVID-19 pandemic has significantly harmed the supply chain of the urban air mobility sector. Constant lockdowns and volatility in raw material pricing have hampered the development cycle for UAMs, further delaying launching of new products. Many dominant players have lost gross business revenues due to lockdowns and restrictions on people’s movements. These measures have led to delays in development and lower revenue generation for the prominent players.
List of Companies Present in the 2022:
Textron Inc. (U.S.), Uber Technologies Inc. (U.S.), Airbus SE (Netherlands), Ehang (China), Safran SA (France), Volocopter (Germany), Lilium Aviation GmbH (Germany), Carter Aviation (U.S.), AIRSPACEX (U.S.), Aurora Flight Sciences (U.S.)
The report focuses on providing a detailed insight into the inner working of the urban air mobility sector by uncovering the segments and sub segments for the industry. Factors such as R&D capabilities and optimization of the manufacturing process for the dominant players are covered. Besides, ongoing industry trends and upcoming industry developments are noted. The report also focuses on several growth factors that have contributed for the growth of the industry over the past years.
North America to Hold Largest Industry Share Due to Presence of Dominant Players
North America will capture the largest urban air mobility industry share during the forecast period, owing to increasing presence of dominant players coupled with rising adoption measures. Also, rising air traffic among residents will fuel the demand for air taxis and airport shuttle services. Factors such as last-mile and freight services coupled with eVTOL aircrafts will boost the industry growth.
Europe will register the fastest growing industry during the forecast period due to the region being the breeding ground for a majority of technology innovations. Rising investment opportunities as well as presence of prominent players will foster growth for the industry.
Product Development to be at the Forefront for Developing a Sustainable Industry
The industry for urban air mobility is still at a budding stage with the dominant players competing for capturing a larger consumer base. The industry is expected to grow at a steady rate by strategies such as collaboration, mergers & acquisitions, and developing and launching novel products to capture an attentive audience.
In May 2021, Volocopter revealed the Voloconnect. It is an electric vertical take-off and landing aircraft (eVTOL), which is designed for connecting suburbs and cities. This product will integrate with Volocopter’s existing intra-city aircraft series.