A new comprehensive study conducted by Horizon Aircraft, revealed that global investors are optimistic about the future of electric Vertical Takeoff and Landing (eVTOL) aircraft, predicting the advent of commercial passenger routes as soon as 2026. This optimism stems from the belief that technological and regulatory advancements in the Urban Air Mobility (UAM) sector will be significant in the coming years. Conducted with senior executives from leading investment firms around the world, the research encompasses opinions from individuals responsible for overseeing more than $1.787 trillion in assets under management.
The survey showed that a significant portion of professional investors, specifically 40%, are confident that the first commercial UAM routes will be operational by 2026. Moreover, some investors are even more optimistic, with 11% believing that the initial commercial flights could commence as early as 2025. In contrast, a very small fraction, only 4%, of those surveyed think that the launch of commercial passenger routes will be delayed beyond 2030.
The anticipation for the eVTOL market to progress is not without its challenges. Investors acknowledged that the successful integration of these small, highly automated aircraft into urban airspace would require overcoming substantial technological hurdles, regulatory complexity, and public safety concerns.
A nearly unanimous consensus among investors, at 96%, suggests that the demand for more efficient transportation systems, coupled with the imperative to mitigate environmental impact and advances in aviation technology, will drive an improved regulatory framework within the next five years. This, in turn, is expected to encourage significant new investments in the eVTOL market. Only a minimal 1% of investors disagreed with this projection, while 3% remained unsure.
Investors highlighted several areas within the eVTOL market that would need regulatory attention, notably Information and Communications Networks, Air Traffic Control, and Security.
Horizon Aircraft is developing the Cavorite X7, a seven-seat capacity hybrid electric eVTOL, in response to increased demand from potential customers in the medevac, business aviation, and commercial cargo sectors. Brandon Robinson, CEO of Horizon Aircraft, commented on the growing interest in the sector, stating, “Private equity, venture capital, and family office investors have been closely monitoring the Future Air Mobility sector for some time, but are now seeing an acceleration towards the launch of the first commercial eVTOL passenger routes.” He elaborated on the significance of ongoing technological and regulatory developments as drivers for new investment opportunities in the emerging market.
The Cavorite X7 features a unique design focused on a hybrid electric power system, allowing it to recharge its batteries both en route and post-flight within an impressively short time frame, less than 30 minutes. Horizon believes this innovative approach will facilitate the aircraft’s certification process and enhance its safety, making it an attractive option for various applications beyond urban transportation, including medical evacuation, disaster relief, and military missions.
