With the increasing urbanization rate and booming population levels, many cities and towns are becoming highly congested. This is subsequently leading to long traffic jams and queues in many major urban areas across the world, which not only cause the wastage of time but also slow down the economic growth of many nations. For instance, people living in the U.S. spend 90 hours in traffic jams, on an average, every year. Moreover, these jams increase the annual transportation expenses of Americans by over $1,000.
The increasing congestion in urban roads is also fueling the prevalence of road accidents, particularly in developing countries such as Indonesia, China, and India. Due to these factors, the demand for autonomous aerial mobility solutions is soaring, which is, in turn, driving the advancement of the urban air mobility (UAM) market. According to the forecast of the market research company, P&S Intelligence, the value of the urban air mobility market will rise from $895.0 million in 2023 to $6,889.4 million by 2030.
The market is also expected to demonstrate a CAGR of 33.9% from 2023 to 2030. Between passenger and cargo aircrafts, the demand for passenger aircrafts is predicted to be higher in the coming years. This is ascribed to the fact that the requirement for passenger flights will be more than that for cargo delivery flights, on account of the growing traffic congestion in cities and towns. These flights will be used for both intercity and intracity trips. Of these, the demand for intercity trips is expected to rise at a faster pace in the coming years.
This is credited to the fact that the electrical vertical take-off and landing (eVTOL) aircrafts have longer flight range, owing to the rapid technological innovations and advancements being made in the battery, fuselage, and motor of these aircrafts. Geographically, the demand for urban air mobility solutions is predicted to be the highest in North America in the forthcoming years. This will be because of the fact that the people living in major North American cities and towns will opt for airport shuttle and air taxi services, because of the soaring traffic congestion, in the coming years.
Furthermore, cargo and last-mile services are predicted to be provided via eVTOL aircrafts in the U.S. in the near future. On the other hand, the urban air mobility market is predicted to exhibit the fastest growth in Europe in the years to come. This will be because of the surging investments being made for augmenting the adoption of the eVTOL technology for commercial aircraft operations in France and Germany. In addition, the growing manufacturing capabilities of many European UAM services providing companies will also contribute to the soaring demand for these services in the region in the upcoming years.
Hence, the popularity of urban air mobility services will shoot up in the coming years, primarily because of the increasing traffic congestion in urban areas and rising prevalence of road accidents across the world.