Global eVTOL aircraft market estimated to reach $700 million in 2032

The glob­al eVTOL air­craft mar­ket is esti­mat­ed to grow at a rate of 38.2% to reach $700.5 mil­lion in 2032 from $27.5 mil­lion in 2023, dri­ven by the increas­ing num­ber of smart cities and grow­ing need for sus­tain­able trans­porta­tion, accord­ing to Research and Mar­kets.

The mar­ket is observ­ing ris­ing invest­ment across all the plat­forms, which dri­ves the invest­ments across the ecosys­tem, such as ground infra­struc­ture and bat­tery tech­nol­o­gy.

The bat­ter­ies that are cur­rent­ly used are lithi­um-ion, lithi­um-sul­phur, and lithi­um phos­phate, which are insuf­fi­cient to pro­vide pow­er for long-range flight as the ener­gy den­si­ty of lithi­um bat­ter­ies is low for eVTOL air­craft. More­over, the reg­u­la­tion for oper­at­ing the eVTOL air­craft in urban areas and devel­op­ing the ver­ti­ports is still in the devel­op­ment stages.

Mar­ket seg­men­ta­tion by design includes lift and cruise, tiltro­tor and mul­ti­copter duct­ed vec­tor, with the mar­ket expect­ed to be dom­i­nat­ed by the lift and cruise mod­el. By use case, this includes air taxi, per­son­al air vehi­cle, car­go and air ambu­lance.

The per­son­al air vehi­cle seg­ment antic­i­pat­ed to report $13.8 mil­lion in rev­enue in 2023 and growth at a com­pound annu­al growth rate (CAGR) of 34.8%, with North Amer­i­ca expect­ed to account for 54.74%, the high­est share of the mar­ket by val­ue in 2023, owing to a sig­nif­i­cant num­ber of com­pa­nies based in the region.

Seg­men­ta­tion by ener­gy source includes elec­tric, hybrid and hydro­gen Propul­sion, while seg­men­ta­tion by mode of oper­a­tion includes pilot­ed, remote­ly pilot­ed and autonomous. Seg­men­ta­tion by com­po­nent includes struc­ture, avion­ics, propul­sion sys­tem, elec­tric pow­er sys­tem and sen­sor.

In July 2022, Jaunt Air Mobil­i­ty signed a part­ner­ship with L&T Tech­nol­o­gy Ser­vices to assem­ble eVTOL air­craft in India, which would then be cer­ti­fied by Cana­di­an, US, and EU avi­a­tion reg­u­la­tors, with the vehi­cles planned to be launched by 2026.

In June 2022, Eve Hold­ing signed a let­ter of intent with Kenya Air­ways’ Fahari Avi­a­tion sub­sidiary to deliv­er 40 eVTOLs in 2026 to devel­op and scale up the UAM mar­ket and busi­ness mod­el for peo­ple and car­go eVTOLs oper­a­tions in Kenya.

Some promi­nent estab­lished names in this mar­ket are Air­bus SE, Archer Avi­a­tion, Aura Aero­space, Auro­ra Flight Sci­ences, Bell Tex­tron, Beta Tech­nolo­gies, Eve Hold­ing, Elroy Air, EHang, Jaunt Air Mobil­i­ty, Joby Avi­a­tion, Lil­i­um, Piasec­ki Air­craft Cor­po­ra­tion, Urban Aero­nau­tics, Ter­rafu­gia, Ver­ti­cal Aero­space Group, Wisk Aero. and XTI Air­craft Com­pa­ny.