Japanese Investors Believe Increased Global Urbanisation is Set to Fuel Growth in eVTOL Sector

65% of Japanese professional investors believe the need to address transportation issues amidst increasing urban populations will be a key driver of eVTOL market growth

More than two in five (43%) Japanese investors predict the first eVTOL commercial passenger routes to be operational by 2026

TORONTO, March 19, 2024 (GLOBE NEWSWIRE) -- New Horizon Aircraft Ltd. (NASDAQ: HOVR), doing business as Horizon Aircraft (“Horizon Aircraft” or the “Company”), a leading hybrid electric Vertical TakeOff and Landing (“eVTOL”) aircraft developer, 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 (UAM) market with more than two in five (43%) 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 (78%) 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.