Growth in the advanced air mobility market and advances in establishing a regulatory framework is making eVTOL an increasingly attractive market for professional investment, according to new research.
A study commissioned by Horizon Aircraft found that 93 per cent of senior executives at investment firms surveyed globally believe professional investors are increasingly interested in the eVTOL sector.
Brandon Robinson, CEO of Horizon Aircraft, said: “Private equity, venture capital and family office investors have been closely monitoring the future air mobility sector for some time.
“However, our study affirms that as the sector matures with advances in technology and a clearer path to regulatory approval, professional investors are increasingly seeing the eVTOL sector as not only a financially viable opportunity to invest in, but also a chance to contribute to a transformative shift in how people move around within urban environments.”
Some 200 surveyed were executives based at investment firms in Japan, the US, Canada, Europe, the Middle East and Asia, who, combined, are responsible for more than $1.78tn assets under management.
It is broadly accepted that certification by relevant aviation authorities should be made easier by the fact that eVTOLs that fly most of their time as normal aircraft are safer, according to New Horizon Aircraft.
Around 92 per cent of professional investors said this was an important factor when considering investing in the industry.
However, the study also showed the investment community is wary of some aggressive and fast-tracked development timelines that have been set by key players in the eVTOL sector.
Around 82 per cent of investors agreed that some of these ambitious targets don’t properly reflect how long traditional aircraft programmes generally take to get to market.
The versatility of eVTOL aircraft to be used in a variety of transport markets, including air passenger taxi services, cargo transportation and military service, is seen as an important reason for supporting the sector by 92 per cent of those surveyed.
Horizon’s report also detailed the specific areas for eVTOL use which investors believe will see the biggest growth in the next five years.
They were ranked, from highest to lowest, as fire support service, air passenger taxis, air ambulance, cargo transportation and military service.
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