According to new research just published by The Insight Partners, the eVTOL aircraft market is expected to grow from $519 million in 2024 to $1.75 billion by 2028, a compound average growth rate (CAGR) of 35.6% from 2024 to 2028.
The market is segmented into North America, Europe, Asia Pacific, and the Rest of World. In 2024, Europe is expected to lead the market followed by North America, which is expected to register the highest CAGR in the market from 2024 to 2028.
Volocopter, a German aircraft manufacturer and a leading pioneer of urban air mobility (UAM), plans to launch the world’s first-ever eVTOL suite of services with the help of passenger air taxis and heavy-lift cargo drones between 2024 and 2026.
In March 2022, Jetex and Volocopter signed a strategic partnership agreement to deploy and operate permanent, economically sustainable, and integrated UAM taxi takeoff and landing infrastructure and services for passenger transportation.
North America is expected to be the fastest growing region due to the presence of vendors such as Archer Aviation, Alakai Skai, Opener Aero, BETA Technologies, Gravitas, Joby Aviation, Wisk Aero, Jaunt Air Mobility, Kittyhawk, and Bell Textron.
In February 2021, United Airlines and Archer Aviation announced a partnership where the former would purchase 200 eVTOL aircraft from Archer. Then in June 2021, Vertical Aerospace announced deals worth $4 billion with American Airlines, Virgin Atlantic, and leasing group Avolon for up to 1,000 of its VA-X4 eVTOL aircraft.
The overall impact of the COVID-19 pandemic on the global aviation industry is severe, with expected losses of $200 billion from 2020 to 2022 leading to declined aircraft production, disrupted supply chain during 2020, postponed orders, transportation challenges for sourcing materials or parts, and labour challenges for vendors.
Ongoing projects such as testing, certification, and production of prototypes have been severely impacted during the pandemic.
Companies such as Lilium and Volocopter have witnessed rising pre-orders, for instance in 2021, when Lilium announced that it had secured a contract worth $1 billion to provide 220 units of its five-seater eVTOL aircraft to Luxaviation Group. In 2022, Lilium got another pre-order of 150 six-passenger jets from NetJets.
The eVTOL aircraft market is segmented into lift technology, propulsion type, application, and operation mode. lift technology is segmented into multirotor, lift plus cruise and vectored thrust, while propulsion type is segmented into hybrid, fully electric, and electric hydrogen.
The market is categorised into air taxi; cargo transport; last mile delivery; critical missions; and inspection, surveying, and mapping. Based on operation mode, the eVTOL aircraft market is segmented into piloted, optionally piloted, and autonomous.
The players include Airbus, Bell Textron, Boeing, Eve Air Mobility, Lilium, Opener, EHang, BETA Technologies, Pipistrel, Volocopter, Joby Aviation, Heart Aerospace, and Archer Aviation.
In January 2022, Thales partnered with Eve to develop its eVTOL aircraft in Brazil in a series of joint studies over a twelve-month period on the technical, economic, and adaptable feasibility of a 100% electrically powered aircraft.
In 2021, Heart Aerospace partnered with Arennova Aerospace to design the wing, fuselage, and empennage for the new ES-19 electric aircraft carrying 19 passengers on short regional routes.