The Urban Air Mobility (UAM) Market is expected to witness a CAGR of more than 10% during the forecast period.
- Growing traffic congestion issues, especially in larger cities globally, is propelling the need for faster modes of intracity transportation. In this regard, the Urban Air Mobility concept is gaining importance.
- There are a lot of R&D investments in the Urban Air Mobility industry, with many startups and aerospace players eyeing this market as one of the high growth potentials.
Scope of the Report
The report includes the use of both manned and unmanned electric-powered vertical takeoff and landing (eVTOL) aircraft for urban transport purposes.
Key Market Trends
Need for Faster and Cleaner Urban Transportation Driving Investments in the Market
With the number of on-road passenger vehicles increasing every year, traffic congestion problems are also growing. Especially at certain peak hours, the increasing amount of traffic on the roads has significantly increased the commuter's time taken to travel by roads. The existing road systems in most of the countries do not have the capacity to handle the peak-hour loads without forcing the commuters to wait in line for the limited road space. This is not only wasting the time of citizens but also challenging the governments. In addition, growing on-road passenger vehicle volumes, which burn fossil fuels, is also polluting the environment considerably. With traffic congestion and urban road mobility posing a great challenge, governments and technology companies have started to look at Urban Air Mobility (UAM) as a viable option for the passenger and cargo transport. As the UAM is a safe and efficient air transportation system where the passenger-carrying air taxis are operating above populated areas, there will be significant time savings. Also, the air-taxis used for the UAM are mostly electric powered or fuel-cell powered. Hence they help in reducing atmospheric pollution. In this regard, many companies are investing significantly in this industry, which is expected to boost the technological advancements in the market in the long run, after the UAM systems enter the commercial usage phase.
The Market is projected to penetrate faster in North America And Europe compared to other regions
Several countries are working towards the commercial adoption of the Urban Air Mobility concept. However, Europe and North America are advancing faster than the other regions in the industry. With aerospace giants from the regions like Boeing and Airbus investing in these technologies and the emergence of many startups from both regions has made them important markets for the industry. In Europe, of late, several cities have been joining the Urban Air Mobility (UAM) Initiative which is a part of the European Innovation Partnership on Smart Cities and Communities (EIP-SCC). The initiative aims to contribute to the creation of a market for urban air mobility. Under this initiative, companies with innovative urban mobility solutions are brought together and their solutions are showcased and supported to replicate the feasible ones at a bigger scale. Even the regulations for the Urban Air Mobility industry are being drafted. At the Global Urban Air Summit in Farnborough in September 2019, industry and regulatory leaders in urban air mobility (UAM) stressed their commitment to match the industry's pace but underlining the challenges faced by the market. Thus, with the stage being set for the commercial entry phase of the market in the region, it is expected that the growth of the market will be higher in Europe compared to other regions. Even in North America, the US is at the forefront of adopting this newer means of transport. Many startups from the US are working together for developing and implementing these technologies locally. A roadmap is also being laid for bringing the UAM into commercial usage in the next 5-6 years. With these efforts, North America is also projected to embrace the Urban Air Mobility concept faster than the other regions barring Europe.
Textron Inc, Uber Technologies, Inc., Airbus SE, The Boeing Company, and Safran are some of the prominent players in the market. The market is still in its development phase with many players through collaborations and partnerships are trying to launch their UAM systems in the market in the next five years and to commercialize Urban Air Mobility. But at the same time, a lot of groundwork in terms of the necessary infrastructure and air traffic management still needs to be done, for which, the players are partnering with several other companies/agencies offering the necessary technologies. For instance, Uber and NASA partnered in 2018 to develop technologies for UAM airspace management to make large-scale UAM operations possible. Likewise, in October 2019, Porsche and Boeing signed an MoU to explore the urban air mobility market and its benefits. With the growing emphasis on environmentally friendly and economically sustainable technologies in mobility, players are mainly focussing on developing eVTOL (electric Vertical Takeoff and Landing) aircraft, whereas other players are looking beyond electricity to alternative energy sources like the hydrogen fuel cells. Also, the investments in autonomous aircraft in this industry are increasing currently, which, the players are seeing as a huge growth opportunity.
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