The global eVTOL market is on course to reach revenues of $4.2 billion by 2033, according to a new report by market intelligence provider Research Dive.
Worsening traffic congestion on the ground and buoyant M&A activity in the sky are driving the rosy outlook, the company said, with a compound annual growth rate (CGAR) of 29.6% likely to be achieved over the coming decade.
It cited strategic alliances such as the recent acquisition of Pipistrel, the Slovenian manufacturer of the Velis Electro, the first and only fully electric aircraft to be type certificated by the European Union Aviation Safety Agency (EASA). Pipistrel was acquired by Textron, the US conglomerate responsible for prominent general aviation brands Beechcraft, Hawker and Cessna.
While acknowledging that high investment costs pose a challenge to the successful development of eVTOL product lines, Research Dive said that medical applications, in particular, are expected to “create huge growth opportunities for the market”.
It highlighted the novel role played by EHang, the Autonomous Aerial Vehicle (AAV) manufacturer, during China’s response to the COVID-19 pandemic.
“Various market players came forward during the [Coronavirus] crisis situation to pull out the market from getting hit hard,” the research company noted. “For example … EHang provided crucial air support in China during the COVID-19 outbreak by providing medical supplies to the local hospitals. Such initiatives and steps taken by major industrial giants have helped to minimize the negative effects of the pandemic on the market.”
Guangzhou-based EHang gained prominence last year by deploying the EHang 216 AAV, a self-driving eVTOL capable of carrying up to two passengers, and the EHang Falcon B drone, on a variety of pandemic relief and control missions in Guangdong Province.
Tasks fulfilled by the fleet ranged from aerial surveillance and broadcasting, to emergency transportation of supplies to residents living inside quarantine zones – highlighting the efficiency and safety benefits of deploying contactless eVTOLs in medical emergencies.
Research Dive’s report also identified what it believes will be the most lucrative sub-segments within the eVTOL sector.
Optionally piloted modes of operation were forecast to have the fastest growth rate in the market, accounting for revenues of $2.8 billion by 2033. Vectored thrust technology was also projected to be a market leader, generating $1.2 billion over the same timeframe.
In terms of technical capabilities, eVTOLs with ranges of between 200-500km and payloads of greater than 1,500kg were expected to be the fastest growing sub-segments in their respective categories. North America will be the fastest growing region, Research Dive added.
Last year, market intelligence provider ReportLinker used different methodologies and criteria to project that the global eVTOL market will be worth $31 billion by 2030, reflecting a compound annual growth rate of 15.3%. The company cited rising demand for green transport and noise-free aircraft as key drivers of the growth.
You can find out more about advanced air mobility (AAM) by downloading in Global Sky Media’s Asia-Pacific UAM Report.