eVTOL Aircraft Market Research Report and Outlook by 2028

The eVTOL aircraft sector is projected to expand from US$ 519.81 million in 2024 to US$ 1756.28 million by 2028, reflecting a compound annual growth rate (CAGR) of 35.6% during this period. 

The global eVTOL market is being driven by the rising popularity of air taxis, which is fueled by advancements in urban air mobility technologies. Various governments in leading nations are implementing supportive measures, and an increasing number of startups are entering the field, further enhancing the global adoption of air taxis. For instance, in December 2021, the Australian government allocated a grant of US$ 23 million to explore innovative aviation technologies through its Emerging Aviation Technology Partnerships Program. In a similar vein, in April 2022, Airbus and ITA Airways entered into a Memorandum of Understanding to collaborate on the introduction of urban air mobility in Italy, focusing on the safe and sustainable deployment of the CityAirbus NextGen eVTOL aircraft. The European Union Aviation Safety Agency (EASA) has forecasted that the inaugural flights of air taxis in Europe will occur in 2024, with commercial operations potentially commencing by 2024 or 2025. These initiatives from prominent nations are anticipated to significantly boost the demand for urban air mobility, creating lucrative opportunities for the growth of the eVTOL aircraft market throughout the forecast period.

The anticipated growth of the eVTOL aircraft market globally is also linked to advancements in electric propulsion technologies. The aviation sector is a major contributor to global climate change, primarily due to its substantial greenhouse gas emissions. In response, the Environmental Protection Agency (EPA) established a standard for aircraft greenhouse gas emissions worldwide on January 11, 2021. Furthermore, in November 2021, the EPA initiated legal action to enforce the commercial aircraft greenhouse gas (GHG) emission standards it had previously advocated. The emergence of electric propulsion-based eVTOL aircraft is a crucial step in reducing the adverse effects of noise and pollution on the environment. Consequently, government regulations aimed at curbing emissions are likely to enhance the demand for eVTOL aircraft powered by electric propulsion.

Effects of the COVID-19 Pandemic on the eVTOL Aircraft Market

The COVID-19 pandemic has profoundly affected the aviation industry, leading to an estimated loss of around US$ 200 billion from 2020 to 2022. The eVTOL aircraft market has similarly faced challenges, including reduced aircraft production, disrupted supply chains, and delayed orders. Given that the eVTOL sector is still in its nascent stages, the pandemic has significantly hindered ongoing projects, including testing, certification, and prototype development. However, as the aviation industry begins to recover, many countries are now prioritizing the development of eVTOL infrastructure in urban areas worldwide. Despite the pandemic's challenges, some companies managed to secure contracts for the testing and development of eVTOL technologies in FY 2020. For example, LIFT Aircraft Inc. was awarded a US$ 2.5 million contract by the US Air Force in 2020 for flight testing its HEXA eVTOL aircraft, which has contributed to the advancement of the eVTOL market for critical mission applications.

The North American eVTOL aircraft market is poised for substantial growth, particularly in the US, which hosts numerous eVTOL manufacturers and has attracted significant investments. Additionally, supportive government funding initiatives, such as the US Air Force's Agility Prime program, have further fueled market expansion. This initiative aims to provide financial support for the flight testing and certification of approximately 20 eVTOL aircraft participating in its "Air Race to Certification" program. The competition within the US eVTOL market is fierce, primarily driven by the quest for FAA aircraft certification and the transition to commercial operations.

In Germany, the eVTOL aircraft market is experiencing growth due to the increasing development of electric-propulsion-based eVTOL aircraft. With a rising number of initiatives aimed at integrating electric and hybrid-electric air taxis, vendors in the eVTOL market are collaborating to establish a comprehensive charging infrastructure powered by renewable energy sources, along with takeoff and landing facilities. For instance, Rolls Royce is set to integrate its electrical power system into a piloted eVTOL vehicle capable of transporting up to four passengers for 120 miles at cruising speeds exceeding 200 mph, with certification expected by 2024. Moreover, e-commerce giants like Amazon and delivery fleets are making significant strides in last-mile delivery solutions, further propelling the growth of the eVTOL aircraft market in Germany during the forecast period. In March 2022, the German eVTOL developer Lilium announced a partnership with Honeywell and Denso to develop electric motors for eVTOL aircraft, which will further enhance market growth in the region.

Throughout the analysis of the eVTOL aircraft market, various key players were identified, including Airbus (The Netherlands), Bell Textron Inc. (US), Boeing (US), Eve Air Mobility (Brazil), Lilium GmbH (Germany), Opener (US), EHang (China), BETA Technologies (US), Pipistrel Group (Slovenia), Volocopter GmbH (Germany), Joby Aviation Inc. (US), Heart Aerospace (Sweden), and Archer Aviation Inc. (US).

The size of the eVTOL aircraft market was determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also facilitated the collection of an overview and market forecast for the growth of the eVTOL aircraft market across all segments. Additionally, multiple primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. These participants included industry professionals such as VPs, business development managers, market intelligence managers, national operations managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders, all possessing expertise in the eVTOL aircraft market.