Global Air taxi Market Size, Share & Trends Analysis Report, By Mode of Operation, By Propulsion Type, By Aircraft Type, By Region Forecasts, 2023 – 2030

Global Air taxi Market Size, Share & Trends Analysis Report, By Mode of Operation, By Propulsion Type, By Aircraft Type, By Region Forecasts, 2023 – 2030

The Air Taxi Market was amounted at US$ 1.98 billion in 2022 and is projected to grow to US$ 14.57 billion by 2030 at CAGR of 21.05% during 2023-2030.

Throughout the forecast period, a number of critical factors is expected to propel the global air taxi market's expansion. These include the requirement for a different kind of transportation. In addition, government activities pertaining to sustainable smart city projects are anticipated to mitigate the growing issue of traffic congestion in major cities and support market growth. However, tight government rules related aviation licencing and the huge price difference between air taxis and the current transit systems will hinder market growth during the projection period. Affordably large growth opportunities are provided to the market by factors like the aviation industry's leading companies increasing their investments and developing new products and services. However, restrictions on passenger carrying are anticipated to provide difficulties for the expansion of the worldwide air taxi industry.

“Piloted segment, by mode of operation, to be dominating market from 2023 to 2030.”

Pilot-driven air taxi services are becoming more and more important to industry participants in the early stages of air taxi operations. Countries all over the world are concentrating on establishing air taxi services for passenger transport, however many projects are still in the early stages of development. For instance, in November 2021, South Korea presented a passenger travel system that is expected to reduce travel by two thirds. Additionally, the pilot-driven air taxi system was developed by Volocopter GmbH and is expected to be operational by 2025. According to European Aviation Safety Agency (EASA) projections, by 2024 the first legally permitted air taxis will be operating throughout the Union. The European Union mandates that, during the first few years of operation, all fixed-wing and rotary-wing urban air mobility vehicles be piloted by licenced commercial pilots. Throughout the projection period, these advancements are anticipated to support the piloted segment's expansion.

“Electric segment, by propulsion type, to be dominating market from 2023 to 2030.”

The use of electric power in air taxis marks a substantial turn towards more technologically sophisticated and environmentally friendly urban air mobility options. Electric air taxis are anticipated to be a major part of urban mobility in the future as regulations and technology advance.

“Multicopter segment, by aircraft type, to be dominating market from 2023 to 2030.”

Its reduced size, which makes it more appropriate for air taxis, is the reason for the growth. Due to their aerodynamic instability, helicopters require an onboard computer in order to fly steadily. One major reason for the rise in multicopters in the air taxi sector is the advancement of autonomous technologies. A lot of businesses are investing in the creation of self-driving aircraft that can transport people securely and efficiently without the need for a pilot. Because of the automation that increases operational scalability and economy, air taxis are a viable form of transportation.

“North America to be largest region in air taxi market.”

The availability of the aviation infrastructure required for urban air travel is the reason for the supremacy of the North American region. Given that these are the ideal circumstances for the operation of air taxi services, the area's market is expected to increase as a result of strong customer demand, a well-established air traffic control infrastructure, and a growing focus on unmanned traffic management. Several US-based air taxi companies, such as Joby Aviation, Wisk Aero, and Kitty Hawk Corporation, are already actively developing the frameworks for air taxi operations in the region. Mobility businesses are concentrating on creating air taxis that run on electricity as a greener form of transportation. For example, the American business Archer Aviation Inc. highlighted the decrease of carbon emissions and urban traffic congestion when it unveiled a demonstration model of an electric vertical take-off and landing aircraft in June 2021. Numerous US government initiatives will support the UAM ecosystem, which will drive industry growth. The FAA and NASA collaborated on the Advanced Air Mobility National Campaign in 2021 to increase public awareness of cutting-edge air transportation services, such as air taxis, in urban, suburban, rural, and regional contexts. These factors ought to encourage the growth of the air taxi sector in North America in the years to come.

Air Taxi Competitive Landscape

The competitive landscape of the Air taxi market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Air taxi technology holds the potential for urban air mobility. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Air taxi market is highly competitive, with numerous companies vying for market share. Prominent companies in the Air taxi Market include:

Major Players:

Airbus SE, Beechcraft Corporation, Aero Mobil’s, Dassault Aviation SA, Cessna, Embraer, Ehang Holdings Limited, FAAC AG, Hyundai Motor Company, Gulfstream, Jaunt Air Mobility LLC, Imagine Air, Kitty Hawk Corporation, Joby Aviation, Opener, Lilium GMBH, Textron Inc., Terrafugia, Uber Technologies, The Boeing Company, Wisk Aero LLC, Volocopter GMBH and Others

Recent Developments:

The well-known air mobility startup ePlane Company declared in May 2023 that its design organisation has received approval from the Directorate General of Civil Aviation (DGCA). The business is the first in India to receive approval for a design of electric aircraft.

In May 2023, Volocopter entered into a partnership with Swiss Aviation Software (Switzerland) to carry out a particular multi-year maintenance and repair contract.

March 2022: Lilium NV and NetJets signed a Memorandum of Understanding (MoU) for a proposed strategic cooperation. Furthermore, the arrangement permits NetJets to purchase up to 150 Lilium aircraft.

In May 2021, Boeing-backed firm Wisk Aero closed the first deal to operate air taxis in the US. Wisk plans to supply Blade Urban Air Mobility Inc. with up to 30 eVTOL aircraft as per their cooperation.