Electric Vertical Takeoff and Landing (eVTOL) aircraft are advanced aerial vehicles designed to operate in urban and short-distance environments. These aircraft, often powered by electric motors and batteries, have the capability to take off and land vertically, similar to helicopters, but with multiple electric rotors or propellers that enable them to transition to horizontal flight like conventional airplanes. eVTOL aircraft are envisioned as a key element of future urban air mobility systems, offering efficient, quiet, and environmentally friendly transportation options. They aim to alleviate urban congestion and provide rapid point-to-point aerial transportation for passengers and cargo, with potential applications in air taxis, delivery services, and more.
The global electric VTOL (eVTOL) aircraft market is estimated to reach $700.5 million in 2032 from $27.5 million in 2023, at a growth rate of 38.2% during the forecast period 2023-2032. The growth in the global electric VTOL (eVTOL) aircraft market is expected to be driven by the increasing number of smart cities and growing need for sustainable transportation.
Personal Air Vehicle and Air Ambulance to Lead the Use Case Segment in the eVTOLAircraft Market
The personal air vehicle segment is estimated to have the highest market penetration in 2023. This segment is anticipated to report $13.8 million in revenue in 2023 and is expected to grow at a CAGR of 34.8% during the forecast period. eVTOL aircraft havent entered the commercial market yet due to the regulation and certification process. Hence, the market value for the years 2021 and 2023 remains null. The personal air vehicle segment is expected to lead the market and grow gradually due to the high utilization of eVTOL aircraft by the high net-worth individual for personal and business use. However, the regulatory bodies are working on a framework to regulate the air taxi service in smart cities and megacities to reduce road traffic congestion. In addition, eVTOL aircraft for air taxi services is expected to witness the highest growth during the forecast period, driven by technological advancement in structural design, power sources, and instruments in eVTOL aircraft that can cater to the customized requirement of these industries.
Driving Factors ofElectric VTOL Aircraft Market
The major driving factors that help the market to grow drastically are growing demand for eVTOL aircraft for commercial applications, smart city initiatives, runway-less (rooftop-to-rooftop) platforms, increasing environmental concerns and energy impacts, increasing endurance for the regional connectivity, increasing need for efficient transportation and logistics, integrating automation and artificial intelligence into the eVTOL aircraft. However, a few challenges affect the market, such as technological constraints, limitation of the energy density of lithium batteries, traffic management for eVTOL aircraft, certifications, government regulatory framework, infrastructural challenges, and privacy and safety concerns.
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Tiltrotor and Lift and Cruise to Lead the Design Segment in Electric VTOL Aircraft Market
The global electric VTOL (eVTOL) aircraft market by design includes lift and cruise, which is expected to dominate the market.the tiltrotor segment is anticipated to emerge as the second dominant in the design segment by 2032. Tiltrotor and lift and cruise design provide regional connectivity and ease of pilot operations when compared to other eVTOL designs. However, the designs such as tiltrotor, lift and cruise, and ducted vector have a long wing to provide a stable flight and consumes less energy compared to other designs that spend more energy stabilizing the aircraft.
Recent Developments in the Global Electric VTOL (eVTOL) Aircraft Market
- In July 2022, Lilium N.V. collaborated with Diehl Aviation to design and develop Lilium Jets cabin, and it acts as an integrator and manufacturer for interior components.
- In June 2022, Eve Holding, Inc. signed a letter of intent with Kenya airway's subsidiary, Fahari Aviation, to deliver 40 eVTOLs aircraft. As per the agreement, the companies jointly study through a working group to develop and scale up the UAM market and business model for people and cargo eVTOLs operations in Kenya. The project is expected to be delivered in 2026.
- In March 2022, Eve Holding, Inc. signed a strategic partnership with Acciona to develop a global and sustainable urban air mobility ecosystem. According to the partnership, Acciona would invest $30 million upon the consummation of Eves business combination with Zanite Acquisition Corp. and join the group of strategic investors that supports the development of Eve's business plan.
- In January 2022, Wisk Aero secured $450 million from The Boeing Company to further advance the development of Wisks sixth generation eVTOL aircraft. It also supports the company as it enters an intensive growth phase to prepare for the launch of scale manufacturing.
- In September 2021, Urban Aeronautics secured an investment of $10 million from unidentified private investors from the U.S., Brazil, and Israel. The investment would be used for further development and testing of the CityHawk eVTOL.
North America to Dominate Electric VTOL (eVTOL) Aircraft Market
- North America
- Europe
- Asia-Pacific
- Rest-of-the-World
North America is expected to account for the highest share of 54.74% in the electric VTOL (eVTOL) aircraft market by value in 2023, owing to a significant number of companies based in the region. is expected to witness the second-highest growth during the forecast period 2023-2032, driven by drone activities in the U.K., France, Germany, Norway, Sweden, and Russia. Increased spending by eVTOL aircraft manufacturers such as Airbus SE, Bell Textron Inc., EHang, Boeing, Eve Holding, Inc., and government key agencies, for the different use cases is expected to drive huge growth in the electric VTOL (eVTOL) aircraft market during the forecast period.
Competitive Landscape
The competitive landscape of the electric VTOL (eVTOL) aircraft market consists of several organic and inorganic strategies followed by the key players to increase their market share. The strategies include product innovations, contracts, partnerships, acquisitions, and business expansions, among others.
Some of the key players in the electric VTOL (eVTOL) aircraft market include Wisk Aero LLC, Eve Holding, Inc., Joby Aviation, Lilium N.V., Beta Technologies, Vertical Aerospace, Volocopter GmbH, and EHang. These companies are aiming for a wide range of partnerships, collaborations, agreements, and contracts to expand their operations and increase their market presence globally to generate revenues and attract new customers.
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