The eVTOL aircraft market is expected to grow from US$ 519.81 million in 2024 to US$ 1756.28 million by 2028; it is expected to grow at a CAGR of 35.6% from 2024 to 2028.
The adoption of air taxis due to developments in urban air mobility worldwide is driving the eVTOL market.The favorable government initiatives from leading countries and a growing number of startups entering the market are fueling the adoption of air taxis worldwide.
In December 2021, the Australian government announced a grant worth US$ 23 million to explore the application of new aviation technology as part of its Emerging Aviation Technology Partnerships Program.In addition, in April 2022, Airbus and ITA Airways signed a Memorandum of Understanding to collaborate and introduce urban air mobility (UAM) in Italy.
The agreement also focuses on the safe and sustainable launch of CityAirbus NextGen eVTOL aircraft.In European countries, the first flight of air taxis is expected to occur by 2024.
Thus, as per the European Union Aviation Safety Agency (EASA), commercial use of (air) taxis can start by 2024 or 2025. Thus, upcoming developments and initiatives from leading countries for adopting air taxis would strengthen the demand for urban air mobility, which is expected to provide lucrative opportunities for the eVTOL aircraft market growth during the forecast period.
Developments in electric-propulsion-based eVTOL aircraft are another major factor that is expected to fuel the eVTOL aircraft market growth globally.The aviation industry is one of the fastest-growing sources of greenhouse gas emissions, driving global climate change.
On January 11, 2021, the Environmental Protection Agency (EPA) issued a greenhouse gas (GHG) emissions standard for aircraft operating worldwide to control their carbon emissions.In addition, in November 2021, EPA filed litigation that formulated the commercial aircraft greenhouse gas (GHG) emission standards, which EPA promoted in early 2021.
The development of electric propulsion-based eVTOL aircraft helps mitigate the environmental impact of noise and pollutant emissions. Thus, government regulations and policies for reducing emissions boost the demand for electric propulsion-based eVTOL aircraft.
Impact of COVID-19 Pandemic on eVTOL Aircraft Market
The overall impact of the COVID-19 pandemic on the aviation industry is severe.The global aviation industry is expected to lose ~US$ 200 billion from 2020 to 2022.
The impact of the pandemic has led to declined aircraft production, disrupted supply chain during the FY 2020, postponement of new orders, transportation challenges for sourcing materials or parts, and labor challenges for the aviation industry vendors.This had also adversely affected the eVTOL aircraft market.
As the eVTOL industry is still in its development phase and is required to have a rising economic growth to sustain the developments across the eVTOL industry, the ongoing projects such as testing, certification, and production of prototypes have been severely impacted during the pandemic.However, as the aviation industry has started recovering from its loss, several countries have shifted their focus to eVTOL infrastructure development across urban cities worldwide.
Also, despite the pandemic, during FY 2020, a few companies have captured contracts for the testing & development of eVTOL products. For instance, in 2020, LIFT Aircraft Inc. received a contract worth US$ 2.5 million from the US Air Force for flight testing of its HEXA eVTOL aircraft, which has somehow driven the development of the eVTOL aircraft market for critical mission applications.
The US is expected to account for the largest market share in the North American eVTOL aircraft market in 2024.This is owing to the presence of eVTOL aircraft manufacturers and increasing number of investments in the country.
Moreover, supportive government funding initiatives further contribute to the country’s market growth.For instance, in March 2021, the US Air Force’s Agility Prime initiative will help finance the flight test and certification efforts of ~20 eVTOL aircraft participating in its “Air Race to Certification” program.
The growing competition in the eVTOL aircraft market is primarily to achieve the US Federal Aviation Administration (FAA) aircraft certification and enter into commercial service.
In Germany, the eVTOL aircraft market growth is primarily driven by the growing number of developments of electric-propulsion-based eVTOL aircraft across the country.With the growing initiatives for incorporating electric and hybrid-electric air taxis, the eVTOL aircraft market vendors are collaboratively working to develop an extensive charging infrastructure powered by clean energy sources and start and landing facilities.
For example, Rolls Royce’s electrical power system will be integrated into the piloted eVTOL vehicle, which will carry up to four passengers for 120 miles at cruise speeds of over ~200mph and is on course to certify by 2024.In addition, in March 2022, the Germany-based eVTOL developer Lilium announced a new partnership with Honeywell and Denso to develop electric motors for eVTOL aircraft.
Thus, such developments from the e-commerce industry, companies such as Amazon, and delivery fleets taking significant initiatives to provide the last mile delivery are augmenting the eVTOL aircraft market growth in Germany over the forecast period.
Airbus (The Netherlands), Bell Textron Inc. (US), Boeing (US), Eve Air Mobility (Brazil), Lilium GmbH (Germany), Opener (US), EHang (China), BETA Technologies (US), Pipistrel Group (Slovenia), Volocopter GmbH (Germany), Joby Aviation Inc. (US), Heart Aerospace (Sweden), and Archer Aviation Inc. (US) are among the players profiled during the study of the eVTOL aircraft market.
The overall eVTOL aircraft market size has been derived using both primary and secondary sources.To begin the eVTOL aircraft market research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the eVTOL aircraft market.
The process also serves the purpose of obtaining an overview and market forecast of the eVTOL aircraft market growth with respect to all market segments.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights about the topic.
Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, national operations managers—along with external consultants such as valuation experts, research analysts, and key opinion leaders—specializing in the eVTOL aircraft market.
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