ID: MRFR/A&D/3943-CR | August 2019 | Region: Global | 123 pages
Global Passenger Drones Market is expected to exhibit a CAGR of 27.74% during the forecast period 2019 to 2025. A number of companies are currently exploring the use of passenger drones as air-taxis, air-cargo, or for air-ambulance services. The concept of passenger drones is relatively new. In 2018, the market was led by Europe and was followed by Asia-Pacific and North America. 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.
Factors such as growing urban population coupled with rising traffic congestion problems, rapid technological advancements, and decline in drone costs, increasing participation of companies are driving the market growth. Meanwhile, limited endurance and safety concerns are hindering the market growth to a certain extent and factors such as lack of regulatory framework, supporting infrastructure, cohesive air-traffic management network, and skilled drone operators/pilots are a significant challenge to the market. However, the focus on reducing vehicular pollution will offer promising growth opportunities for the market.
Segmentation of the Global Passenger drones Market
The passenger drones market has been segmented based on component, capacity, application, rotor, and region. Based on component, the market has been segregated into the airframe, controller system, a navigation system, propulsion system, and others. The airframe segment is expected to witness the highest CAGR during the forecast period. The airframe refers to the physical structure of the drone that aids in achieving controlled flight. The design and configuration of drone airframes mainly depend on the task to be performed and the payload to be carried. Aerial aluminum alloy, plastic, and carbon fiber are used for the construction of passenger drone airframe. Nowadays, companies are focusing on developing drone airframe structures with reduced size, high durability, and other improved features.
Based on capacity, the market has been divided into up to 100 kg and over 100 kg. The up to 100 kg segment is expected to be the largest segment in the review period. This segment covers the market for passenger drones that are capable of carrying payload less than 100 kg. Presently, most of the drones developed fall into this category. For instance, in 2016, EHANG unveiled EHANG 184—manned version of traditional drone that provides transportation for a single passenger weighing no more than 100 kilograms.
Based on application, the market has been bifurcated into commercial and personal. The commercial segment is expected to be the largest in the forecast period. This segment covers the market for passenger drones used for commercial applications. 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.
Based on the region, the market has been classified as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Europe is expected to dominate the market in the forecast period due to the sheer presence of major passenger drones companies such as AeroMobil, Airbus SAS, Lilium, and Volocopter GmbH. Moreover, the key drivers for the European market are increasing joint ventures & partnerships, along with rapid technological advancements.
North America is the second-largest region in the passenger drones market. The sheer existence of the key companies, such as Boeing, Workhorse, and Joby Aviation, combined with the availability of sophisticated technologies to deliver innovative solutions enables this region to be a promising market.
Asia-Pacific, an emerging region in the passenger drone market, relies mainly on the few countries such as China, Japan, and South Korea. The increasing urban population, rising disposable income, and focus on drones for transportation purposes will bolster the market growth in this region. Among the mention countries, China is strategically an important market, whereas, Japan and South Korea are promising markets for passenger drones.
The key players in the global passenger drones market are AeroMobil (Slovakia), Airbus SAS (France), Cartivator (Japan), EHANG (China), Joby Aviation (US), Lilium (Germany), TERRAFUGIA (US), The Boeing Company (US), Uber Technologies Inc. (US), and Volocopter GmbH (Germany).
The market values and forecast are derived using the Market Research Future (MRFR) research methodology, which includes secondary research, primary interviews, data triangulation, and validation from an in-house data repository and statistical modeling tools.
In this process, data is collected from various secondary sources, including annual reports, SEC filings, journals, government associations, aerospace & defense magazines, white papers, corporate presentations, company websites, and paid databases.
In this process, both the demand- and supply-side parties are interviewed to extract facts and insights into the market forecast, production, trends, and projected market growth. Industry stakeholders such as CEOs, VPs, directors, and marketing executives across the value chain are approached to obtain key information.
MRFR offers report customization to valued customers. Below are the options available for customization:
In-depth profiling of additional market players (3 to 4 companies)
Detailed analysis of a country-level market and related segments as per the report scope (subject to data availability)
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.