Global Air taxi Market Size, Share & Trends Analysis Report, By Mode of Operation (Autonomous, Piloted), By Propulsion Type (Parallel Hybrid, Electric, Turboshaft, Turboelectric), By Aircraft Type (Multicopter, Quadcopter, Fixed Wing), By Region (North America, Europe, APAC, and Others), and Segment Forecasts, 2023 – 2030
  • Published Date: Dec, 2023
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  • Pages: 200
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  • Table of Contents
  • Segmentation
  • Methodology
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The global air taxi market was valued at around US $1.98BN in 2022 and is expected to reach US 14.57$BN by 2030 with a CAGR of 21.05% during the forecast period.

An air taxi refers to a small commercial aircraft service that provides on-demand transportation for passengers between locations, typically in urban or densely populated areas. The concept of air taxis is part of the broader vision of urban air mobility and involves the use of small, electric, or hybrid-electric vertical take-off and landing aircraft to transport passengers. Advances in electric propulsion systems, lightweight materials, and autonomous flight technologies have made it more feasible to design and manufacture small vertical take-off and landing aircraft suitable for urban air transport.

The air taxi industry has attracted significant investment from both traditional aerospace companies and new entrants, including technology companies and startups. This financial support indicates a high level of interest and commitment to developing this mode of transportation. For instance, in 2023, the German air taxi startup Lilium N.V. raised a maximum of $250 million to advance the development of its electric vertical takeoff and landing aircraft, called the Lilium Jet. The funding allows Lilium to proceed with the Lilium Jet eVTOL's development, which includes the type-conforming aircraft's first manned flight. It is anticipated that this manned mission will occur in the latter part of 2024. By the end of the second half of 2024, $100 million of the $250 million pledged is expected to be funded. Also, in 2022, United declared an investment worth $15 million in the company Eve Air Mobility and an purchase agreement for 200 four seater electric aircraft plus 200 options. With the expectation of receiving the first deliveries as early as 2026, and the potential to completely transform the commuting experience in cities all over the world, flying taxis, or eVTOLs, are the subject of another major investment from United. The firms plan to collaborate on future projects under the provisions of the agreement, such as research on the creation, utilisation, and applications of Eve's aircraft as well as the ecosystem surrounding urban air mobility. Moreover, in 2022, Delta announced an investment of $60 million in Joby, air taxi startup. Joby is one of major companies developing vertical take-off and landing electric aircraft, similar to helicopters. According to the corporation, it plans to start flying in 2024.

Drivers

Growing problem of traffic congestion in metro cities 

Traffic congestion is a prevalent issue in many urban areas around the world, leading to significant challenges in terms of time efficiency, environmental impact, and overall quality of life. The need for air taxis arises from the limitations of traditional ground-based transportation systems to effectively address growing urban congestion. The surge in population across the globe and increasing urbanization in the recent years has resulted in the significant growth in urban traffic congestion across the globe. According to the World Bank, approximately 4.4 billion people, or 56% of the world's population, live in cities, as of 2023. By 2050, over seven out of ten people will live in cities as a result of this trend, with the urban population predicted to have more than doubled from its current level. Given that cities create more than 80% of the world's GDP, such sprawl puts stress on natural resources and land, resulting in undesirable outcomes, such as traffic congestion. Therefore, air taxis hold promise for addressing traffic congestion, which is expected to supplement the market growth during he forecast period.

Challenges

Strict government regulations regarding aviation licensing

Government regulations regarding aviation licensing are typically stringent to ensure the safety and reliability of air transportation. These regulations are in place to govern various aspects of aviation, including the licensing of pilots, aircraft, and operators. For instance, in the United States, the Federal Aviation Administration (FAA) is the primary regulatory authority responsible for overseeing aviation activities, including licensing and certification. The FAA sets and enforces regulations to ensure the safety and efficiency of the national airspace. Also, in the United Kingdom, aviation licensing and regulation are overseen by the Civil Aviation Authority (CAA). The CAA is responsible for ensuring the safety and efficiency of civil aviation within the UK.

Trends

Expansion of Urban Air Mobility

The expansion of urban air mobility is a dynamic and evolving trend that involves the integration of air transportation solutions into urban environments. Urban air mobility aims to provide efficient, on-demand, and sustainable air mobility services within and around cities. Various countries and governments across the globe are undertaking different initiatives pertaining to urban air mobility, which is likely to fuel developments in air taxi industry. For instance, in an effort to establish India as a worldwide drone hub by 2030, the Indian government has started a number of initiatives. This includes the release of the Drone Airspace Map (2021), which turns nearly 90% of Indian airspace into a green zone, the Drone Import Policy (2022) that forbids the import of drones manufactured outside of the country, the Drone Certification Scheme (2022) that facilitates the process for drone manufacturers to obtain a type certificate, and the Drone (Amendment) Rules (2022) that do away with the need for a drone pilot licence in order to operate a drone. Also, in order to depict a new, future operational environment, the Federal Aviation Administration (FAA) NextGen Office published the first Concept of Operations (ConOps) v1.0 for urban air mobility in June 2020. The AAM initiative intends to create an air transportation system that uses cutting-edge aircraft, technologies, and operations to carry people and cargo between local, regional, intraregional, and metropolitan regions that have not been served or are underserved by aviation. Also, in 2022, Airbus unveiled its new Air Mobility Initiative, which involves a number of partners like Telekom, Droniq, Red Cross, and Munich Airport. The initiative's goal is to make urban air transportation a reality, both within and between cities. It consists of a number of research initiatives that commenced in January. Electric vertical take-off and landing aircraft, unmanned traffic management services, and airport and city integration will be the main focuses of the Air Mobility Initiative, or AMI.

COVID -19 Impact on Air taxi Market

The COVID-19 pandemic had a profound impact on the global aviation industry, including the air taxi market. With widespread travel restrictions, lockdowns, and a decrease in business and leisure travel, the demand for air travel, significantly declined during the initial phases of the pandemic. Many air taxi operators faced financial challenges due to a sharp drop in demand. The decline in revenue resulted in operational difficulties, including maintenance costs, lease payments, and workforce management. The economic uncertainties caused by the pandemic also led several companies in the air taxi space to reassess and, in some cases, delay their deployment plans. This impacted the timelines for the commercial launch of air taxi services. Additionally, the pandemic affected the investment landscape, with some investors becoming more cautious. Funding rounds and investment activities in the air taxi sector were impacted, influencing the development and scale-up plans of companies in the industry. Hence, COVID-19 pandemic had a significant impact on the global air taxi industry.

Air taxi Market Segmentation

By Mode of Operation

Based on mode of operation, the global air taxi market is bifurcated into Autonomous and Piloted. Piloted segment is expected to dominate the market in the forecast period. it accounted for the market share of about 72.05% in 2022. In the early phases of air taxi operations, industry participants are placing greater emphasis on pilot-driven air taxi services. Many projects are still in the early phases, but countries all around the world are focusing on developing air taxi services for passenger travel. For example, South Korea unveiled a passenger travel system in November 2021 that is anticipated to cut travel by two thirds. Also, Volocopter GmbH created the pilot-driven air taxi system, which is anticipated to be operational by 2025. The European Union Aviation Safety Agency (EASA) anticipates that by 2024, the first air taxis will be operating in the European Union in terms of regulations. According to the European Union, all fixed-wing and rotary-wing urban air mobility vehicles must be operated by licenced commercial pilots during the first few years of operation. Such developments are expected to supplement the growth of the piloted segment in the forecast period.

By Propulsion Type

Based on propulsion type, the global air taxi market is bifurcated into parallel hybrid, electric, turboshaft and turboelectric. The electric propulsion system accounted for the largest share of the market in 2022, accounting for about 36.52% of the share, and is expected to dominate the market during the forecast period. The adoption of electric propulsion in air taxis represents a significant shift toward more sustainable and technologically advanced urban air mobility solutions. As technology continues to evolve and regulatory frameworks develop, electric air taxis are likely to play a prominent role in the future of urban transportation.

By Aircraft Type

Based on aircraft type, the global air taxi market is bifurcated into multicopter, quadcopter and fixed wing. In the forecast period, the multicopter sector is anticipated to grow at the fastest rate of about 21.54% and hold the largest market share. The reason for the growth is attributed to its smaller size, which is more suitable for air taxis. Multicopter aircraft are aerodynamically unstable, hence an onboard computer is necessary for steady flying. The proliferation of multicopters in the air taxi industry can be attributed in large part to the development of autonomous technologies. Many companies are devoting resources to the development of self-driving aircraft that can carry people safely and effectively without requiring a pilot. Air taxis are a feasible mode of transportation since this automation makes operations more scalable and economical.

By Region

North America, Europe, Asia Pacific, the Middle East & Africa, and South America are the five regions that make up the worldwide air taxi market. The region captures the largest market share of about 42.89% and witness the CAGR of about 19.34% in the forecast period. The dominance of North American region is due to the availability of the aviation infrastructure needed for urban air mobility. Since these are the optimum conditions for the operation of air taxi services, high consumer demand, a highly established air traffic control infrastructure, and an increasing emphasis on unmanned traffic management are all projected to contribute to the market's growth in the area. The frameworks for air taxi operations in the area are already being actively developed by a number of US-based air taxi businesses, including Joby Aviation, Wisk Aero, and Kitty Hawk Corporation. Mobility companies are focusing on developing electric-powered air taxis as an environmentally sustainable mode of transportation. For instance, American company Archer Aviation Inc. introduced a demonstration model of electric vertical take-off and landing aircraft in June 2021, emphasising the reduction of carbon emissions and urban traffic congestion. The UAM ecosystem will be promoted by a number of US government programmes, which will fuel market expansion. In order to raise awareness of new-age air transportation services like air taxis in urban, suburban, rural, and regional settings, the Federal Aviation Administration (FAA) and NASA partnered on the Advanced Air Mobility National Campaign in 2021. In the upcoming years, these elements should support the expansion of the air taxi industry in North America.

During the forecast period, Asia Pacific is expected to experience the highest CAGR of about 22.75%, owing to rising population. The region's need for modern, practical transport options is primarily driven by the growing population, which leads to worsening traffic situations. These needs serve as evidence of the desire for flying taxis in the area. Along with significant government assistance, a number of major firms in the Asia Pacific market are investing in the study and development of cutting-edge means of transportation as air taxis. For instance, EHang, a flying taxi startup based in China, has conducted several test flights with actual staff members and customers, and the outcomes have been encouraging.

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

Recent Developments in the Air taxi Market

  • May 2023: The well-known air mobility startup ePlane Company announced that the Directorate General of Civil Aviation (DGCA) approved the company's design organisation. The company is the first in India to get approved for an electric aircraft design.
  • May 2023: Volocopter partnered with Swiss Aviation Software (Switzerland), in order to execute a specific multi-year contract for the use of repairs and maintenance.
  • March 2022: A Memorandum of Understanding (MoU) for a planned strategic alliance was inked by NetJets and Lilium NV. Additionally, the agreement gives NetJets the authority to buy up to 150 Lilium aircraft.
  • May 2021: Wisk Aero, a startup supported by Boeing, closed its first agreement to run air taxis in the United States. In accordance with their partnership, Wisk intends to provide Blade Urban Air Mobility Inc. with up to 30 eVTOL aircraft.

Air taxi Market Scope

Report Components Details
Base Year 2022
Forecast Period 2023-2030
Quantitative Units Revenue in US $
Drivers Need for an alternative mode of transportation, Growing problem of traffic congestion in metro cities, Government initiatives related to sustainable smart city projects
Challenges High differential pricing between the existing transportation systems and air taxis, Strict government regulations regarding aviation licensing, Limitations on carrying passengers
Trends Rise in investments by the top players in the aviation industry, Increase in development and innovations, Expansion of Urban Air Mobility
Segments Covered By Mode of Operation (Autonomous, Piloted), By Propulsion Type (Parallel Hybrid, Electric, Turboshaft, Turboelectric), By Aircraft Type (Multicopter, Quadcopter, Fixed Wing)
Countries Covered North America (United States, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Nordic, Rest of Europe), Asia Pacific (China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa), South America (Brazil, Argentina, Rest of South America)
Market Players Covered Airbus SE, Aero Mobil’s, Beechcraft Corporation, Cessna, Dassault Aviation SA, Ehang Holdings Limited, Embraer, FAAC AG, Gulfstream, Hyundai Motor Company, Imagine Air, Jaunt Air Mobility LLC, Joby Aviation, Kitty Hawk Corporation, Lilium GMBH, Opener, Terrafugia, Textron Inc., The Boeing Company, Uber Technologies, Volocopter GMBH, Wisk Aero LLC and others.

Table of Contents

  1. Executive summary
  2. MARKET INTRODUCTION
    • MARKET SCOPE
    • MARKET Definitions
  3. research methodology
  4. market outlook
    • Key Trends
    • GUIDELINES / REGULATIONS
    • COVID- 19 IMPACT ON GLOBAL AIR TAXI MARKET
    • MARKET DYNAMICS
      • Drivers
        • Need for an alternative mode of transportation
        • Growing problem of traffic congestion in metro cities
        • Government initiatives related to sustainable smart city projects
      • Restraints
        • High differential pricing between the existing transportation systems and air taxis
        • Strict government regulations regarding aviation licensing
      • Opportunities
        • Rise in investments by the top players in the aviation industry
        • Increase in development and innovations
      • Challenges
        • Limitations on carrying passengers
      • PORTER’S FIVE FORCE MODEL
        • Threat of new entrants
        • Threat of substitute
        • Bargaining power of suppliers
        • Bargaining power of buyers
        • Intensity of competitive rivalry
  1. GLOBAL AIR TAXI MARKET, By mode of operation, MARKET ESTIMATION AND FORECAST, 2023-2030), value (USD million)
    • INTRODUCTION
    • MARKET SHARE ANALYSIS
    • Autonomous
    • Piloted
  2. GLOBAL AIR TAXI MARKET, BY propulsion type, MARKET ESTIMATION AND FORECAST, 2023-2030, value (USD million)
    • INTRODUCTION
    • MARKET SHARE ANALYSIS
    • parallel hybrid
    • electric
    • turboshaft
    • turboelectric
  3. GLOBAL AIR TAXI MARKET, BY aircraft type, MARKET ESTIMATION AND FORECAST, 2023-2030, value (USD million)
    • INTRODUCTION
    • MARKET SHARE ANALYSIS
    • multicopter
    • quadcopter
    • fixed wing
  4. GLOBAL AIR TAXI MARKET, REGIONAL ANALYSIS MARKET ESTIMATION AND FORECAST, 2023-2030, value (USD million)
    • INTRODUCTION
    • NORTH AMERICA AIR TAXI MARKET
      • North America Air taxi Market, By Country
        • US
        • Canada
        • Mexico
      • North America Air taxi Market, By Mode of Operation
      • North America Air taxi Market, By Propulsion Type
      • North America Air taxi Market, By Aircraft Type
    • EUROPE AIR TAXI MARKET
      • Europe Air taxi Market, By Country
        • Germany
        • UK
        • France
        • Italy
        • Spain
        • Nordic
        • Rest of Europe
      • Europe Air taxi Market, By Mode of Operation
      • Europe Air taxi Market, By Propulsion Type
      • Europe Air taxi Market, By Aircraft Type
    • ASIA PACIFIC AIR TAXI MARKET
      • Asia Pacific Air taxi Market, By Country
        • China
        • Japan
        • India
        • Australia
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
      • Asia Pacific Air taxi Market, By Mode of Operation
      • Asia Pacific Air taxi Market, By Propulsion Type
      • Asia Pacific Air taxi Market, By Aircraft Type
    • MIDDLE EAST & AFRICA AIR TAXI MARKET
      • Middle East & Africa Air taxi Market, By Country
        • UAE
        • Saudi Arabia
        • South Africa
        • Rest of Middle East & Africa
      • Middle East & Africa Air taxi Market, By Mode of Operation
      • Middle East & Africa Air taxi Market, By Propulsion Type
      • Middle East & Africa Air taxi Market, By Aircraft Type
    • SOUTH AMERICA AIR TAXI MARKET
      • South America Air taxi Market, By Country
        • Brazil
        • Argentina
        • Rest of South America
      • South America Air taxi Market, By Mode of Operation
      • South America Air taxi Market, By Propulsion Type
      • South America Air taxi Market, By Aircraft Type
  1. GLOBAL AIR TAXI MARKET, COMPETITIVE Intelligence
    • COMPETITIVE POSITIONING
    • competitor benchmarking
    • COMPETIVE QUADRANT
    • market share analysis, 2022 (%)
  2. GLOBAL AIR TAXI MARKET, COMPANY ANALYSIS
    • Airbus SE
      • Company Overview
        • Business outlook
        • Headquarter
        • Established/Incorporated
        • Headcounts/ Employee strength
      • Financial Overview
        • Sales/revenue
        • R&D expenditure
        • Business segment sales share
        • Regional sales share
      • Product Offerings
      • SWOT Analysis
      • Key Developments (Expansion/New Product Development/Agreement/Mergers & Acquisitions, Partnership/Investment/Etc.)
    • aero mobil’s
    • Beechcraft corporation
    • cessna
    • dassault aviation sa
    • EHang Holdings Limited
    • embraer
    • faac ag
    • gulfstream
    • Hyundai Motor Company
    • imagine air
    • Jaunt Air Mobility LLC
    • Joby Aviation
    • Kitty Hawk Corporation
    • Lilium GmbH
    • opener
    • terrafugia
    • Textron Inc.
    • The Boeing Company
    • uber technologies
    • Volocopter GmbH
    • Wisk Aero LLC
    • OTHERS

 

*Financials and Details May Not be Included in Case of Privately Held Company

Global Air Taxi Market Segmentation                                  

Air Taxi by Mode of Operation: Market Size & Forecast 2023-2030

  • Autonomous
  • Piloted

Air Taxi by Propulsion Type: Market Size & Forecast 2023-2030

  • Parallel Hybrid
  • Electric
  • Turboshaft
  • Turboelectric

Air Taxi by Aircraft Type: Market Size & Forecast 2023-2030

  • Multicopter
  • Quadcopter
  • Fixed Wing

Air Taxi by Geography: Market Size & Forecast 2023-2030

  • North America (USA, Canada, Mexico)
  • Europe (Germany, UK, France, Italy, Spain, Nordic, Rest of Europe)
  • Asia-Pacific (China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia Pacific)
  • South America (Brazil, Argentina, Rest of South America)
  • Middle East and Africa (UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa)

Major Players:

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

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