Bank of America sees soaring potential in eVTOL market

The era of the “low-altitude” economy has arrived, and it’s gaining altitude fast.

Electric vertical take-off and landing aircraft, or eVTOLs, are at the center of a burgeoning ecosystem of activity in the airspace below 3,280 feet, according to a report from the Bank of America Institute.

Propelled by rapid technological innovation, regulatory momentum and strong public-sector interest, the global eVTOL market is projected to grow at a compound annual rate of 62% between 2025 and 2030.

What is the low-altitude economy?

This emerging sector includes aerial services and transportation functions conducted at altitudes traditionally reserved for helicopters and drones, but now dominated by quieter, cleaner and more affordable electric alternatives. With support from the U.S. Federal Aviation Administration and global aviation authorities, the low-altitude economy is expected to play a transformative role in logistics, emergency response, urban commuting and more.

Drones, helicopters and something in between

Bank of America defines eVTOLs as aircraft that blend the capabilities of helicopters with the electric propulsion and control of drones. Using multiple small rotors and advanced avionics, they can vertically take off and land while transitioning seamlessly to horizontal flight. They’re also quieter, cheaper, safer and more sustainable than helicopters. Such characteristics position them for wide adoption across six end-markets:

• Public security

• Logistics distribution

• Emergency medical and firefighting services

• Tourism

• Urban commuting

• Inter- and intra-city passenger and cargo transport

As of March 2025, more than 1,100 eVTOL models were in development worldwide, with vectored thrust and multicopter designs leading the way.

Complex, high-tech supply chain

Each eVTOL is a composite of five core systems: power, avionics, structure, energy and thermal management and assembly parts. More than 70% of manufacturing cost lies in the power, energy, and avionics systems.

• Power System: Includes electric motors, charging interfaces, electronic speed controllers, rotors, cooling systems and high-reliability transmission components.

• Avionics: A tailored suite of navigation, control, communication, and flight management systems optimized for low-altitude, obstacle-dense environments.

• Structure: Lightweight carbon fiber-reinforced fuselages, wings and landing gear enable vertical takeoff and aerodynamic efficiency.

• Energy: High-performance batteries with fast-charging capability and thermal resilience are key. Solid-state batteries are viewed as the industry’s future standard.

Three-phase growth forecast

Bank of America projects a phased trajectory for global civil eVTOL deployment:

1. 2025–2030: Certification and early adoption, driven by government procurement for public services and tourism.

2. 2030–2035: Expansion into commercial transport as costs decline and passenger/cargo demand rises.

3. Post-2035: Widespread adoption as economies of scale and battery innovation reduce operating costs.

By 2045, global eVTOL units in operation could hit 250,000, up from 3,000 expected by year-end 2025. The broader Urban Air Mobility (UAM) market could reach $210 billion by 2045, from just $3 billion today.

Where eVTOLs fit in

While not replacing jets or high-speed trains, eVTOLs will offer the fastest and most efficient option for travel distances between 150 and 400 kilometers—outpacing cars, buses, and trains on time, and helicopters on cost and sustainability. For shorter 50–150 km trips, eVTOLs will offer a more premium and private experience, albeit at a higher fare.

Investment opportunities

What was once the realm of science fiction is now an investable reality. eVTOLs, and the low-altitude economy that supports them, are poised to reshape how we move people and goods through our cities and skies. Bank of America sees this as not only a technological leap but the emergence of a new industrial vertical, literally and figuratively, according to its June 3 report.

Jun. 22, 2025 1:57 PM By: Rob Williams, News Editor

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