Urbanization has taken the world by storm, and while people living in cities are provided with as many facilities as possible, it cannot be said that there are no negative aspects of advancements. As the disposable income of people is increasing, the number of vehicles on roads in growing as well. This is further causing traffic congestion on roads, majorly in urban areas. For example, 90 hours are spend on an average by people in the U.S. in traffic jams every year, which further increased the transportation expenditure by more than $1,000.
The tariff for passenger aircrafts is predicted to be higher than that of cargo aircraft, however, their adoption is projected to grow due to the increased traffic congestion. These aircraft have the ability to provide intercity and intracity transportation services. Between these two, the demand for intracity air transport is expected to be higher in 2023, since currently, aircrafts are being developed for this kind of travel, owing to limitations in battery technology and strict regulations. This being said, the demand for intercity travel is also projected to grow considerably by 2030, primarily due to technological advancements in motors, fuselage, and battery.
This would increase the range of electric vertical take-off and landing (eVTOL) aircraft, thereby enabling them to travel to different cities. Aircrafts used for UAM can be piloted or autonomous, between which, the demand for autonomous aircrafts is predicted to be higher in the coming years. This is majorly due to the fact that autonomous aircrafts are being considered better for passenger and cargo transportation services as compared to piloted aircrafts. In addition to this, aircraft manufacturers, infrastructure providers, and airspace integration researchers are increasingly providing funds for autonomous UAM services.
When geography is taken into consideration, North America is projected to emerge as the largest urban air mobility market in the years to come. This is because of the rapidly increasing traffic congestion on roads in the U.S., which will result in a larger number of people opting for air travel services. Furthermore, last-mile and cargo services, along with eVTOL aircraft, are predicted to be provided widely in the U.S. Apart from this, the demand for these services is also expected to grow substantially in Europe in the near future due to heavy investments for the development of this technology.
Hence, the demand for urban air mobility services is predicted to increase in the coming years on account of surging congestion on roads in major cities.
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