Hanwha Systems, a defense unit of defense and chemical conglomerate Hanwha Group, said on July 11 it will invest $25 million in a US personal air vehicle company to expand its business portfolio.
The investment in K4 Aeronautics is part of its moves to preemptively respond to potential demand for PAVs in the near future, the company said in a statement.
The California-based firm has multiple patents and technologies essential to manufacturing a high-efficiency and low-noise PAV, which can be used as an air taxi, it said.
The PAV market is expected to reach $1.5 trillion by 2040 as Airbus, Boeing and startups are vying to develop PAVs amid diversifying demand for transport vehicles, the company said, citing Morgan Stanley data.
The global investment bank expected US companies like Uber Technologies will provide air taxi services as early as 2025 for general customers.
The investment has yet to be approved by the US authorities, Hanwha said.
By Ram Garikipati and newswires (email@example.com)