Horizon Aircraft publishes research on trend towards urbanization

New Horizon Aircraft publishes new global research that indicates the global trend towards urbanisation is believed by Japanese private equity, venture capital and family office investors to be a key driver behind the anticipated growth in the eVTOL. The study from PureProfile, commissioned by the Company, surveyed investors in Japan responsible for more than $423 billion assets under management. It has been predicted that 65% of the global population will be living in cities by 2050, compared to 55% today, which equates to almost 2.3 billion people set to move into cities over the next 30 years. This population concentration in cities, equivalent to an additional 76 million people moving into urban areas across the globe each year, will give rise to escalating congestion in ground transportation. The need to address such transportation issues is believed by 65% of Japanese professional investors to be a key driver behind the growth of the eVTOL market. The study reveals increasing optimism about the Urban Air Mobility market with more than two in five Japanese professional investors stating they think the first commercial UAM routes will be operational by 2026, and 18% believing that the first commercial flights could be as early as 2025. Only 5% of professional investors in Japan believe the debut date for commercial passenger routes will extend beyond 2030. The future of urban mobility will require a greater reliance on eco-friendly and reliable alternative modes of transport. The study reveals that 83% of Japanese professional investors agree that regulators’ support of the eVTOL market will be important in the drive to reduce the overall carbon footprint of the aviation sector. Roughly three out of four Japanese investors believe public support for eVTOLs will grow over the next three years with 18% anticipating a dramatic increase in public confidence. Just 8% of the private equity, venture capital and family office investors questioned believe public confidence in the sector will decline as the launch of the first services comes closer to reality. Around 15% do not see any change in public confidence happening or did not express an opinion. More than three in four of Japanese investors identified the use of pilots as the key to guaranteeing increased public confidence while 61% say more successful trials of passenger and drone services will be important. The same number want evidence of more regulatory improvements. Around 55% point to more news about successes in the sector and 45% are hoping for the endorsement of the sector by major companies and investors. The study found 23% of Japanese investors believe search and rescue will be the first practical use of eVTOLs while 18% think eVTOLs will be used first for supplying remote areas and 15% believe they will first be used for disaster relief. The same number believe the first use of eVTOLS will be for passenger transport and 13% believe they will be used first for organ transport. Horizon is targeting the future production of a manned seven-seat capacity hybrid electric eVTOL called the Cavorite X7 which includes room for a pilot and six passengers. It has been developed in response to demand from potential customers in the medevac, business aviation and commercial cargo sectors.