Air Taxi Market Forecasts to 2028 – Global Analysis By Type (Electric, Parallel Hybrid, Turboelectric), Aircraft Type (Multicopter,Quadcopter) and By Geography

Air Taxi Market Forecasts to 2028 – Global Analysis By Type (Electric, Parallel Hybrid, Turboelectric), Aircraft Type (Multicopter,Quadcopter) and By Geography

According to Stratistics MRC, the Global Air Taxi Market is accounted for $804.54 million in 2021 and is expected to reach $3,667.76 million by 2028 growing at a CAGR of 24.2% during the forecast period. An air taxi is a small commercial aircraft that makes short flights on demand. Its compressed size and functioning capabilities help in landing and taking-off from smaller runways. An air taxi assists in covering distances between localities, which are not served by scheduled airlines, and is restricted to a maximum payload and passenger capacity.

Market Dynamics:

Driver:

Rising traffic jamming

With the rising number of vehicles operating on the road, the difficulty of traffic congestion across the globe has increased to a larger range. This has begun serious issues such as environmental pollution and others. Hence, the demand for air taxis has roused, which helps decrease traffic congestion. These taxes will help reduce the road traffic congestion by transporting the passengers by air means. Thus, growing road traffic congestion across the globe increases the demand for air taxis to be operable in the region; this eventually leads to market growth.

Restraint:

High cost

Air transport involves a huge investment in the construction and maintenance of aerodromes. It also requires trained, experienced and skilled personnel which involves a substantial investment. The operational costs of piloted eVTOLs, along with the costs to support their full maintenance life cycle, could outweigh the price operators can charge per seat. Moreover, huge investments have been carried out by the top companies for the introduction of air taxis across the globe and hence the cost incurred in opting for the service will be quite high as compared to road taxis. Thus, the high fare of the air taxi is expected to hamper the growth of the air taxis eventually affecting the market share.

Opportunity:

Rising support from government

In the world, several administrations have started announcing the concept of an air taxi in their province by permitting the top players to progress and innovate it for their province which fuels the market. The government has arranged many plants across the world for innovation and numerous other developments have been carried out to set up a software development unit for air taxis, which is expected to fuel the market in the province along with creating numerous job opportunities. Hence, various government initiatives across the globe are expected to boost market growth.

Threat:

Shortage of infrastructure & climate change

Air taxis can’t just drive along, take off anywhere and land anywhere too. Thus, VTOLs are going to need infrastructure to take off and land. This need for stations will reduce the benefits of this mode of transport along with requiring materials and space which also comes with environmental impacts.

Two-passenger segment is expected to be the largest during the forecast period

The two-passenger capacity segment is expected to be the largest during the forecast, as it delivers well-organized operation and is intended for shorter distance travel. Numerous companies in the aviation and transportation industries are making investments in the development of air taxis across the world. For instance, the ePlane Company, the India-based startup, develops two-seater electric taxis. Such investment and development plans will drive the demand in the segment during the forecast period.

The software segment is expected to have the highest CAGR during the forecast period

The software segment is expected to acquire a considerable share in the global market over the forecast period, as it serves as the basis of the overall air taxis market. The key operating players in the market are directed to advance software to ensure the smooth operational workflow of air taxis. For instance, Uber in partnership with NASA has declared their plans to develop software for the management of air taxi routes to prevent air congestion.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, owing to the existence of developing economies such as China, Japan, and India. These countries have enormous growth potential owing to rising traffic congestion, growing preference for faster modes of travel, and rising disposable income. In the future, the world’s population is anticipated to move to cities, which in turn would increase the traffic congestion, thereby increasing the demand for market.

Region with highest CAGR:

North America is projected to have the highest CAGR, owing to the high traffic congestion in the U.S., and Canada. Several factors are responsible for the growth of the market in the country such as accessibility of industry players, favorable government regulations, high traffic, etc. Besides, the high consumer demand, highly developed air traffic control infrastructure, and the growing emphasis on unmanned traffic management are expected to help the growth of the market in the province, as these are the ideal parameters for the operation of air taxi services.

Key players in the market:

Some of the key players profiled in the Air Taxi Market include Airbus S.A.S., Beechcraft Corporation (subsidiary of Textron Aviation), Dassault Aviation Group, EHang Holdings Ltd., Embraer SA, Hyundai Motor Co., Lilium N.V, Textron Aviation Inc., The Boeing Co., Uber Technologies Inc., Volocopter GmbH.

Key developments:

In February 2018: Ehang 184 announced that it had already completed over 1,000 test flights with human passengers, including a 300-meter vertical climb, a weight test carrying over 230 kilograms, a routed test flight covering 15 kilometers, and a high-speed cruising test that reached 80.7 mph (130 km/h).

In November 2017: Uber collaborated with NASA with their plans to build software to manage the air taxi route to prevent air congestion. It was the first formal services contract by the U.S. National Aeronautical and Space Administration (NASA) covering low-altitude airspace rather than outer space.

In May 2021: Boeing-backed startup Wisk Aero announced that it made its first deal for the operation of Air taxis in the United States. Wisk has partnered with Blade Urban Air Mobility, Inc., under which Wisk will deliver up to 30 eVTOL aircraft to the UAM Company.

Propulsion Types Covered:
• Electric
• Parallel Hybrid
• Turboelectric
• Turboshaft

Aircraft Types Covered:
• Multicopter
• Quadcopter

Passenger Capacity’s Covered:
• One
• Two
• Four
• More than six

Ranges Covered:
• Intercity (100-400 KM)
• Intracity (20-100 KM)

Types Covered:
• Air Taxi Platform Services
• Air Taxi MRO Services
• Air Taxi Pilot Training Services

Components Covered:
• Hardware
• Software
• Services

Mode of Operations Covered:
• Optionally Piloted
• Piloted

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances