Air taxi is gaining importance due to its major benefit of convenience for a short distance. Aerospace players are developing air taxies that are capable of landing and taking off on a short runway. Air Taxies are capable to land on a small place and can access remote locations.

Growing preference for air travel that is well-organized for short-distance travel is a major factor augmenting market growth. Air taxis are compact size and have high operational efficiency they can take-off and land in small places. Consumers are inclining towards the adoption of flight that is close to the destination and saves time.

Increasing government initiatives related to smart cities and approach towards facilitating better air transport service is another factor expected to support the growth of the target market. Government is spending high on the development of cities in order to provide a better living solution to people. Better transportation facilities that are able to increase access to various locations within a limited time frame.

Air Taxies are able to travel to a remote location and places with limited infrastructure facilities. Locations such as off-shore oil & gas facilities have limited transportation access in such cases availability of air taxies that has high power and is fuel-efficient is expected to face high demand.

Manufacturers are inclining towards the development of are taxies that high power and are electric. Increasing air traffic in developed and developing countries which are resulting in high fuel consumption and major players approach towards the development of alternative mode of air transport facility that is energy efficient and has low environmental impact are factors responsible to impact the global market growth positively.

However, high variation in airfares and availability of alternative transportation facility at a low price is expected to hamper the growth of the global market. Availability of developed road transportation facility at low cost is lowering the consumer’s preference for air travel. In addition, the high cost involved in research and development activities is expected to challenge the growth of the global market.

Development of smart air taxies by the major payers that has low fuel consumption and provides high comfort is expected to create new revenue opportunities in the coming years.

Segment Analysis by Region

The market in North America is expected to account for major revenue share due to the high preference for air travel among consumers and rising air traffic. In addition, the presence of major players operating in the country and the introduction of a new innovative solution is expected to further support the growth of the target market in this region. In 2019, EHang flew its EHang 216 two-seat self-flying taxi fully autonomously in North Carolina. EHang is now working toward extending that approval to flying with passengers on board.

Asia Pacific market is expected to witness faster growth due to high government spending on smart cities projects. In addition, increasing public-private partnerships for RD& activities and in order to facilitate the air transportation facility is expected to support the regional market growth. In 2019, VTOL Aviation Pvt. Ltd. Collaborated with the IIT Kanpur for the development of air taxi and is expected to launch its first taxi in 2025.

Moreover, the presence of major service providers operating in the country is expected to further support the target market growth in this region. In 2019 Uber is expected to launch its first Aerial ride-sharing service in Mumbai in collaboration with the major aerospace players it is expected to launch the service in 2023.

Competitive Landscape

The competitive scenario of the market is high as there is a high investment by the players operating on a global level for R&D activities. In addition, the approach towards increasing the profit share and business development activities through strategic merger and acquisitions are expected to increase the competition.

Report coverage

The report covers global air taxi market size and segment markets by component, aircraft type, propulsion type and geography. The component segment is bifurcated into hardware and software & services. Among the component, the hardware segment is expected to account for major revenue share in the target market. The aircraft type segment is divided into multi-copter, quadcopter, and others. Among the aircraft type, the multi-copter segment is expected to account for significant revenue share in the target market.

The players profiled in the report include Airbus, Beechcraft Corporation, Boeing, Dassault Aviation SA, EHANG, Volocopter GmbH, and Uber Technologies, Inc.

Market Segmentation

Market By Component

Hardware

Software & Services

Market By Aircraft Type

Multicopter

Quadcopter

Others

Market By Propulsion Type

Parallel Hybrid

Electric

Turboshaft

Turboelectric

Market By Region

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa