The eVTOL aircraft market was valued at USD 0.9 billion in 2023-e, growing at a CAGR of 39.7% during the forecast period of 2024-2030. Market expansion is propelled by advancements in batteries and motors, coupled with a growing need for urban air mobility. The notable surge in investments and the emergence of startups in the eVTOL sector are key drivers of this growth. Additionally, significant opportunities for market expansion are expected with advancements in hydrogen fuel technology within the eVTOL aircraft segment.

eVTOL Aircraft Market Overview

eVTOL refers to electric vertical take-off and landing aircraft, which can be all-electric, hybrid-electric, and hydrogen-electric. These generally include non-helicopter electric VTOL aircraft which are large enough to carry passengers or cargo. There is an emerging need for urban air mobility that can enable greener and quieter flights and eVTOLs are anticipated to fulfill that need. The eVTOLs also have the potential to lower the operating costs of aircraft, thus, poised for lucrative growth in the forecast period.

Technological Advancements in Batteries and Motors are Driving the Market Growth

The eVTOL aircraft market is driven by technological advancements in batteries and motors. The electric and hybrid propulsion systems are greener alternatives to the traditional fuel-powered propulsion systems. Continuous innovations in battery technologies are leading to improved specific energy and energy density, longer lifetime, and increased safety. For instance, in August 2023, Amprius (US), a battery manufacturing company, launched a high-power version of its silicon-anode lithium-ion cell for drones and eVTOL aircraft. Moreover, continuous innovations in battery technologies such as the development of solid-state batteries that use solid electrolytes instead of liquid or gel-based electrolytes are anticipated to provide significant opportunities for the eVTOL aircraft market growth.

Vectored Thrust Aircraft is Highly Preferred Owing to its High Efficiency, Payload Capacity, and Speeds

Vectored thrust eVTOL aircraft uses any of its thrusters for lift and cruise. It changes the direction of thrust for vertical take-off and horizontal cruising. Vectored thrust is one of the preferred configurations as it is efficient in both hovering and cruising, can support higher payloads, and can travel at high speeds. Several designs implement vectored thrust eVTOL designs such as the Archer Maker, Lilium Jet, Joby S4, Vertical Aerospace VA-X4, Craft Aero.

The companies are continuously innovating with newer designs to come up with the most efficient and safe eVTOL flights. For instance, Klissarov Design, a French design studio developed a new eVTOL aircraft concept specifically for the marine industry. The new design is based on next-gen cycloidal rotor technology which allows the propulsion system for full 360-degree thrust vectoring. As a result, the vectored thrust segment is expected to have a significant market share in the eVTOL aircraft market.

Source: Intent Market Research Analysis

High Demand for Long-Range Flights is Driving the Hybrid Electric Segment

There are different configurations of propulsion systems available in eVTOL aircraft. The hybrid electric propulsion system allows the use of multiple fuel systems, often incorporating fossil fuels. The hybrid electric propulsion systems provide increased flight range in comparison to fully electric propulsion systems. This allows for expanding the application of eVTOL aircraft to extended distances with the feasibility of refueling easily.  Thus, the hybrid electric segment is anticipated to hold a significant eVTOL aircraft market share.

Advances in Autonomous Technologies is driving the Segment Growth

Autonomous aircraft can operate without a pilot and are expected to bring safer flights and more efficient operations. Autonomous vehicles can reduce accidents, alleviate driver shortages, save gas, and improve productivity. There have been several developments in autonomous technology in recent years that are further driving the market. For instance, in October 2023, Wisk Aero, a fully-owned subsidiary of Boeing, completed its first public self-flying air taxi flight in the US. Advances in avionics and autonomous technologies are anticipated to provide significant opportunities for the eVTOL aircraft market growth.

Adoption of eVTOL in Military and Peacekeeping Operations is Augmenting the Market Growth

There’s an increasing demand for eVTOL for military and peacekeeping operations and key players are actively developing eVTOL for military applications. In September 2023, Joby Aviation delivered an air taxi to the Edwards Air Force Base in California (US). In another instance, in November 2023, Moog (US) also announced that it is developing an autonomous hybrid eVTOL for military missions. In addition, governments are also increasingly opting for the eVTOL aircraft for disaster relief, emergency medical services, surveying, and other such applications. As a result, the military & government segment is expected to maintain a substantial eVTOL aircraft market share.

North America Hold the Largest Share in The eVTOL Aircraft Market

There has been significant growth in the eVTOL aircraft market in the North America owing to the growing emphasis on urban air mobility, robust government initiatives, and high government spending on the eVTOL aircraft industry. The presence of key players in the region such as Archer Aviation, Bell Textron, Beta Technologies, Boeing, Joby Aviation, and Surf Air Mobility, among others is driving the market growth.

Moreover, the government is increasingly taking initiatives for infrastructure development for the eVTOL. For instance, in November 2023, the New York City Economic Development Corporation published a new request for proposal (RFP), seeking an operator to upgrade the city-owned Downtown Manhattan Heliport to provide supporting infrastructure for eVTOL aircraft and maritime freight delivery. As a result, North America stands as the largest region in the eVTOL aircraft market.

Competitive Analysis

Companies operating within the eVTOL aircraft market are primarily eVTOL aircraft designers and manufacturers. The manufacturers are also producing different components utilized in eVTOL aircraft. The companies are actively expanding their portfolios with the growing demand for eVTOL aircraft. The eVTOL Aircraft market is dominated by a few key global market players having a significant market share. The market is highly competitive with the presence of a high number of startups in the market.

Following are the key developments in the eVTOL aircraft market:

• In June 2023, Boeing acquired eVTOL manufacturer Wisk Aero. Through this acquisition, the company became the sole shareholder of Wisk Aero.
• LYTE Aviation (UK), an eVTOL manufacturer came into a partnership with Volatus Infrastructure & Energy Solutions to build infrastructure required for all types of eVTOL technologies.

eVTOL Aircraft Market Coverage

The report provides key insights into the space militarization market, and it focuses on technological developments, trends, and initiatives taken by the government in this sector. The report delves into market drivers, restraints, and opportunities, and analyzes key players and the competitive landscape within the market.

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