As per Intent Market Research, the Air Taxi Market was valued at USD 3.1 Billion in 2024-e and will surpass USD 14.6 Billion by 2030; growing at a CAGR of 29.2% during 2025 - 2030.
The air taxi market is experiencing rapid growth as urban air mobility (UAM) gains momentum, promising to revolutionize the transportation industry. Air taxis offer a new form of air transportation for both passengers and cargo, helping to alleviate traffic congestion and providing faster, more efficient travel. The market is driven by advancements in electric vertical takeoff and landing (eVTOL) technology, which enables the development of small, electric-powered aircraft designed for short urban routes. These aircraft are seen as a sustainable and effective solution for the future of urban mobility, especially in densely populated cities where ground transport infrastructure is overwhelmed.
The development of air taxis is supported by both commercial interests and government initiatives. As the market matures, it promises to create new opportunities for both passenger and cargo transport, including on-demand services and the transportation of goods to remote or hard-to-reach locations. The air taxi industry, while still in its early stages, is set for rapid expansion as technological challenges are overcome and regulatory frameworks are put in place. Investment from major aviation companies, startups, and governments is expected to continue to fuel innovation in this sector.
Passenger Air Taxi is the Largest Segment in the Air Taxi Market
The passenger air taxi segment is the largest in the air taxi market, as the primary focus of the industry remains on providing efficient, rapid, and environmentally friendly transportation solutions for urban populations. These air taxis are designed to carry passengers across short to medium distances, bypassing the congestion of city traffic. Passenger air taxis offer the promise of reducing travel time significantly, making urban commutes faster, more flexible, and sustainable. This makes them especially attractive in large metropolitan areas where road congestion is a persistent problem.
The electric vertical takeoff and landing (eVTOL) technology is a major enabler of passenger air taxis. These aircraft can take off and land vertically, eliminating the need for traditional runways, and are designed to be more energy-efficient and quieter than conventional helicopters. The growing interest in sustainability, coupled with technological advancements, is propelling the growth of this segment. As the regulatory environment matures and public acceptance increases, passenger air taxis are expected to become a common form of urban transport, particularly for corporate executives, high-net-worth individuals, and city dwellers seeking faster travel options.
eVTOL Technology is the Fastest Growing in the Air Taxi Market
The eVTOL technology is the fastest growing segment in the air taxi market due to its potential to transform urban mobility. These electric aircraft can take off and land vertically, significantly reducing the need for large-scale infrastructure like traditional airports or runways. As a result, eVTOLs are highly suitable for urban environments, where space is limited and transportation demand is high. The technology also promises to be more sustainable and cost-effective, offering lower operational costs compared to traditional aircraft, as well as the potential for reduced carbon emissions.
As advancements in battery technology and electric propulsion systems continue, eVTOL aircraft are expected to become more efficient and reliable, allowing for larger fleets of air taxis to serve commercial markets. Investments from aviation giants and startups alike are accelerating the development of eVTOLs, and as the technology matures, it is likely to lead to a significant disruption in the aviation and urban transportation sectors. With increasing focus on sustainability and reducing urban congestion, eVTOL technology is poised to become the cornerstone of the air taxi industry in the coming years.
Commercial Sector is the Largest End-User Industry for Air Taxis
The commercial sector is the largest end-user industry for air taxis, driven by the demand for more efficient, faster, and eco-friendly transportation options in business and tourism. Air taxis have significant potential for commercial use, particularly in metropolitan areas, where congestion is a major issue. Businesses are increasingly looking for ways to improve the mobility of their executives, clients, and employees, and air taxis provide an attractive solution for this need. Additionally, the tourism industry stands to benefit from the introduction of air taxis, as they offer unique, high-end travel experiences for tourists seeking to explore cities from the sky.
Furthermore, air taxis are expected to support commercial enterprises with cargo delivery services, especially for time-sensitive deliveries. The commercial sector's reliance on fast and reliable transportation will drive the demand for air taxi services, and as the technology becomes more reliable and cost-effective, the sector's adoption of air taxis will continue to grow. As regulations are established and operational safety standards are met, the commercial industry will be at the forefront of integrating air taxis into their transportation strategies.
North America Leads the Air Taxi Market
North America is currently the leading region in the air taxi market, primarily due to the presence of major aviation companies and extensive investments in urban air mobility. The United States, in particular, is a key player, with numerous startups, aerospace companies, and research institutions actively working on developing air taxi solutions. The U.S. government, along with local authorities in cities like Los Angeles, Dallas, and New York, is also investing in infrastructure and regulatory frameworks to support the growth of air taxis.
The region's well-established aerospace industry, combined with strong governmental and private-sector collaboration, provides a conducive environment for the commercialization of air taxis. Additionally, North America's high population density in urban areas makes it an ideal market for air taxis to reduce traffic congestion and provide faster transportation alternatives. As the technology and regulatory standards mature, North America is expected to continue dominating the air taxi market, setting the stage for global adoption.
Competitive Landscape in the Air Taxi Market
The air taxi market is highly competitive, with both established aviation companies and new startups vying to lead in this emerging industry. Major players include Volocopter, Joby Aviation, Lilium, Urban Aeronautics, and Vertical Aerospace. These companies are developing eVTOL aircraft that aim to revolutionize urban air mobility with faster, cleaner, and more efficient transportation options. In addition, traditional aerospace giants like Airbus and Boeing have also entered the air taxi space, investing heavily in research and development to create advanced air mobility solutions.
The competitive landscape is driven by significant investments in technological innovation, particularly in battery efficiency, electric propulsion systems, and autonomous flight technologies. As the industry moves towards commercial viability, partnerships between aviation companies, government agencies, and infrastructure developers will play a key role in shaping the future of the air taxi market. The coming years are expected to witness an acceleration in product development, regulatory approvals, and infrastructure rollouts, further intensifying competition in the sector.
Recent Developments:
- Joby Aviation successfully completed a key test flight of its eVTOL aircraft for urban air mobility in January 2025.
- Volocopter unveiled its latest electric air taxi prototype at a global aerospace event in December 2024.
- Lilium entered into a strategic partnership with leading cities for air taxi services in November 2024.
- Terrafugia (Geely) received approval for its autonomous flying car prototype from aviation authorities in October 2024.
- Vertical Aerospace expanded its production facilities to accelerate air taxi manufacturing in September 2024.
List of Leading Companies:
- Joby Aviation
- Volocopter
- Lilium
- Terrafugia (a subsidiary of Geely)
- Vertical Aerospace
- AeroMobil
- Vertical Lift
- Pipistrel
- Urban Aeronautics
- Aurora Flight Sciences (a subsidiary of Boeing)
- Elroy Air
- Cartivator
- Boeing
- Bell Textron
- Hyundai Motor Group
Report Scope:
Report Features |
Description |
Market Size (2024-e) |
USD 3.1 Billion |
Forecasted Value (2030) |
USD 14.6 Billion |
CAGR (2025 – 2030) |
29.2% |
Base Year for Estimation |
2024-e |
Historic Year |
2023 |
Forecast Period |
2025 – 2030 |
Report Coverage |
Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments |
Segments Covered |
Air Taxi Market By Type (Passenger Air Taxi, Cargo Air Taxi), By Technology (Electric Vertical Takeoff and Landing (eVTOL), Helicopter-Based Air Taxis), By End-User Industry (Commercial, Government & Defense, Corporate & Private Travel); Global Insights & Forecast (2024 - 2030) |
Regional Analysis |
North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), Middle East & Africa (Saudi Arabia, UAE, Rest of Middle East & Africa) |
Major Companies |
Joby Aviation, Volocopter, Lilium, Terrafugia (a subsidiary of Geely), Vertical Aerospace, AeroMobil, Pipistrel, Urban Aeronautics, Aurora Flight Sciences (a subsidiary of Boeing), Elroy Air, Cartivator, Boeing, Hyundai Motor Group |
Customization Scope |
Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements |
Frequently Asked Questions
1. Introduction |
1.1. Market Definition |
1.2. Scope of the Study |
1.3. Research Assumptions |
1.4. Study Limitations |
2. Research Methodology |
2.1. Research Approach |
2.1.1. Top-Down Method |
2.1.2. Bottom-Up Method |
2.1.3. Factor Impact Analysis |
2.2. Insights & Data Collection Process |
2.2.1. Secondary Research |
2.2.2. Primary Research |
2.3. Data Mining Process |
2.3.1. Data Analysis |
2.3.2. Data Validation and Revalidation |
2.3.3. Data Triangulation |
3. Executive Summary |
3.1. Major Markets & Segments |
3.2. Highest Growing Regions and Respective Countries |
3.3. Impact of Growth Drivers & Inhibitors |
3.4. Regulatory Overview by Country |
4. Air Taxi Market, by Type (Market Size & Forecast: USD Million, 2023 – 2030) |
4.1. Passenger Air Taxi |
4.2. Cargo Air Taxi |
5. Air Taxi Market, by Technology (Market Size & Forecast: USD Million, 2023 – 2030) |
5.1. Electric Vertical Takeoff and Landing (eVTOL) |
5.2. Helicopter-Based Air Taxis |
6. Air Taxi Market, by End-User Industry (Market Size & Forecast: USD Million, 2023 – 2030) |
6.1. Commercial |
6.2. Government & Defense |
6.3. Corporate & Private Travel |
6.4. Others |
7. Regional Analysis (Market Size & Forecast: USD Million, 2023 – 2030) |
7.1. Regional Overview |
7.2. North America |
7.2.1. Regional Trends & Growth Drivers |
7.2.2. Barriers & Challenges |
7.2.3. Opportunities |
7.2.4. Factor Impact Analysis |
7.2.5. Technology Trends |
7.2.6. North America Air Taxi Market, by Type |
7.2.7. North America Air Taxi Market, by Technology |
7.2.8. North America Air Taxi Market, by End-User Industry |
7.2.9. By Country |
7.2.9.1. US |
7.2.9.1.1. US Air Taxi Market, by Type |
7.2.9.1.2. US Air Taxi Market, by Technology |
7.2.9.1.3. US Air Taxi Market, by End-User Industry |
7.2.9.2. Canada |
7.2.9.3. Mexico |
*Similar segmentation will be provided for each region and country |
7.3. Europe |
7.4. Asia-Pacific |
7.5. Latin America |
7.6. Middle East & Africa |
8. Competitive Landscape |
8.1. Overview of the Key Players |
8.2. Competitive Ecosystem |
8.2.1. Level of Fragmentation |
8.2.2. Market Consolidation |
8.2.3. Product Innovation |
8.3. Company Share Analysis |
8.4. Company Benchmarking Matrix |
8.4.1. Strategic Overview |
8.4.2. Product Innovations |
8.5. Start-up Ecosystem |
8.6. Strategic Competitive Insights/ Customer Imperatives |
8.7. ESG Matrix/ Sustainability Matrix |
8.8. Manufacturing Network |
8.8.1. Locations |
8.8.2. Supply Chain and Logistics |
8.8.3. Product Flexibility/Customization |
8.8.4. Digital Transformation and Connectivity |
8.8.5. Environmental and Regulatory Compliance |
8.9. Technology Readiness Level Matrix |
8.10. Technology Maturity Curve |
8.11. Buying Criteria |
9. Company Profiles |
9.1. Joby Aviation |
9.1.1. Company Overview |
9.1.2. Company Financials |
9.1.3. Product/Service Portfolio |
9.1.4. Recent Developments |
9.1.5. IMR Analysis |
*Similar information will be provided for other companies |
9.2. Volocopter |
9.3. Lilium |
9.4. Terrafugia (a subsidiary of Geely) |
9.5. Vertical Aerospace |
9.6. AeroMobil |
9.7. Vertical Lift |
9.8. Pipistrel |
9.9. Urban Aeronautics |
9.10. Aurora Flight Sciences (a subsidiary of Boeing) |
9.11. Elroy Air |
9.12. Cartivator |
9.13. Boeing |
9.14. Bell Textron |
9.15. Hyundai Motor Group |
10. Appendix |
A comprehensive market research approach was employed to gather and analyze data on the Air Taxi Market. In the process, the analysis was also done to analyze the parent market and relevant adjacencies to measure the impact of them on the Air Taxi Market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.
Secondary Research
Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.
Primary Research
Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the Air Taxi Market ecosystem. The primary research objectives included:
- Validating findings and assumptions derived from secondary research
- Gathering qualitative and quantitative data on market trends, drivers, and challenges
- Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
- Assessing the supply-side landscape, including technological advancements and recent developments
Market Size Assessment
A combination of top-down and bottom-up approaches was utilized to analyze the overall size of the Air Taxi Market. These methods were also employed to assess the size of various subsegments within the market. The market size assessment methodology encompassed the following steps:
- Identification of key industry players and relevant revenues through extensive secondary research
- Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
- Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources
Data Triangulation
To ensure the accuracy and reliability of the market size, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size assessment.