Global and Asia-Pacific Advanced Air Mobility Market Overview
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Introduction of Global and Asia-Pacific Advanced Air Mobility (AAM)
Advanced air mobility (AAM) or urban air mobility (UAM) is an innovative concept in air transportation, integrating cutting-edge flight technologies and transformative aircraft designs into existing airspace operations. Its primary objective is to establish a secure, automated, accessible, and cost-effective air transportation system for both cargo and passengers, particularly in locations that were previously challenging to reach in urban and rural settings. A distinguishing feature of the aircraft operating in this airspace is their compact size, deviating from traditional helicopters and commercial planes. Continuous tracking or control of these aircraft using satellite or radar technology has become increasingly impractical. Urban air mobility (UAM) further evolves AAM, focusing on efficiently connecting people with cities and regions using highly automated aircraft operating at lower altitudes within urban and suburban areas. The broader framework of advanced air mobility extends beyond urban areas, encompassing public services, short and long-range commercial inter-city travel, cargo delivery, and recreational or private vehicles. Despite the availability of advanced technologies in the market, the integration of these innovations to meet regulatory requirements and gain public acceptance remains a significant hurdle. Successful commercialization of the AAM market and ensuring sustainable growth in the future necessitate active engagement from stakeholders.
Market Introduction
The seamless integration of advanced air mobility (AAM) or urban air mobility (UAM) with current private and public ground transportation emerges as a compelling catalyst for the industry. This integration facilitates smooth intermodal journeys, elevating overall transportation efficiency and connectivity. The surging congestion on urban roads serves as a substantial driving force, compelling the uptake of AAM solutions to mitigate traffic gridlock and provide swifter, more effective transportation modes. Challenges encountered by the advanced air mobility market revolve around insufficient ground infrastructure, encompassing vertiports, and essential physical structures required for the smooth assimilation of AAM solutions into existing transportation networks. The absence of these pivotal elements poses a barrier to the widespread adoption of AAM technologies.
Industrial Impact
The rise of advanced air mobility (AAM) or urban air mobility (UAM) is set to bring about a transformative impact on various industries, particularly in transportation, logistics, and urban planning. In the realm of transportation, AAM is poised to revolutionize the movement of people and goods, offering efficient and swift aerial mobility solutions. This groundbreaking technology is anticipated to address challenges such as traffic congestion, reduce travel times, and enhance overall transportation efficiency, especially in densely populated urban environments.
Logistics and supply chain sectors are poised to experience significant advantages from AAM, facilitating quicker and more direct deliveries and optimizing the flow of goods. AAM solutions, capable of navigating beyond ground-level obstacles, have the potential to streamline supply chain operations, minimizing lead times and improving overall logistics efficiency. Furthermore, AAM is positioned to transform emergency response and medical services by providing rapid and direct aerial access to remote or challenging locations, thereby enhancing the effectiveness of critical operations during emergencies.
In urban planning, the incorporation of AAM introduces novel opportunities for smart cities, influencing infrastructure development and reshaping the concept of transportation hubs. As AAM continues to advance, its industrial impact transcends traditional aviation, instigating a paradigm shift in how airspace is perceived and navigated. This evolution fosters innovation and sustainable growth across a spectrum of diverse sectors.
Market Segmentation:
Segmentation 1: by Design
• Lift and Cruise
• Tiltrotor
• Multicopter
• Ducted Vector
Multicopter Segment to Dominate the Global and Asia-Pacific Advanced Air Mobility (AAM) Market (by Design)
The global and Asia-Pacific advanced air mobility (AAM) market based on design is led by multicopter.
Segmentation 2: by Component
• Hardware
• Software
Hardware Segment to Dominate the Global and Asia-Pacific Advanced Air Mobility (AAM) Market (by Component)
The global and Asia-Pacific advanced air mobility (AAM) market based on component is led by hardware components.
Segmentation 3: by Energy Source
• Electric Propulsion
• Hybrid Propulsion
• Hydrogen Propulsion
Electric Propulsion Segment to Dominate the Global and Asia-Pacific Advanced Air Mobility (AAM) Market (by Energy Source)
Electric Propulsion is at the forefront of the global and Asia Pacific advanced air mobility market due to its higher level of technological maturity and alignment with global environmental sustainability goals.
Segmentation 4: by Range
• <20 Km
• 21-100 Km
• 101-400 Km
• >400 Km
<20 Km Segment to Dominate the Global and Asia-Pacific Advanced Air Mobility (AAM) Market (by Range)
The <20km segment currently leads the global and Asia-Pacific advanced air mobility (AAM) market based on range due to its alignment with Urban Air Mobility (UAM) initiatives, which focus on mitigating congestion in densely populated urban centers.
Segmentation 5: by Platform Development
• Delivery Drones
• eVTOLs
Delivery Drones Segment to Dominate the Global and Asia-Pacific Advanced Air Mobility (AAM) Market (by Platform Development)
The global and Asia-Pacific advanced air mobility (AAM) market based on platform development is led by delivery drones because delivery drones are well-suited for industries, such as e-commerce and healthcare, where the need for swift and agile delivery is critical. Furthermore, the advent of the delivery drone has revolutionized aerial transportation, offering an efficient and swift solution for last-mile logistics in urban areas. Drones are well-suited for specific industries, such as e-commerce and healthcare, where the need for swift and agile delivery is critical.
Segmentation 6: by Region
• North America, Europe, and Rest-of-the-World
• Asia-Pacific
North America, Europe, and Rest-of-the-World to Dominate the Global and Asia-Pacific Advanced Air Mobility (AAM) Market (by Region)
The global and Asia-Pacific advanced air mobility (AAM) market based on region is led by North America, Europe, and Rest-of-the-World.
Recent Developments in the Global and Aisa-Pacific Advanced Air Mobility (AAM) Market
• In August 2023, Archer Aviation obtained a special airworthiness certificate from the FAA for its Maker eVTOL technology demonstrator, allowing the vehicle to undergo initial hover test flights. This achievement signifies a crucial step in Archer's mission to develop and launch commercial eVTOL services by the end of 2024.
• Bye Aerospace reached a noteworthy milestone in September 2023 when the FAA accepted the "Functional Hazard Analysis" for its purposefully designed electric eFlyer two aircraft. The established FAA certification basis for the eFlyer 2 (Project No. TC09549CH-A) confirmed its eligibility for a type certificate, with the FAA affirming that the type design adhered to the U.S. type certification basis and met safety standards for the requested certification category.
• In September 2023, Airobotics Inc., a leading manufacturer of unmanned aircraft systems, secured airworthiness type certification from the FAA for its Optimus-1EX. This recognition is significant as the second-ever uncrewed aircraft to achieve such certification and the inaugural "Drone-in-a-Box solution" dedicated to fully automated drone operations for emergency response and digital data capturing. The Optimus-1EX's certification opens avenues for diverse applications, including drone first responding (DFR) and swift infrastructure surveys for disaster relief.
• In July 2023, Joby Aviation marked a significant achievement by receiving a special airworthiness certificate from the FAA for its inaugural aircraft. This breakthrough allows Joby to progress to the next phase of flight testing for its production prototype. The granted certificate positions Joby to fulfill its vision of introducing the world's premier electric vertical take-off and landing (eVTOL) aircraft, scheduled for delivery to Edwards Air Force Base in 2024 as part of its Agility Prime contract with the U.S. Air Force. The extended Agility Prime contract, now valued at up to $131 million, reflects ongoing collaboration with key partner and investor Toyota, which invested approximately $400 million in the production line.
Analyst’s Thoughts
According to Rajat Srivastava, principal analyst at BIS Research, “The global and Asia-Pacific advanced air mobility (AAM) market is on the brink of a transformative era, fueled by rapid technological advancements and growing commitment to sustainable transportation solutions. The market is driven by the integration of electric propulsion systems, autonomous flight technologies, and innovative urban air mobility (UAM) concepts. Recent developments, such as the successful test flights of electric vertical take-off and landing (eVTOL) aircraft or unmanned aerial system (UAS) and increasing investments from major aerospace and transportation companies, underscore the market's momentum. In the U.S., the Federal Aviation Administration's proactive approach to regulating and integrating AAM operations into national airspace is fostering a conducive environment for growth. Additionally, strategic partnerships between technology start-ups, aviation giants, and government entities in the Asia-Pacific region are paving the way for advanced infrastructure and regulatory frameworks.”