eVTOL Aircraft Market

The global eVTOL aircraft market is growing at a rapid rate due to the rising traffic congestion issues and rapid technological advancements and low maintenance costs. The rising participation of private companies is also fueling market growth. However, lack of regulatory framework and supporting infrastructure and limited endurance are some challenges expected to hamper the growth of the market during the forecast period.

The global population is progressively becoming urban, and currently more people live in towns and cities than in rural areas. According to the United Nations (UN), the global urban population is likely to reach 1.5 billion by 2030 and 3 billion by 2050. As economic activity and job opportunities are centered in urban areas, people are migrating to cities and nearby non-urban districts are being converted to cities. According to the World Migration Report 2015, it is estimated that 3 million people around the world are moving to cities every week. The figure below shows urban population growth (% of total population) for 10 years.

The influx of people to cities and towns has greatly impacted traffic routes with congestion being a major issue for urban developers. Factors such as the high number of vehicles, lack of proper infrastructure, and poor commuter practices are clogging cities with traffic. According to the TomTom Traffic Index 2017, traffic congestion is up by 23%, globally, since 2008. Though governments around the world are taking various measures such as improving bus and metro services, widening roads, and building flyovers and tunnels, they are not sufficient to overcome this issue. This has led to the proliferation of innovative solutions, such as ridesharing and the use of data analytics, to balance traffic flow. The development of eVTOL aircraft and flying cars is expected to revolutionize traffic management. The eVTOL aircraft and flying cars can utilize airspace to ease traffic congestion on ground and shorten daily commutes. These vehicles are similar to helicopters but are quieter, run electronically, and are environmentally friendly.

Hence, the rising traffic congestion in cities around the world is expected to drive the growth of the global eVTOL aircraft market during the forecast period.

Globally there is a need to reduce pollution levels caused by carbon emissions. This has led governments and aviation associations such as the International Air Transport Association (IATA), International Civil Aviation Organization (ICAO), and Federal Aviation Administration (FAA) to institute measures to curb air pollution. The adoption of smart, renewable energy such as biofuels, solar, water, and wind and electric energy is expected to reduce CO2 emissions by over 15%, globally, by 2020. Hence, associations such as IATA and the European Commission have laid down mandates to reduce air pollution and are emphasizing the use of renewable energy. The zero-carbon footprint of eVTOL aircraft, therefore, offers manufacturers lucrative growth opportunities as these aircraft run on batteries.

Although eVTOL are extending their airspace and helping organizations yield improved business results, especially, in the commercial sector for delivery applications, it is still too risky when it comes to transport people. This is because, if eVTOL malfunctions in the middle, while transporting passengers, it can be very dangerous to passengers, pedestrians, and other pilots. Creating an eVTOL aircraft that’s safe for users poses numerous engineering challenges. Besides, people also need to overcome the psychological barriers associated with the concept of flying in an electric aircraft. Manufacturers and operators of these eVTOL aircraft should ascertain a near-flawless safety record, covering safe operations, and mechanical integrity to gain the trust of passengers. These issues must be fully addressed before deployment eVTOL aircraft on a large scale. Therefore, safety concerns associated with traveling in an eVTOL could restrain the market growth to a certain extent.

The infrastructure supporting the use of eVTOL aircraft is not growing at the same pace as the market. There is a lack of regulated take-off and landing zones, parking zones, MRO facilities, and battery charging stations. Furthermore, there is the need for an established, cohesive air-traffic management network that would ensure the safe and efficient operations of eVTOL aircraft while meeting the requirements of the FAA and other safety agencies. Additionally, there is a lack of skilled eVTOL pilots. Hence, market players need to overcome these challenges to the wide-scale use of eVTOL for the transportation of people.