Private investors plan to plough more into aviation as innovation takes off

Private investors plan to plough more into aviation as innovation takes off

Almost 70% of private equity and venture capital professionals expect the amount of money their industries invest in the aviation sector to increase between now and the end of 2020. Just 4% expect it to fall.

Private investors plan to plough more into aviation as innovation takes off

In terms of which new aviation areas private equity and venture capital professionals find most exciting, 85% said vertical take-off and landing aircraft (VTOL) such as air taxis are attractive, closely followed by 84% who pinpointed the use drones in the freight industry.  Electric planes, pilotless aircraft and supersonic jets are also seen as potentially attractive investment opportunities.

Area of aviation

Percentage of PE/VC professionals who see this as  very attractive

Percentage of PE/VC professionals who see this as  quite attractive

Percentage of PE/VC professionals who see this as  unattractive

Don’t know

The use of drones in the freight industry

62%

23%

15%

0%

Electric aircraft

35%

27%

27%%

12%

Vertical take-off and landing aircraft (VTOL)

23%

62%

8%

7%

Supersonic aircraft

19%

35%

31%

15%

Pilotless aircraft

8%

54%

31%

8%


Why aviation?

As for the factors that make aviation appealing to professional investors, 54% of private equity and venture capitalists said the growing need to find ways to reduce costs and emissions within the freight industry is ‘very important’. This was followed by 46%  who said this about the need to find cleaner ways of travelling, and 38% who said this about the growing number of people who want to fly.

Factors that make aviation appealing to professional investors

Percentage of PE/VC professionals who see this as  very important 

Percentage of PE/VC professionals who see this as  quite important

Growing need to find ways to reduce costs and emissions in the freight industry

54%

31%

Need to find cleaner ways of travelling/reduce emissions

46%

31%

Growing number of people who want to fly

38%

42%

Need to tackle growing urban transport problems

35%

42%

Growing government/regulatory support to change the industry 

27%

54%

Technological developments making it easier to fly much faster e.g. supersonic

23%

54%

Pilot shortage

23%

54%

 Alasdair Whyte, co-founder, Revolution.Aero said: “Our research shows that professional investors are well aware of the huge developments taking place in aviation at the moment, and the growing list of exciting projects that hope to revolutionise all aspects of the industry."

Revolution. Aero’s first European meeting is taking place in London on March 11 and 12 at The Royal Garden Hotel.

Subscribe to our weekly newsletter 

Join The Discussion