Urban Air Mobility Holds Promise in Easing Traffic, Pollution

• Urban Air Mobility (UAM) refers to a system that can safely and quickly transport passengers and cargo through air in urban areas. Unlike existing aircraft, which are suitable for long-distance and large-capacity transportation, UAM aims at efficient and fast movement within urban areas.
• During the 2024 Paris Olympics, a UAM service is available on five routes, including two for tourists. These Olympics will be keenly watched for their role in kicking off a potential UAM boom, just like Tesla did in the case of EVs.
• Electric vehicles (EVs) and UAM systems have many similarities. Both use electric batteries, require country-wide infrastructure, and can have autonomous driving.

SOURCE: Counterpoint Research

As the population becomes more concentrated in big cities, traffic congestion and the pollution due to it are increasing, necessitating more efficient and eco-friendly transportation methods. Low-altitude aircraft running on electric batteries and capable of vertical take-off and landing (VTOL) without a runway have emerged as an alternative. They can ease traffic congestion in an eco-friendly way while requiring minimal infrastructure.

These electric VTOL (or eVTOL) aircraft require stations called Vertiports for taking off, landing and charging. Besides, regulations and navigation guides are required for the safe operation and management of each aircraft.

• Due to the nature of UAM, it is necessary to take strong measures against accidents, and noise, in areas with high population density, while ensuring that existing aviation systems do not come in conflict with the new system. Though initially, the current air traffic management (ATM) system will be utilized, a separate system will be put in place once such aircraft become popular.
• A more powerful battery is required than that of an electric vehicle (EV). Independent operation of propellants must be possible by distributing electrical energy. There is also a possibility of autonomous driving here.
• Vertiports are likely to be set up near a terminal or on the rooftop of a high-rise building for connectivity with existing mobility systems. To begin with, eVTOL aircraft will utilize existing helipads.

The chart below describes a UAM system. eVTOLs transport people and material between major city hubs, with Vertiports being responsible for their takeoff, landing, charging and management. The use of an eVTOL, like other means of transportation, is reserved through an application to ensure a smooth and seamless service. Communication between the aircraft and infrastructure is accomplished using a network, allowing real-time transmission of data.

Urban Air Mobility Operations and Key Actors

Source: Boeing

Major eVTOL manufacturers

Joby Aviation (USA): As a representative UAM company in the US, Joby Aviation has strengthened its market position by acquiring Uber’s aviation division Elevate. Joby received an investment of $590 million from Toyota in 2020. The company was also granted exclusive rights to operate air taxis in the UAE in 2023.

Volocopter (Germany): An air taxi service using Volocopter-developed Volocity is scheduled to be operated at the 2024 Paris Olympics. It has also received the authorization to operate in Saudi Arabia’s futuristic city NEOM.

EHang (China): As the first company to receive unmanned eVTOL certification from the Chinese government, it is developing models for various uses, such as fire fighting, cargo transport, and passenger use.

Archer Aviation (USA): It has a strategic partnership with Stellantis. Besides developing eVTOLs, the company is also pushing its air taxi business.

Hyundai Motor Group (South Korea): It is developing an eVTOL aircraft, which was unveiled at CES2024. The company has also established a unit in the US, Supernal.

UAM infrastructure, such as authorization processes, air traffic control and vertiport operation, differs from country to country. Therefore, it is necessary to look at how each country responds:

USA: Instead of UAM, the term AAM (advanced air mobility) is more popular, broadening the scope to areas outside the city center. In collaboration with the Federal Aviation Administration (FAA), National Aeronautics and Space Administration (NASA) and United States Air Force (USAF), private companies are taking the lead in airframe development and creating the supporting ecosystem, seeking to solidify the country’s leading position in aviation.

EU: The European Union Aviation Safety Agency (EASA) is preparing an authorization process and related regulations. Besides, an extensive survey of urban residents and future UAM users has been conducted to understand their concerns and needs. As a result, such projects are being promoted first in the public sectors of health and safety.

China: Already leading the drone space, the country plans to revitalize the unmanned flight business through the Civil Aviation Administration of China (CAAC). As much as $44 billion is being planned to be invested in the low-altitude economy by 2026.

South Korea: The K-UAM roadmap has been in place since 2020. Core technology development projects are being planned to prepare for full commercialization by 2030. About $73 million will be invested over the three years from 2024.

Analyst take

UAM helps to provide seamless mobility services in conjunction with other means of transport. For the success of any UAM system, its connections with public transport must be smooth, while its collaborations with existing mobility platform services must be comprehensive.

Although they are similar to EVs in many ways, UAM systems should be viewed as a public transport option rather than personal transportation. Therefore, the timing of the introduction and popularization of UAM services will be determined by the policies followed by individual countries.