EVTOL Aircraft Market Report 2025

The evtol aircraft market size has grown rapidly in recent years. It will grow from $14.36 billion in 2025 to $18.92 billion in 2026 at a compound annual growth rate (CAGR) of 31.7%. The growth in the forecast period can be attributed to rapid urbanization and traffic congestion, increasing pressure to reduce aviation's carbon footprint, defense and space sector influence.

The eVTOL aircraft market size is expected to see exponential growth in the next few years. It will grow to $34.2 billion in 2029 at a compound annual growth rate (CAGR) of 24.2%. The growth in the forecast period can be attributed to the growing need for green energy and noise-free aircraft, increasing demand for eVTOL aircraft in cargo applications, and growing urbanization. Major trends in the forecast period include electric propulsion and hydrogen fuel cell technology, the use of artificial intelligence, eVTOL aircraft shuttle, autonomous eVTOL aircraft, strategic partnership, and research and development.

Growing urbanization is anticipated to significantly fuel the growth of the eVTOL (electric Vertical Take-Off and Landing) aircraft market. As urban areas expand due to factors like employment opportunities, economic growth, and industrialization, more people move into cities, leading to increased demand for efficient air transportation options. This surge in urban population creates a higher need for sustainable travel solutions, particularly as consumers become more environmentally conscious. For instance, the Baker Institute reported that the population in Arab countries reached approximately 465 million, with urban residents expected to increase from 279 million to about 362 million by 2035. This urban growth will drive demand for innovative transportation solutions, including eVTOL aircraft, which offer rapid, efficient, and eco-friendly options for navigating congested urban landscapes. As urbanization continues, the eVTOL market is well-positioned for substantial expansion.

The eVTOL aircraft market is witnessing a significant trend of technological advancement, with major companies in the industry focusing on delivering cutting-edge solutions to bolster their market presence. These companies are integrating advanced technologies into their eVTOL aircraft services, including Internet of Things (IoT), ultra-edge hydrogen and battery cells, onboard sensors, collision prevention systems, artificial intelligence (AI) technology, 5G communication, and more. For instance, Hyundai, an automotive manufacturer, has explored the use of hydrogen fuel cell technology for short Take-off and Landing (eVTOL) aircraft, anticipating that this technology will provide sufficient range for intercity trips.

Major companies in the eVTOL (electric Vertical Take-Off and Landing) aircraft market are making significant strides in technological advancements, particularly in battery efficiency and aerodynamics, to enhance aerial mobility solutions. These innovations are crucial for making urban transportation more accessible and efficient. For example, in June 2024, Air Company, a US-based engineering firm, launched the AIR ONE Cargo, an unmanned variant of its flagship eVTOL aircraft specifically designed for cargo transport. This aircraft can carry payloads of up to 250 kg and utilizes the same design and technology as the passenger version. Notably, it features advanced fly-by-intent technology, which improves connectivity with ground control and facilitates greater automation in flight management. This initiative reflects Air Company's commitment to versatile eVTOL applications, addressing the growing demand for efficient cargo transport solutions in urban environments.

In June 2022, Joby Aviation, a California-based eVTOL developer, acquired Avionyx for an undisclosed sum. This acquisition positions Joby to fulfill regulatory requirements for bringing their eVTOL aircraft to market. Avionyx specializes in embedded software and hardware engineering services for the commercial aerospace industry.

Major companies operating in the eVTOL aircraft market include Airbus SE, Textron Inc, Embraer SA, Wisk Aero, Volocopter GmbH, Volkswagen Group China, Zerog, Aerofugia, AutoFlight, TCab, Volant Aerotech, MuYu Aero, Pantuo, Plana, MintAir, Tetra Aviation, SkyDrive, XPeng HT Aero, Vertical Aerospace, Zuri, United Aircraft Corporation, Urban Aeronautics Ltd, Moog Inc, Boeing, Bombardier, McDonnell Douglas, Cessna, Joby Aviation, Lift Aircraft, Neva Aerospace, Uber Technologies Inc, Archer Aviation Inc, Jaunt Air Mobility LLC, Overair Inc.

North America was the largest region in the eVTOL aircraft market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the eVTOL aircraft market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the eVTOL aircraft market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The eVTOL aircraft market consists of sales of eVTOL aircraft having to carry a weight capacity of less than 200 Kg and beyond. 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.

eVTOL aircraft, or electric vertical takeoff and landing aircraft, utilize electric power for vertical hovering, takeoff, and landing. Designed to revolutionize urban and regional mobility, eVTOLs offer swift, direct, and environmentally-friendly transportation. These aircraft rely on motors, batteries, fuel cells, and electronic controllers to generate electric power for their vertical operations.

Key technologies employed in eVTOL aircraft include vectored thrust, multirotor, and lift pulse cruise. Vectored thrust involves adjusting the thrust angle to control the aircraft's attitude or angular velocity. This technology is commonly used for pitch and yaw attitude control in boosters and upper stages. Propulsion systems for eVTOLs include fully electric, hybrid electric, and hydrogen electric options. These aircraft, available in both autonomous and piloted configurations, find applications in air taxis, air shuttles, private transport, cargo transport, air ambulance services, last-mile delivery, inspection and monitoring, surveying and mapping, surveillance, special missions, and more.

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

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.

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