Flying Cars Market Size, Share & Industry Analysis, By Product Type (Flying Cars and Passenger Drones), By Application Type (Military, Commercial and Civil), and Regional Forecast, 2022-2040

The global flying cars market size was valued at USD 55.00 million in 2021 and is projected to grow from USD 255.37 million in 2022 to USD 1533471.44 million in 2040, exhibiting a CAGR of 58.1% during the forecast period. The market is surging with technological innovation, urban congestion challenges, and the demand for futuristic transportation solutions. Investment influx, regulatory developments, and increasing urban air mobility aspirations contribute to market growth.

The global impact of COVID-19 has been unprecedented and staggering, with flying cars witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a stellar growth of 364% in 2022.

A flying car is also known as roadable aircraft or a dual-mode vehicle, or a personal air vehicle, which can be used for both road travel and air travel. This flying vehicle comprises protective devices and two propellers used in the front and rear of the car to lift it in the vertical direction from the rest position. Aerial cars are an upgraded version of cars, developed to overcome the problems faced by people in areas with heavy traffic. There are mainly two types of flying cars-manned and unmanned or autonomous. These cars also have different capacities, such as 2 seaters, 3 seaters, or 4 seaters.

Growth in urbanization, increasing demographic rate, rising concern over driver and vehicle safety, and surging demand for environmentally friendly automobiles are considered significant factors for the rapid growth of this market in the forecast period. Moreover, the rise in the disposable income of people and improvement in the standard of living is expected to accelerate the growth of this market.

Flying Cars Market to Observe a Decline Due to COVID-19

The spread of COVID-19 across the globe and the high risk of a second wave of pandemic in many countries severely impact the global economic growth rate. There is no specific method that can be used to measure the extent of the impact of the pandemic on the global economy and the expected economic growth decline in the economies of individual countries. It can only be determined that this impact will be great.

Several sectors, including the automotive and transportation industry, have been interrupted due to this pandemic. Within the expected time frame, changes in consumer preferences and purchasing behavior caused by global economic fluctuations may affect the flying car market. In addition, the implementation of lockdowns in many countries of the world has contributed to the closure of cross-border trades and the strict measures taken by regulatory agencies in many countries. This has led to a sharp decline in the global automotive market, including aerial cars. The COVID-19 pandemic will also have a long-term impact on living standards and consumer preferences around the world. As individuals have a deeper understanding of social distance and the introduction of remote working policies, the pandemic may also reduce the use of cars and related goods. In addition, in many countries, owing to restrictions on public meetings and travel bans, it is expected that the development of the global aerial car industry within the projected time frame will be restricted.

LATEST TRENDS

Adaption of Advanced Technologies to Bring a Disruptive Change in the Market

With the rapid adoption of advanced technology, the lifestyle of people is also changing and is inclining more towards innovative technologies. Also, long-distance traveling in a shorter time has gained high demand across the globe. Moreover, the increasing popularity of small drones or unmanned aerial vehicles and regulations supporting their commercial use, aerial cars, and passenger drones seem to soon become a reality with the rapid development in aerospace and aircraft design technology.

With the advent of aerial cars, flexible and faster transportation will be attained in less time span as compared to the on-ground transportation system. Aerial cars involve less ground support infrastructure because maximum operations take place in the nearest ground airspace. The vertical take-off and landing (VTOL) mode has been considered and used as the primary and general aircraft mode. Moreover, these cars promote environmentally-friendly vehicles, as the power batteries have been installed in them, thus zero emissions can be obtained. Furthermore, several manufacturers of aerial vehicles and passenger drones have already surpassed the conceptualization and design phase, while most of which are present in the prototype design and testing phase and hope to deliver before 2022.

DRIVING FACTORS

Continuous Rise in Traffic Congestion to promote Market Growth

The most widely used land transportation system, specifically road and train transportation, is affected by road and track limitations, resulting in deprived controllability and traffic congestion, specifically in the urban areas. Also, water transportation (such as sea and inland water transportation) is mainly used for distant cargo transport due to its low costs, but it is not feasible for the majority of urban areas. Moreover, the HAS (High Altitude Space) transportation system, that is, the air transportation system, is usually used for international or long-distance transportation of people or cargo. However, the cost is much higher, and so it is unfeasible for urban usage. Thus, only the underground, ground, and near ground space (NGS) transportation solutions are appropriate for urban environments. Hence, the advent of such cars in the coming years is expected to gain huge attention from the urban population and create significant demand in the global market.

Growing Investments from Prominent Companies to Boost the Market Growth

Flying cars, also called aerial vehicles, can be driven on the ground as well as air, thus switching between land and air modes. In urban environments, the potential benefits of using aerial vehicles have attracted engineers, scientists, and prominent automobile and aircraft companies. For instance, Uber is planning to launch an air taxi service in the upcoming few years. Moreover, Toyota Motors has also invested in Joby aviation an amount of around $400 Million to research and develop affordable solutions for air transport. Simultaneously, various research projects explore several aspects of this advanced mode of urban travel, such as the EC call for sustainable air travel or the NASA Urban Air Mobility Grand Challenge Program.

RESTRAINING FACTORS

High Manufacturing Cost and Safety Issues May Hamper the Market Growth

The manufacturing cost of such aerial vehicles is one of the biggest obstacles hindering the commercialization of the aerial cars Transportation System (FCTS) on a broader scale. These cars are incorporated with advanced battery technology, the latest high-tech composites, and alloys that incur high costs and considerably increase the manufacturing cost of the market.

Moreover, security concerns arising from various aspects such as aircraft-level security, including weather resistance and passenger safety, system-level security such as the collision avoidance or obstacle avoidance, disturbance and invasion of control networks, search and rescue, as well as environmental protection are the most crucial issue challenged by the FCTS commercial operations.

SEGMENTATION

By Product Type Analysis

Passenger Drone is expected to hold the Largest Flying Cars Market Share

Based on the product type, the market is segmented into flying cars and passenger drones. The passenger drones segment holds a major share in the global market. Passenger drones are also called passenger unmanned aerial vehicles (UAVs). Moreover, the rapid advancement of aerial unmanned technology, the growing necessity to resolve the road congestion problem, and the increasing interest in the form of investments for the manufacturing of environmentally friendly unmanned aerial vehicles are anticipated to surge the usage of passenger drones. Besides, passenger drones are automatic and don’t require any human assistance for flying, thus reducing their operating costs further positively affects the implementation of passenger drones.

However, these aerial vehicles require manpower, which reduces consumer interest in using them. These cars require a pilot or a driver to drive the car to the airport, reconfigure it to airplane mode, and then fly to the destination airport. It is intended to carry people and fly medium to long distances (50 to 200 miles). Presently, it needs to be operated by a licensed pilot, but it can become fully autonomous and unmanned with time. In the near future, aerial cars may have VTOL capabilities.

By Application Type Analysis

Military Segment is expected to hold the Largest Market Share

Based on the application type, the market is segmented into military, commercial, and civil. The military segment holds a major share in the global market. In a couple of years, the U.S. Air Force is planning to take this futuristic aircraft through multiple tests, which will help determine how to use the aircraft for various applications. The Air Force Research laboratory’s AFWERX Innovation Program reports that the "Agile Prime" service has passed several regulations to advance its "Organic Supply Bus" (ORB) program.

For example, the S4 aircraft manufactured by Joby Aviation has passed the assessment of the Technical Airworthiness Administration (TAA). This will enable the aircraft to fly in 2021 as per the Air Force contract. The road congestion problem has attracted increasing attention. More than 30 million new passenger cars have been deployed in the past ten years, and the road infrastructure has been relatively stable.

REGIONAL INSIGHTS

The market size in North America stands at USD 27.63 million in 2021. The region presently holds dominance in the global market owing to the rapid boost in the demand for aerial vehicles. The easy availability of advanced technologies to offer inventive solutions, coupled with the presence of major players including Joby Aviation, Boeing, and Workhorse among others, contributes to the development of this region in the global market. Moreover, other countries such as Mexico and Canada are also likely to adopt and implement the aerial car technology in the coming years. As the U.S. Department of Transportation prepares to approve the aerial cars from existing air carriers, the United States is at the forefront of the development of aerial cars. Some companies are showing increasing interest in the market, such as. At the same time, American cities such as LA and NY are facing extreme traffic congestion. Thus, it is expected that these factors will boost the demand from the U.S. flying car market over the next few years.

Europe is anticipated to get aerial cars by 2022, one of the largest deployments in this sector called Air Mobility Urban - Large Experimental Demonstrations (AMU-LED), around 17 companies will be participating in this project, coordinating with municipalities across the US and Europe. The developments in this direction are also underway in the Asia Pacific region as recently EHang Holdings, one of the largest listed companies in South Korea has tested such two-seater cars in Seoul, South Korea. Similarly, in the rest of the world market, the Middle East region is among the first to get these cars, the Road Transportation Authority is testing autonomous aerial vehicles in Dubai.

KEY INDUSTRY PLAYERS

The AeroMobil is a Key Player in the Market

Aeromobil is the first company to develop and launch an aerial car in the world. The company has spent considerable time and efforts in developing various prototypes, experimenting with various designs and technologies to develop its commercial product. It is expected to be available in the market by 2023. Its latest version, AeroMobil, will be available in 2023. After 300,000 hours of designing, engineering, and testing, it will be marked as an essential innovation in realizing mankind’s dream of infinite personal mobility.

Other prominent players in the market include Joby Aviation, Boeing, Airbus, and PAL-V International B.V. are focusing on the development and engineering of aerial cars.

For example, Archer, an electric aerial vehicles startup, has partnered with Fiat Chrysler to help reduce purchase costs and boost the introduction of electric flying/aerial cars or vertical take-off and landing (eVTOL) aircraft, which are intended to carry passengers with minimal noise. The top speed can reach 150 mph (60 mph).

LIST OF KEY COMPANIES PROFILED:

• AeroMobil (Slovakia)


• Boeing (Illinois, United States)


• Joby Aviation (California, United States)


• Airbus (Leiden, Netherlands)


• PAL-V International B.V. (Netherlands)


• Samson Motorworks (Oregon, United States)


• Cartivator (Tokyo, Japan)


• Uber Technologies (California, United States)


• Urban Aeronautics (Yavne, Israel)


• Volcopter GmbH (Bruchsal, Germany)


• Moller International (California, United States)

KEY INDUSTRY DEVELOPMENTS:

• December 2020 – Uber Technologies to Invest USD 75 million to Joby Aviation Uber Technologies, Inc. agreed to invest USD 75 million in Joby Aviation as a part of an extensive transaction involving procurement of Uber Elevate and the extension of the association between the two parent companies.


• January 2021 – Ferrovial and Lilium together Agree to Develop Vertical Port Networks Ferrovial, the world's leading infrastructure provider, and Lilium, the airline that develops all-electric vertical take-off and landing (e-VTOL) jets and services, has signed a framework agreement for at least ten vertical ports networks.

REPORT COVERAGE

The global flying cars market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation