Urban Air Mobility Market

Urban Air Mobility Market Segmented By Component (Infrastructure and Platforms); By Operations (Piloted and Autonomous); By Range (Intercity and Intracity) – Global Demand Analysis & Opportunity Outlook 2027

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Report ID: 1533 | Published On: Feb 02, 2023

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Despite Inflation & Recession News, Businesses Across the Globe Expected to Do Better in 2023

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

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Introduction to air mobility vehicles

Urban Air Mobility (UAM) is an industry being a part of the future urban landscape, is a term used to describe the systems that enable on-demand, safe, highly automated, and passenger and cargo-carrying air transportation services in a metropolitan environment for manned and unmanned aircraft systems. The urban air mobility market framework comprises of infrastructure, technology, and business. Infrastructure and technology are most significant factors required for the growth of urban air mobility.

The UAM industry vision involves leveraging new vehicle designs and system technologies and development of new airspace management and operational procedures and embracing sharing and services economy to enable a new transportation network services. The use cases envisioned for UAM include operations expected to enable improvements in efficiency and safety as compared with ground transportation. For instance, one of the application might involve taking an air taxi to commute from a suburban location to a downtown building. Other examples include airlifting passengers from harmful situations during a natural disaster and providing tourists new sightseeing opportunities by air.

Various participants include a range of aircraft manufacturers, from established aerospace companies, Governments and municipalities, as well as UAM service providers and integrators are also focused on developing the technology in coming years.

Market Size and Forecast

The urban air mobility market is anticipated to record a CAGR of around 14.4% over the forecast period i.e. 2019-2027. The market is segmented by operations into piloted and autonomous out of which piloted air mobility vehicles segment is anticipated to capture the major share of market on account of air traffic, infrastructure and handling system; by range into intercity and intracity out of which, the intracity segment is likely to hold the major share of urban air mobility market on account of raised traffic in cities.

As per report by NASA, there are 5,660 heliports in the U.S. (most are not public-use) and 9,750 civil helicopters in the fleet. The market is expected to grow steadily over the next 10 years, from $8.2B in 2017 to $11.6B by 2027

Worldwide Air Mobility Adoption Rate

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Growth Drivers

Intercity Flights

The longer the distances flown, the more important forward speed becomes. 4D unmanned traffic management systems should keep minimum hovering times. Fixed-wing vectored thrust will be the most efficient solution for this use case and the solution of choice for urban air utility.

Inner city point-to-point services

Multi-copters (highly distributed propulsion aircraft) and quad-copters might become the solutions at the time of traffic. Their low downwash speeds are kinder to and safer for urban environments, avoiding damage or injury caused by gravel or sand projection on small landing pads. High gust stability could also prove advantageous where skyscraper helipads are used, thereby maximizing up-time even in harsh weather conditions.

Suburban to urban services

 High forward speed is better suited to cover longer distances and poorer hovering efficiency, higher downwash speeds and more noise mean air mobility vehicle will require dedicated and better-developed landing areas. Tilt-wing/convertible aircraft concepts, hybrid concepts as well as fixed-wing vectored thrust concepts might become predominant for this business model.

Growth Restraining Factors

High cost of air mobility devices acts as the key factor for restraining the market growth in coming years.

Information and Communication Networks

UAM operations rely on many critical information and communication services provided from ground systems, such as command or control links, ground-based detect and air navigation services. Criticality levels and associated performance requirements need to be defined.

Infrastructure for Ground Operations

While some operations may take place from existing helipad locations, large infrastructure is required for landing and takeoffs for handling the expected density of operations. Henceforth, the infrastructure needs to be developed for urban air mobility.

Environmental Implications

UAM system has the potential to bring numerous environmental impacts, especially noise. There will be noise from aviation operations in areas that are not accustomed to such disturbances.

Worldwide Air Mobility Adoption Rate
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Market Segmentation

Our-in depth analysis of the urban air mobility market includes the following segments:

By Component

  • Infrastructure
  • Platforms

By Operations

  • Piloted
  • Autonomous

By Range

  • Intercity
  • Intracity

By Region

On the basis of regional analysis, the urban air mobility market is segmented into five major regions i.e. North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.

North America region is panned to observe substantial growth in the urban air mobility market on the back of high per capita technology expenditure, increasing prevalence of traffic and availability of advanced transportation facilities. This has resulted in people spending more on better transportation facilities. Furthermore, increasing demand for new product launches and technological advancements in the region is also projected to influence the market growth positively.

North America region is expected to be followed by Asia Pacific region due to increase in population and rising budget of major economies like China and India. Rising investment in upgrading to latest technologies supported by the rise in advanced transportation facilities in the region, has boosted the market growth at a high rate.

Middle East & Africa region is expected to hold a moderate share in the urban air mobility market over the forecast period due to gradual increase in the usage of different highly advanced products especially in the GCC countries.. Numerous government and private organizations are working toward developing air mobility vehicle to address the increasing demand in the region.

The urban air mobility market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC,  Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis.
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

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