Air taxis may not be transporting any passengers just yet, but a new report predicts that the global market will grow to just over $2.3 billion by 2027, representing a 19.6 percent compound annual growth rate over the next five years. According to the 143-page report, which was conducted by the research and consulting firm IMARC Group and published by Research and Markets, the global air taxi market was valued at $817.5 million in 2021.
The report forecasts that rising demand for more efficient transportation options, combined with increasing congestion of road vehicles and environmental concerns, will spur industry growth in the coming years. It also cites significant expansion in the aviation and transportation industries and new government initiatives focused on urban air mobility as key drivers for the air taxi market.
Rather than focusing on eVTOL aircraft, the most prominent design among air taxi developers, the report defines an air taxi as any “lightweight, energy-saving, and robust commercial airplane designed to travel shorter distances,” with operational capabilities that allow for takeoff and landing on shorter runways. “Moreover, it is operated via smaller local airports with less or no air traffic as they are relatively closer to passengers’ destination,” the report adds. “As a result, it is gaining immense traction around the world.”
The report offers an analysis of the various segments of the air taxi market and is broken up by propulsion type (electric, parallel hybrid, turboshaft, and turboelectric), aircraft type (multicopters and quadcopters), and passenger capacity, as well as the markets in different regions around the world. It also examines several of the key players and competitors in the air taxi industry, including companies that are developing air taxis as well as their major suppliers.
Research and Markets also provides an analysis of the impacts that the Covid-19 pandemic has had on the emerging air taxi market. For example, the pandemic has caused worldwide supply chain disruptions that are still ongoing. Shutdowns and stay-at-home orders also temporarily paused research and development activities, and the economic downturn during the pandemic resulted in some investment delays and cash shortages in the short term, according to the publisher.