FCC

Indian Urban Air Mobility Market: Rs 6.2M by 2033

2023-08-24

The Urban Air Mobility (UAM) infrastructure market in India is poised for substantial expansion, projected to attain Rs 6.2 million by 2033, with a compound annual growth rate (CAGR) of 22.38per cent, states a recent report.

BIS Research highlights that the Indian UAM infrastructure sector, especially in passenger and cargo gate-to-gate operations, is set to experience consistent growth from 2023 to 2033. UAM envisions integrating aerial transportation services into urban transport systems, providing swift and effective mobility solutions.

With a focus on electric Vertical Take-Off and Landing (eVTOL) aircraft, UAM services have the potential to tackle congestion, shorten travel times, and enhance urban connectivity.

The CAGR projections for different segments include 26.83per cent (Rs 3.1 million) for passenger gate-to-gate operations, 18.55per cent (Rs 2.5 million) for cargo gate-to-gate operations, and 29.81per cent (Rs 0.6 million) for hybrid passenger and cargo gate-to-gate operations by 2033.

Faisal Ahmad, Co-Founder & CEO of BIS Research, points out that India's intricate urban congestion and transportation infrastructure have paved the way for Urban Air Mobility (UAM) services driven by the country's dynamic startup ecosystem.

While the Indian UAM market is in its nascent stages, the report highlights its significant growth potential. Plans for air taxi operations in India are anticipated to take off around 2025 with the establishment of an eVTOL manufacturing plant. Both Tata and Uber have shown interest in India's UAM infrastructure market, while the government actively explores policies and regulations to support UAM advancements.

The report also assesses other infrastructure facets such as charging and refuelling stations, maintenance and repair facilities (MRO), docking stations, and hub spots. Their current valuation stands at Rs 0.2 million, Rs 0.1 million, and Rs 0.1 million respectively (2023), projected to reach Rs 0.4 million, Rs 0.2 million, and Rs 0.3 million (by 2033), with a CAGR of about 9.37 per cent during the forecast period.

Cities like Mumbai, Bangalore, Chennai, and Hyderabad have been identified as potential hubs for initial UAM infrastructure development in India.