Urban Air Mobility (UAM) Market Current Insights, Future Trends, and Innovative Plans by 2032
The global urban air mobility (UAM) market was valued at approximately USD 3.60 billion in 2023 and is expected to grow significantly, reaching USD 14.64 billion by 2032. This represents a compound annual growth rate (CAGR) of 16.9% from 2024, when the market is projected to be worth USD 4.21 billion. North America currently leads the UAM market, holding a 40.83% share in 2023. Key factors driving this growth include increasing urbanization and worsening traffic congestion. There's also a rising demand for faster, cleaner, safer, and more interconnected transportation options.
Informational Source:
https://www.fortunebusinessinsights.com/urban-air-mobility-uam-market-106344
Key Players in the Market
Several major companies are active in the UAM sector, including:
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.)
Market Segmentation
The UAM market is analyzed across various segments:
Vehicle Type: Includes air taxis, air metros, air ambulances, last-mile delivery, and others.
Range: Divided into intercity and intracity.
Operation: Comprises piloted, hybrid, and autonomous modes.
End User: Includes ride-sharing companies, scheduled operators, e-commerce businesses, hospitals, and private operators.
Geography: Encompasses North America, Europe, Asia Pacific, and the Rest of the World.
Report Overview
The report offers a comprehensive look into the urban air mobility sector, detailing its segments and subsegments. It highlights the research and development capabilities of leading players and examines market trends and developments. Additionally, it discusses several growth drivers that have contributed to the market's expansion over the years.
Growth Drivers and Challenges
The UAM market is expected to thrive due to rising demand for greener transportation solutions and the increasing urban population, which leads to more road traffic. The use of autonomous UAMs is anticipated to result in lower pollution levels, shorter travel times, and reduced pressure on existing transportation infrastructure.
However, challenges such as security concerns, high initial investments, and a lack of supportive regulatory frameworks from governments could hinder market growth.
Regional Insights
North America is projected to maintain the largest market share during the forecast period, driven by the presence of leading companies and increased air traffic among residents. The demand for air taxis and shuttle services is expected to grow, supported by last-mile and freight services utilizing electric vertical take-off and landing (eVTOL) aircraft.
Europe is anticipated to experience the fastest growth in the UAM market, thanks to its focus on technological innovation and investment opportunities.
Competitive Landscape
As the UAM market is still in its early stages, key players are vying for a larger share. To capture consumer attention, companies are focusing on product development, collaborations, and mergers and acquisitions. For instance, in May 2021, Volocopter introduced the Voloconnect, an eVTOL aircraft designed for suburban and urban connections, enhancing its existing aircraft series.
Industry Developments
In April 2024: Unifly, part of the Terra Drone Corporation Group, announced the successful completion of the CORUS-XUAM project, a collaborative initiative aimed at transforming urban air mobility in the coming years.
In March 2024: the U.K. government revealed a funding plan to support industry stakeholders in launching passenger-carrying, piloted eVTOL air services by 2026. Meanwhile, trials for autonomous flights are expected to start by 2030.
Also in March 2024: Electron Aerospace unveiled designs for a new electric utility aircraft that seats five people. The company plans to begin manufacturing and testing this aircraft, which will feature advanced battery technology and an operational range of 500 kilometers, with deployment targeted for the end of 2030.