Flying Taxi Market by Size, Share, Component (Software, Hardware, Services), Technology (Autonomous, Semi-Autonomous, Manual) and Forecasts by 2027

Global Flying Taxi market was valued at around USD 1.42 billion in 2019 and is expected to grow with the CAGR of 24.8% during forecast period 2021-2027.

Market Overview:

Flying taxi is a small commercial aircraft which makes short flights on demand. Sometimes referred to as "air taxis," and offers limited number of passengers a short flight within or between urban areas. The flying taxies can take off and land vertically and mainly flies several hundred meters above the ground. These taxis are generally propelled by a jet engine at the rear and used for the flying over traffic jams and in-between high-rise buildings. Like helicopters the flying taxi, don’t need a runway, but unlike helicopters are quiet and cheap. The market holds the enormous potential, and flying taxis is expected to be commercially available in few countries from 2027. As soon as the infrastructure is sufficiently in place, passengers can travel in flying taxis at prices comparable to those of normal taxi cabs. For suppliers, it is therefore important to offer reliable technology at a low price.

Currently, over a hundred projects on flying taxi are in development across the globe. With the advancements in the autonomous flight technology, electric propulsion, as well as 5G communications, the market for flying taxi is expected to grow in the upcoming years. Furthermore, flying taxi offers a huge opportunity to deal with the traffic jams and adds a third dimension to the urban transportation matrix. However, the market is still in the infancy stage and requires more time to become the mass phenomena. The number of companies participating in the market has steadily grown over the decade. In addition to this, many companies are heavily investing in the research and development for the development of flying taxi. Moreover, companies are focusing to offer on-demand flying taxi services that is powered by the all-electric, vertical take-off and landing jet. However, the market is facing enormous regulatory and technical challenges in getting their respective flying taxi services off the ground.

Market Dynamics:

Drivers:

• Rising number of investments for research & development activities

Increasing research and development activities for the flying taxi is one of the key factor driving the growth of market. Many companies are heavily investing the research and development activities to develop and commercialize flying taxi in the market, and to gain the competitive advantage by launching it first in the marketplace. In addition, this the flying taxi is a very technological concept, in terms of fuel, software and services, and propulsion type, and requires huge research to develop the product. Thus, many companies are partnering with other companies to develop the flying taxi related components. For instance, in 2017, Uber signed a deal with NASA, to develop traffic systems for its flying car project which is going to start testing in 2020.

• Increasing traffic congestion on the roads

The problem of traffic congestion across the globe has increased to a larger extent, with rising population and increasing number of vehicles operating on the road. This has resulted into serious issues such as air pollution and environmental hazard. Therefore, the demand for flying taxi is growing, as it helps to reduce the traffic congestion in the cities, by transporting the passengers by air means. Thus, increasing traffic congestion across the globe, is positively influencing the growth of flying taxi market.  

Restraints:

• Stringent government regulations 

Regulations remains the primary challenge for the flying taxi market, which is likely to restrain the market growth over the forecast period. These regulation presents barriers for commercial launch, from scaling to ultimate full viability. The Flying taxis requires several certifications such as Part 135 certification from the Federal Aviation Administration (FAA) to run as passenger transportation.  Thus, to pass these strict regulation and guideline requires lot of time, which is expected to hamper the growth of market.

Opportunities:

• Growing developments in the air urban mobility

Flying taxi is anticipated to have a profound impact when it comes to society, the economy and the environment. It will reshape how people move around cities they have the potential to disrupt conventional transport systems like highways, trains and buses, put a dent in pollution around urban centers, and make for much faster commutes, therefore making society more efficient and productive as a whole. The flying taxis are expected to have zero operational emissions, and be quiet enough to operate in cities without noise pollution. Ride hailing service companies such as Uber partnered with the Boeing, to commercialize the flying taxi concept, is anticipated to offer various growth opportunities in the market.

Challenges:

•  Infrastructure barriers

The current infrastructure in the world may be able to support initial trials, but it is unlikely to be able to accommodate these businesses at a commercial scale. The infrastructure includes landing pads with passenger facilities, parking for air taxis and recharging points for their batteries. Current infrastructure is unlikely to be able to accommodate urban air mobility at scale, and will need custom-built, large-scale infrastructure. Thus, infrastructure barrier is one of the key challenges, hampering the launch of flying taxi at commercial scale.

Segmentation Analysis:

The global flying taxi market has been segmented based on component, technology, propulsion type, aircraft type, passenger capacity, and regions.

• The component segment is divided into software, hardware, and services. The software segment is anticipated to grow at the highest CAGR of 25.6% over the forecast period. This is mainly because many companies are working on the development of software program, to ensure the safe and smooth operation workflow of flying taxi. Software also helps to autonomously control the flying taxi, without manual process. Many companies are working together to develop the software for the flying taxi. 
• The technology segment includes autonomous, semi-autonomous, and manual. The autonomous segment is likely to grow at the highest CAGR of 24.9% over the forecast period. Many companies are investing in the researcher and development for the launch of autonomous flying taxi that riders will be able to hail with their smartphones. For instance, in November 2019, Ehang, a Chinese autonomous flying taxi startup, filed paperwork with the US Securities and Exchange Commission to go public with a USD 100 million offering of depository shares.
• The propulsion type segment includes parallel hybrid, electric, turboshaft, and turboelectric, and others.  The parallel hybrid propulsion system held the largest market share of 28.6% in 2019. This is mainly due to its benefits such as higher fuel efficiency and longer driving range among others.
• The aircraft type segment is divided into multicopter, side-by-side aircraft, tiltwing aircraft, tiltrotor aircraft, and others. The multicopter aircraft type accounted for a major market share of 32.3% in 2019.  This is mainly due to economic benefits offered by multicopter along with its ability to use shorter runways for ultra-short-haul journeys. Multicopter is a rotorcraft with more than two rotors, and it requires simpler rotor mechanics required for flight control.
• The passenger capacity segment is classified into less than 5, less than 10, and more than 10. Less than 5 passenger capacity segments accounted for the major market share of 61.2% in 2019. This is mainly due to many companies are focusing on the developing the 2 and 4 passenger capacity flying taxi.

Regional Segmentation Analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The North America region emerged as the largest market for the flying taxi market with a 43.6% share of the market revenue in 2019.

• This is because North America is one of the highly technologically advanced regions among others. The region has well developed infrastructure and they are early adopters of flying taxi in the world. In addition to this, U.S. and Canada are experiencing the high traffic congestion, and requires an alternative way to reduce the traffic jams, further driving the growth of market. Furthermore, many companies of global flying taxi market have the key presence in the North America region, is anticipated to boost the market growth over the forecast period. 
• The European regional market is projected to register the highest growth during the forecast period due to the technological advancements in telecommunication technologies such as 5G and increasing startup funding for flying taxi. Many aviation companies of Europe are working on the development and commercializing the flying taxi across the region.

Competitive Analysis:

Developing and developed countries are offering greater opportunities and major players are continuously focused on new developments, strategic partnerships, acquisitions and venture capital investments to obtain high growth in the market.

In January 2019, Boeing announced the successful testing of its first test flight of air taxi in U.S. Boeing and Textron subsidiary Bell are partnering with Uber as it maps out plans for an air taxi service called Uber Air.

In October 2019, Volocopter GmbH, a German startup backed by Intel Corp. and Daimler AG, announced that its volocopter, an electrically powered air taxi, took its first public test flight in Germany. The company expects to offer its first commercial trips in the next three to five years.

List of Key Market Players:

• Airbus
• Beechcraft Corporation
• Boeing
• Dassault Aviation SA
• EHANG
• Volocopter GmbH
• Uber
• Embraer
• Gulfstream
• Cessna
• Joby Aviation
• TERRAFUGIA
• AeroMobil s.r.o. AeroMobil

Key Target Audience

• Aviation Companies
• Aircraft Manufacturers  
• Government Authorities and R&D Institutions
• Consulting And Research Firm
• Potential Investors
• Ride Hailing Service Providers
• Telecommunication companies

​​​​​​​Major factors covered in this report

• Market Dynamics: Market Drivers and Restraints
• Value-Chain: Supply and Demand Analysis
• Cost and Price Structure Analysis
• Competitive Analysis
• Porter’s Five Forces Analysis

What will the report include?

• Highlights of main global R&D activities and new technological developments
• Estimation of the actual market size and revenue forecasts for global market
• Description of the most relevant research and development activities related to Flying Taxi market places
• Production of Flying Taxi, and review of application for Flying Taxi and assessment of emerging applications
• Analyses of the global market trends, with data from 2020, estimates for 2021, and forecast through 2027
• Review of current industry players, including manufacturers of Flying Taxi, technology developments, and future market participant

​​​​​​​Some of the key questions addressed in the report were…

• What were the market size in 2014 and the outlook from 2021 to 2027?
• How much growth will the industry market experience between 2017 and 2027?
• What are the important factors, constraints, and opportunities, and how they will affect market?
• What are the key segments of the Flying Taxi market growth and why?
• Who are the main participants and strategies they use to compete in the market?

Minds Insights is the foundation for data driven insights in various industry verticals using four key capabilities:

• Qualitative Research
• Quantitative Research
• Strategy Building
• Research Design