Christmas Special Edition: Flying Cars

“...Then one foggy Christmas Eve

Santa came to say

‘Rudolph, with your nose so bright

Won't you guide my sleigh tonight?...”

While the iconic Christmas song plays in the background, we can’t stop thinking that in the very near future, Santa might be coming to town in a “flying car.” 

For this edition, we sat down with our editors from Ventech China and AIOT Capital to understand their recent investment in the space of eVTOL, the closest thing to a flying car. 

Below are their remarks on the eVTOL space, and why they are bullish about its future.

Part I Market Size: Why is eVTOL the Next Big Thing?

Q: Can you give us an overview of the current eVTOL market size and expected growth?

A: Absolutely. According to MarketandMarkets, the global eVTOL market is anticipated to expand dramatically, from $1.2 billion in 2023 to $23.4 billion by 2030. This represents a compound annual growth rate of 52%. Focusing on passenger-carrying unmanned eVTOLs, which are expected to account for 30%-50% of the market, we're looking at a potential market size of $7-12 billion by 2030.

Q: What are the major obstacles currently facing the eVTOL industry?

A: As pointed out by the analysis of Aviation Think Tank, the key challenges for eVTOL include airspace management, infrastructure, regulations and standards, and public impacts. Airspace management is complex due to the variability of urban landscapes. Infrastructure development, particularly for vertical take-off and landing airports, is in its nascent stages. Regulatory frameworks are still catching up with this rapidly evolving technology. And lastly, public perception, including concerns over safety, noise, and privacy, plays a significant role in the adoption of eVTOLs.

Q: Could you elaborate on the different technological approaches within the eVTOL sector?

A: Several routes are being explored in eVTOL design. The primary ones include vertical take-off and landing fixed-wing, multi-rotor, helicopter, and fixed-wing configurations. Within these, there are further subdivisions like vectorial propulsion, lift and cruise composite, and multi-rotor systems. Each approach has its unique advantages and challenges regarding efficiency, range, and versatility.

Part II Core Competitive Strength: Why eVTOL is Needed?

Q: What makes eVTOL a necessary innovation compared to traditional helicopters?

A: Yes, comparing with helicopters is a much better reference than to “flying cars.” The primary competitive advantages of eVTOLs over helicopters are safety and cost. Helicopters, while versatile, have higher accident rates and operational costs. eVTOLs, with their simpler "battery + electric motor" systems, offer greater reliability and are significantly cheaper to operate. This makes them potential game-changers for mass market adoption in various scenarios like personal recreation, air taxis, and more.

Part III Timing: Why Now for eVTOL?

Q: Why is this period crucial for the eVTOL industry?

A: The convergence of key technologies has made this an opportune moment for eVTOLs. Advances in battery technology, spurred by the electric vehicle sector, have made electric flight more feasible. Additionally, the drone industry's progress has led to more efficient and lighter motors, controllers, and sensors, all critical for eVTOL development.

Q: How do you see eVTOL shaping our future mobility?

A: eVTOL has the potential to revolutionize urban and regional mobility. They can serve as low-cost substitutes for helicopters in sectors like oil and gas, emergency medical services, and tourism. Additionally, eVTOLs could offer affordable urban air mobility services, including intercity air taxi and intracity air metro services. However, current battery technologies limit their flight duration, which is an area for future development, possibly with hydrogen fuel cells.

The eVTOL market is poised for significant growth, with technological advancements paving the way for safer, more affordable, and more efficient urban air mobility. While challenges remain, the potential impact of eVTOLs on various sectors and their role in shaping future transportation cannot be overstated.

So, while we don’t think eVTOL is going to replace Rudolph anytime soon, a more sustainable, cost-efficient and animal-cruelty-free future is not too far away from us. 

Last but not least, we wish a merry Christmas, and a happy 2024!

Best,

Young VC Digest team

Thanks for reading, subscribe for our next blog coming soon…

We invest in Europe and China, write to us if you’re working on exciting projects, at contact@youngvcdigest.com