BofA sees 62% surge in eVTOL adoption, fueling ‘low-altitude’ boom

Investing.com -- Bank of America said in a note this week that it projects a 62% compound annual growth rate (CAGR) for global civil electric vertical takeoff and landing (eVTOL) aircraft adoption between 2025 and 2030, driven by rapid innovation and expanding use cases across logistics, public safety, and passenger transport.

“The ‘low-altitude’ economy refers to the emerging economic sector centered around activities, businesses, and services conducted in the airspace below 3,280 feet above the ground,” BofA said.

The research describes eVTOLs as “somewhere between a helicopter and a drone,” combining environmental efficiency with cost-effectiveness and broad application potential.

According to BofA, six key end-markets will propel eVTOL demand: “public security, logistics distribution, medical&fire fighting, tourism, urban commuting, and intercity/intracity transportation.”

While adoption is still in early phases, the bank anticipates accelerating growth as government certifications ramp and new platforms enter operation.

“In theory, the heavier the payload an eVTOL can carry, the more power it needs, and hence requires more sophisticated designs,” the report explained. They explain that the most advanced designs feature vectored thrust and tilt-rotor systems.

The global urban air mobility (UAM) market is also set to benefit, according to the bank.

BofA forecasts a jump to $23 billion by 2035 and $210 billion by 2045.

“BofA Global Research estimates the global UAM market size will reach up to $23 billion in 2035 and will further grow…with compound annual growth rate (CAGR) of 85% over 2025-35.”

Ultimately, BofA sees eVTOLs complementing traditional civil and ground transportation: “eVTOLs offer better privacy and a premium experience to passengers,” while outperforming helicopters on noise, safety, and cost.

While BofA did not provide any commentary on specific stock names in its note, if its forecasts were to play out, stocks such as JOBY, ACHR, EH, and EVTL could be poised to benefit.

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