According to PitchBook, a capital market data group, the uber-hyped advanced air mobility sector may be heading for a reality check as investors come to realize that timelines for revenues to start flowing will likely prove unrealistic. In research published today by mobility analyst Asad Hussain, PitchBook suggests that the crowded field of eVTOL aircraft developers is due for a shakeout, with a handful of well-capitalized start-ups set to leave cash-strapped rivals in the dust.
The report forecasts that revenues in the global air taxi passenger mobility market will grow from $1.5 billion in 2025 to $150.9 billion in 2035. These prospective returns spurred a surge in investment during the first quarter of 2021, with a handful of air mobility start-ups raising $3.8 billion from a mix of investors from the financial sector (venture capitalist, private equity, and special purpose acquisition companies) as well as the strategic sector (aerospace, automotive, and technology businesses).
