Advanced Air Mobility Market- Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032
Description
Market Overview:
The Advanced Air Mobility (AAM) Market was valued at USD 9,785 million in 2024 and is projected to reach USD 37,282 million by 2032, expanding at a robust CAGR of 18.2% during the forecast period (2024–2032).
Several key factors are driving this growth, including the increasing urban congestion, technological advancements in electric propulsion systems, and the rising demand for sustainable transportation alternatives. The growing use of unmanned aerial vehicles (UAVs) for both cargo transport and passenger mobility is further propelling market expansion. Investments from governments and private entities in AAM infrastructure, such as vertiports and advanced air traffic management systems, are essential to ensuring safe and efficient operations. Additionally, collaborations between aerospace manufacturers, technology companies, and mobility service providers are accelerating the development and deployment of AAM solutions. The focus on noise reduction technologies is also improving public acceptance, while increasing funding from venture capital firms and defense agencies is driving innovation and commercialization in the sector.
Market Drivers:
Technological Advancements in Electric Propulsion and Autonomy:
Technological innovations in electric propulsion and autonomous flight technologies are critical enablers of the AAM market. The development of electric vertical takeoff and landing (eVTOL) aircraft, hybrid propulsion systems, and advanced battery technologies is improving the range, efficiency, and sustainability of AAM solutions. For example, NASA has successfully tested autonomous flight software using research helicopters from Sikorsky, conducting multiple test flights over Long Island Sound in Connecticut. Additionally, advancements in artificial intelligence, sensor technology, and flight automation are enhancing the safety and operational feasibility of autonomous air mobility. Ongoing research and development efforts are focused on improving battery performance, reducing energy consumption, and enhancing aircraft capabilities, which are driving the adoption of AAM solutions in both commercial and defense sectors.
Market Challenges:
Regulatory and Safety Concerns:
The AAM market faces significant regulatory and safety challenges, as aviation authorities work to establish standardized frameworks for integrating these technologies into airspace. The lack of clear certification, operational, and maintenance guidelines for eVTOL aircraft and autonomous air mobility solutions is a major barrier to widespread adoption. Establishing effective air traffic management within urban environments is critical to avoid airspace congestion and mitigate collision risks, requiring robust regulatory frameworks. Additionally, ensuring compliance with stringent safety standards is crucial to gaining public trust and regulatory approvals, often resulting in lengthy certification processes and increased development costs for manufacturers. The integration of AAM into existing aviation regulations further complicates large-scale deployment. Moreover, cybersecurity issues related to autonomous flight operations and data privacy must be addressed to ensure the security and reliability of AAM services.
Market Segmentation:
By Component:
Hardware
Software
Services
By Application:
Passenger Transportation
Cargo and Logistics
Military and Defense
By Operating Mode:
Piloted
Autonomous
By Region:
North America: U.S., Canada, Mexico
Europe: Germany, France, U.K., Italy, Spain, Rest of Europe
Asia Pacific: China, Japan, India, South Korea, Southeast Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Rest of Latin America
Middle East & Africa: GCC Countries, South Africa, Rest of the Middle East and Africa
Key Players in the Market:
Airbus S.A.S.
Aurora Flight Sciences
Bell Textron Inc.
The Boeing Company
Guangzhou EHang Intelligent Technology Co., Ltd.
Embraer S.A.
Joby Aviation
Lilium GmbH
Neva Aerospace Opener, Inc.
PIPISTREL (Textron Inc.)
Terrafugia
Vertical Aerospace Group Ltd.
The Advanced Air Mobility (AAM) Market was valued at USD 9,785 million in 2024 and is projected to reach USD 37,282 million by 2032, expanding at a robust CAGR of 18.2% during the forecast period (2024–2032).
Several key factors are driving this growth, including the increasing urban congestion, technological advancements in electric propulsion systems, and the rising demand for sustainable transportation alternatives. The growing use of unmanned aerial vehicles (UAVs) for both cargo transport and passenger mobility is further propelling market expansion. Investments from governments and private entities in AAM infrastructure, such as vertiports and advanced air traffic management systems, are essential to ensuring safe and efficient operations. Additionally, collaborations between aerospace manufacturers, technology companies, and mobility service providers are accelerating the development and deployment of AAM solutions. The focus on noise reduction technologies is also improving public acceptance, while increasing funding from venture capital firms and defense agencies is driving innovation and commercialization in the sector.
Market Drivers:
Technological Advancements in Electric Propulsion and Autonomy:
Technological innovations in electric propulsion and autonomous flight technologies are critical enablers of the AAM market. The development of electric vertical takeoff and landing (eVTOL) aircraft, hybrid propulsion systems, and advanced battery technologies is improving the range, efficiency, and sustainability of AAM solutions. For example, NASA has successfully tested autonomous flight software using research helicopters from Sikorsky, conducting multiple test flights over Long Island Sound in Connecticut. Additionally, advancements in artificial intelligence, sensor technology, and flight automation are enhancing the safety and operational feasibility of autonomous air mobility. Ongoing research and development efforts are focused on improving battery performance, reducing energy consumption, and enhancing aircraft capabilities, which are driving the adoption of AAM solutions in both commercial and defense sectors.
Market Challenges:
Regulatory and Safety Concerns:
The AAM market faces significant regulatory and safety challenges, as aviation authorities work to establish standardized frameworks for integrating these technologies into airspace. The lack of clear certification, operational, and maintenance guidelines for eVTOL aircraft and autonomous air mobility solutions is a major barrier to widespread adoption. Establishing effective air traffic management within urban environments is critical to avoid airspace congestion and mitigate collision risks, requiring robust regulatory frameworks. Additionally, ensuring compliance with stringent safety standards is crucial to gaining public trust and regulatory approvals, often resulting in lengthy certification processes and increased development costs for manufacturers. The integration of AAM into existing aviation regulations further complicates large-scale deployment. Moreover, cybersecurity issues related to autonomous flight operations and data privacy must be addressed to ensure the security and reliability of AAM services.
Market Segmentation:
By Component:
Hardware
Software
Services
By Application:
Passenger Transportation
Cargo and Logistics
Military and Defense
By Operating Mode:
Piloted
Autonomous
By Region:
North America: U.S., Canada, Mexico
Europe: Germany, France, U.K., Italy, Spain, Rest of Europe
Asia Pacific: China, Japan, India, South Korea, Southeast Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Rest of Latin America
Middle East & Africa: GCC Countries, South Africa, Rest of the Middle East and Africa
Key Players in the Market:
Airbus S.A.S.
Aurora Flight Sciences
Bell Textron Inc.
The Boeing Company
Guangzhou EHang Intelligent Technology Co., Ltd.
Embraer S.A.
Joby Aviation
Lilium GmbH
Neva Aerospace Opener, Inc.
PIPISTREL (Textron Inc.)
Terrafugia
Vertical Aerospace Group Ltd.
Table of Contents
180 Pages
- CHAPTER NO. 1 : INTRODUCTION
- 1.1.1. Report Description
- Purpose of the Report
- USP & Key Offerings
- 1.1.2. Key Benefits for Stakeholders
- 1.1.3. Target Audience
- 1.1.4. Report Scope
- CHAPTER NO. 2 : EXECUTIVE SUMMARY
- 2.1. Advanced Air Mobility Market Snapshot
- 2.1.1. Advanced Air Mobility Market, 2018 - 2032 (USD Million)
- CHAPTER NO. 3 : Advanced Air Mobility Market – INDUSTRY ANALYSIS
- 3.1. Introduction
- 3.2. Market Drivers
- 3.3. Market Restraints
- 3.4. Market Opportunities
- 3.5. Porter’s Five Forces Analysis
- CHAPTER NO. 4 : ANALYSIS COMPETITIVE LANDSCAPE
- 4.1. Company Market Share Analysis – 2023
- 4.2. Advanced Air Mobility Market Company Revenue Market Share, 2023
- 4.3. Company Assessment Metrics, 2023
- 4.4. Start-ups /SMEs Assessment Metrics, 2023
- 4.5. Strategic Developments
- 4.6. Key Players Product Matrix
- CHAPTER NO. 5 : PESTEL & ADJACENT MARKET ANALYSIS
- CHAPTER NO. 6 : Advanced Air Mobility Market – BY By Component ANALYSIS
- CHAPTER NO. 7 : Advanced Air Mobility Market – BY By Application ANALYSIS
- CHAPTER NO. 8 : Advanced Air Mobility Market – BY By Operating Mode ANALYSIS
- CHAPTER NO. 9 : Advanced Air Mobility Market – BY By Region ANALYSIS
- CHAPTER NO. 10 : COMPANY PROFILES
- 10.1. Airbus S.A.S.
- 10.1.1. Company Overview
- 10.1.2. Product Portfolio
- 10.1.3. Swot Analysis
- 10.1.4. Business Strategy
- 10.1.5. Financial Overview
- 10.2. Aurora Flight Sciences
- 10.3. Bell Textron Inc.
- 10.4. The Boeing Company
- 10.5. Guangzhou EHang Intelligent Technology Co., Ltd.
- 10.6. Embraer S.A.
- 10.7. Joby Aviation
- 10.8. Lilium GmbH
- 10.9. Neva Aerospace Opener, Inc.
- 10.10. PIPISTREL (Textron Inc.)
- 10.11. Terrafugia
- 10.12. Vertical Aerospace Group Ltd.
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