Global eVTOL Market Outlook to 2030

Global eVTOL Market Overview

• In 2023, the Global eVTOL (electric Vertical Take-Off and Landing) Market was valued at USD 23 billion, marking momentous growth from 2018-2023. This growth is fueled by advancements in battery technology, increased demand for urban air mobility solutions, and supportive regulatory frameworks across key markets.
• Leading players in the global eVTOL market include Joby Aviation, Lilium, Archer Aviation, Vertical Aerospace, and Volocopter. These companies are pioneering the development of eVTOL aircraft, leveraging cutting-edge technology to revolutionize urban transportation.
• North America, Europe, and Asia-Pacific are the dominant regions in the eVTOL market, with robust investments in infrastructure and R&D. The United States, Germany, and Japan are particularly notable for their proactive adoption and regulatory support for eVTOL technology.
• In October 2023, Joby announced it had expanded its flight test program to include flying with a pilot on board the aircraft, which was a critical step on the company's journey towards commercial operations. By May 2024, Joby had successfully completed its pre-production prototype flight test program, with its two pre-production aircraft completing more than 1,500 flights spanning over 33,000 miles, including more than 100 flights with a pilot onboard.

Global eVTOL Market Segmentation

The Global eVTOL Market can be segmented based on propulsion type, lift technology and region:

• By Propulsion Type: The market is segmented into all-electric, hybrid-electric, and hydrogen-electric. In 2023, the all-electric segment dominated the market due to the advancements in battery technology and the increasing demand for zero-emission urban air mobility solutions. The focus on reducing carbon emissions and improving energy efficiency has contributed to the dominance of the all-electric segment.

• By Lift Technology: The market is further segmented into vectored thrust, lift and cruise, and multicopter. The vectored thrust segment led the market in 2023, driven by its superior performance in terms of speed, range, and efficiency. The growing interest in using vectored thrust for urban air taxi services is fueling its dominance in the eVTOL market.

• By Region: The global market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA). North America emerged as the largest market in 2023, propelled by substantial investments in eVTOL development and the presence of key industry players. The region's dominance is also supported by favorable regulatory policies and a strong focus on urban air mobility initiatives.

Global eVTOL Market Competitive Landscape

• Archer Aviation: In 2024, Archer Aviation formed a strategic alliance with United Airlines to develop and deploy a fleet of eVTOL aircraft for short-haul routes. United Airlines has committed to purchasing 200 eVTOLs from Archer, with deliveries expected to begin in 2025. This partnership aims to reduce the carbon footprint of United's operations and offers a scalable model for integrating eVTOLs into commercial airline services.
• Lilium: Lilium achieved a substantial milestone in 2023 by becoming the first eVTOL manufacturer to receive Design Organization Approval (DOA) from the European Union Aviation Safety Agency (EASA). This approval is a critical step towards full certification of the Lilium Jet, positioning Lilium as a frontrunner in the European eVTOL market. The DOA certification is expected to accelerate the commercial deployment of the Lilium Jet across Europe.

Global eVTOL Industry Analysis

Growth Drivers:

• Technological Advancements in Battery Systems: The market is driven by rapid advancements in battery technology, particularly the development of high-density lithium-ion and solid-state batteries. As of 2023, commercially available lithium-ion batteries typically exhibit energy densities ranging from 200 to 300 Wh/kg. Some advanced batteries have reached up to 360 Wh/kg, with ongoing research pushing these boundaries further. This advancement is crucial for the commercial viability of eVTOLs, as it directly impacts the operational range and payload capacity, thereby enhancing the market's attractiveness for urban air mobility solutions.

• Increasing Urbanization and Traffic Congestion: The growing urban population and worsening traffic congestion are driving the demand for alternative transportation solutions. According to the latest data from the World Bank, the global urban population in 2023 was 4.6 billion, or 57% of the total population. To handle growing urbanization and traffic congestion efficiently, eVTOL aircraft offer a promising solution by enabling efficient, on-demand urban air mobility, particularly in megacities across North America, Europe, and Asia-Pacific.
• Increasing Investments in Urban Air Mobility (UAM) Infrastructure: Investments in UAM infrastructure, including the development of vertiports and charging stations, are accelerating the growth of the eVTOL market. The SESAR 3 JU Digital Sky Demonstrators announced in June 2022 will receive EUR 47.5 million from the Connecting Europe Facility by 2025 to accelerate the market uptake of UAM. These investments are crucial for the widespread adoption of eVTOLs, providing the necessary support for takeoff, landing, and maintenance operations, and are expected to contribute to a robust market expansion through 2025.

Challenges:

• Limited Battery Life and Range: Despite advancements, battery life and range remain critical challenges for the market. Data from the International Energy Agency (IEA) 2023 report indicates that current battery technology allows for an average flight range of only 150-200 kilometers, which limits the operational scope of eVTOLs, especially in densely populated urban areas. This limitation restricts the market's potential to replace traditional air and ground transport over longer distances, posing a hurdle to broader adoption.

• Public Safety and Air Traffic Management Concerns: Public safety and air traffic management are important concerns hindering the widespread adoption of eVTOLs. A 2024 study by the International Civil Aviation Organization (ICAO) highlights that integrating eVTOLs into existing airspace requires substantial changes to air traffic management systems to prevent collisions and manage the increased traffic.

Global eVTOL Market Government Initiatives

• United States' FAA UAM Initiative: The Federal Aviation Administration (FAA) in the United States has launched the Urban Air Mobility (UAM) Initiative, aimed at developing regulatory frameworks to support the safe integration of eVTOL aircraft into the national airspace. As of 2023, the FAA has issued preliminary guidelines for UAM operations, paving the way for commercial eVTOL services.

• Europes SESAR Joint Undertaking: The SESAR (Single European Sky ATM Research) initiative in Europe is actively working on integrating eVTOL aircraft into the European airspace. The project, supported by the European Commission, is focused on creating a unified air traffic management system that accommodates new aerial vehicles, including eVTOLs.

Global eVTOL Market Future Outlook to 2028

The global eVTOL market is poised for rapid growth during the forecast period of 2023-2028, driven by technological advancements, increasing urbanization, and supportive regulatory frameworks.

Future Market Trends:

• Expansion of Urban Air Mobility (UAM) Networks: By 2028, the global eVTOL market is expected to witness remarkable growth, driven by the widespread adoption of UAM networks in major cities across North America, Europe, and Asia-Pacific. The demand for efficient and sustainable urban transportation solutions will lead to increased investments in eVTOL infrastructure and technology.

• Advancements in Autonomous Flight Technology: The eVTOL market is likely to see significant advancements in autonomous flight technology by 2028, enabling safer and more efficient operations. Companies are expected to invest heavily in AI and machine learning to develop fully autonomous eVTOL aircraft, reducing the reliance on human pilots and enhancing operational efficiency.