ID: MRFR/A&D/3943-CR | August 2019 | Region: Global | 123 pages
Segmentation of the Global Passenger drones Market
Many factors drive amazing growth in this industry. Some of them are the global drive to reduce car and vehicle emissions that can harm the atmosphere and contribute to the ever-growing problem of global warming. People also want to have a way of transporting people in emergencies that is fast, easy, and cost-effective.
Many nations are all too eager to keep their roads safer by having fewer vehicles on the road. They also want to put an end to the never-ending nightmare of long traffic jams and traffic congestion that stretches on for several miles. Finally, governments around the world are concerned about the quality of the air and are ready to find solutions that will reduce overall vehicle emissions into the atmosphere. All these factors are creating new opportunities and markets for passenger drones.
The passenger drones industry is still experiencing some hiccups that are keeping it from realizing its true growth potential and market share. Some of these restraints are the inability of current passenger drones to remain airborne for long periods, concerns over the safety of passenger drones, lack of comprehensive regulation to support the industry at the global level, lack of supporting infrastructure, lack of a comprehensive plan to manage existing air traffic, a shortage of skilled pilots who can fly these drones.
The passenger drones market must resolve several pressing issues before it can realize its true market and growth potential. For example, the issue of relaxing air rules and regulations for flying planes and drones must be resolved. Another pressing issue is creating a better infrastructure that can support these drones.
Cumulative growth analysis
The passenger drones market is experiencing healthy and strong growth. This is expected to continue even in the wake of the COVID pandemic. But some segments are faring better than others are. For example, the airframe market is expected to witness the highest CAGR of all segments in the industry. This is largely because drones need to be intelligently designed and built to transport people safely and quickly.
Part of the increase in demand for passenger-carrying drones is directly attributed to recent technological advances in the drone industry. The new generation of technology has allowed drone manufacturers to make and launch new products that are safer and innovative in terms of transporting people to different parts of the world quickly.
A good example of this is the concept of passenger drones which are capable of vertical take-off and landing (VTAL). Another good example of technological improvements and integration is in the autonomous quadcopter passenger drone. This was the brainchild of the Chinese company EHang. It has been pilot tested and is verified to carry passengers to different parts of the world safely, quickly, and in a cost-effective manner.
The passenger drones market is currently divided into 2 markets based on service: commercial and personal. The commercial market will experience the strongest growth of the two markets in the six years between 2019 and 2025. The personal market will also grow but not as fast. This is largely attributed to a smaller customer base.
New advances in technology have resulted in drones that have a stronger and sturdier airframe that is also more durable. This is key because this makes it easier to transport people safely across large expanses of the world in a short period. The next generation of drones also sports better design, engineering, and configuration.
There are many types of passenger drones market. This is expected to increase as these drones become more acceptable to the public. Some of these types include tourist drones, drones for amusement parks, drones for taking people to the hospital during medical emergencies, and drones that will help the police do a better job of surveying a particular area for criminals and/or wanted people.
There are two categories of passenger drones market. These are those that weigh up to 100 kilograms and those that weigh more than 100 kilograms. The former category is used most largely because it is easier and more cost-effective to fly these types of drones.
CAGR is strongest in the European Union for passenger drones market. There are many reasons for this. One is the large number of drones that are present in many European nations.
Another major reason for high growth in this region is the large concentration of drone manufacturers. Some of the most noted European drone manufacturers are:
● Airbus SAS
● Volcopter GmBH
The North American region is growing at a pace that is slightly slower and lower than that of the European Union for passenger drones market. One of the reasons for this is the sheer demand for drones from the general population.
However, it is the presence of strategic companies that are driving fairly strong growth in the North American region. Some of the most noted drone manufacturers are Boeing, Workhorse, and JobyAviation.
The Asia-Pacific region is somewhat of a laggard but growth in this region is picking up dramatically. Most of the demand for drones comes from three countries. These are China, Japan, and South Korea.
What is driving growth in this region is rapid urbanization. This is combined with the fact that this population has rapidly growing discretionary income and purchasing power. The most important market in this region is China.
There is a lot of competition in the passenger drone industry. Though there are relatively high barriers to entry, there are many entrenched players that are entering into the drone industry. They are largely driven by the high CAGR and the lucrative market.
The main player in passenger drones market is the American giant Joby Aviation. What is helping this company grow is innovation in terms of new drones that it launches on the market. One of these is the six-motor drone. This electric drone flies efficiently, safely, and does not emit emissions when flying. What is better is that it is capable of vertical take-off and landing.
List of companies
Some of the major companies in the passenger drones market are:
● Aeromobil - Slovakia
● Airbus SAS - France
● Cartivator - Japan
● EHANG - China
● Joby Aviation - USA
● Lilium - Germany
● Terrafugia - USA
● Boeing - USA
● Uber Technologies inc - USA
● Velocopter Gmbh - Germany
An increasingly urban population is demanding a quick and easy way of transport that is environmentally friendly. This solution lies in the passenger-carrying drone. The passenger drones market is expected to grow at a healthy pace in the post-COVID world. Many companies are already in the market and they are sustaining themselves with mergers and acquisitions and new product rollouts.
Frequently Asked Questions (FAQ) :
global passenger drones market is anticipated to acquire a significant market value during the forecast period from 2019 to 2025.
global market for passenger drones is estimated to expand at a CAGR of 27.74% during the forecast period from 2019 to 2025.
The growing urban population, rapid technological development, and reduction in drone costs are some of the predicted factors driving the global passenger drones market.
Europe is expected to dominate the global passenger drones market during the forecast period owing to the presence of established key players.
Volocopter GmbH (Germany), AeroMobil s.r.o. (Slovakia), and Ehang (China) are some of the renowned players in the global passenger drones market.
Global Passenger Drones Market: Report Summary
The global passenger drones market is set to grow from USD 154.4 million in 2017 to USD 851.2 million by 2024. This projects that the market will expand at a high rate during the forecast period. Factors such as growing urban population, rising traffic congestion problems, rapid technological advancements and decline in drone costs, and rising participation of companies are driving the market growth. The Asia Pacific region has become a lucrative region for the firms that develop passenger drones and related systems, due to the increasing focus of countries such as China, Japan, and South Korea.
The passenger drones market in this report has been segmented on the basis of component into five types, namely airframe, controller system, a navigation system, propulsion system, and others. Airframe segment accounted for the largest market size, however, controller system segment is expected to witness the highest CAGR during the forecast period. The controller system assists in controlling the drone’s direction during flight. This system is a critical enabler of all drones. Immense growth and adoption of autonomous devices and focus on developing sensing and analytical systems to uphold flight safety and security is driving the growth of this segment.
The global passenger drones market has been segmented by capacity up to 100 kg and over 100 kg. Presently, most of the drones developed fall into the up to 100 kg category. However, companies such as Uber Technologies Inc. are keen on the commercialization of passenger drones, which might not be viable if the drone has less capacity. Hence, the over 100 kg segment is projected to witness a CAGR of 30.33% during the forecast period and will surpass the market size for up to 100 kg segment by 2024.
The global passenger drones market, in this report, has been segmented on the basis of application into two types, namely commercial and personal. Till date, apart from a few exhibits and test flights, there is no wide-scale implementation of passenger drones. However, over the next decade, it is most likely that the passenger drones will be commonly used in amusement parks and other tourist destinations, hospitals for emergency purposes, police for security and surveillance purposes, and so on. Hence, the commercial segment is expected to lead the market and register the highest CAGR during the forecast period.
The global passenger drones market, in this report, has been segmented on the basis of rotor into two types, namely less than 10 rotors and more than 10 rotors. Drones which are being developed by Volocopter GmbH, JOBY Aviation, and Lilium fall under more than 10 rotors category. Meanwhile, based on the present designs, the number of rotors is in direct correlation with the speed, range, and capacity of the passenger drones. Therefore, the more than 10 rotors segment is projected to register the highest CAGR during the forecast period.
Regional Market Summary
Led by Germany, Europe holds the largest share of the passenger drones market. It is expected to lead the market throughout the forecast period. In 2017, Europe accounted for more than 30% share of the global market; is expected to retain its position during the forecast period. The presence of companies such as Airbus S.A.S, Lilium, and Volocopter GmbH is expected to boost the European market over the next decade. The key drivers for the European market are increasing joint ventures & partnerships along with rapid technological advancements.
The U.S. is at the forefront in developing passenger drones, and this country is the single largest market on the global scale. The U.S. Department of Transportation is focusing on the process which is similar to approving traditional commercial air carriers for the approval of passenger drones as well. This country houses companies such as Boeing and Uber Technologies Inc. which are very active in the passenger drone market space. Meanwhile, the U.S. has a couple of cities, such as Los Angeles and New York, which face high levels of traffic congestion. Passenger drones could prove a beneficial solution in these areas.
Meanwhile, in Asia Pacific is the second largest market and the passenger drones market in this region is poised to expand at the highest CAGR during the forecast period. The increasing urban population, rising disposable income and focus on drones for transportation purposes will bolster the market growth in this region. China, Japan, and South Korea are promising markets for passenger drones. The leading companies dominated the APAC regions are EHANG and Cartivator.
The key players of the global passenger drones market include AeroMobil (Slovakia), Airbus S.A.S. (France), Boeing (U.S.), Cartivator (Japan), EHANG (China), Joby Aviation (U.S.), Lilium (Germany), TERRAFUGIA (U.S.), Uber Technologies Inc. (U.S.), and Volocopter GmbH (Germany). The key growth strategies adopted by the market players are new product launches, business expansion, and mergers & acquisitions. The extensive growth opportunities in passenger drones market are attracting heavy investments by the companies.
Global Passenger Drones Market: Competitive Landscape
Airbus, Boeing, EHANG, Uber Technologies, Inc., and Volocopter GmbH collectively accounted for more than 80% of the market share of the global passenger drones market in 2017. These companies continue to retain their strong global presence through business expansions, partnerships, merger & acquisition, and extensive product portfolio.
In 2017, Airbus was the leading player in the market. Airbus is looking forward to establishing partnerships with companies such as Italdesign Giugiaro S.p.A. to manufacture passenger drones. The strong order base enables the company to make significant investments in developing innovative technologies, and its diversified portfolio enables it to maintain a competitive position in the market. The company also has a strong foothold in North America and Europe - two of the most important regions in the market. Their dominance is likely to remain unchallenged during the assessment period. Meanwhile, the company’s Unmanned Aerial Systems (UAS) division, which develops, delivers, and operates UAS and UAV solutions for airborne intelligence, surveillance, and other missions is a part of the defense and space segment. In addition, the company developed the “Vahana” passenger drone, which was flight tested in February 2018.
Boeing held the second position in terms of market share, in 2017. Boeing has built a big name for itself as one of the world's largest aerospace companies. The company has three business segments: commercial airplanes, defense, space & security, and Boeing global services. Apart from commercial jet aircraft models, the company also focuses on the development of UAVs. In terms of strategy, Boeing is engaged in the development of new and innovative products. The company is also focused on the acquisition of businesses that focus on specific technology products and target the needs of emerging markets. For instance, the acquisition of Aurora Flight Sciences will help Boeing revamp its autonomous system offerings and brand image to capitalize the advanced aerospace platforms. As a result, it will bolster the presence of Boeing in the global passenger drones market.
EHANG acquired the third spot in the market. Ehang specializes in aerospace transportation technologies, consumer electronics, and in the R&D, manufacturing, and sales of smart drones. Lately, the company has become a pioneer in the global civilian drone industry. Innovative drone products offered by the firm can be broadly accepted in different industries for several applications, including landscape mapping, search & rescue projects, filming, news gathering, energy resource survey, and investigation & monitoring purposes. In terms of the passenger drones market, EHANG is looking forward to developing products that will be user-friendly for the operators and can be functioned with the use of a smartphone, in the forthcoming years. Moreover, the company will be engaged in the implementation of diversified strategies as it has developed products for various domains and numerous applications.
Uber Technologies Inc. is one of the most competitive players in this market. The company offers an array of ride services, containing different levels of quality, pricing, size of vehicles, and intended user groups. It demonstrated the ‘flying taxi’ concept in Uber Elevate Summit in 2018. The company is largely engaged in market penetration in the developing countries through Foreign Direct Investments (FDI). Concurrently, the company is collaborating with NASA and FAA to develop urban mobility transportation solutions to expand on-demand VTOL network.
Volocopter GmbH stood at the 5th position in the global passenger drones market. It is largely focused on the development of autonomous flight systems into a full network system spanning over megacities, which consists of Volo-Hubs and Volo-Ports. The Volo-Hubs resemble cable cart stations with Volocopters landing. Volo-Hubs are the key to increase the capacity of any Volocopter system substantially. Volo-Ports expand the Volo-Hub system and offer direct access to a company, shopping mall, and hotel or train station. They do not require any charging or parking infrastructure and subsequently will be less complex to build. Concurrently, the company is focusing on new product development in collaboration with global companies to build the next generation of advanced passenger drones. As a result, the company would increase its market presence in the UAV industry.
The growth of the market vendors is dependent on market conditions, government support, and industry development. Players are primarily focusing on the implementation of lightweight materials, electric technologies, and robust systems. Players also focus on strengthening their presence worldwide through acquisitions and new product innovations during the forecast period. Vendors, who have access to better technologies, can develop unique and innovative passenger drones, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the increase in new product developments, business expansions, partnerships, and mergers & acquisitions.