eVTOL Aircraft Market Size, Share & COVID-19 Impact Analysis, By Lift Technology (Vectored Thrust, Lift Plus Cruise, and Multirotor), By Mode of Operation (Piloted, Autonomous, Semi-Autonomous), By Range (0-200 Km, 200-500 Km), By MTOW (<250 Kg, 250-500 Kg, 500-1500 Kg, >1500 Kg), By Propulsion Type (Battery-Electric, Hybrid-Electric, Hydrogen-Electric), By Application (Commercial, Military, EMS), and Regional Forecast, 2021-2028

The global eVTOL aircraft market size was USD 1.11 billion in 2020 and is projected to grow from USD 5.41 billion in 2021 to USD 23.21 billion in 2028 at a CAGR of 23.13% in the 2021-2028 period. Based on the analysis, the global market exhibited a higher growth of 11.94% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with eVTOL aircraft witnessing a negative demand shock across all regions amid the pandemic.

The electric vertical take-off and landing aircraft represent the next generation of travel solutions that are safe, quiet, clean and work on electric propulsion. The demand for this aircraft is driven by factors such as rising awareness for reducing carbon footprint, reduction in aircraft operating cost, and growing demand for urban air mobility.

The COVID-19 Pandemic Negatively Affected the Market Due to Disruption in the Supply Chain and Shut down of Facilities   

The COVID-19 outbreak has negatively impacted the market in 2020 due to the supply chain disruptions and shutdown of research and development facilities. Startups in Asia Pacific suffered huge losses during the pandemic. However, according to the data provider firm Pitchbook, companies in North America and Europe raised approximately USD 1.3 billion in investment in air mobility companies despite the impact of COVID-19. The market is expected to recover by the end of 2021.

LATEST TRENDS OF EVTOL AIRCRAFT MARKET

Development of Advanced Detection and Collision Avoidance Systems to Aid Market Growth

The growing technological advancements in electric vertical take-off and landing aircraft design have created the need for addressing technological barriers in the eVTOL concept. Various manufacturers are investing in development of complex technologies such as situational awareness systems, detection and collision avoidance system, and others.  The advanced detect and avoid technology uses micro or millimeter wave technology that enables accurate identification and real-time decision-making assistance in unsafe operating environments.

• For instance, Sagetech Avionics Inc. developed several certifiable detect and avoid systems and situational awareness solutions for urban air mobility.

Stringent certification protocols and rising demand for the commercialization of electric vertical take-off and landing aircraft are anticipated to fuel the development of technology related to the safety of passengers.

DRIVING FACTORS

Rising Traffic Congestion and Need for Smarter Transportation to Fuel Growth

Growing urban populations in developing economies, such as China and India, have led to an increase in traffic congestion. Owing to the surging surface traffic congestion, the urban transportation system is investing in alternative solutions such as urban air mobility, air taxi services, and others that are sustainable and eco-friendly. Several aircraft manufacturers such as Airbus SE, Joby Aviation, and others are developing and testing prototypes of electric vertical take-off and landing aircraft. The commercialization of air taxis is anticipated to begin by 2024.

Moreover, growing urbanization is also expected to increase the demand for the product for faster commute.

Rising Investment from Different Sectors in eVTOL to Augment Market Growth

Major aircraft manufacturers, such as the Boeing Company, Airbus SE, and Bell Helicopter, have ongoing eVTOL development programs. The key aerospace suppliers, such as GE Aviation, Raytheon Technologies Inc., Honeywell International, and Rolls Royce PLC, are also making huge investments in the eVTOL related technology such as electric motors, hybrid-electric powertrain components, and others.

Moreover, automotive giants, such as Toyota, Hyundai, Daimler AG, and others, have invested and are collaborating for the development of their own eVTOL projects.

• For instance, in January 2020, Toyota invested approximately USD 400 million in Joby Aviation, an eVTOL startup.

Furthermore, composite material manufacturers such as Hexcel and Toray Advanced Composites are working with original equipment manufacturers on advanced lightweight materials used for the various components and facets of vertical take-off and landing aircraft.

Thus, heavy investments from various sectors are anticipated to augment the eVTOL aircraft market growth.

RESTRAINING FACTORS

Lack of Infrastructure and Stringent Certifications Implemented by Aviation Agencies May Hamper Market Growth

The eVTOL travel solutions require the construction of infrastructure required to commercialize the technology such as skyports, charging stations, and others. The initial cost of such infrastructure is very high and development is time-consuming which is anticipated to restrain the market growth. Moreover, strict certifications of aviation agencies such as the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) for approval of eVTOL designs are expected to hamper the market growth.

EVTOL AIRCRAFT MARKET SEGMENTATION

By Lift Technology Analysis

Vectored Thrust Segment Expected to Grow at Higher CAGR Due to Increased Efficiency and High Endurance

Based on lift technology, the market is classified into vectored thrust, lift plus cruise, and multirotor.

The vectored thrust is anticipated to grow at a higher compound annual growth rate throughout the forecast period. The growth of the segment is attributed to the capabilities such as high endurance and enhanced efficiency of this technology.

The multirotor segment is expected to grow significantly during the forecast period owing to its rising demand for delivery applications.

The lift plus cruise segment is predicted to grow substantially owing to the increasing development of the technology by leading manufacturers

By Mode of Operation Analysis

Semi-Autonomous Segment to Lead Market Due to Increasing Investment for Research and Development

Based on the mode of operation, the market is segmented into piloted, autonomous, and semi-autonomous.

The semi-autonomous segment is expected to hold the highest market share owing to the growing investments by government agencies and manufacturers for research and development of semi-autonomous electric vertical take-off and landing aircraft.

The autonomous segment is predicted to be the fastest growing segment during the forecast period, owing to increasing adoption of artificial intelligence (A.I.), Internet of Things (IoT), and Augmented Reality (AR) in eVTOL technology.

By Range Analysis

200-500 Km Segment to Witness Significant Growth owing to Rising Demand for Intercity Travel

Based on the range, the market is bifurcated into 0-200 km and 200-500 km.

200-500 km segment is expected to dominate the global market during the forecast period. The growth of the segment is due to growing demand for long range vertical take-off and landing aircraft for intercity travels.

The 0-200 km segment is also expected to witness significant growth due to increasing adoption of sort range drones for delivery purpose. Moreover, increasing demand for urban air mobility for intracity commute is also expected to fuel the market growth.

By Maximum Take-Off Weight (MTOW) Analysis

<250 Kg Segment to Dominate Owing to Rising Adoption of small eVTOL aircraft for Commercial Applications

Based on MTOW, the market is segmented into <250 kg, 250-500 kg, 500-1500 kg, and >1500 kg.

The <250 kg segment is anticipated to dominate the market in 2020 in terms of market share. The dominance of the segment is attributed to the growing adoption small VTOL aircraft for commercial applications such as delivery services.

The 250-500 kg segment is expected to grow significantly owing to the rising demand for close range and short range eVTOL vehicles.

The growth of the 500-1500 kg segment is facilitated by increasing demand of eVTOL vehicles for military applications.

The >1500 kg segment is also expected to grow substantially throughout the forecast period owing to the rising developments by key manufacturers for long range and large MTOW.

By Propulsion Type Analysis

Battery-Electric Segment to Lead the Market Due to Increased Demand for Fully Electric Aircraft

Based on type of propulsion, the market is classified into battery-electric, hybrid-electric, and hydrogen-electric.

The battery-electric segment is anticipated to lead the market through the projection period. The growth can be attributed to the growing demand for fully electric aircraft to reduce the carbon footprint and operating costs.

The hybrid-electric segment is expected to witness significant growth during the forecast period due to the high adoption of hybrid-electric technology for long-range aircraft

The hydrogen-electric segment is predicted to grow in upcoming years owing to the developments in better storage facilities for hydrogen fuel cells.

By Application Analysis

Commercial Segment to Lead the Market Due to Rising Development of Delivery Drones

Based on application, the market is divided into commercial, military, and emergency medical services (EMS). The commercial segment is further segmented into air taxi, delivery drone, and others. The military segment is further bifurcated into cargo transport and combat missions. The EMS segment is further classified into air ambulance and medical cargo transport.

The commercial segment is anticipated to dominate the market in 2020. Growing development of delivery drones and air taxis is expected to fuel the growth of the market.

The EMS segment is expected to grow swiftly owing to the growing use of VTOL aircraft for air ambulance applications in pandemic situations.

The military segment is predicted to witness substantial growth owing to the rising investment by the defense sector of various countries for the development of electric VTOL aircraft.

REGIONAL INSIGHTS OF EVTOL AIRCRAFT MARKET

Regional market segments include North America, Europe, Asia Pacific, and the rest of the world.

North America is anticipated to dominate the global market, owing to the presence of key manufacturers such as Joby Aviation, Bell Textron Inc., Kitty Hawk, and others in the U.S. Moreover, rising investment by the U.S. government for the development of VTOL aircraft is expected to propel the market growth.

• For instance, in May 2021, the U.S. Air Force Research Laboratory (AFRL) awarded a contract worth USD 950,000 to Bell to conduct applied research on high-speed VTOL aircraft.

Asia Pacific is expected to grow at a higher CAGR owing to the increased investment by the eVTOl manufacturers such as Ehang for the development of urban air mobility solutions. Moreover, rising urbanization in the region is expected to support the growth of the market.

The market in Europe is expected to witness significant growth as several cities in Europe have joined the Urban Air Mobility (UAM) Initiative, a part of the European Innovation Partnership on Smart Cities and Communities (EIP-SCC).

The market is expected to grow in the Middle East & Africa and Latin America regions owing to the rise in startups of VTOL aircraft in the region.

KEY INDUSTRY PLAYERS

Market Players Are Focused on the Certification and Commercialization of eVTOL aircraft 

Airbus S.A.S, Joby Aviation, Lilium, Ehang, and others are the major companies in the market. Key companies in the market are majorly focusing on the development of passenger electric VTOL Aircraft. These players are adopting growth strategies, such as partnerships, agreements, and new product development, to sustain their positions in the market.

LIST OF KEY COMPANIES PROFILED:

• Kitty Hawk (U.S.)


• Lilium (Germany)


• Ehang (China)


• Volocopter GmbH(Germany)


• Bell Textron Inc. (U.S.)


• Airbus S.A.S (Netherlands)


• Beta Technologies (U.S.)


• Joby Aviation (U.S.)


• Urban Aeronautics Ltd. (Israel)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Helisul Aviation, a Latin American helicopter operator ordered Eve Urban Air Mobility’s 50 electric VTOL air taxis for urban air mobility operations in Brazil. The deliveries are expected to begin by 2026.


• June 2021 – Eve Urban Air Mobility received an order for 200 four-passenger eVTOL air taxi from Halo, a Directional Aviation brand created by the alignment of Associated Aircraft Group (AAG) in the U.S. The deliveries of the aircraft are expected to begin by 2026.


• April 2021 – United Parcel Service signed a contract to purchase 150 e-VTOL aircraft from Beta Technologies to start time-sensitive zero-emissions deliveries. The aircraft deliveries are expected to begin by 2024.

eVTOL Aircraft Market REPORT COVERAGE

The market research report provides a detailed eVTOL aircraft market analysis and focuses on key aspects such as key players, lift technology, mode of operations, range, maximum take-off weight, propulsion type, and application of this type of aircraft. Moreover, the research report offers insights on eVTOL aircraft market trends, competitive landscape, market competition, product pricing, and market status and highlights key industry developments. In addition to the factors mentioned above, it encompasses several direct and indirect factors that have contributed to the sizing of the global market over recent years.

eVTOL Aircraft Market Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2017-2028
Base Year	2020
Estimated Year	2021
Forecast Period	2021-2028
Historical Period	2017-2019
Unit	Value (USD Billion)
Segmentation	Lift Technology, Mode of Operation, Range, Maximum Take-off Weight, Propulsion Type, Application, and Geography
By Lift Technology Vectored Thrust Multirotor Lift Plus Cruise
By Mode of Operation Piloted Autonomous Semi-Autonomous
	By Range 0-200 Km 200-500 Km
	By Maximum Take-off Weight (MTOW) <250 Kg 250-500 Kg 500-1500 Kg >1500 Kg
	By Propulsion Type Battery-Electric Hybrid-Electric Hydrogen-Electric
	By Application Commercial Air Taxi Delivery Drones Military Cargo Transport Combat Mission Emergency Medical Service Air Ambulance Medical Cargo Transport
By Geography	North America (By Lift Technology, Mode of Operation, Range, MTOW, Propulsion Type, Application, and Country) U.S. (By Mode of Operation) Canada (Mode of Operation) Europe (By Lift Technology, Mode of Operation, Range, MTOW, Propulsion Type, Application, and Country) U.K. (By Mode of Operation) Germany (By Mode of Operation) France (By Mode of Operation) Russia (By Mode of Operation) Rest of Europe (By Mode of Operation) Asia Pacific (By Lift Technology, Mode of Operation, Range, MTOW, Propulsion Type, Application, and Country) China (By Mode of Operation) India (By Mode of Operation) Japan (By Mode of Operation) Australia (By Mode of Operation) Rest of Asia Pacific (By Mode of Operation) Rest of the World (By Lift Technology, Mode of Operation, Range, MTOW, Propulsion Type, Application, and Sub-Region) Middle East & Africa (By Mode of Operation) Latin America (By Mode of Operation)