"Strategic investment opportunities with urban air mobility".

Urban Air Mobility (UAM) is considered one of the most innovative solutions to increasing infrastructure congestion in urban areas and megacities. Later this decade, aerial drones will take off in earnest in transportation and passenger traffic, bringing about numerous disruptive upheavals. This is the assessment of the FERI Cognitive Finance Institute in its current analysis "Urban Air Mobility - Aerial Drones as a Means of Transport of the Future". The use of airspace as a "third dimension" creates completely new possibilities for urban mobility. "The concept of Urban Air Mobility definitely deserves attention. Potentially, it will create a billion-dollar market that offers enormous opportunities for innovative pioneering companies, while at the same time enabling new business models for traditional mobility operators," says Dr. Heinz-Werner Rapp, founder and head of the FERI Cognitive Finance Institute.

Technological change drives development

Technological advances have revolutionized helicopter flying in recent years, giving rise to a new generation of eVTOL (electric-powered vertical take off and landing) vehicles. The new drone technology relies on electric propulsion with batteries, which is not only more environmentally friendly but also more cost-effective than conventional propulsion concepts. There are currently 153 research and industrial projects involving passenger drones worldwide, most of them in North America and Europe. "Currently, the topic of UAM is in a very dynamic process, which suggests rapid progress, but also still has some risks," says Dr. Maximilian Alexander Richter, co-author of the analysis and project manager for New Mobility at the University of St. Gallen. According to the study, a total of only 20 drone initiatives have completed a first test flight. However, the number of startups, aerospace companies and other organizations developing eVTOL concepts has recently skyrocketed, he said.

Pioneering companies push into the capital market

With massive support from investors, two German startups, Volocopter and Lilium, have also gained a good starting position in this globally competitive market. They want to transport the first passengers with electrically powered flying drones in as little as two to three years. "As leading innovators like Joby Aviation and Lilium are currently pushing hard to go public, often via special purpose vehicles (SPACS), the topic of urban air mobility is becoming tangible for private investors for the first time," says Dr. Heinz-Werner Rapp. This offers strategic investors attractive investment opportunities, although the risks of the new technology must be clearly taken into account - for example in terms of regulation, technical implementation and customer acceptance. Due to the rapid development and the potentially disruptive effects, investors should follow the developments in the context of urban air mobility very closely in the near future, the analysis concludes.

The analysis "Urban Air Mobility - Aerial Drones as a Means of Transport of the Future" has been published in German language by the FERI Cognitive Finance Institute in the "Cognitive Comment" series.