Urban air mobility market presents opportunities in risk and insurance

An influx of established aerospace, automotive and technology companies into the urban air mobility market, backed by technological advancements and government initiatives, is expected to drive the market for air taxis, according to research from Frost & Sullivan.

The Middle East is forecast to see the first air taxi operations, as early as 2022 in a market that is expected to grow at a CAGR of 46% to reach 430,000 units in operation globally by 2040.

“The United Arab Emirates, New Zealand, and Singapore are expected to be the first adopters of air taxis, while Brazil and Mexico, too, will be early adopters by leveraging their helicopter taxi expertise,” said senior mobility analyst at Frost & Sullivan, Joe Praveen Vijayakumar. “Globally, almost 50 cities are considering the feasibility of UAM, and most of the applications are focused on cargo drones, which will eventually open up the market for passenger UAM vehicles.

“Safety, noise levels from propulsion, infrastructure for landing and take-off in urban areas, and favourable regulations will be key focus areas for the commercialisation of air taxis,” noted Vijayakumar. “Original equipment manufacturers will be looking to especially invest in hybrid fuel systems, lightweight high-strength composite materials, and alternative energy sources such as solar and lightweight high-capacity batteries to achieve fuel efficiency and longer range.”

Frost & Sullivan predicts a range of growth opportunities for support services such as pilot training, servicing, repairing and maintenance. CIR also predicts opportunities for the risk management, cyber security and insurance markets.

Picture of the Lilium Jet courtesy of Munich-based Lilium GmbH

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