Global Urban Air Mobility Market to Perceive Massive Growth Due to Growing Traffic Congestion Issues Worldwide

In recent years, there have been speedy developments in autonomous flight technology and 5G wireless communications networks. Also, there has been a significant rise in the need to decrease carbon emissions and traffic-jammed roads in heavily populated cities in the past few decades. This has given rise to the need to introduce urban air mobility (UAM) — mostly in the form of commercial passenger services and logistics drone services in low-altitude regions. UAM generally refers to prevailing and evolving technologies like traditional helicopters, vertical-takeoff-and-landing aircraft (VTOL), electric vertical-takeoff-and-landing aircraft (eVTOL), and unmanned aerial vehicles (UAVs).

A significant rise in the requirement for an alternative mode of transport in urban areas is a key factor boosting the demand for UAM. The urban air mobility market has been undergoing incredible growth in the last few years owing to the booming need for efficient means of transport across the world. UAM holds the potential to offer a safe and effective aviation transport system by using advanced automated aircraft that can function and transport passengers or shipments at low altitudes in urban and sub-urban regions. These factors have contributed immensely to the changing panorama of the global urban air mobility market in the past few years.      

Newest Insights in the Urban Air Mobility Market

Governments and several technology firms have started considering UAM as a viable solution for passenger and cargo transportation owing to the rising traffic congestion and rising population worldwide. As per a report by Research Dive, the global urban air mobility market is expected to hit $30,740 million and grow with a remarkable CAGR of 30.2% in the 2022–2031 timeframe. The Asia-Pacific urban air mobility market is anticipated to perceive dominant growth in the years to come. This is because the region has an enormous demand for urban air mobility owing to the growing population in the region as well as speedy urbanization and traffic conjunction issues in numerous cities. This has triggered the demand for a fast transportation system in this region.

How are the Market Players Responding to the Increasing Demand for Urban Air Mobility?

Market players are greatly implementing innovative business strategies and investing in novel developments to cater to the mounting demand for urban air mobility. Some of the foremost players in the urban air mobility market are Wisk Aero LLC., Ehang, Lilium Gmbh, Airbus, Volocopter GmbH, Joby Aviation., Workhorse Group Inc., Kitty Hawk, Archer Aviation, Bell Textron, and others. These players are focused on planning and devising tactics such as mergers and novel advances, acquisitions, collaborations, and partnerships to attain a strong foothold in the global market.

For instance,

• In November 2021, Hyundai, a South Korean multinational automotive manufacturer, launched a new company called Supernal, LLC to boost urban air mobility.
• In May 2022, Airbus, a leading designer, manufacturer, and seller of civil and military aerospace products worldwide, launched the urban air mobility initiative in Germany to support the advancement of electric aircraft for use within and between cities.
• In August 2022, Volkswagen, a leading German multinational automotive manufacturer, unveiled a new eVTOL model - the Flying Tiger - to explore the urban air mobility market. The new eVTOL will soon go through a flight test campaign in this year and will have an updated version for testing by 2023.

COVID-19 Impact on the Global Urban Air Mobility Market

The sudden rise of the coronavirus pandemic in 2020 has adversely impacted the global urban air mobility industry. The demand for travel reduced significantly during the pandemic owing to travel restrictions and economic collapse in various countries. Also, a sudden decline availability of semiconductor chips hindered the production of urban air mobility vehicles during the pandemic. All these factors greatly hindered the market growth amidst the pandemic However, as the pandemic is relaxing since the end of 2021, the market is projected to perceive gigantic growth in the upcoming years owing to the growing advancements by market players in urban air mobility technologies.