The global air taxi market is a well-organized aircraft and is an easy solution to commute over shorter distances. Its compact size and operational capabilities allow it to land and take-off from shorter runways. It is expected to be operated via smaller local airports with less or no air traffic, and which are closer to passenger’s destination. Additionally, the smaller size of air taxis expands its reach to remote locations and places with improper infrastructure.
Moreover, factors such as increasing efforts on providing access to urban areas, and government initiatives pertaining to smart city projects also expected to bolster the demand for the air taxi market over the coming years. Additionally, increasing traffic congestion in developed cities such as Los Angeles already have lucrative opportunities for vertical mobility in the form of air taxis. However, factors such as the high differential fare between air taxi and on-road transportation, and stringent regulations related to aviation license may hamper the market growth over the next decade.
The Air taxi market has been segmented based on component, aircraft type, passenger capacity, propulsion type, and region. Based on components, the market has been segmented into hardware, and software & services. The software & services segment is expected to grow swiftly over the forecast period. The service providers are focusing to develop software, which ensures smooth operation and deployment of air taxis by managing the air routes and minimizing air congestion.
Based on propulsion type, the Air taxi market has been segmented into sub-divided into a parallel hybrid, electric, turboshaft, and turboelectric among others. The growing focus on the use of fuel-efficient vehicles with long-distance coverage is augmenting the demand for parallel hybrid and turboelectric propulsion systems for air taxis. Similarly, the aircraft type segment is analyzed for Multicopter, Side-by-Side aircraft, Tiltwing aircraft, and Tiltrotor aircraft among others. However, based on passenger capacity, the market has been segmented into one, two, four, six, fifteen, and thirty passengers.
North America is expected to dominate the market, due to the high traffic congestion in the U.S., Canada. For instance, Los Angeles was ranked among the top cities with the highest traffic congestion. Similarly, London is one of the most congested European cities where drivers spend an average of 72 hrs. per year in traffic congestion. Therefore, Uber has announced to launch its air taxi service by 2023 in some of the most congested cities of the U.S. including Los Angeles.
Asia Pacific is expected to witness a considerable CAGR due to the presence of emerging economies such as China, Japan, and India. These countries have immense growth potential owing to increasing traffic congestion, growing preference for faster modes of travel, and rising disposable income. By 2050 approximately 68% of the world’s population is expected to move to cities, which in turn would increase the traffic congestion, thereby increasing the demand for air taxis.
The major players operating in the global Air taxi market such as Airbus, Beechcraft Corporation, Boeing, Dassault Aviation SA, EHANG, Volocopter GmbH, and Uber Technologies, Inc. among others. These companies are focusing to develop hardware and software to ensure the smooth operation of the air taxi market. For instance, Uber collaborated with NASA and announced their plans to build a software to manage the air taxi route to prevent air congestion. Similarly, China’s Ehang 184 was tested in Dubai and was expected to start its operation in early 2018. However, it still needs to obtain an aviation license. Such strategic initiatives are further expected to propel the demand for the air taxi market over the coming years.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.