Air Taxi Global Market Report 2024

The air taxi market size has grown strongly in recent years. It will grow from $41.28 billion in 2023 to $45.4 billion in 2024 at a compound annual growth rate (CAGR) of 10.0%. The growth observed in the historical period can be linked to urbanization and increased traffic congestion, a growing demand for time-efficient travel solutions, advancements in urban air mobility (UAM), the emergence of new technologies and infrastructure, as well as heightened environmental concerns driving the need for sustainable mobility solutions.

The air taxi market size is expected to see strong growth in the next few years. It will grow to $65.25 billion in 2028 at a compound annual growth rate (CAGR) of 9.5%. Anticipated growth in the upcoming period is expected to be fueled by escalating urbanization and the expansion of megacities, the increasing mobility requirements of a growing population, supportive regulatory frameworks, shifting consumer preferences, as well as collaborative ventures and partnerships. Key trends foreseen during this period encompass further collaborations and partnerships, customer acceptance and public perception, heightened market competition with the entry of new players, a focus on environmental sustainability, and efforts towards market expansion and global outreach.

The anticipated rise in traffic congestion is poised to catalyze the expansion of the air taxi market in the coming years. Traffic congestion refers to densely crowded locations with high levels of vehicular or pedestrian movement. As road congestion escalates, air taxis have emerged as a novel business avenue for airports, airlines, cities, hotels, and various enterprises, offering an alternative mode of timely passenger and package transportation. Notably, a report by INRIX, a leading US-based transportation analytics solutions provider, highlighted congestion and mobility trends in over 1,000 cities across 50 countries in 2021 amidst the ongoing COVID-19 pandemic's economic and social disruptions. The average American driver experienced a 36-hour loss due to traffic congestion, marking a 10-hour increase from 2020 but still 63 hours less than pre-pandemic levels. In total, Americans lost 3.4 billion hours in 2021 due to traffic congestion. Consequently, the upsurge in traffic congestion serves as a driving force behind the growth of the air taxi market.

The burgeoning interest in short-distance air travel is poised to significantly propel the expansion of the air taxi market in the foreseeable future. This form of travel typically involves flights covering relatively short distances, often within a specific region or country. The utilization of air taxis, which are small aircraft specifically designed for short-haul flights, has gained traction to facilitate convenient and efficient transportation, enabling swift point-to-point connectivity within regions. Air taxis cater to the increasing demand for faster and personalized travel options, particularly in densely populated areas or regions with challenging geographical landscapes. As an example, the International Air Transport Association (IATA), a Canada-based trade association, reported a remarkable surge in air travel demand in March 2023, with revenue passenger kilometers (RPKs) soaring by 52.4% compared to March 2022. This surge underscores the escalating interest in short-distance air travel, consequently fueling the growth trajectory of the air taxi market.

Technological advancements stand out as the predominant trend gaining momentum within the air taxi market. Major industry players are dedicatedly fostering innovative technologies to fortify their foothold in this domain. For instance, in October 2022, Wisk Aero, a prominent US-based advanced air mobility company, unveiled its 6th generation air taxi. This cutting-edge aircraft boasts several distinctive features, including a streamlined design with reduced moving components, human flight control integration, and state-of-the-art autopilot technology that sets an industry benchmark. Notably, the 6th generation air taxi is specifically engineered to become the pioneering vehicle of its kind to receive certification from the Federal Aviation Administration (FAA), signaling a significant milestone in advancing the technological landscape of air mobility. This strategic focus on technological innovation exemplifies the commitment of key market players to push the boundaries of air taxi capabilities, fostering safer, more efficient, and pioneering transportation solutions for the future.

Major companies within the air taxi market are strategically adopting partnerships to enhance urban mobility across significant Indian cities. A strategic partnership involves a collaborative agreement or alliance between multiple entities, such as corporations, organizations, or governments, to achieve mutually beneficial goals. A notable instance occurred in September 2022 when InterGlobe Enterprises, an India-based aviation company, forged a partnership with Archer Aviation, a US-based aircraft company. This collaboration aims to introduce an all-electric air taxi service in India. The envisioned electric air taxis, designed to be competitively priced compared to conventional road-based services, aim to address issues related to ground travel congestion and environmental pollution. The eVTOL (electric vertical takeoff and landing) aircraft, christened 'Midnight,' is capable of carrying four passengers and a pilot for distances of up to 100 miles. The aircraft's design prioritizes safety and sustainability, offering a promising solution for urban transportation challenges while contributing to a cleaner environment. This strategic partnership signifies a concerted effort by industry leaders to revolutionize urban mobility through innovative and eco-friendly transportation alternatives.

In July 2021, Volocopter, a German aircraft manufacturer, finalized the acquisition of DG Flugzeugbau for an undisclosed sum. This strategic move enables Volocopter to obtain production organization clearance aligned with the standards set by the European Union Aviation Safety Agency (EASA). DG Flugzeugbau, also based in Germany, specializes in producing composite sailboats and various other objects.

Major companies operating in the air taxi market report are Hyundai Motor Company, The Boeing Company, Airbus SE, Uber Technologies Inc., Zhejiang Geely Holding Group Co. Ltd., Beechcraft Corporation, Textron Inc., Bombardier Transportation Ltd., Dassault Systèmes S.A., Embraer S.A., Cessna Aircraft Company, Beta Technologies Inc., Volocopter GmbH, Wisk Aero LLC, Skyports AeroSystems Ltd., Archer Aviation Inc., Neva Aerospace Ltd., Ehang Inc., Jaunt Air Mobility LLC, Zeva Aero Inc., Kitty Hawk Corporation, Lilium Air Mobility AG, FAAC AG, Nurol Holding Inc., Skyway Air Taxi, Talkeetna Air Taxi Inc., Joby Aviation Inc., SpaceRyde Inc., Okona Aero Inc., Vertical Aerospace Ltd.

North America was the highest region in the air taxi market in 2023. The regions covered in the air taxi market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air taxi market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Diverse types of air taxis include multi-copters, quadcopters, and other variations. Multi-copters, characterized by mechanical simplicity, operate by adjusting the speed of multiple downward-thrusting motors and propeller units. These air taxis provide a range of services, encompassing air taxi platform services, air taxi maintenance, repair, and operations (MRO) services, as well as air taxi pilot training services. They are equipped with propulsion systems such as parallel hybrid, electric, turboshaft, and turboelectric, enabling operations across intercity and intracity ranges. Furthermore, these air taxis can operate in both optionally piloted and piloted modes, offering versatility in their modes of operation.

The air taxi market research report is one of a series of new reports that provides air taxi market statistics, including targeted therapy industry global market size, regional shares, competitors with an air taxi market share, detailed air taxi market segments, market trends and opportunities, and any further data you may need to thrive in the air taxi industry. This air taxi market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The air taxi market consists of sales of volocopter, turboprops, piston aircraft and very light jets. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.