eVTOL Aircraft Market Size, Share, Revenue Trends and Growth

Update:: 27.09.24

eVTOL Aircraft Market Size & Growth

The eVTOL Aircraft market size is projected to grow from USD 1.2 Billion in 2023 to USD 23.4 Billion by 2030, at a CAGR of 52.0% from 2023 to 2030. Electric Vertical Takeoff and Landing (eVTOL) aircraft serve the purpose of providing efficient, sustainable, and versatile transportation solutions for both passengers and cargo. eVTOLs are aircraft that can take off and land vertically, utilizing electric propulsion systems to achieve vertical flight and offering the potential for quiet, emission-free operations. These advanced aircraft are designed to operate in urban environments, overcoming traffic congestion by utilizing vertical space and providing faster point-to-point transportation. With their ability to hover, maneuver in tight spaces, and potentially operate autonomously, eVTOLs have the potential to revolutionize urban air mobility, offering convenient air taxi services and serving as efficient platforms for transportation, emergency response, and aerial logistics. Their electric propulsion systems contribute to reduced noise pollution and lower carbon emissions, aligning with the increasing focus on sustainable transportation solutions.

eVTOL Aircraft Market Forecast to 2030

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eVTOL Aircraft Market Dynamics.

Driver: Improving technologies in batteries, motors, and power electronics

Improving technologies in batteries, motors, and power electronics serve as a catalyst for market growth. The continuous improvement in technologies related to batteries, motors, and power electronics serves as a significant driver for the EVTOL market. Breakthroughs in battery technology, such as advancements in energy density and faster charging capabilities, enable EVTOL aircraft to achieve longer flight ranges and reduced recharge times, enhancing their viability and commercial appeal. Similarly, advancements in electric motors, including higher power-to-weight ratios and increased efficiency, contribute to improved aircraft performance, enabling EVTOLs to take off, hover, and maneuver more effectively. Additionally, developments in power electronics, such as advanced motor controllers and energy management systems, enhance the overall efficiency and reliability of EVTOLs, optimizing energy consumption and extending flight durations. These technological advancements not only enable EVTOLs to meet performance and safety requirements but also contribute to reduced operational costs and environmental impact, fostering their widespread adoption. As battery, motor, and power electronics technologies continue to evolve, the EVTOL market is poised to benefit from increased efficiency, expanded capabilities, and improved overall performance, driving the growth and market potential of EVTOL aircraft.

Driver: Growing need for green energy and noise-free aircraft

The rising concern for clean energy stemming from the increased CO2 emissions is a concern that is growing. According to the (Energy Information Administration International (EIA) Energy Report 2021, the amount of CO2 emissions has increased largely from the growing population. The Air Transport Air Group (ATAG) reported that the global aviation industry produces roughly 2% of all CO^2 emissions. Their latest announcement from ATAG made a commitment to address climate change through a long-term climate action process and targeted a goal of cutting CO2 emissions in half by 2050. Among other technologies, the research and development of hybrid and electric hydrogen (eVTOL) projects may facilitate the transition away from fossil fuel for power and/or toward sustainable aviation fuel for growth in the air transport industry. New improvements to aircraft also add additional pressures to the eVTOL market as the climate changes. Concerns for climate change and sustainability are of priority, while there is a growing need for cleaner and greener transportation solutions. eVTOLs produce zero emissions under their electric propulsion system during the product's journey, thereby decreasing carbon emissions during the flight in comparison to traditional aircraft. Moreover, eVTOLs have better noise conditions than traditional airplanes and helicopters, thereby addressing public consumption noise concerns that arise from the noise made during the flight. The combination of zero carbon footprint and a more sustainable and noise reduction option for air transportation in comparison to traditional aircraft has fueled the global sustainable base for aviation.

Thus, the eVTOL aircraft uses the above sustainable aviation fuel to reduce carbon emissions. As per the US Department of Transportation’s Volpe National Transportation Systems Center, eVTOL manufacturers should use a variety of integrated, simulated, and dual-use aircraft noise models that have been developed over the years by the FAA (Federal Air Aviation), NASA, and the US Department of Défense. Thus, some eVTOL aircraft manufacturers, such as Airbus SE (Netherlands), Bell Textron Inc. (US), EHang Holdings Ltd. (China), and Joby Aviation Inc. (US), have developed various models producing less carbon emission and noise. For example, Airbus has revealed its CityBus next GEN aircraft, the quieter version with zero-emission eVTOL.

Restraint: eVTOL aircraft crash due to failure in software

The occurrence of EVTOL aircraft crashes resulting from software failures serves as a significant restraint for the EVTOL market. The reliance on complex software systems for flight control and autonomous operations introduces a potential vulnerability, where software malfunctions or glitches can lead to catastrophic accidents. Such incidents can undermine public trust in the safety and reliability of EVTOLs, impeding market growth and regulatory approvals. The potential risks associated with software failures necessitate stringent testing, certification processes, and robust safety measures to mitigate these concerns. As EVTOL manufacturers address these challenges and implement robust software development practices, including thorough testing, redundancy, and fail-safe mechanisms, they can enhance the safety and reliability of their aircraft, alleviating concerns and driving market acceptance.

Restraint: Battery failures due to high voltage and thermal issues

In eVTOL aircraft, the size, weight, and power must be carefully balanced. The aircraft needs an energy-dense battery that can accommodate power requirements while still being light and small. eVTOL aircraft is bounded by limitations of electric power. It needs high power during the take-off, landing, and when it flies into crosswinds. Thus, the power density of the battery should be high. The need for increased power requirements can be met by increasing the number of rechargeable batteries, which in turn will increase the payload capacity. As the batteries are designed with high power and fast charging capabilities, the battery gets heated up quickly. This results in a thermal emission of one hundred kilowatts and can also cause the battery to fail or be involved in an accident.

Overcharging, or experiencing high voltage spikes, could entail thermal runoff, cell degradation, and potentially fires in the battery that can affect the safety and reliability of the aircraft. These failures expose the passengers and crew to an elevated risk, as well as can jeopardy and strain public acceptance and regulatory processes.

Thermal-runoff, or the generation of excessive heat generation, is another major hurdle for eVTOL batteries. The high power requirements during eVTOL operations can cause rapid heating of the batteries: if the batteries cannot dissipate excess heat, thermal runaway and cell degradation are the likely outcome, with an adverse effect upon the performance and lifecycle of the battery. The thermal-runoff issue limits the functionality of eVTOL aircraft in terms of flight time and utility, which reduces commercial viability.

As per a battery manufacturer Luminati VTOL LLC (US), almost every major eVTOL aircraft developer witnessed fire incidents due to battery-pack failures. The company reported incidents in US, where a single cell anomaly in a 4,000-cell battery pack produced a chain reaction in December 2019, resulting in damage worth USD 2.4 million. In February 2020, Lilium GmbH suffered a major setback when its first five-seat technology demonstrator Phoenix was destroyed in a ground fire. This incident occurred during the installation of a battery on the ground after the maintenance of a battery module. It was not the battery that had to be used on the serial aircraft. The battery used was a basic battery system without fire protection measures.

Opportunity: Strategic developments serves as an opportunity

Strategic developments serve as opportunities for the EVTOL market. Strategic collaborations and partnerships between aerospace manufacturers, technology companies, and transportation service providers enable the pooling of expertise, resources, and networks, accelerating the development and commercialization of EVTOLs. These partnerships foster innovation, enhance research and development capabilities, and drive advancements in technology, regulatory frameworks, and infrastructure. Additionally, strategic investments in EVTOL start-ups and the establishment of dedicated test sites and vertiports create an ecosystem conducive to EVTOL deployment. The support from governments and regulatory bodies in the form of favorable policies, grants, and incentives further propels market opportunities. Strategic developments foster a collaborative and supportive environment, enabling the EVTOL market to flourish and unlock its full potential as a transformative mode of transportation.

Challenge: Safety Issues

Safety issues pertaining to the eVTOL market pose significant challenges to its growth and widespread adoption. The unique nature of eVTOL aircraft, with their vertical takeoff and landing capabilities, autonomous operations, and integration into urban airspace, introduces complex safety considerations. Ensuring the safety of passengers, crew, and people on the ground is of paramount importance. Challenges arise from multiple fronts. Firstly, the development and certification of autonomous flight systems necessitate robust testing procedures, risk assessment methodologies, and fail-safe mechanisms to ensure reliable and safe operations. This requires addressing potential software glitches, sensor failures, and communication disruptions that could lead to accidents. Secondly, the integration of eVTOLs into existing airspace systems presents challenges related to air traffic management, collision avoidance, and routing protocols. Coordination with air traffic control and other aircraft operators is crucial to ensure seamless and safe operations. Additionally, the eVTOL market must address concerns surrounding the resilience of battery systems, emergency procedures for in-flight contingencies, and the impact of adverse weather conditions on flight operations. Overcoming these safety challenges requires close collaboration between industry stakeholders, regulators, and standards organizations to establish comprehensive safety standards, robust certification processes, and a culture of continuous improvement. Adhering to stringent safety protocols, investing in rigorous testing and simulation, and maintaining transparent reporting of safety incidents is essential to instilling public confidence and addressing the challenges posed by safety in the eVTOL market.

Challenge: Lack of regulatory standards

A key challenge of eVTOL aircraft is the absence of appropriate regulatory standards. Standards developing organizations, like ASTM International, RTCA, SAE International, and the European Organisation for Civil Aviation Equipment (EUROCAE), have been working toward developing standards in support of certification. The General Aviation Manufacturers Association (GAMA) has been working with the US Federal Aviation Administration (FAA), the European Union Aviation Safety Agency (EASA), and other regulators to facilitate standard development for eVTOL certification. According to industry professionals in a panel hosted by Vertical Flight Society’s 2021 Autonomous VTOL Technical Meeting and Electric VTOL Symposium, there are several gaps in current standards that have forced applicants to flood regulatory bodies with proposals on means of compliance to special conditions or rules, and each must be evaluated independently. Thus, it is expected to be challenging to set standards for eVTOL.

Evtol Aircraft Market Ecosystem

The eVTOL market ecosystem comprises aerospace manufacturers, technology firms, and transportation service providers collaborating to drive innovation and commercialization. It involves strategic partnerships, investments, and research efforts to develop advanced propulsion systems, battery technologies, and autonomous flight capabilities. Regulatory bodies, government agencies, and infrastructure developers also play a crucial role in shaping the eVTOL market ecosystem by establishing safety standards, certification processes, and dedicated infrastructure such as vertiports and charging networks. The prominent companies are Jaunt Air Mobility (US), Lilium (Germany), Volocopter (Germany), and EHang (China), among others.

The Vectored Thrust segment accounts for the largest market size during the forecast period.

Based on Lift Technology, the market has been segmented into Vectored Thrust, Multirotor, and Lift Plus Cruise in the eVTOL Aircraft market.

Vectored thrust, as an EVTOL lift technology, commands the largest market share due to its exceptional characteristics. Its capability to manipulate propulsive force direction enhances maneuverability, making it ideal for diverse applications in the urban air mobility sector. With precise control during takeoff, landing, and hover, it offers heightened stability and versatility. Furthermore, its proven performance and established use in conventional aircraft inspire confidence among manufacturers and operators, consolidating its market dominance.

The Piloted segment is projected to have a higher growth rate during the forecast period.

Based on the mode of operation, the eVTOL Aircraft market has been segmented into piloted and autonomous. Among EVTOL modes of operations, piloted operation emerges as the fastest-growing segment. While autonomous holds future potential, piloted operation exhibits advantages that propel its growth. Passengers find reassurance and trust in the presence of human pilots, particularly during the initial stages of EVTOL deployment. Addressing safety concerns and regulatory compliance becomes more streamlined with human oversight. Moreover, seamless integration with existing airspace infrastructure and air traffic management systems simplifies the regulatory framework and accelerates market acceptance.

The > 200 Km segment is projected to have a higher growth rate during the forecast period.

Based on the range, the eVTOL Aircraft market has been segmented into <= 200 km and > 200 km. The >200 km range category demonstrates the highest growth rate within the EVTOL market. This extended range capability unlocks diverse opportunities, enabling EVTOLs to cater to regional air transportation requirements and efficiently connect distant locations. Suitable for intercity connections and longer-distance travel, this range meets the demands of a broader customer base. Leveraging advancements in battery efficiency and energy storage, this category strikes an optimal balance between payload capacity and energy efficiency. The expansion of this range fuels its faster compound growth, establishing it as a prominent segment within the EVTOL market.

Europe is projected to grow at the highest CAGR during the forecast period.

Europe is projected to be the fastest-growing region in the eVTOL Aircraft market during the forecast period, owing to a number of variables that support the region's growth potential. The region has witnessed significant economic development, which has resulted in greater air travel demand and a rising commercial aviation sector. The rising emphasis on sustainable aviation practices and the emergence of urban air mobility and advanced air mobility solutions will drive the demand for eVTOL Aircraft. Numerous growing economies, like France, the UK, and Germany, have made significant investments in their aerospace sectors in Europe. The presence of important aircraft manufacturers and suppliers in the region has contributed to Europe's market leadership in eVTOL Aircraft.

eVTOL Aircraft Market by Region

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Asia Pacific is projected to grow at the second highest CAGR during the forecast period.

China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific are covered in this region for market analysis. The eVTOL aircraft market in the Asia Pacific region is growing rapidly and is characterized by substantial urban congestion and accelerated urbanization. As per the forecast, the GDP is expected to rise during the next ten years, and emerging countries such as China and India offer significant potential for market growth. Due to stable growth and robust economic development, China has attracted significant foreign investments. The expansion of this evolving market is largely attributed to government assistance in terms of supportive legislation, collaboration, funding, and partnerships. The region also has a strong technological ecosystem adjacent to eVTOL development that includes examples of AI and 5G, as well as advances in battery technology.

Latin America is projected to grow at the third highest CAGR during the forecast period.

Brazil, Mexico, and the Rest of Latin America, which includes Chile, Argentina, Paraguay, and Peru, are covered under Latin America. Brazil is the world’s fourth-largest market for civil helicopters. Several Brazilian companies are investing in the manufacturing of eVTOL.Eve Urban Air Mobility Solutions (US) is an independent company established by Embraer engaged in developing the urban air mobility ecosystem. Currently, the eVTOL aircraft market in Mexico is very nascent, but we expect this growth to spark an uptick in the coming years. Mexico has several factors that favor the market, including a growing middle class, a rising demand for urban air mobility, and a supportive government.

Key Market Players

Major players operating in the eVTOL Aircraft companies are Jaunt Air Mobility (US), Lilium (Germany), Volocopter (Germany), and EHang (China), among others.  

eVTOL Aircraft Market Report Scope

eVTOL Aircraft Market Highlights

This research report categorizes the eVTOL Aircraft market based on Lift Technology, Propulsion Type(, System, Mode of Operation, Application, Mtow, Range, and Region.

Recent Developments

• AutoFlight, a Shanghai-based R&D specialist in autonomous flight and eVTOL technology, has secured a significant purchase commitment from EVFLY, an advanced air mobility services provider. Following AutoFlight's successful completion of the longest eVTOL flight to date with its Prosperity I all-electric aircraft, the deal entails over 200 eVTOL cargo and passenger aircraft that will form part of one of the world's first commercially available global fleets. Over the years, AutoFlight has been a focal point of our coverage, diligently working to develop and launch its flagship Prosperity I eVTOL, showcasing its commitment to advancing the field of autonomous flight and vertical take-off and landing technology.PowerCell, a leading fuel cell technology company, has achieved a groundbreaking milestone by signing a historic contract with ZeroAvia, a pioneering zero-emission aviation company. This contract marks the world's first-ever agreement for the serial delivery of hydrogen fuel stacks to the aviation industry. The agreement, valued at up to SEK 1.51 billion, is contingent on ZeroAvia obtaining the necessary certifications and entails the supply of 5,000 hydrogen fuel cell stacks. The deliveries are scheduled to commence in 2024. ZeroAvia, known for its focus on hydrogen-electric aviation solutions, aims to launch a 19-seat aircraft with a range of 300 miles by 2025.
• Lilium, a prominent player in the eVTOL market, has signed agreements with both Air-Dynamic SA and ASL Group. The agreement with Air-Dynamic involves pre-delivery payments for up to five Lilium eVTOL aircraft. Air-Dynamic, a Switzerland-based private jet and helicopter company, intends to operate these aircraft for customers in Switzerland and Italy. Additionally, Lilium has announced an agreement with ASL Group, a European business jet operator, for the purchase of six Pioneer Edition Jets. This agreement follows a previous Memorandum of Understanding (MoU) between ASL Group and Lilium, signed in July 2022. As part of the MoU, the companies have agreed to establish a network of landing sites spanning Belgium, Netherlands, Luxembourg, and Western Germany. These recent agreements highlight Lilium's expanding partnerships and growing presence in the eVTOL market, facilitating their vision of providing efficient and sustainable air transportation solutions across Europe.
• Volocopter and Safran Electrical & Power have signed an agreement at the Paris Air Show 2023 to collaborate on developing a next-generation powertrain for eVTOL aircraft. The collaboration aims to explore commercial and engineering partnerships, focusing on the entire electric powertrain, including the electrical propulsion system, battery units, and power distribution system. This strategic partnership signifies a significant step forward in advancing sustainable and efficient electric propulsion systems for the rapidly evolving urban air mobility sector.

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