ADVANCED AERIAL MOBILITY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Advanced Aerial Mobility Market Size and Trends

Global advanced aerial mobility market is estimated to be valued at USD 10.24 Bn in 2024 and is expected to reach USD 38.45 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 20.8% from 2024 to 2031.

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Advanced aerial mobility involves the deployment of urban air mobility vehicles for transporting passengers or cargo. Factors, such as increasing global traffic congestion, need for faster modes of transportation, and technological advancements in aerial vehicles, are fueling the demand for urban air mobility solutions. Companies such as Archer Aviation, Aurora Flight Sciences, Bell Textron Inc., Boeing Company, etc. are investing in the development of electric vertical take-off and landing (eVTOL) vehicles to enable quick point-to-point air transportation within cities. Ongoing pilot projects, favorable regulations, and declining battery costs are likely to boost the commercialization of advanced aerial vehicles during the forecast period. However, threats such as high solution costs, safety concerns, and infrastructural challenges remains major restraints for the market.

Increasing demand for efficient and rapid transportation

The continuous growth of urban population across major countries like Canada, Japan, U.S., etc. has led to rising traffic congestion and longer commute times. The infrastructure in most cities is already facing challenges in coping with the growing vehicle fleet size. Building new roads and highways requires huge investments and space which is becoming scarce in dense urban environments.

At the same time, there is a growing need for instant, flexible and seamless transport solutions between different locations within a city. The current modes of public transportation like metros and buses have limitations in terms of flexibility of routes and last-mile connectivity. Traditional modes of air transportation like helicopters are expensive and not scalable. This is where advanced aerial vehicles like eVTOL and cargo drones have a huge potential to resolve these problems and efficiency fill the gaps. Offering point-to-point, three-dimensional mobility, these new vehicles can reduce congestion, cut travel times and open up new possibilities for instant delivery of goods.

In December 2020, Joby Aviation, a U.S.-based aerospace company developing an all-electric vertical take-off and landing aircraft for a fast, quiet and affordable air taxi service, acquired Uber Elevate, Uber's urban air mobility initiative. The acquisition allowed Joby Aviation, which has raised US$ 820 million in investment and employs more than 500 people, to incorporate Uber Elevate's expertise in air mobility services and expand its presence in the urban air transportation market.

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Advancements in battery technology and propulsion systems

One of the biggest constraints towards the large-scale adoption of advanced aerial vehicles has been limitations of existing battery and propulsion technologies. Helicopters and small planes require jet fuel or kerosene which are hazardous to handle and need additional fueling infrastructures. Hence, aerial vehicles like eVTOL have been designed to use electricity stored in lightweight, high energy density batteries for propulsion. However, current battery capacities are still insufficient for providing long range at reasonable vehicle weights. Similarly, propeller-based distributed electric systems lack sufficient power density for vertical take-off and landing as well as swift horizontal flight.

But the field of advanced batteries and electric propulsion has been progressing at a relentless pace driven by electric aviation as well as surging demand from electric vehicles on roads. Nanotechnology, materials science, and battery chemistries are under deep research worldwide to develop battery packs that can store much higher energy levels safely while retaining excellent power output characteristics during flight and landing. At the same time, companies are innovating propulsion system designs leveraging technologies such as distributed electric propellers, ducted fans, and advanced motors that enhance vehicle range, agility, and efficiency.