Market Trends of Air Taxi Industry
Piloted Segment to Dominate Market Share During the Forecast Period
During the initial stages of the operation of the air taxis, stakeholders in the air taxi industry are emphasizing more on pilot-driven air taxi services. Developing air taxi infrastructure requires substantial investment. Countries with higher GDP are better positioned to invest in necessary infrastructure such as vertiports, charging stations, and air traffic management systems. For instance, in 2024, the US, China, Germany, Japan, and India are some of the major economies in terms of GDP and GDP per capita. These countries are in the phase of developing various air taxi services across their countries.
In addition, the regulatory landscape is a critical factor in the successful implementation of air taxis. The current regulatory framework needs to be thoroughly evaluated, and new regulations need to be developed to address the unique challenges posed by air taxis. For instance, in July 2023, the FAA announced that electric air taxis should not fly higher than 4,000ft and above urban areas in controlled airspace. The pilots who operate the air taxis will require air traffic control clearances, and the aircraft needs automatic dependent surveillance-broadcast (ADS-B) Out systems.
Furthermore, various global countries are emphasizing the development of air taxi services for passenger travel, with many projects in development. For instance, in October 2023, EHang's EH216-S electric vertical take-off and landing (eVTOL) was awarded a type certificate by the Civil Aviation Administration of China, and the company is expecting to obtain an operation permit before it can begin commercial service.
Overall, until autonomous air taxi operations become operational, pilot deployment will aid the public in increasing familiarity with the air taxis. This is expected to build the value proposition for air taxis in the forecast period. Such developments are expected to aid the growth of the piloted market segment in the forecast period.
North America to Exhibit the Largest Market Share During the Forecast Period
The presence of the necessary aviation infrastructure required for urban air mobility makes the North American region the early adopter of air taxi services in the years to come. The US, a key market in the region, is anticipated to generate a huge demand for air taxi services in the region. Along with the high consumer demand, highly developed air traffic control infrastructure and the growing emphasis on manned and unmanned traffic management are expected to help the growth of the market in the region, as these are the ideal parameters for the operation of air taxi services.
Various US-based air taxi companies, such as Joby Aviation, Wisk Aero, and Kitty Hawk Corporation, are already actively developing frameworks for air taxi operations in the region. These companies are some of the front runners in the domain of air taxi services. For eco-friendly transport, mobility companies are emphasizing on development of electric-based air taxis. For instance, in November 2023, Joby Aviation, Inc. announced that it had successfully performed an exhibition flight in New York City. The company mentioned that it’s the first time it has flown the eVOTL in an urban setting.
Several US government initiatives aimed at promoting the UAM ecosystem will drive market growth. In April 2023, the FAA published version 2.0 of its Urban Air Mobility (UAM) Concept of Operations (ConOps), which is a comprehensive plan that lays out the framework for the future of air taxi operations in the national airspace. This blueprint essentially outlines the technical details and operational requirements for the integration of air taxis into the national airspace. Such factors are expected to aid the growth of the air taxi market in the North American region during the forecast period.
