This website uses cookies
More information
Business Air News
Business Air News
The monthly news publication for aviation professionals.
Related background information from the Handbook...

Horizon Aircraft, Inc.
Aircraft

BAN's World Gazetteer

Canada
The monthly news publication for aviation professionals.

Request your printed copy

Market will consolidate as eVTOL order books grow
By 2025, the global eVTOL order book could exceed 8,000 per year according to research from Horizon Aircraft. But it also anticipates consolidation in the number of companies and in prototype aircraft.
Horizon Aircraft is enjoying strong progress of its Cavorite X5 with several grants, a US Department of Defense research and development contract and a flying large-scale prototype.
Read this story in our January 2023 printed issue.

In 2021 there were approximately 6,850 eVTOL orders, including firm orders, options and letters of intent, worth around $26.1 billion according to McKinsey & Co, but new research from Canada-based eVTOL developer Horizon Aircraft reveals that by 2025, 66 per cent of venture capital and private equity professionals expect the industry's order book to be over 8,000 for the year. One in six (16 per cent) believe it will be more than 10,000.

The study found that professional investors expect manned advanced air mobility aircraft to continue to dominate the order books. They accounted for around 80 per cent or orders in 2021, and by 2025 72 per cent of private equity and venture capital professionals predict them to account for between 80-90 per cent. One in five (21 per cent) said they will make up around 80 per cent of orders and just four per cent said it will be less than this.

However, despite a growing order book, 86 per cent of the private equity and venture capital professionals interviewed expect the rate at which eVTOL concepts, and there are currently around 700, go defunct over the next three years to increase. One in five (22 per cent) anticipate a dramatic rise. Similarly, they anticipate a fall in the number of manned advanced air mobility companies by 2025. There are currently around 300, but in three years time 69 per cent of professional investors surveyed said the number will fall. Around 18 per cent think there will be 150 or fewer, and 31 per cent believe there will be between 200 and 250. One in five (20 per cent) anticipate there being between 250 and 300 manned advanced mobility companies.

Horizon CEO Brandon Robinson says: “As the eVTOL market develops, the industry's order book is expecting strong growth, but our research clearly shows there is also expected to be significant consolidation in both the number of companies in the sector and prototype aircraft. Investors will increasingly focus on those aircraft that have the best chance of meeting regulatory requirements and have the potential to be commercially viable.”

Horizon Aircraft and its Cavorite X5 eVTOL are enjoying strong progress with several grants, a US Department of Defense research and development contract award and a flying large-scale prototype.

The Cavorite X5 will fly 98 per cent of its mission in a very low-drag configuration like a traditional aircraft. Flying most of the time as a normal aircraft is also safer and should make the aircraft easier to certify than radical new eVTOL designs. The full-scale aircraft will be powered by a hybrid electric system that can recharge the battery array in-flight while providing additional system redundancy. Comprehensive testing of this half-scale aircraft will reduce technical risk as Horizon continues development of its full-scale aircraft.

Other News
 
McBride joins Supernal as CTO
March 28, 2024
Former NASA director David McBride will oversee Supernal’s eVTOL development for entry into commercial service in 2028.
Joby selects IFS Cloud for maintenance
March 28, 2024
The aviation industry-specificity and flexibility of IFS Cloud makes it a perfect fit for organisations like Joby that are shaping the future of flight.
Horizon becomes publicly traded company
January 16, 2024
It started the process back in August, and now Horizon has merged with a SPAC and its shares are trading on the NYSE. The move provides resources to continue developing and testing its Cavorite X7.