Advanced Air Mobility Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Advanced Air Mobility market is estimated to be valued at USD 5.6 billion in 2025 and is expected to reach USD 29.4 billion by 2032, growing at a compound annual growth rate (CAGR) of 26.8% from 2025 to 2032. This substantial growth is driven by increasing investments in innovative aerial technologies, growing demand for efficient urban transportation solutions, and advancements in electric vertical takeoff and landing (eVTOL) aircraft. The market is set to revolutionize both passenger and cargo transport sectors, unlocking new opportunities worldwide.

Key trends shaping the Advanced Air Mobility market include rapid developments in autonomous flight systems and enhanced battery capacities enabling longer flight durations. Regulatory bodies are increasingly fostering frameworks to support the integration of these aircraft into airspace, promoting safety and operational efficiency. Additionally, collaborations between tech companies, aerospace manufacturers, and governments are accelerating infrastructure development such as vertiports and charging stations. These trends collectively position Advanced Air Mobility as a pivotal component of future smart city ecosystems and sustainable transportation networks.

Segmental Analysis:

By Aircraft Type: eVTOL Driving Market Leadership Through Urban Mobility Innovation

In terms of By Aircraft Type, eVTOL (electric Vertical Take-Off and Landing) aircraft contribute the highest share of the Advanced Air Mobility market owing to their unique capability to combine vertical lift with efficient electric propulsion. This segment thrives predominantly because eVTOLs address the growing demand for flexible, short-distance urban and suburban transportation solutions. Unlike fixed-wing or rotary-wing aircraft, eVTOLs offer the advantage of operating in densely populated areas without the need for traditional airport infrastructure, as they require minimal space for both takeoff and landing. The drive toward sustainable and quieter urban air transit is a critical factor propelling eVTOL adoption, as these aircraft significantly reduce noise pollution and carbon emissions compared to conventional helicopters and small planes.

The advancement in battery technology, lightweight composite materials, and autonomous flight systems has accelerated the development and potential commercial deployment of eVTOLs. Additionally, urban congestion and rising environmental concerns have intensified the search for alternative transportation modes, positioning eVTOLs as a promising solution. Major investments from public and private sectors have also bolstered the momentum of this segment. Regulatory agencies in numerous countries are working to establish frameworks tailored for eVTOL certifications, air traffic integration, and safety standards, which enhances market confidence. Compared to hybrid or conventional aircraft, eVTOLs stand out by offering a scalable, eco-friendly platform adaptable to various use cases, from short-distance passenger rides to emergency response, reinforcing their dominance within the aircraft type category.

By Application: Urban Air Taxis Shaping the Future of Commuting

By Application, Urban Air Taxis dominate the Advanced Air Mobility landscape due to their potential to revolutionize urban transportation by reducing travel time, alleviating traffic congestion, and offering new mobility options within metropolitan regions. This segment's growth is driven by the increasing urban population density and the demand for efficient, reliable, and rapid transit solutions that can bypass traditional road networks. Urban air taxis, leveraging advancements in eVTOL designs, present a transformative mobility paradigm, enabling point-to-point travel between urban centers and peripheral neighborhoods or business hubs in a fraction of the time conventional means require.

The integration of smart city initiatives and the push for greener transportation ecosystems play a pivotal role in fostering the urban air taxi segment. Governments and private stakeholders actively promote infrastructure development such as vertiports and air traffic management systems to accommodate these aircraft safely and efficiently. Moreover, the passenger-centric design approach focusing on comfort, safety, and affordability expands the appeal of urban air taxis to a wide user base, from daily commuters to on-demand mobility customers. Emerging partnerships between aerospace companies, technology firms, and municipalities further support pilot programs and demonstrations that validate the practicality of urban air taxis, paving the way for widespread adoption.

Safety enhancements, autonomous flight capabilities, and energy-efficient operations are additional factors reinforcing urban air taxis' leadership in the application segment. The ability to offer scalable service models ranging from premium point-to-point rides to shared air taxi fleets also addresses varied market demands, helping this segment outpace other applications like cargo or emergency services in terms of market penetration and public visibility.

By Propulsion: Electric Power as the Core Catalyst of Advanced Air Mobility

In terms of By Propulsion, the Electric segment commands the largest market share, primarily due to its alignment with global sustainability goals and advancements in clean energy technologies. Electric propulsion in Advanced Air Mobility vehicles drastically reduces dependency on fossil fuels, leading to lower greenhouse gas emissions and operational noise. This ecological advantage resonates strongly with governments, urban planners, and consumers prioritizing environmentally friendly transport alternatives. The reduction in maintenance costs linked with electric motors, compared to combustion engines, further incentivizes adoption across various aircraft types and applications.

The steady progress in battery energy density, charging infrastructure, and power management systems enables longer flight durations and quicker turnaround times, addressing significant challenges that once limited electric propulsion in aviation. Innovation in battery chemistry and modular power units facilitates safer and more efficient powertrains, making electric propulsion increasingly viable not only for eVTOL aircraft but also for hybrid and other novel aerial vehicles within the Advanced Air Mobility ecosystem. The scalability and modular nature of electric propulsion systems also contribute to reductions in manufacturing complexity and costs.

Moreover, electric propulsion aligns with regulatory pressures on emission reductions, particularly in urban environments where air pollution concerns are heightened. Airlines, operators, and cities are actively incorporating electric aircraft as part of their broader sustainability initiatives. The convergence of favorable policy frameworks, technological breakthroughs, and consumer demand ensures that electric propulsion remains the central growth driver in Advanced Air Mobility propulsion systems, outpacing hybrid-electric, fuel-cell, and conventional combustion alternatives in market share and strategic importance.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Advanced Air Mobility (AAM) market is driven by a well-established aerospace ecosystem, significant government support, and the presence of numerous pioneering companies. The region benefits from extensive R&D infrastructure, collaboration between private industry and government agencies such as the Federal Aviation Administration (FAA) and NASA, and supportive regulatory frameworks aimed at integrating AAM into existing airspace. Additionally, strong venture capital inflows and partnerships among technology firms, manufacturers, and startups fuel innovation. Notable companies like Joby Aviation, Archer Aviation, and Lilium (with a major U.S. presence) play leading roles in advancing electric vertical takeoff and landing (eVTOL) technologies, urban air taxi concepts, and infrastructure development. North America's robust supply chains and advanced manufacturing capabilities further reinforce its commanding position in the AAM market globally.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the Advanced Air Mobility market, underpinned by rapid urbanization, increasing investments in smart city initiatives, and growing governmental encouragement around sustainable transport solutions. The region's diverse economic landscape features both mature markets like Japan and South Korea and emerging economies such as China and India, which are aggressively adopting advanced aerospace technologies. Governments across the region are introducing progressive policies to facilitate airspace integration and pilot projects, as seen in China's coordinated efforts for urban air mobility and Japan's investment into unmanned traffic management. The presence of key players, including EHang in China, Hyundai's urban air mobility ventures in South Korea, and Toyota's aerospace collaborations in Japan, accelerates market momentum. Trade dynamics, including improved supply chains and cross-border technological partnerships, further bolster the Asia Pacific's rapid emergence as a hotspot for AAM innovation and deployment.

Advanced Air Mobility Market Outlook for Key Countries

United States

The United States' AAM market is shaped by a mature aerospace industry and extensive policy initiatives supporting urban air mobility certification and airspace integration. Pioneers such as Joby Aviation, Archer Aviation, and Beta Technologies are driving innovation with a focus on eVTOL aircraft, battery technology, and autonomous flight systems. The FAA's engagement to develop comprehensive regulations and infrastructure frameworks is pivotal for scaling commercial applications, positioning the U.S. as a global innovation hub and facilitator of first-mover advantages in the sector.

China

China is accelerating its AAM market through significant government-led initiatives aimed at positioning the country as a leader in clean and innovative urban transport. EHang stands as a prominent figure, with extensive pilot programs in multiple Chinese cities showcasing autonomous passenger drones and cargo drones. Strong governmental support for urban air mobility, including airspace management reforms and public-private partnerships, combined with China's manufacturing prowess, is helping to rapidly commercialize AAM solutions and set benchmarks for scalability within the Asia Pacific region.

Japan

Japan continues to leverage its technological expertise and forward-looking policies to establish a stronghold in the AAM sector. Companies like SkyDrive and Toyota are pioneering hybrid and electric VTOL projects with a focus on safety and integration into densely populated urban environments. The Japanese government's active role in facilitating unmanned aerial system deployment and investing in infrastructure aligned with smart city ambitions is critical for market development, integrating cultural trust in innovation with stringent safety standards.

Germany

Germany's advanced manufacturing base, combined with supportive EU regulatory frameworks, advances its position within the European Advanced Air Mobility market. Airbus's Vahana and CityAirbus initiatives symbolize the country's commitment to developing scalable and environmentally sustainable urban air mobility solutions. The German government's focus on green transportation and integration of AAM into existing urban transit networks creates fertile ground for innovation hubs, cross-sector collaborations, and pilot projects that emphasize safety, efficiency, and environmental responsibility.

South Korea

South Korea's fast-growing AAM market benefits from significant investments by conglomerates such as Hyundai, which is developing eVTOL aircraft as part of its broader mobility strategy. The government's active participation through policy development, infrastructure support, and aviation safety regulations facilitates rapid progress in commercial applications and testing. South Korea's emphasis on advanced technologies like AI and IoT integration further enhances its innovative edge, enabling a competitive position in the global AAM landscape.

Market Report Scope

Market Segmentation

Aircraft Type Insights (Revenue, USD, 2020 - 2032)

• eVTOL
• fixed-wing
• rotary-wing
• hybrid
• others

Application Insights (Revenue, USD, 2020 - 2032)

• Urban air taxis
• cargo delivery
• emergency medical services
• defense and surveillance
• others

Propulsion Insights (Revenue, USD, 2020 - 2032)

• Electric
• hybrid-electric
• fuel-cell
• conventional combustion

End-user Insights (Revenue, USD, 2020 - 2032)

• Commercial
• military
• governmental
• private use

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Joby Aviation
• Lilium GmbH
• Archer Aviation
• Volocopter GmbH
• EHang Holdings
• Vertical Aerospace
• Beta Technologies
• Hyundai Motor Company
• Boeing
• Airbus Helicopters
• Bell Textron Inc.
• Toyota Motor Corporation
• Pipistrel Aircraft