The airline industry is undoubtedly one of the biggest and most lucrative in the technology sector. Providing millions of dollars to the United States in revenue annually, this market is extremely valuable. However, since the pandemic’s inception, there has been minimal movement and a limit to air travel. Although many countries have approved air activity, many people are still cautious about the virus and choose to stay within a specific location. Thus, causing a decline in the airline industry.
As a result, the future of air mobility heavily relies on Electric Vertical Take-off and Landing (eVTOL) aircraft. Like smaller drones created for military use, filming, photography, etc., eVTOL is easily the safest option for different businesses in different sectors. These vehicles are electric and have been in the works for decades because of many constraints such as budget, design, and model.
However, even with so much decline in the airline industry, the global eVTOL market projects an immense increase in five years. Worth over 46,710 million dollars as of 2020, the market price is projected to reach over 87,640 million dollars in 2026. This makes up about 11% over such a short period, and it could be more. You might be wondering why this is the case. Keep reading to learn more.
Why Investors Are Certain Of The EVTOL Sector’s Viability
Aside from the projection of the rise in the value of the VTOL aircraft market and the assurance from different aircraft manufacturers, there are a lot of reasons why more investors are bullish on the eVTOL sector.
The first reason is proof of the increasing value even during the heat of the pandemic. For instance, while other companies struggled to make up for their lost income due to the pandemic, some eVTOL aircraft manufacturers were laughing to the bank. A perfect example is the eVTOL maker Astro Aerospace. This year alone, the company has seen its share price jump more than 50%. The company also acquired Canadian eVTOL manufacturer Horizon Aircraft, adding yet another vehicle – the Cavorite X5 – to its lineup in a shakeup that has some investors believing Astro Aerospace will undoubtedly emerge as a big winner in the North American eVTOL market.
The next reason why Investors are sure of making profits off the eVTOL aircraft market is its uses.
One thing that you might not be aware of is the versatility of different types of eVTOL aircraft. Since the pandemic has caused a strain on people’s physical connection, there are other ways the eVTOL aircraft market can prove a valuable asset.
- There’s an increasing demand for the use of eVTOL aircraft for different medical emergencies. With a rise in the outbreak of different diseases, especially the COVID-19, the use of electric VTOL Emergency Medical Services (EMS) aircraft has become widely accepted. Electric VTOL Emergency Medical Services (EMS) aircraft are currently being used to transport physicians to a patient faster than an emergency bus would. Although these aircraft aren’t as fast as planes or helicopters, they can save time and lives. Thus, making it a huge part of the rise of the eVTOL aircraft market.
- eVTOL aircraft can be used to provide communication solutions for better customer service. Any business’s major aim, regardless of the sector or industry, is to offer premium customer service. And the best way to achieve this is by improving the communication between your brand and your clients. With the eVTOL aircraft swift response, even when everyone is meant to limit physical connection, you can achieve client satisfaction with ease. Hence, many companies are considering this technology, as this may just be the future of delivery systems.
- eVTOL aircraft are vital for effective delivery systems. One of the major setbacks is people having to close their businesses and consumers not patronize their favorite vendors. Although many brands have opted for courier services, there are so many factors that can hinder their effectiveness. Some of them include traffic and weather. eVTOL aircraft are similar to drones and, as such, can operate despite these factors.
The eVTOL aircraft are primarily applicable to different service industries, making it easier to patronize and easier for investors to make a larger profit. For instance, the head of business development for the Uber Elevate, Wyatt Smith, has spoken of awaiting the commercial certification in 2023 to enable the company to get started in the launch market. Also, he mentions that Elevate is working on two more eVTOL aircraft being manufactured in partnership with two unnamed companies.
These vehicles, among others, will be valuable in different applications such as passenger transport, middle-mile, and last-mile cargo delivery, medical services, etc. According to Smith, these Uber air devices’ initial customer prices will be around $6 per passenger mile. With an affordable price point, you are guaranteed a lot of consumers will patronize different services. Thus, making it easier for different investors to make their profits rapidly.
Despite the promising market analysis and major aviation and auto industry players such as Toyota, Uber, and Airbus pursuing different eVTOL markets, there’s a bigger question. How will this new market perform compared to the older options? If older options are still effective, efficient, and more cost-effective, why will eVTOL aircraft be successful, especially in a climate where many people have lost their means of income?
Although it’s difficult to tell just how well this innovation will do when it is fully launched, many findings and researches suggest it will be successful. According to the data from Deloitte, about two hundred companies are currently manufacturing various aircraft for the transport of cargo or passengers. Also, a study by Frost and Sullivan suggests Dubai will likely launch air taxis in 2022.
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