2024: A Year in Advanced Air Mobility Review

There are more solutions than obstacles, Nicolas Zart

As the solstice marks the end of a cycle and the beginning of a new one, technically our end of the year and beginning of a new one, it is the perfect time to look back on the significant developments in our Advanced Air Mobility (AAM) sector over the past year. This year witnessed notable action, mergers and acquisitions, financial challenges and opportunities, certification milestones, and technological breakthroughs shaping the future of this cleaner, quieter, and more efficient mode of transportation.

Mergers and Acquisitions

The AAM industry has witnessed strategic consolidations to bolster its capabilities and market positioning. Notably, Joby Aviation acquired the autonomy division of Xwing in June 2024, enhancing its autonomous flight technology portfolio.

eVertiSky saw the potential in Volatus Infrastructure & Energy Solutions and included it in its growing portfolio of vertiport infrastructure solutions.

Ampaire‘s acquisition of Talyn Air, furthering its leadership in electric conventional take-off and landing (eCTOL) electrification.

Financial Challenges and Market Exits

Despite the industry’s potential, several companies have faced financial hurdles. German air taxi company Lilium collapsed in November 2024 due to funding shortages, underscoring the sector’s capital-intensive nature and the challenges in meeting commercial flight promises. Another German bright star, Volocopter is facing restructuring and looking for healthier financial landscapes to weather this co-called investment winter period. None of this is earth-shattering, new disruptive technologies especially those as far-reaching as AAM come with bumps on the road.

Certification Milestones

Progress toward certification has been a focal point for AAM companies. The U.S. Federal Aviation Agency (FAA) surprised us with an updated Engineering Brief – EB-105a that now correctly aims for performance-based certification instead of trying to find exceptions in its certification roadmap. It’s published SFAR also sets training procedures for AAM. China is continuing its juggernaut AAM move with Chinese startup AutoFlight achieved a significant milestone by receiving type certification from the Civil Aviation Administration of China for its CarryAll uncrewed cargo eVTOL in March 2024, becoming the first to certify a lift-plus-cruise eVTOL.

Joby Aviation completed the second of five stages in the FAA’s certification process, paving the way for potential air taxi services by 20257. EHang became the first AAM company globally to receive a Type Certificate for its EH216-S model from the Civil Aviation Administration of China. Archer received FAA certification for commercial air taxi operations in June 2024. See AAM International for more information.

Technological Breakthroughs

The year continued AAM technology development and testing. The general focus continues to be on ramping up production, focusing on manufacturing type-conforming aircraft for certification flight testing, and prototype testing to start flying. Joby Aviation rolled out its fourth production prototype, signaling a shift toward large-scale manufacturing.

Here’s a company we haven’t written much about but have been following for years, Wright Electric and its progress on its electric turbofan, the WM2500. It is now freely spinning and has been assembled. This second-generation megawatt-class motor, the WM2500, was developed with the support of the U.S. Department of Energy DOE, ARPA-E, and NASA. 

Technically speaking, it is a 2.5 megawatt (3,300+ horsepower) electric aircraft engine designed to replace the engine core of a jet engine, enabling current airplanes to become electric. It works with ducted fans and propeller-based aircraft. It is part of the company’s C-130 hybrid-electrification program (see white paper here). 

Patents

A record-breaking 760 patent filings in 2023, mostly in the U.S. BETA Technologies UL certifies its Cube charging stations and continues to test its charging infrastructure at various airports, including working closer with the MIlitary.

We couldn’t help but speak about this project that should delight many business jet owners desiring to clean up their emissions. How about an electric business jet in development in California? Nimbus Aerospace is working on an electric business jet called the N1000 and has flown a one-tenth-scale demonstrator aircraft. The U.S. Seattle-based company aims for an aircraft capable of covering 1,000 nm with six passengers that could enter service by 2032.

AAM Infrastructure Advancements & Happenings

The FAA’s Office of Airports (ARP) has been developing and updating design and safety standards for vertiports. Key infrastructure considerations include:

1. Robust electric infrastructure for high-capacity, rapid charging
2. Coordination with utility providers to ensure reliable power supply
3. Exploration of microgrid systems for onsite power generation
4. Updating Airport Layout Plans (ALPs) for comprehensive facility needs assessment

Ferrovial temporarily removes itself from the AAM race without too much of a surprise from most of us. Our good friend Rex Alexander spoke best about it on LinkedIn.

Highlighting the FAA and EASA Certification Roadmaps

Both the FAA and EASA made significant strides in establishing certification pathways for AAM aircraft in 2024. The “race” for certification between the two has been captivating for the past few years. Both are still in the gathering of data from eVTOL OEMs:

FAA Developments

1. Released the FAA advisory circular (AC) creating the foundation for certification of powered lift vehicles, including eVTOL aircraft
2. Published final airworthiness criteria for specific air taxi designs, including Archer Aviation’s Midnight and Joby Aviation’s flagship model
3. Issued a Special Federal Aviation Regulation (SFAR) establishing rules for AAM aircraft operations under Parts 91, 135, and 136 mentioned above
4. Implemented the Innovate28 (I28) initiative to foster collaboration between private industry and government for AAM integration

EASA Progress

1. Updated its special condition for vertical takeoff and landing aircraft (SC-VTOL) rules
2. Incorporated new requirements agreed upon with the FAA, covering safe flight and landing, handling qualities, and single-point failures

Joint Efforts

The FAA and EASA collaborated to revise Safety Emphasis Items (SEI) lists for parts 23, 27, and 29, reducing requirements and placing greater responsibility on the certifying authority3. These developments represent significant progress towards establishing a clear certification pathway for novel AAM designs, paving the way for the safe integration of eVTOL aircraft into existing airspace systems.

Market Outlook

The global AAM market is poised for substantial growth, with projections estimating an increase from $8.2 billion in 2022 to $68.1 billion by 2032, at a compound annual growth rate (CAGR) of 35.2%, sources Custom Market Insights. Other market predictions range from a few billion dollars to double digits by 2035.

• The need for patient capital, with estimates suggesting it takes about $1 billion and significant time to finance an AAM company.

More on that subject:

https://ionanalytics.com/insights/mergermarket/advanced-air-mobility-the-future-of-flight-needs-patient-capital-dealspeak-north-america

https://www2.deloitte.com/us/en/insights/industry/aerospace-defense/advanced-air-mobility.html

https://finance.yahoo.com/news/global-advanced-air-mobility-market-140000237.html

Concluding with 2024

Reflecting on 2024, the Advanced Air Mobility sector experienced pivotal mergers, faced financial challenges, achieved certification milestones, made technological breakthroughs, and advanced infrastructure developments, setting the stage for future advancements. It’s hard wrapping up a year we originally predicted to see mergers, check, startups struggle and fail, check, and the unforeseeable events any disruptive technology sees along its growing pains.

As we wrap up this year and reflect on this transformative year, Electric Air Mobility, LLC was formalized a year ago and the domain names were secured. The AAM industry is giving birth to a dream it had in the 1950s of opening urban air mobility (UAM) to the masses while tackling opportunities and challenges such as any disruptive new ones find. Stay tuned for the 2025 predictions and…

Stay tuned for more in-depth discussions on mobility and transportation, including insights into the AAM sector, in our upcoming podcast series, “The Ways We Move.”