Advanced Air Mobility Market Size & Share 2025 – 2034

Advanced Air Mobility Market Size

The global advanced air mobility market size was valued at USD 11.5 billion in 2024 and is estimated to grow at a CAGR of 20.6% from 2025 to 2034. The rising focus on reducing carbon emissions and combating climate change is a key factor for the growth of the market.

The rapid push towards reducing carbon emissions and combating climate change is significantly driving the growth of the advanced air mobility market. In November 2023, UN aviation meeting of over 100 countries agreed to an interim goal for emissions reductions from global aviation by 2030. Moreover, in 2022 over 184 member states of the International Civil Aviation Organization (ICAO) adopted a long-term global aspirational goal (LTAG) of net zero carbon emissions from international aviation by 2050.
 

The rising focus on reducing carbon emissions has further boosted research and development in electric propulsion technologies. For instance, in September 2023, Rolls-Royce developed all-electric and hybrid-electric power propulsion systems for the market. The engine has been designed using novel combustion technology to produce ultra-low emissions along with the effectiveness of the compact, power-dense turbine that will be integrated into a light-weight turbogenerator system.
 

Advanced Air Mobility is an air transport system such as electric Vertical Take-off & Landing (eVTOL) aircraft and drones that combines new, transformational aircraft designs and flight technologies into existing and modified airspace operations.
 

Advanced Air Mobility Market Trends

• Technological advancements in advance air mobility, such as Urban Air Mobility (UAM) platforms, are gaining traction. UAM platforms offer features such as route planning, booking, payment processing, and real-time flight tracking. These platforms allow passengers to book flights in real-time, like ride-hailing services, enabling flexible & convenient travel options within urban areas. Major players are developing Urban Air Mobility (UAM) platforms to optimize infrastructure management. For instance, in November 2023, ANRA Technologies launched Vertiport Management System (VMS) for Urban Air Mobility (UAM). With the introduction of VMS, an adaptable web-based software platform that can be tailored to different aircraft, vertiports, and locations, ANRA addressed a significant digital technology gap.
   
• The integration of advanced technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT), are driving innovation in the advanced air mobility (AAM) market. These technologies enhance the capabilities of eVTOL aircraft, improve air traffic management, and optimize overall operational efficiency. Continuous technological advancements are expected to make AAM safer, more reliable, and more accessible.
   

Advanced Air Mobility Market Analysis

Based on mode of operation, the market is divided into pilot operated, autonomous/remotely operated.
 

• The pilot operated market held a value of USD 3.2 billion in 2024. The piloted advanced air mobility market combines human experience with technology to make safe & efficient urban and regional air transport. Piloted advanced air mobility vehicles provide greater safety and reliability by using the skills of experienced pilots to win passenger confidence. This market takes advantage of available aviation infrastructure as well as regulatory environments, ensuring faster certification and market.
   
• The autonomous/remotely operated market is expected to grow and reach a value of USD 55.5 billion by the year 2034. The autonomous operating mode market is poised for rapid growth due to the advancement in artificial intelligence (AI) and machine learning technologies, which enable autonomous navigation and decision-making systems. The push for reducing operational costs and enhancing safety also drives the adoption of autonomous systems, as they can potentially reduce human error and utilise flight paths for fuel efficiency.
   

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Based on vehicle type, the advanced air mobility market is divided eVTOL (electric vertical take-off and landing) aircraft, STOL (short take-off and landing) aircraft, and conventional fixed-wing aircraft.
 

• The eVTOL (electric vertical take-off and landing) market held a market share of 50.4% in 2024. Electric vertical take-off and landing (eVTOL) aircraft, powered by batteries or hybrid systems, are becoming increasingly capable of meeting the operational and safety requirements for passenger transport which in turn is driving the growth of the overall market.
   
• The STOL (short take-off and landing) aircraft market is projected to grow at a CAGR of 21.6% in the forecast period. The increasing requirement for efficient transportation in remote and underserved regions along with the improved fuel efficiency and reduced environmental impact is driving the growth of the market.
   

Based on propulsion type, advanced air mobility market is classified as gasoline, electric propulsion, hybrid propulsion.
 

• The gasoline market is projected to grow at a CAGR of 21.4% in the forecast period. Range and performance capabilities drives the growth of gasoline propulsion in the market. Gasoline engines offer longer range and higher power output as compared to their electric counterparts, this makes them suitable for missions that require extended flight times or higher payload capacities. This is particularly helpful for regional air mobility and cargo applications, where operational range and load are critically required.
   
• The electric market is projected to grow and reach a value of USD 50 billion by the year 2034. The electric propulsion segment is gaining traction in the market owing to rising investments from both public and private sectors. In addition, major aerospace companies and innovative startups are investing heavily in electric propulsion research and development, which accelerates technological advancements and market growth.
   

Based on range, the advanced air mobility market is bifurcated into Below 100 km, 100 km – 250 km, 250 km – 500 km, more than 500 km.
 

• The Below 100 km market is expected to grow at a CAGR of 21% in the forecast period. The advancements in battery and electric propulsion technologies are leading to the increase in demand for below 100 km range in the market. it is preferred for enhancing the efficiency and range of short-distance aerial vehicles.
   
• The 100 km – 250 km market is predicted to grow and reach a value of USD 30.7 billion by the year 2034. The 100 km – 250 km range is prominent due to its feature of regional air mobility, balancing efficiency and operational feasibility. This segment is gaining traction with advancements in battery technology and hybrid propulsion systems.
   

Based on application, the advanced air mobility market is bifurcated into cargo transport, passenger transport, mapping & surveying, special mission, surveillance & monitoring, others.
 

• The cargo transport market is projected to grow and reach a value of USD 26.4 billion by the year 2034. The market is growing due to the rising demand of e- commerce industry and the need for quick last-mile delivery solutions. Additionally, advancements in autonomous technologies and the development of unmanned aerial vehicles (UAVs) are further boosting the efficiency of cargo transport operations.
   
• The passenger transport market is expected to grow at a CAGR of 22.8% in the forecast period. The growing demand for personalized and on-demand transportation services is leading to the growth of market. In March 2024, Lilium and Atlantic Aviation teamed up to electrify regional air mobility across the U.S. The agreement aims to ensure compatibility of current and future vertiports with Lilium Jet. The partnership aims to establish a planned network to support operators of the Lilium Jet.
   

Based on end-user, the advanced air mobility market is bifurcated into commercial, government & military
 

• The commercial market is expected to grow at a CAGR of 21.1% in the forecast period. Rising regulatory support and evolving airspace management systems are driving the growth of the segment in the market. This includes establishing standards for vehicle certification, pilot training, and operational protocols, which provide a clear path for commercial operators to adopt advanced air mobility technologies.
   
• The government & military transport market is expected to grow at a CAGR of 18.7% in the forecast period. Increased emphasis on cost-effectiveness and sustainability is pushing the government and military towards adopting advanced air mobility. Hybrid and electric advanced air mobility vehicles have lower costs of operation and less environmental impact than conventional aircraft. This aligns with more general governmental initiatives to lower carbon footprints and increase energy efficiency in operations. Additionally, the reduced noise signature of electric advanced air mobility aircraft is beneficial for stealth and low-disturbance missions
   

• In 2024, the U.S advanced air mobility market was valued at USD 8.3 billion. The region's strong technological innovation ecosystem, supported by major aerospace companies is driving the market. For instance, In May 2024, Bell Textron Inc. revealed its Aircraft Laboratory for Future Autonomy (ALFA). Developed by Bell's Advanced Programs team, ALFA is dedicated to performing flight maneuvers with an aircraft safety system and executing autonomous fly-by-wire flights.
   
• In September 2022, the Economic Development Administration (EDA) in the U.S. awarded approximately USD 40 million to the organizations involved in the development of the Tulsa Regional Advanced Mobility (TRAM) Corridor. Such government initiatives are expected to attract further investments by private players, given the potential of the advanced air mobility (AAM) market.
   
• The advanced air mobility market in the UK is predicted to grow at a CAGR of 21% in the forecast period. The UK market is driven by substantial investments in research and development and a supportive regulatory environment. The UK Civil Aviation Authority (CAA) is actively working on establishing frameworks for the safe integration of advanced air mobility vehicles.
   
• The advanced air mobility market in Germany is anticipated to grow and reach a value of USD 19.2 billion by 2034. The country actively promotes research and development in the aviation industry to cater transportation purpose. The country is investing heavily in the development of eVTOL technology and autonomous flight systems.
   
• The Chinese advanced air mobility market is predicted to grow and reach a value of USD 33.1 billion by the year 2034. The Civil Aviation Administration of China (CAAC) is actively developing regulatory standards to support the deployment of advanced air mobility vehicles. In January 2023, Geely Aerofugia, a subsidiary of the Chinese automaker Geely, announced that it completed the test flight of its prototype flying car AE200, taking a step closer to its goal of delivering electric vertical take-off and landing (eVTOL) vehicles to market. This company first unveiled a full-size demonstrator for its TF-2 five-seater eVTOL in August 2022.
   
• The advanced air mobility market in India is expected to grow at a CAGR of 22.5% in the forecast period. India is actively participating in new launches of aircrafts. The market in India is gaining traction, due to country's rising tech and startup ecosystem. Government initiatives to promote innovation and smart urban mobility are increasing the development of eVTOL aircraft. For instance, In November 2023, Eve Air Mobility, and Hunch Mobility, started working together to bring electric commuter flights to Bangalore, India. With the announcement, Bangalore became the launch city in the region for urban air mobility flights utilizing eVTOL aircraft.
   
• The advanced air mobility market in Japan is anticipated to grow at a CAGR of 20% in the forecast period. The country focuses on enhancing urban mobility, coupled with its aging population, highlights the need for efficient and accessible transportation solutions, further boosting the market.
   
• The advanced air mobility market in South Korea is expected to grow at a CAGR of 19.1% in the forecast period. The country government is promoting the development of advanced air mobility technologies through funding and regulatory support. The Ministry of Land, Infrastructure, and Transport (MOLIT) is working on regulations for integration of advanced air mobility vehicles safely. South Korea's emphasis on smart cities and reducing traffic congestion drives the adoption of advanced air mobility solutions.
   

Advanced Air Mobility Market Share

The market is competitive in nature with major players in the market adopting strategies such as collaboration and partnership to propel in the market. The top 5 major players in the advanced air mobility industry are Airbus, The Boeing Company, Aurora Flight Sciences, Bell Textron Inc., Guangzhou EHang Intelligent Technology Co. Ltd. They collectively held a share of 32% in 2024 in the market. The market is witnessing public-private collaboration. The increasing investments and regulatory programs to reduce costs are making the market more competitive. In February 2024, Airbus and LCI, an aviation company, announced a collaboration agreement to jointly develop ecosystems for AAM. The collaboration will focus on the development of partnership scenarios and business models in three core AAM areas that are strategy, commercialization, and financing.
 

Airbus has been significantly making strategies to remain ahead in the advanced air mobility market. The company is making strategic acquisitions to remain competitive in the market. For instance, In March 2024, Airbus presented its full electric CityAirbus NextGen prototype to the public, ahead of its maiden flight later this year. The two-ton class CityAirbus, with a wingspan of approximately 12 meters, is being developed to fly with an 80 km range and to reach a cruise speed of 120 km/h, making it suited for operations in major cities for a variety of missions.
 

The Boeing Company has established itself as a dominant force in the market by offering extensive experience and expertise in aerospace engineering, allowing for the development of innovative and reliable AAM solutions.
 

Advanced Air Mobility Market Companies

The top 5 companies operating in the advanced air mobility industry are:

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

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 an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Mode of Operation

• Pilot operated
• Autonomous/remotely operated

Market, By Vehicle Type

• EVTOL (electric vertical takeoff and landing) aircraft
• STOL (short takeoff and landing) aircraft
• Conventional fixed-wing aircraft

Market, By Propulsion Type

• Gasoline       
• Turbine engines (turbo)
• Reciprocating (piston) engines
• Electric propulsion   
• Hybrid propulsion    

Market, By Range

• Below 100 km
• 100 km – 250 km
• 250 km – 500 km
• More than 500 km

Market, By Application

• Cargo transport
• Passenger transport
• Mapping & surveying
• Special mission
• Surveillance & monitoring
• Others

Market, By End Use

• Commercial
• Government & Military

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

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE