Advanced Air Mobility Market By Vehicle Type (Air Taxis, Cargo Drones, Passenger Drones), By Range (Short Range, Medium Range, Long Range), By Application (Passenger Transport, Cargo and Freight Transport, Emergency Medical Services, Surveillance and Security), By End-User Industry (Aerospace & Defense, Logistics & Delivery, Healthcare, Urban Transport), and By Region: Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Advanced Air Mobility Market was valued at USD 8.5 billion in 2023 and will surpass USD 57.5 billion by 2030; growing at a CAGR of 31.4% during 2024 - 2030.

The Advanced Air Mobility (AAM) market represents the next frontier in air transportation, driven by the integration of electric vertical takeoff and landing (eVTOL) aircraft, autonomous drones, and urban air mobility (UAM) solutions. This market is poised to revolutionize how people and goods are transported, particularly in urban settings where congestion and inefficiency plague traditional transportation systems. AAM solutions, ranging from air taxis to cargo drones, aim to create fast, sustainable, and cost-effective alternatives for short-distance travel and logistics. The growth of this market is propelled by advancements in electric propulsion technology, regulatory developments, and increasing investment in infrastructure to support these next-generation air vehicles.

AAM technologies have gained significant attention from both the private sector and government entities, with companies innovating in areas like autonomy, flight control systems, and smart air traffic management. Additionally, the increasing focus on environmental sustainability, particularly in reducing carbon emissions from traditional ground transportation, has made AAM an attractive solution. As cities become more congested and traditional transport infrastructure becomes stretched, AAM holds the potential to reshape urban mobility while creating opportunities for global markets.

Vehicle Type Segment Is Largest Owing to Air Taxis' Dominance

The air taxis segment holds the largest share in the AAM market due to the increasing demand for urban air mobility solutions that can bypass road congestion. Air taxis, often consisting of electric vertical takeoff and landing (eVTOL) aircraft, are seen as one of the most viable solutions for rapid, on-demand transportation within urban environments. These vehicles can carry passengers between key locations, reducing travel time significantly compared to traditional ground transportation. The rapid development of eVTOL technologies by leading companies like Joby Aviation, Volocopter, and Lilium is helping propel this segment forward.

Air taxis are expected to be particularly valuable in megacities with high population densities and infrastructure challenges. Their ability to take off and land vertically allows them to operate in urban areas where space for traditional airports is scarce. Moreover, government support in the form of regulatory frameworks for air traffic management, flight safety, and environmental standards has further accelerated investment in air taxi services. As this technology matures, the air taxi market will expand, becoming a cornerstone of urban mobility networks globally.

Application Segment Is Fastest Growing Owing to Passenger Transport Demand

The passenger transport application is experiencing the fastest growth within the AAM market, driven by the increasing desire for faster, more convenient, and environmentally friendly travel options. Urban air mobility (UAM) solutions are anticipated to play a pivotal role in reducing congestion and enhancing connectivity in cities. With advancements in electric aircraft and autonomy, AAM systems are expected to revolutionize the way people commute within densely populated areas, offering faster alternatives to traditional transportation modes such as cars and public transport.

Passenger transport through AAM not only promises time savings but also contributes to sustainability efforts, offering eco-friendly travel solutions compared to gasoline-powered vehicles. Companies such as Joby Aviation and Volocopter are at the forefront of developing these solutions, with plans for commercial launch by mid-2020s. As cities around the world continue to prioritize sustainability and innovation, passenger transport via AAM will remain a key growth area in the coming years.

End-User Industry Segment Is Largest Owing to Aerospace & Defense Demand

The aerospace & defense sector is the largest end-user industry in the Advanced Air Mobility market, primarily due to the extensive R&D investments being made to develop advanced aviation technologies. The aerospace sector is integrating AAM solutions for both military and civilian applications, including surveillance, reconnaissance, and logistics. Additionally, the potential for AAM technologies to enhance defense capabilities with lightweight, high-performance air vehicles is significant.

Leading aerospace companies are also pushing forward in the development of eVTOLs and autonomous drones for defense applications, including tactical and strategic military operations. Governments and military agencies have shown keen interest in adopting these technologies for urban surveillance, emergency response, and disaster management. With the defense industry's increasing reliance on advanced technologies, the aerospace & defense sector continues to lead the way in the adoption and investment in AAM solutions.

Region Segment Is Largest Owing to North America's Market Leadership

North America is the largest regional market for advanced air mobility, primarily driven by the United States' leadership in aerospace technology, innovation, and regulatory frameworks. The U.S. government has made substantial investments in developing and testing AAM technologies, supported by federal agencies such as the Federal Aviation Administration (FAA). Companies like Joby Aviation, Terrafugia, and Beta Technologies are based in North America, contributing significantly to the region's dominance in AAM development. Additionally, the demand for solutions that reduce urban congestion and improve transportation efficiency has driven the growth of AAM applications in cities like Los Angeles, New York, and Washington D.C.

The region's robust infrastructure, coupled with a favorable regulatory environment and ongoing funding from both public and private sectors, positions North America as the frontrunner in the global AAM market. Moreover, as more AAM trials and commercial projects take place in this region, North America's dominance is expected to continue, influencing global trends and technological standards in the AAM sector.

Competitive Landscape and Leading Companies

The Advanced Air Mobility market is highly competitive, with several established players and new entrants vying for dominance in this rapidly evolving industry. Leading companies in the sector include Joby Aviation, Lilium, Volocopter, EHang, and Vertical Aerospace, all of which are developing eVTOL and drone technologies for passenger transport, cargo delivery, and other applications. These companies are not only focusing on vehicle development but also on creating infrastructure to support AAM operations, such as vertiports (landing sites for AAM vehicles) and air traffic management systems.

The competitive landscape is marked by significant collaborations, partnerships, and investments aimed at advancing technologies and achieving regulatory approval. For example, Joby Aviation has partnered with Toyota for manufacturing, while Lilium has secured funding from Tencent and Atomico to support its growth. As the market matures, competition will intensify, with companies differentiating themselves based on vehicle design, technology, operational scalability, and safety features. The successful commercialization of AAM services will depend on factors such as regulatory approvals, infrastructure development, and market readiness for adoption.

Recent Developments:

• Joby Aviation announced successful flight tests of its eVTOL air taxi prototype, marking a significant milestone toward commercial air taxi operations. The company plans to launch services in the next few years, with regulatory approval expected by 2025.
• Lilium entered into a strategic partnership with TUI Group, a global tourism company, to explore the integration of air taxis into short-distance travel solutions for tourists, with an emphasis on European cities.
• EHang signed an agreement with the City of Guangzhou to develop an urban air mobility network, involving the deployment of passenger drones for public transport, with operations set to begin in 2024.
• Vertical Aerospace completed successful test flights of its VA-X4 eVTOL aircraft, which is designed for both passenger transport and freight. The company plans to offer commercial services in partnership with American Airlines and Vertical Aerospace.
• Hyundai Urban Air Mobility unveiled its plans for a new production facility for eVTOL aircraft in the United States, as part of its vision to launch urban air mobility services by the mid-2020s, emphasizing sustainable air transport solutions

List of Leading Companies:

• AeroVironment
• Aston Martin Lagonda Global Holdings
• Bell Helicopter
• Beta Technologies
• Boeing (Aurora Flight Sciences)
• EHang
• Hyundai Urban Air Mobility
• Joby Aviation
• Kitty Hawk Corporation
• Lilium
• Rolls-Royce
• Terrafugia (a subsidiary of Geely)
• Urban Aeronautics
• Vertical Aerospace
• Volocopter

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