Advanced Air Mobility Market - By Component (Hardware, Software), By Application (Cargo Transport, Passenger Transport, Mapping & Surveying, Special Mission, Surveillance & Monitoring), By Type, By Range, By Operating Mode, By Propulsion Type (Gasoline, Electric, Hybrid), By End-User, Forecast 2024 – 2032

Advanced Air Mobility Market Size

Advanced Air Mobility Market size was valued at USD 9.76 billion in 2023 and is expected to grow at a CAGR of over 20% between 2024 and 2032. The rapid urbanization and increasing traffic congestion in major cities worldwide are significant drivers for AAM.
 

With urban populations growing, the demand for efficient and rapid transportation solutions is rising. Traditional ground-based infrastructure often struggles to keep pace with this growth, leading to gridlock and increased commute times. AAM offers a promising solution by utilizing the airspace above cities for transportation, thereby alleviating ground congestion. Urban air mobility (UAM) services can provide faster, more direct routes across cities, reducing travel time and improving overall urban mobility. This efficiency can transform daily commuting and logistics, making urban living more sustainable and convenient.
 

Significant investment from both private and public sectors is a major growth driver for the AAM market. Venture capital firms, aerospace companies, and technology giants are pouring Millions into developing AAM technologies and infrastructure. Governments are also playing a crucial role by providing funding for research and development, establishing regulatory frameworks, and promoting public-private partnerships. Initiatives such as the Federal Aviation Administration's (FAA) UAM Grand Challenge and the European Union's SESAR Joint Undertaking are examples of governmental efforts to integrate AAM into existing airspace systems. This financial and regulatory support accelerates the development and deployment of AAM solutions, fostering a conducive environment for market growth.
 

For instance, in September 2023, Leading producer of unmanned aircraft systems, Airobotics Inc., received FAA airworthiness type certification for their Optimus-1EX. This accreditation is noteworthy since it is the first "Drone-in-a-Box solution" devoted to fully automated drone operations for emergency response and digital data capture, and it is the second unmanned aircraft to ever receive such certification. The certification of the Optimus-1EX creates opportunities for a wide range of applications, including rapid infrastructure surveys for disaster relief and drone first response (DFR).
 

Regulatory and safety challenges pose significant pitfalls for the AAM market. The integration of AAM into existing airspace, particularly in urban environments, requires rigorous regulatory frameworks to ensure safety and operational efficiency. The lack of established regulations for eVTOL aircraft and UAM services can hinder development and deployment. Safety concerns, including collision avoidance, air traffic management, and cybersecurity, must be addressed comprehensively. Regulatory bodies like the FAA and the European Union Aviation Safety Agency (EASA) are still in the process of developing standards and guidelines for AAM, which can delay the commercialization of these services. Navigating these complex regulatory landscapes is essential but challenging for market players.

Advanced air mobility market Trends

One of the most prominent trends in the market is the surge in investment and funding from both private and public sectors. Major aerospace companies, venture capital firms, and technology giants are pouring significant resources into developing AAM technologies. Government bodies are also providing substantial support through grants, subsidies, and policy frameworks aimed at fostering innovation and commercialization. This influx of capital is accelerating research and development, enabling startups and established companies alike to bring new AAM solutions to market more quickly.

The market is witnessing rapid technological advancements and integration, particularly in the areas of electric propulsion, autonomous flight, and advanced materials. Innovations in battery technology are enhancing the range and efficiency of eVTOL aircraft, while advancements in autonomous navigation and artificial intelligence are improving safety and operational efficiency. The integration of these technologies is making AAM a more viable and attractive option for various applications, from urban air taxis to cargo delivery and emergency response.
 

Regulatory progress is another critical trend shaping the market. Aviation authorities such as the Federal Aviation Administration (FAA) in the United States and the European Union Aviation Safety Agency (EASA) are actively developing regulatory frameworks to ensure the safe and efficient integration of AAM into national airspace systems. Efforts are underway to establish standards for certification, air traffic management, and operational safety. These regulatory advancements are crucial for the commercialization of AAM services and the establishment of public trust and acceptance.
 

Urban Air Mobility (UAM), a subset of AAM focused on urban environments, is gaining significant traction. Cities worldwide are exploring the potential of UAM to address urban congestion and improve transportation efficiency. Pilot projects and test flights are being conducted in major cities such as Los Angeles, Dubai, and Singapore, where local governments and private companies are collaborating to develop the necessary infrastructure and regulatory frameworks. These initiatives are providing valuable insights and paving the way for the broader adoption of UAM services.
 

Advanced Air Mobility Market Analysis

Based on type, the market is divided into air taxis, drones, and others. The air taxis segment is expected to register a CAGR of 20% during the forecast period.
 

• Air taxis represent a specialized and high-profile segment of the Advanced Air Mobility (AAM) market, focusing on providing short-distance, on-demand air travel within urban areas. These services aim to offer an alternative to traditional ground-based taxis and ridesharing by leveraging the airspace above congested cities.
   
• Air taxis, typically eVTOL aircraft, can take off and land vertically, making them ideal for urban environments with limited space for traditional runways. This segment promises to revolutionize urban mobility by significantly reducing travel times and providing a novel, efficient mode of transport.
   
• Key players like Uber Elevate (now part of Joby Aviation) and Archer Aviation are actively developing and testing air taxi services, with plans for commercial operations in major cities around the world. The success of air taxis depends on advancements in vehicle technology, regulatory approvals, infrastructure development, and public acceptance, all of which are progressing rapidly.
   

Based on application, the advanced air mobility market is divided into cargo transport, passenger transport, mapping & surveying, special mission, surveillance & monitoring, and others. In 2023, the cargo transport segment dominated the global market with a revenue of over USD 2 Million.
 

• Cargo transport is a significant and rapidly growing segment within the Advanced Air Mobility (AAM) market. This segment focuses on the use of eVTOL aircraft and drones for the efficient and timely delivery of goods.
   
• The potential to alleviate ground traffic congestion and provide rapid, last-mile delivery solutions has made cargo transport an attractive application of AAM technologies. Companies such as Amazon and UPS are pioneering the use of drones for package delivery, aiming to enhance logistics efficiency and reduce delivery times.
   
• Larger eVTOL aircraft are being developed to handle heavier loads and longer distances, which could revolutionize supply chain logistics by providing flexible and on-demand transport options. This segment's growth is driven by the increasing demand for e-commerce and the need for efficient urban logistics solutions, making it a critical area for investment and development in the market.
   

North America dominated the advanced air mobility market in 2023, accounting for a share of over 35%. North America, particularly the United States, is at the forefront of the Advanced Air Mobility (AAM) market. The region boasts a robust aerospace industry, extensive research and development capabilities, and significant investment from both private and public sectors. The Federal Aviation Administration (FAA) is actively working on regulatory frameworks to integrate AAM into national airspace safely.
 

Numerous pilot projects and test flights are being conducted, with cities like Los Angeles and Dallas leading the way in urban air mobility (UAM) initiatives. Additionally, partnerships between aerospace companies, technology firms, and government agencies are driving innovation and infrastructure development. Canada's supportive regulatory environment and investments in AAM technologies further bolster the region's market growth.
 

The United States is a global leader in the AAM market, due to its well-established aerospace industry, significant investment, and supportive regulatory environment. The FAA's initiatives, such as the UAM Grand Challenge, are fostering collaboration between the public and private sectors to develop and integrate AAM technologies. Major cities like Los Angeles, Dallas, and Miami are pioneering UAM projects, focusing on infrastructure development and public acceptance. Leading companies like Joby Aviation, Archer Aviation, and Boeing are making substantial progress in developing eVTOL aircraft and related technologies. The U.S. market's emphasis on innovation, safety, and scalability positions it as a critical player in the global AAM landscape. For instance, in September 2023, Bye Aerospace achieved a significant milestone when the FAA approved the "Functional Hazard Analysis" for their specially engineered electric eFlyer two aircraft. The eFlyer 2 (Project No. TC09549CH-A) was found to be eligible for a type certificate based on the established FAA certification basis. The FAA verified that the type design complied with the U.S. type certification basis and satisfied the safety requirements for the sought certification category.
 

China is rapidly advancing in the AAM market, driven by significant governmental support, large-scale investments, and a focus on technological innovation. The Chinese government is actively promoting the development of eVTOL aircraft and drone technologies as part of its broader strategy to modernize transportation and reduce urban congestion. Companies like EHang and AutoFlight are at the forefront, conducting test flights and pilot projects across major cities. China's emphasis on integrating AAM with its smart city initiatives and leveraging its extensive manufacturing capabilities provides a strong foundation for market growth. The country's proactive regulatory approach and large domestic market further enhance its potential as a leading player in the AAM sector.
 

Japan is positioning itself as a key player in the AAM market, leveraging its technological prowess, innovative culture, and government support. The Japanese government has set ambitious goals for integrating AAM into its transportation network, with plans for commercial operations by the mid-2020s. Companies like SkyDrive and Mitsubishi Electric are actively developing eVTOL aircraft and related technologies. Tokyo and Osaka are key cities for UAM pilot projects, focusing on infrastructure development and public acceptance. Japan's emphasis on safety, reliability, and efficiency, coupled with its experience in high-tech manufacturing, positions it well for significant contributions to the market.
 

South Korea is emerging as a significant player in the advanced air mobility market, driven by its strong technological infrastructure, government initiatives, and innovative projects. The South Korean government has outlined a comprehensive roadmap for AAM development, aiming to commercialize urban air mobility services by the late 2020s. Major companies like Hyundai and Hanwha are investing heavily in eVTOL aircraft and related technologies. The capital city, Seoul, is a focal point for UAM pilot projects, integrating AAM with smart city developments. South Korea's advanced technological ecosystem, supportive regulatory environment, and focus on innovation are key factors propelling its AAM market growth.
 

Advanced Air Mobility Market Share

Airbus and The Boeing Company held a significant share of over 25% in the advanced air mobility industry in 2023. Airbus holds a significant share in the advanced air mobility (AAM) market due to its extensive experience, innovative capabilities, and strategic investments in urban air mobility solutions. As one of the world’s leading aerospace manufacturers, Airbus has leveraged its expertise in aircraft design, manufacturing, and air traffic management to develop cutting-edge eVTOL aircraft and integrated AAM systems.
 

Airbus’s Urban Air Mobility initiative, including the development of the CityAirbus and Vahana projects, demonstrates its commitment to pioneering sustainable and efficient urban transportation solutions. The company's strong presence in the global aerospace market, coupled with its ability to leverage existing technologies and infrastructure, positions Airbus as a key player in the AAM sector. Additionally, Airbus’s collaborations with regulatory authorities, urban planners, and technology partners further enhance its ability to influence and shape the future of urban air mobility.
 

The Boeing Company’s significant share in the advanced air mobility (AAM) market can be attributed to its long-standing leadership in aerospace innovation, comprehensive R&D capabilities, and strategic initiatives focused on urban mobility. Boeing’s foray into the AAM market is marked by its development of autonomous flight systems, advanced eVTOL aircraft, and integration of cutting-edge technologies such as artificial intelligence and battery optimization. Boeing's partnership with Aurora Flight Sciences, a subsidiary specializing in the design and development of advanced aviation technologies, underscores its commitment to leading the AAM revolution. Boeing’s extensive experience in commercial aviation, coupled with its strategic investments in urban air mobility and strong global network, enables it to play a pivotal role in advancing AAM solutions.
 

Advanced Air Mobility Market Companies

Major players operating in the advanced air mobility industry are:

• Airbus
• The Boeing Company
• Aurora Flight Sciences
• Bell Textron Inc.
• Guangzhou EHang Intelligent Technology Co. Ltd.
• Embraer S.A.
   

Advanced Air Mobility Industry News

• In July 2023, The FAA granted Joby Aviation a unique airworthiness certificate for its first aircraft, which was a noteworthy accomplishment. As part of its Agility Prime contract with the U.S. Air Force, Joby is planned to deliver the world's premier electric vertical take-off and landing (eVTOL) aircraft to Edwards Air Force Base in 2024. This certificate will enable Joby to realize its ambition. The contract for Agility Prime has been extended, with a potential value of $131 million. This indicates the continued cooperation with Toyota, a significant partner and investor that has committed over $400 million in the production line.
   
• In June 2024, Airbus and Avincis, a well-established European helicopter operator, have signed a Memorandum of Understanding (MoU) to partner on the development of Advanced Air Mobility (AAM). The companies will collaborate to explore opportunities for operating electric vertical take-off and landing (eVTOL) aircraft throughout Europe. Through the agreement, Airbus and Avincis will focus on defining the concept of operations for eVTOLs in Europe and beyond. Both parties will jointly work to define mission profiles for eVTOL operations in Europe and other target regions.
   

The advanced air mobility market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) and units from 2021 to 2032, for the following segments:

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Market, By Component, 2018 – 2032

• Hardware
  • Aerostructure
  • Avionics
  • Flight Control System
  • Propulsion System
  • Others
• Software

Market, By Application, 2018 – 2032

• Cargo Transport
• Passenger Transport
• Mapping & Surveying
• Special Mission
• Surveillance & Monitoring
• Others

Market, By Type, 2018 – 2032

• Air taxis
• Drones
• Others

Market, By Operating Mode, 2018 – 2032

• Piloted
  • On-board piloted
  • Remotely piloted
• Autonomous

Market, By Propulsion Type, 2018 – 2032

• Gasoline
  • Turbine Engines (Turbo)
  • Reciprocating (Piston) Engines
• Electric
• Hybrid

Market, By End-User, 2018 – 2032

• Commercial
• Government & Military

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA