Frost & Sullivan Announces Urban Air Mobility Market Outlook
Following the UAE, New Zealand, and Singapore, Brazil and Mexico are set to take active steps.

With the launch of air taxi operations in the Middle East in 2022, a total of 430,000 air taxis are expected to be in operation globally by 2040.

Driven by government support and technological advancements, aerospace and automotive companies as well as specialized technology developers are expected to enter the Urban Air Mobility (UAM) market in large numbers and lead the air taxi market. It is expected that 430,000 air taxis will be operating in the skies worldwide by 2040.
According to the '2019 Analysis of Urban Air Mobility and the Evolving Air Taxi Landscape' report published by global market research firm Frost & Sullivan, the United Arab Emirates (UAE), New Zealand, and Singapore are emerging as the first countries in the world to introduce air taxis, followed by countries such as Brazil and Mexico, which are expected to actively pursue the introduction of air taxis by leveraging their expertise in helicopter taxis.

Currently, about 50 cities around the world are focusing on the air taxi market with an emphasis on the feasibility of urban air mobility, and air taxis are expected to record a CAGR (compound annual growth rate) of 45.9% by 2040.

Industries utilizing air taxis are predicted to ultimately focus on establishing an urban air mobility vehicle market, extending beyond the cargo drone sector.

As the number of urban air mobility vehicles increases, the service market for pilot training, maintenance, and repair also has high growth potential. Reflecting this, market strategies proposed by Frost & Sullivan include: integrating in-vehicle fail-safe mechanisms targeting potential customers; reducing noise through collaboration with rotor and propeller developers; establishing support infrastructure such as take-off and landing stations, passenger waiting rooms, and landing pads in residential buildings; and developing cybersecurity capabilities or acquiring cybersecurity startups.

Sim Jin-han, Director of Frost & Sullivan Korea, said, “Safety, noise levels, infrastructure for takeoffs and landings, and government regulations that will have a positive impact on the industry will be key factors in the commercialization of air taxis,” adding, “OEMs will invest in the development of alternative energy sources, including hybrid fuel systems, lightweight high-strength composite materials, and large-capacity solar batteries, to enable fuel efficiency and long-distance operation.”

Meanwhile, the newly released report contains an analysis of vehicle models and applications, evaluations of major city and intercity taxi service companies, and strategic recommendations, as well as the potential of air taxi services and ecosystem support measures.