Press release
Exploring The Urban Air Mobility Investment Boom Driver: Leading Transformation in the Urban Air Mobility Market in 2025
Urban Air Mobility
The increasing financial backing in the urban air mobility sector is anticipated to stimulate market demand. Numerous R & D investments are taking place in the industry, with many aerospace companies targeting the urban air mobility sector due to its high growth potential. As a case in point, a July 2022 report from the Department for Business, Energy & Industrial Strategy (BEIS), a UK-based government agency, suggested that in a 'best-case' adoption scenario by 2030, drones could potentially add up to around $56 billion to the British economy, with in excess of 900,000 drones operating in UK airspace. Furthermore, it's projected that net cost savings of approximately $28 billion could be achieved, and there might be a reduction of 2.4 million tons in carbon emissions. Consequently, the escalating investment in the urban air mobility sector is foreseen to enhance its demand.
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What is the projected compound annual growth rate (CAGR) of the urban air mobility market from 2025 to 2034, and what factors influence it?
The scale of the urban air mobility market has surged remarkably in the past few years. The market is set to expand from a value of $4.31 billion in 2024 to $5.18 billion in 2025, signifying a compound annual growth rate (CAGR) of 20.3%. The notable growth during the historic period is largely due to factors such as urban development and smart city schemes, infrastructure upgrades, the need for quicker transportation methods, advancements in electric propulsion technologies, and the emergence of ride-sharing and mobility services.
The market size of urban air mobility is projected to experience substantial expansion in the coming years, reaching a value of $10.37 billion by 2029, with a compound annual growth rate (CAGR) of 18.9%. The predicted growth during the forecast period can be linked to operations and security measures driven by data, availability of investment and funding opportunities, the public's acceptance and perception, increased demand for aerial ride-sharing services, and infrastructural advancements for vertiports. Going forward, the popularity of e-VTOLs, implementation of solutions for air traffic management, emphasis on reducing noise, integration of AI and automation, adaptations for urban infrastructure, and improvements in user experience and accessibility are anticipated to be the major trends.
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How are the latest trends influencing the growth of the urban air mobility market?
Big companies involved in the urban air mobility market are concentrating their efforts on creating unique products such as a vertiport management system to boost their market profitability. A Vertiport Management System (VMS) for Urban Air Mobility (UAM) is an inclusive system that handles facilities designed for vertical takeoff and landing (VTOL) aircraft, including eVTOL vehicles and drones. It combines infrastructure, technology, and procedures for effective operation. Take for instance, ANRA Technologies, a US-based company that offers comprehensive solutions for drone operators and airspace management, introduced a Vertiport Management System (VMS) in November 2023. The VMS is a versatile online platform that bridges a critical technological gap in managing vertical takeoff and landing aircraft at vertiports. Its microservice architecture can accommodate various vertiport designs, be compatible with any aircraft, and integrate smoothly with existing air traffic management systems. ANRA's airspace management services allow UAM operators to manage their whole flight operation effectively using a full range of tools. Through intelligent data exchange, the VMS plays an essential role in ensuring the safe arrival and departure of UAM aircraft.
What are the major segments of the urban air mobility market and their role in driving growth?
The urban air mobility market covered in this report is segmented -
1) By Vehicle Type: Piloted, Autonomous
2) By Range: Intercity, Intracity
3) By End User: Ride Sharing Companies, Scheduled Operators, E-commerce Companies, Hospitals And Medical Agencies, Private Operators
Subsegments:
1) By Piloted: Manned Air Taxis, Air Ambulances
2) By Autonomous: Fully Autonomous Air Taxis, Delivery Drones
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Which regions are key players in the growth of the urban air mobility market?
North America was the largest region in the urban air mobility market in 2024. Europe is expected to be the fastest growing region in the forecast period. The regions covered in the urban air mobility market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the key firms paving the way for growth in the urban air mobility market?
Major companies operating in the urban air mobility market include Hyundai Motor Co, The Boeing Company, Lockheed Martin Corporation, Airbus SE, Honeywell International Inc., Safran SA, Textron Inc., Embraer SA, Bell Textron Inc., Volocopter GmbH, Wisk Aero LLC, Joby Aero Inc., Terra Drone Corp, Airspace Experience Technologies Inc., Jetson Electric Bikes LLC., Fortem Technologies Inc., Karem Aircraft Inc., Urban Aeronautics Ltd., SkyDrive Inc., Lilium GmbH, EHang Holdings Limited, Jaunt Air Mobility LLC, hopFlyt Inc., Archer Aviation Inc., Opener Inc., ElectraFly LLC.
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What Is Covered In The Urban Air Mobility Global Market Report?
•Market Size Forecast: Examine the urban air mobility market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the urban air mobility market for a structured understanding.
•Key Players Overview: Analyze major players in the urban air mobility market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the urban air mobility market.
•Segment Contributions: Evaluate how different segments drive overall growth in the urban air mobility market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the urban air mobility market.
•Industry Challenges: Identify potential risks and obstacles affecting the urban air mobility market.
•Competitive Landscape: Review strategic developments in the urban air mobility market, including expansions, agreements, and new product launches.
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