evtol aircraft Market

The eVTOL aircraft market is expected to grow from US$ 519.81 million in 2024 to US$ 1756.28 million by 2028; it is expected to grow at a CAGR of 35.6% from 2024 to 2028. 

The global eVTOL market is being propelled by the increasing adoption of air taxis, which is being driven by the advancements in urban air mobility technology. Governments of various leading countries are taking favorable initiatives, and more startups are entering the market, which is further bolstering the uptake of air taxis worldwide. In December 2021, the Australian government announced a grant of US$ 23 million for exploring the application of innovative aviation technology under its Emerging Aviation Technology Partnerships Program. Similarly, in April 2022, Airbus and ITA Airways signed a Memorandum of Understanding to collaborate and introduce urban air mobility in Italy, with a focus on the safe and sustainable launch of CityAirbus NextGen eVTOL aircraft. The European Union Aviation Safety Agency (EASA) has predicted that the first flight of air taxis in European countries will take place in 2024, and the commercial use of air taxis can start by 2024 or 2025. These developments and initiatives from leading countries for the adoption of air taxis are expected to drive the demand for urban air mobility, presenting profitable opportunities for the growth of the eVTOL aircraft market during the forecast period.

The growth of the eVTOL aircraft market worldwide is expected to be driven by advancements in electric propulsion technology. The aviation industry is a significant contributor to global climate change due to its high greenhouse gas emissions. To combat this, the Environmental Protection Agency (EPA) issued a standard for greenhouse gas emissions from aircraft worldwide on January 11, 2021. Additionally, in November 2021, the EPA filed a lawsuit to enforce the commercial aircraft greenhouse gas (GHG) emission standards it promoted earlier in the year. The development of electric propulsion-based eVTOL aircraft helps to mitigate the negative impact of noise and pollution emissions on the environment. Therefore, government regulations and policies aimed at reducing emissions are expected to increase the demand for electric propulsion-based eVTOL aircraft.

Impact of COVID-19 Pandemic on eVTOL Aircraft Market

The COVID-19 pandemic has had a severe impact on the aviation industry, with an estimated loss of around US$ 200 billion from 2020 to 2022. The eVTOL aircraft market has also been adversely affected due to declining aircraft production, disrupted supply chains, and postponed orders, among other challenges. As the eVTOL industry is still in its developmental phase, the pandemic has significantly impacted ongoing projects, including testing, certification, and prototype production. However, as the aviation industry begins to recover, several countries are now focusing on the development of eVTOL infrastructure in urban areas globally. Despite the pandemic, some companies were able to secure contracts for the testing and development of eVTOL products in FY 2020. For instance, LIFT Aircraft Inc. received a US$ 2.5 million contract from the US Air Force in 2020 for flight testing of its HEXA eVTOL aircraft, which has helped to drive the development of the eVTOL aircraft market for critical mission applications.

The North American eVTOL aircraft market is expected to witness significant growth in the US, as it is home to several eVTOL aircraft manufacturers and has attracted a considerable number of investments. Moreover, the supportive government funding initiatives in the country, such as the US Air Force's Agility Prime initiative, have further contributed to its market growth. This initiative will provide financial assistance for the flight test and certification efforts of approximately 20 eVTOL aircraft participating in its "Air Race to Certification" program. The competition in the eVTOL aircraft market in the US is intense, primarily driven by the pursuit of FAA aircraft certification and entering into commercial service.

In Germany, the growth of the eVTOL aircraft market is driven by the increasing number of electric-propulsion-based eVTOL aircraft developments in the country. With the growing initiatives to incorporate electric and hybrid-electric air taxis, eVTOL aircraft market vendors are collaborating to develop an extensive charging infrastructure powered by clean energy sources and start and landing facilities. For example, Rolls Royce's electrical power system will be integrated into a piloted eVTOL vehicle capable of carrying up to four passengers for 120 miles at cruise speeds of over 200mph, set to certify by 2024. Furthermore, e-commerce companies, such as Amazon, and delivery fleets are taking significant initiatives to provide last-mile delivery, augmenting the eVTOL aircraft market growth in Germany over the forecast period. In March 2022, the Germany-based eVTOL developer, Lilium, announced a new partnership with Honeywell and Denso to develop electric motors for eVTOL aircraft, which will further boost the growth of the market in the country.

During the study of the eVTOL aircraft market, various players were profiled, including Airbus (The Netherlands), Bell Textron Inc. (US), Boeing (US), Eve Air Mobility (Brazil), Lilium GmbH (Germany), Opener (US), EHang (China), BETA Technologies (US), Pipistrel Group (Slovenia), Volocopter GmbH (Germany), Joby Aviation Inc. (US), Heart Aerospace (Sweden), and Archer Aviation Inc. (US).

The eVTOL aircraft market size was determined using a combination of primary and secondary research. The research process began with comprehensive secondary research using internal and external sources to gather qualitative and quantitative data related to the market. This process also enabled the collection of an overview and market forecast of the eVTOL aircraft market growth across all segments. Multiple primary interviews were also conducted with industry participants and commentators to validate the data and gain further analytical insights on the topic. These participants included industry experts such as VPs, business development managers, market intelligence managers, national operations managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders, all with expertise in the eVTOL aircraft market.