eVTOL Aircraft Market Assessment, By Lift Technology [Vectored Thrust, Multirotor, Lift Plus Cruise], By Mode of Operation [Piloted, Autonomous, Semi-Autonomous], By Propulsion Type [Fully Electric, Hybrid Electric, Hydrogen Electric], By Range [Below 200

Global electric vertical take-off and landing (eVTOL) aircraft market is projected to witness a CAGR of 26.92% during the forecast period 2025-2032, growing from USD 2.08 billion in 2024 to USD 14.01 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain an expansion in the coming years owing to a growing number of smart cities, advancement in battery technology, and increasing requirements for sustainable transportation. The significant advancements in battery technology are allowing eVTOLs to fly for long durations with less downtime, making them more efficient and practical for urban air mobility and several other applications. The expansion in the e-commerce and logistics sector is projected to drive the global eVTOLs aircraft market growth as it represents the next generation of travel and transportation solutions that are safe, clean, and quiet, and work on electric propulsion. Moreover, the eVTOLs are easy to use due to a computerized flight control system that enables the aircraft to function more like a drone and converts the controller movements into instructions for components, driving the global eVTOLs aircraft market growth in the forecast period. The demand for eVTOL aircraft is rising significantly owing to different benefits, including lower operating costs, zero carbon emissions, quieter operation, flexible design, and fast charging.

Governments of emerging countries are supporting companies to improve the functioning of eVTOL aircraft and reduce the eVTOL’s sound coupled with a carbon footprint. Companies in the market are planning to ally by announcing partnerships and collaborations to meet the transportation challenges and redefine regional air mobility across inter and intra-regional travel.

For instance, in February 2024, Lilium GmbH announced a partnership with PhilJets Group to bring eVTOLs to Asia and high-speed regional air mobility coupled with developing a future service, including the city pairs, joint definition of routes, and passenger demand for an on-demand eVTOL service across the region.

Advancements in Battery Technology Drive Market Growth

Advancements in battery technology, including solid-state batteries, BETA technologies, and others, are driving the global market growth for eVTOLs aircraft, offering greater energy density and improved safety features. Governments across the globe are compelling companies to pursue considerable advancements in battery technology to meet the requirements of eVTOL operations. Companies in the market are developing advanced battery packs to support high energy density and power requirements, propelling the global demand for eVTOLs in the forecast period. Moreover, integrating next-generation batteries, including lithium-air and lithium-sulfur, in eVTOLs aircraft is anticipated to propel market growth as these can significantly increase energy density and offer higher energy, power, and fast charging capabilities than traditional batteries. Key market players are collaborating to advance the infrastructure needed to support the future of urban air mobility and focus on the electrification of industry.

For instance, in June 2024, Archer Aviation Inc. announced a partnership with Signature Aviation Limited to install BETA’s UL-Certified CCS rapid charging systems endorsed by the General Aviation Manufacturers Association.

Rising Demand for Sustainable Transportation Propel Market Demand

The growing requirement for sustainable transportation, rising awareness concerning carbon emission, surging concern about the negative impact of noise pollution, and increasing incentives and subsidies by the government on environmentally friendly transportation. The eVTOL aircraft offers sustainable urban air mobility potential by considerably decreasing dependency on ground transportation, which is often run on fossil fuels. In addition, governments across the globe are framing rules and regulations to increase the production of eVTOLs aircraft, driving the global eVTOLs aircraft market growth in the forecast period. For instance, in July 2024, the UK Civil Aviation Authority expanded the scope of work that eVTOL aircraft developer Vertical Aerospace can do under the design organization approval it received in March 2023. An agreement between eVTOL aircraft maker JobyAero, Inc., vertiport provider Skyports Limited, and Dubai’s Road and Transport Authority (RTA) provides the former exclusive rights to build and operate vertiports in Dubai sustainably.

Fully Electric eVTOL Dominates the Market Growth

Fully electric dominates the market growth owing to increased awareness concerning sustainable transportation, stringent government regulations on environmentally friendly transportation, and rising usage of eVTOL aircraft for air ambulance applications in pandemic situations. Market players are significantly integrating advanced sensors, artificial intelligence, and autonomous technologies in eVTOL aircraft, which can improve safety by reducing human error and offering real-time monitoring, accelerating the global eVTOL aircraft market demand. In addition, electric propulsion systems have fewer moving parts and demand less maintenance than traditional engines, resulting in lower operating and maintenance costs over the aircraft's lifespan, further driving the global eVTOL aircraft market demand. Furthermore, key market participants collaborate to produce eVTOL and expand their market presence in the forecast period.

For instance, in March 2022, Suzuki Motor Corporation and SkyDrive Inc. agreed to share business and technology and to produce up to 100 eVTOLs yearly starting in the Spring of 2024.

Autonomous eVTOL Aircraft is Expected to Hold Largest Share in Global Market

Autonomous eVTOL aircraft is projected to hold the largest eVTOL aircraft market share owing to continuous improvements in artificial intelligence, machine learning, and sensor technology. These technological advancements in eVTOL aircraft enhance safety, reduce operational costs, and optimize route planning by potentially minimizing the requirement for pilot efforts. Moreover, significant investments in developing and deploying autonomous eVTOL aircraft by both public and private sector entities will foster the growth of the global eVTOL aircraft market in the forecast period. Autonomous eVTOLs offer advanced safety by decreasing human errors and offering real-time monitoring and reliable and efficient transportation solutions. Furthermore, key participants, including the market governments, plan to offer autonomous eVTOL aircraft services globally.

For instance, in October 2024, Wisk Aero LLC, a leading Advanced Air Mobility company and developer of the first all-electric, self-flying air taxi in the United States, signed a Memorandum of Understanding with Airservices Australia to focus on the foundation for incorporating safe, autonomous air taxi travel into Australia’s airspace.

Future Market Scenario (2025-2032F)

Battery technology improvements enable eVTOLs to fly longer distances with shorter downtimes, making them more practical for urban air mobility and other applications.

There is a growing demand for eco-friendly urban air mobility solutions, driving financial investments and regulatory support for electric aviation.

Autonomous technologies are enhancing safety, efficiency, and operational costs by reducing human error and optimizing route planning.

Regulatory bodies are developing guidelines and certifications for eVTOL operations, ensuring safety, standardization, and public trust in these aircraft.

Key Players Landscape and Outlook

Companies in the global eVTOL aircraft market are expanding their market presence and product portfolio by leveraging advanced technologies and strategic partnerships. Key players investing heavily in research and development to enhance aircraft design, performance, and power output. By focusing on innovations such as battery technology, autonomous flight capabilities, and sustainable solutions, these companies can offer cutting-edge eVTOL aircraft tailored to various applications, including urban air mobility, cargo delivery, and emergency services. Collaborations with tech firms and continuous innovation enable them to stay ahead of market trends and meet evolving customer demands, fostering growth and competitiveness in the rapidly expanding eVTOL market.

In August 2024, Volocopter GmbH planned to conduct the world’s first eVTOL flight test within the premises of the World Heritage Palace of Versailles to reinforce the ultimate attestation of trust in the safety of the aircraft.