Urban air mobility is currently in a phase of rapid growth. After the concept garnered attention in recent years above all through prototypes and pilot projects, many companies are now coming close to market maturity.

The birth of a new era of mobility

Urban Air Mobility (UAM) has the potential to relieve overloaded urban infrastructures and solve traffic problems, especially in densely populated megacities. The technology behind UAM is based on electric drives, advanced batteries, and autonomous systems. These technologies make it possible to operate eVTOLs, which can take off and land vertically and which are thus especially attractive for use in built-up areas. Many test flights and developments have already shown that the technology works. Now, the challenge lies in making these systems safe, efficient, and economical in real use.

The role of drones

Drones play a key role in the development of urban air mobility because they offer flexible and rapid options for transporting goods and services within cities. They are already in use in different areas, from parcel delivery to providing medical care in emergencies.

Companies such as Wing, a subsidiary of Alphabet, have already established drone delivery services in multiple countries. Wing has conducted pilot projects in Australia, Finland, and the USA in which drones were used to transport smaller packages. The German company Wingcopter is also developing drones that are designed specifically for the transport of medical goods and that can be used in remote areas.

Pioneers in the field of UAM

The German company Volocopter is one of the pioneers in the field of UAM. The company has already developed and successfully tested first prototypes in the form of the Volocopter 2X and the VoloCity. Volocopter is aiming to launch a commercial air taxi service by the end of the decade and has already concluded partnerships with cities such as Singapore and Paris.

Joby Aviation in California is one of the best-financed startups in the UAM sector. The company is working on a fully electric, six-seat eVTOL with a range of over 240 kilometres and a top speed of up to 320 km/h. Joby has already received licences from the Federal Aviation Administration (FAA) in the USA and plans to launch a commercial service by 2025.

Archer Aviation, also based in the USA, is aiming to establish a network of urban air mobility services by 2025. Its aircraft, the Archer Midnight, is designed for short urban hops and has already completed a number of test flights. Archer has partnered up with United Airlines, above all to promote use in “airport city transport”.

Challenges

The registration and certification of eVTOLs and drones is a complex process that is intended to ensure the safety and reliability of the air vehicles. Authorities such as the FAA in the USA and the European Union Aviation Safety Agency (EASA) are working intensively on the development of standards to facilitate the integration of UAM in the airspace.

The creation of suitable infrastructure such as vertiports and charging stations for eVTOLs as well as landing pads for drones is another challenge. Cities need to adapt their planning to make space for these new means of transport.

Yes, and ultimately, acceptance among the population will make or break the platform. Issues such as noise, safety, and environmental compatibility play a major role in whether UAM services will find broad acceptance.

Summary

The future of urban air mobility is about to become a commercial reality. Some estimates put the potential volume of the market for UAM at several hundred billion US dollars by 2040. With companies driving the development of the technology and drones that are revolutionising urban logistics, it is only a matter of time until air taxis and drones become a part of our everyday lives. The future of mobility will not only play out on the streets, but also in the air – and UAM could be a key part of this.

Author

Christian Leinweber, Senior Investment Manager, Raiffeisen Kapitalanlage GmbH

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