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

Market Outlook:

Advanced Air Mobility Market was over USD 11.31 Billion in 2023 and is estimated to surpass USD 57.92 Billion by end of the year 2032, witnessing more than 19.9% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 11.31 Billion
• CAGR (2024-2032): 19.9%
• Forecast Year Value (2032): USD 57.92 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

One of the principal growth drivers in the Advanced Air Mobility (AAM) market is the increasing demand for innovative urban transportation solutions. As urban populations continue to rise, traditional road-based transportation systems are becoming congested, leading to longer commute times and increased carbon emissions. Advanced air mobility, which includes electric vertical takeoff and landing (eVTOL) aircraft, offers a promising solution by enabling faster, more efficient travel over urban landscapes. As cities seek to enhance mobility and reduce traffic congestion, adoption of AAM technologies is gaining momentum, presenting substantial opportunities for companies involved in this sector.

Another significant growth driver is the technological advancements in electric aircraft and autonomous systems. Innovations in battery technology and propulsion systems are making eVTOL aircraft more feasible for commercial use. Furthermore, advancements in autonomous navigation and traffic management systems are making it safer and more efficient to integrate these aircraft into existing airspace. These technological breakthroughs not only enhance the performance and safety of AAM vehicles but also contribute to reducing operational costs. As a result, an expanding array of applications, from cargo transport to passenger services, is fueling market growth.

Lastly, supportive government policies and investment in infrastructure are acting as catalysts for the AAM market. Governments around the world are recognizing the potential of advanced air mobility to improve public transport and are beginning to formulate regulatory frameworks and investment initiatives to support its development. This includes funding for research and development, establishing vertiports, and creating operational guidelines to ensure safety. Such proactive measures from regulatory bodies significantly enhance market attractiveness and are vital for the successful deployment of AAM solutions.

Report Scope

Report Coverage	Details
Segments Covered	Component, Application, Type, Operating Mode, Propulsion Type, End-User
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Airbus S.A.S., Aurora Flight Sciences., Bell Textron, The Boeing Company., Guangzhou EHang Intelligent Technology Co.., Embraer S.A., Joby Aviation., Lilium., Neva Aerospace., Opener,, PIPISTREL., Terrafugia., Vertical Aerospace Group., Volocopter., Wisk Aero., Workhorse Group,

Industry Restraints:

Despite the promising prospects for the Advanced Air Mobility market, several challenges could hinder its growth. One of the primary restraints is the significant regulatory hurdles that must be overcome for widespread adoption. The lack of established regulations regarding airspace management, safety standards, and operational protocols for AAM vehicles presents a challenge for manufacturers and operators. Compliance with stringent aviation regulations is crucial, but the slow pace of regulatory development can delay the rollout of AAM services, causing uncertainty in the market and reducing investment.

Another major restraint is the high cost of development and infrastructure associated with advanced air mobility solutions. The manufacturing of eVTOL aircraft and the necessary supporting infrastructure, such as charging stations and vertiports, require substantial initial investment. Additionally, the relatively immature market means that economies of scale have not yet been achieved, keeping operational costs higher than traditional transportation methods. Consequently, this financial barrier can deter potential investors and slow down the overall adoption of AAM systems, limiting their market penetration amidst budget constraints faced by many governments and private entities.

Regional Forecast:

North America

The Advanced Air Mobility (AAM) market in North America is poised for significant growth, driven by the presence of key players, robust investment in urban air mobility projects, and supportive government policies. The U.S. leads with extensive infrastructure development and regulatory frameworks that encourage innovation in eVTOL (electric vertical takeoff and landing) vehicles. Major cities like Los Angeles and New York are exploring AAM solutions to address urban congestion. Canada is making strides through partnerships between government agencies and private companies, focusing on developing and testing AAM technologies, particularly in metropolitan areas like Toronto and Vancouver.

Asia Pacific

In the Asia Pacific region, the AAM market is experiencing rapid expansion, particularly in China and Japan. China is investing heavily in eVTOL technology, with companies like EHang and XTI Aircraft leading the charge. The government is keen on integrating drones for logistics and passenger transport to alleviate urban transport challenges. Japan, on the other hand, is focusing on safety and regulatory frameworks to support AAM initiatives, with cities like Tokyo exploring air taxi operations. South Korea is emerging as a competitive player in the AAM market, emphasizing R&D investments and collaborations among technology firms and government entities to develop an operational framework for air mobility.

Europe

Europe's Advanced Air Mobility market is characterized by strong governmental support and a collaborative approach among various stakeholders. The United Kingdom has established initiatives like the Urban Air Mobility (UAM) Challenge, a national strategy to harness AAM for solving urban transport issues while maintaining safety and environmental standards. Germany is at the forefront with its "Aerospace Initiative," promoting the development of eVTOL and other advanced aircraft technologies. France is equally proactive, with Paris targeting air taxi operations in preparation for major events. The EU's regulatory framework is evolving to facilitate AAM growth, focusing on harmonizing standards across member states to ensure seamless cross-border operations.

Segmentation Analysis:

In terms of segmentation, the global Advanced Air Mobility market is analyzed on the basis of Component, Application, Type, Operating Mode, Propulsion Type, End-User .

Advanced Air Mobility Market Segment Analysis

By Component

The Advanced Air Mobility Market is primarily segmented into Hardware and Software. Hardware includes aircraft, platforms, and associated technology essential for flight operations. As the industry evolves, investments in advanced avionics and charging stations for electric vertical takeoff and landing (eVTOL) aircraft are anticipated to drive hardware demand. Conversely, the Software segment encompasses flight planning, traffic management, and maintenance solutions. With a growing need for integrated systems that enhance safety and efficiency, the software component is expected to witness substantial growth, particularly in urban air mobility applications.

Application

Applications within the Advanced Air Mobility Market are diverse, including Cargo Transport, Passenger Transport, Mapping & Surveying, Special Missions, and Surveillance & Monitoring. Cargo Transport is set to gain traction due to the increase in e-commerce and last-mile delivery needs, while Passenger Transport represents a significant segment, driven by rising urbanization and demand for rapid transit solutions. Mapping & Surveying applications see potential in urban planning and infrastructure management. Special Missions and Surveillance & Monitoring are expected to grow, with increasing demand for emergency services and environmental monitoring driving innovation in unmanned aerial systems.

Type

The market is segmented based on type into eVTOL, fixed-wing, and hybrid aircraft. eVTOL is projected to dominate due to its versatility and efficiency in urban settings. Fixed-wing aircraft, while traditionally used in cargo and surveillance, are being adapted for longer-distance travel in Advanced Air Mobility applications. Hybrid aircraft combine elements of both systems, offering operational flexibility and range, making them increasingly attractive as the market expands.

Range

Range segmentation includes short-range, medium-range, and long-range capabilities. Short-range Advanced Air Mobility solutions are primarily focused on intracity flight, addressing urban transport challenges. Medium-range aircraft are suitable for regional travel, with a growing market demand for connections between smaller cities and hubs. Long-range capabilities are essential for intercity transport and cargo logistics, extending the operational envelope and reaching underserved locations.

Operating Mode

The Advanced Air Mobility Market is characterized by different operating modes: piloted, remotely piloted, and fully autonomous operations. Piloted aircraft currently dominate due to regulatory and safety concerns, but a gradual shift towards remotely piloted and autonomous systems is anticipated as technology advances and regulations evolve. Fully autonomous systems promise reduced operational costs and increased safety, but their widespread adoption will depend on regulatory frameworks and public acceptance.

Propulsion Type

Propulsion types in the market include Gasoline, Electric, and Hybrid systems. Electric propulsion is gaining significant traction due to its sustainability and economic advantages, making it an ideal choice for urban air mobility. Gasoline engines are traditionally used, especially in heavier-lift applications and existing aircraft but face pressure due to environmental concerns. Hybrid systems are an appealing alternative, combining the immediacy of gasoline with electric propulsion's potential for carbon reduction, thus offering versatility for varied mission profiles.

End-User

End-users of Advanced Air Mobility services fall into categories such as Commercial, Government, and Private sectors. Commercial users are expected to drive growth, particularly in cargo and passenger transport, as businesses strive for efficiency and innovation. Government applications focus on emergency services, surveillance, and infrastructure management. The private sector is also emerging, with individual users seeking advanced air mobility solutions for personal transportation and specialized functions, illustrating a broadening scope for market engagement.

Competitive Landscape:

The Advanced Air Mobility (AAM) market is rapidly evolving, characterized by a competitive landscape that includes established aerospace companies, startups, and technology firms. Key players are focusing on innovation in electric vertical takeoff and landing (eVTOL) aircraft, focusing on urban air mobility solutions, cargo delivery systems, and regulatory compliance. Collaborative efforts with governments, investments in research and development, and partnerships with tech companies are common strategies to enhance operational capabilities and accelerate market entry. The push towards sustainable urban transport and advancements in drone technology further intensify competition, making it crucial for companies to differentiate their offerings through improved safety, efficiency, and user experience.

Top Market Players

1. Joby Aviation

2. Archer Aviation

3. Lilium

4. Volocopter

5. Bell Textron Inc.

6. Boeing

7. Hyundai Urban Air Mobility

8. Airbus

9. Pipistrel

10. Embraer