The spread of COVID-19 has entirely changed people’s life. COVID-19 originated in the city of Wuhan, China, in 2019 and has been continuously spreading all over the world since then. It has been spread to more than 180 countries. The U.S. tops the list, followed by India, Brazil, U.K., and others. As of 16 August 2021 WHO reported 226.24 million positive cases worldwide of which 4.65 million patient has lost their life to the virus. On a positive note, 204.59 million patients have recovered, and 5.63 billion doses have been administrated globally. The pandemic has put the lockdown, travel ban, and business shutdown in most countries, highly impacting the global economy. Due to the pandemic, major industries faced serious disruption such as a break in the supply chain, shut down offices and manufacturing units, and many more.
The impact of the COVID-19 pandemic has been unprecedented on a global level. It has greatly affected the aviation industry. The drone taxi market is still in its formative stages; hence, it relies on a shared flight model to make the economics work. After COVID-19, the drone taxi industry has experienced an impressive growth trajectory. Due to the increase in road traffic, the demand for drone taxis has risen tremendously.
Post-COVID manufacturers are taking many strategic decisions to get back their original business place in the market. The companies are conducting many research and development activities to improve the technology involved in drone taxis. Thus, the companies are bringing more advanced technology to increase their market share and being recognized by the clients.
By looking into the rising demand for drone taxis, the government is also taking different initiatives to boost the market's growth.
The technological developments hold a promising future for the drone taxi market whereby cities are expected to adopt next-generation transportation systems using automatic systems. Cities worldwide face transportation challenges due to the increasing road traffic, which causes major problems for mass transportation. Thus due to the increase in road traffic problems, the demand for drone taxis is increasing in the market. Also, the urban air mobility program has raised the demand for drone taxis. Many companies are developing a drone taxi and transportation hub for urban and sub-urban areas to solve this problem.
Although the demand for the market has increased tremendously after the corona period, it has hampered the market's supply chain. Many electronic components like microcontrollers, chips, sensors, and others are needed to produce a drone taxi. In the lockdown, these electronic component manufacturing companies were shut, leading to the material shortage. This shortage has hampered the growth of the market.
Most of the electronic component manufacturing companies are from the Asia-Pacific region. Still, due to the corona outbreak, these companies were shut down, leading to a shortage of raw materials. Also, the restriction on transportation hampers the growth of the market.
Post-COVID, the demand for aviation transportation has tremendously increased, leading to the growth of the market. An increase in the population has led to an increase in traffic on roads, so the demand for drone taxis is increasing to save time on road traffic. The programs live urban air mobility has also raised the demand for drone taxis. Also due to the advancement in technology the customers can have safe and reliable travel in less time than the road transport has risen its demand in the market.
Thus we can observe that the demand for drone taxis is increasing, and manufacturing companies and governments are making different decisions to expand the market.