Air Taxi Market

Air Taxi Market Statistics - 2030

The global air taxi market size is expected to be $817.50 million by 2021, and is projected to reach $6.63 billion by 2030, registering a CAGR of 26.2% from 2021 to 2030. The electric segment will be the highest contributor to the market, with $329.28 million in 2021, and is expected to reach $3.39 billion by 2030, at a CAGR of 30.4% during the forecast period. The electric and parallel hybrid segments will collectively be accounting for around 73.5% share of the global market in 2021, with the former constituting around 40.3% share. The electric and parallel hybrid segments will witness significant CAGRs of 30.4% and 26.5%, respectively, during the forecast period. The cumulative share of these two segments will be 73.5% in the air taxi market in 2021, and is anticipated to reach 83.2% by 2030.

Air taxi is a type of aircraft which is well organized in operations and is intended for shorter distance to travel. The concept of air taxi was first introduced way back in 2001 by NASA and aerospace industry study on the potential Small Aircraft Transportation System (SATS) and rise of light-jet aircraft manufacturing in the U.S. Later with the increased number of vehicles running on the road followed by the increased traffic congestion, the demand for better and efficient transportation system has increased; thereby, increasing the demand for air taxi across the globe. Furthermore, various companies in aviation and transportation industry collaborated for the development of air taxi to be implemented across the globe.

Increase in government initiatives and rise in investments by the top players in the aviation industry boost the growth of the global air taxi market. Moreover, increase in development and innovations further fuels the air taxi industry. In addition, positive impact of developments carried out by numerous startups and top players increases market across the globe thereby increasing the air taxi market size.

The factors such as need for an alternative mode of transportation and increased road traffic congestion drive the air taxi market growth. However, high differential fare and stringent regulations for aviation license is expected to hamper the market growth. Further, government initiatives for the introduction of air taxi is expected to create numerous opportunities for the growth and expansion of market during the air taxi market forecast.

The global air taxi market is segmented on the basis of propulsion type, aircraft type, passenger capacity, and region. Based on propulsion system, the market is categorized into parallel hybrid, electric, turboshaft, and turboelectric propulsion. Depending on aircraft type, it is divided into multicopter, quadcopter, and other. Based on passenger capacity, it is fragmented into one, two, four, and more than six passengers sitting in the vehicle. Based on region, the air taxi market analysis is done across North America, Europe, Asia-Pacific, and LAMEA.

Key players including Airbus S.A.S., Beechcraft Corporation (subsidiary of Textron Aviation), Boeing, Dassault Systèmes, Embraer, EHANG, Hyundai, Lilium, Volocopter GmbH, and Uber Technologies hold major market share.

Need for an alternative mode of transportation

With the introduction of latest technologies in transportation sector such as automation of railways and cars the demand for an alternative mode of transportation has aroused across the globe. This has led the companies operating in the aviation sector to focus toward the introduction of air taxis across the globe. For the same, various collaborations have been made by different companies to innovate new concepts for the development of air taxi. For instance, Airbus S.A.S. has introduced the electric air taxi CityAirbus along with Audi, which has the capability to take off and land vertically along with various other developments such as full-scale flight test of VAHANA, the all-electric, self-piloted, and VTOL aircraft. These developments are carried out due to the need for alternative mode of transportation which eventually leads to the growth of the market during the forecast period.

Increased traffic congestion

With the increased number of vehicles operating on the road, the problem of traffic congestion across the globe has increased to a larger extent. This has caused serious issues such as environmental pollution and others. Therefore, the demand for air taxis has aroused, which is helpful in reducing traffic congestion. These taxies will help reduce the road traffic congestion by transporting the passengers by air means. Thus, increased road traffic congestion across the globe increase the demand for air taxi to be operable in the region, which eventually leads to the global market during the forecast period.

High differential fare

Huge investments have been carried out by the top companies for the introduction of air taxi across the globe and hence the cost incurred in opting the service will be quiet high as compared to on road taxi. This is due to high investment and rare means of transportation that is introduced on a smaller scale. In addition, the air taxis to be deployed across the globe will be helpful to tackle the road traffic congestion but at the same time will be costlier to avail the service. Thus, the high differential fare of the air taxi is expected to hamper the growth of the air taxis eventually affecting the air taxi market share.

Government initiatives

Various governments across the globe have initiated the process of introducing the concept of air taxi in their region by allowing the top players to develop and innovate air taxi for their region which fuels the air taxi market trends. They have set up various plants across the globe for innovation, which is expected to increase the air taxi market size across the globe. For instance, Uber Technologies has selected five countries to implement their air taxi service during the introduction phase. In addition, various other developments have been carried out such as Lilium has decided to set up its software development unit in the UK for air taxi, which is expected to fuel the growth of the market in the region along with creating numerous job opportunities. Thus, various government initiatives across the globe are expected to boost the market growth during the forecast period.

Key Benefits for Air Taxi Market:

• This study presents the analytical depiction of the global air taxi market analysis along with the current trends and future estimations to depict the imminent investment pockets.
• The overall air taxi market opportunity is determined by understanding the profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global market with a detailed impact analysis.
• The current air taxi market is quantitatively analyzed from 2018 to 2026 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Air Taxi Market Report Highlights