eVTOL Aircraft Market size will witness significant growth between 2020 and 2026 due to increasing scope of application in commercial and defense sectors. The commercial sector includes applications such as aerial photography/videography, traffic management, crops/farms monitoring, emergency response, air taxi & disaster relief, medical relief, and environmental tracking.
For instance, in 2018, Hospital in North Carolina along with WakeMed Health partnered with the state’s department of transportation for carrying out pilot program to transfer medical packages across hospitals using drones. The defense sector includes a scope of applications such as border protection & surveillance, defense & attack from remote locations and monitoring cross border moment.
Better integration of software and hardware with enhanced scope of connectivity will serve as a major market accelerator. Various industry players are trying to integrate existing unmanned aerial vehicles with Artificial Intelligence (AI) and Internet of Things (IoT) to improve their operational efficiency.
For instance, in February 2020, the University of Buffalo received a funding of USD 316 thousand from Defense Advanced Research Projects Agency (DARPA) for the development of AI capable to control a swarm of 250 drones.
The rising cargo application of eVTOL vehicles has a potential to provide significant market growth within the forecast period of 2020-26. As of 2019, the global cargo industry is worth USD 4 trillion, which is projected to grow with rising trade activities across the globe. eVTOL vehicles with high Maximum Takeoff Weight (MTOW) have a huge potential to capture this market but are currently facing regulatory constraints. These constrains will be eliminated within the coming years, positively impacting eVTOL aircraft market growth.
Technological advancements and significant R&D investments done by major industry players, such as NASA, Uber, Boeing, and Airbus, will propel the market along with improving market competitiveness. Many major industry participants have eVTOL programs under which they are continuously testing commercial feasibility of these vehicles. Currently, there are more than 150 VTOL concepts developed by industry players, each with a unique scope of application.
The segment of more than 250kg towing capacity in the eVTOL aircraft market will showcase maximum growth potential within the forecast timeframe of 2020-26, whereas vehicles with a towing capacity of less than 20kg captured a maximum market share as of 2020. Limited regulatory framework, low acceptance of public due to new technology, and limited technological exposure are limiting the commercialization of eVTOL with more than 250kg. These pitfalls will be eliminated with time, allowing the market to demonstrate significant growth potential.
The proliferating scope of application in the segment of more than 250kg eVTOL vehicles is the major market accelerator. Major industry players are significantly investing in development of eVTOL vehicles for commercial applications including air taxis.
For instance, in 2016, Airbus inaugurated a project termed as A3 Vahana at Acubed. The first flight was taken on January 31, 2018. The project is still in the development phase and will be commercialized once completed.
North America will dominate the eVTOL aircraft market over coming years due to the acceptance of new technologies at a much faster pace. The country has developed economy with highly advanced technological capabilities and infrastructure facilities capable of supporting the market.
Presence of major industry players, such as Lockheed Martin, Boeing demonstrate expertise in development and manufacturing capabilities whereas companies like Amazon are experimenting these vehicles for commercial application. Together these companies form a healthy market environment, propelling market growth
Major industry players in the market are Airbus, Aurora Flight Sciences, Bell Helicopter, Boing, Ehang, Embraer, Joby Aviation, Karem Aircraft, Kitty Hawk, L3Harris, Lift Aircraft, Lilium, Lockheed Martin, Neva Aerospace, Opener, Pipistrel, Raytheon, Uber Technologies Inc., Volocopter, and Workhorse.
Major strategies of industry participants to safeguard and improve their market share include collaborations and long-term agreements to eliminate market competitiveness. For instance, Uber partnered with eight major market players including Boeing, EmberaerX, Bell, Pipstrel, Kaeren Aircraft Inc, Jaunt Air Mobility, Joby Aviation, and Hyundai. The partnership with Hyundai was announced as of January 2020.
The above information has been provided for the following regions and countries: