Advanced Air Mobility

Global Advanced Air Mobility Market to Reach US$48.5 Billion by 2030

The global market for Advanced Air Mobility estimated at US$13.0 Billion in the year 2024, is expected to reach US$48.5 Billion by 2030, growing at a CAGR of 24.6% over the analysis period 2024-2030. Advanced Air Mobility Hardware, one of the segments analyzed in the report, is expected to record a 27.7% CAGR and reach US$34.1 Billion by the end of the analysis period. Growth in the Advanced Air Mobility Software segment is estimated at 17.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.4 Billion While China is Forecast to Grow at 23.1% CAGR

The Advanced Air Mobility market in the U.S. is estimated at US$3.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.3 Billion by the year 2030 trailing a CAGR of 23.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 22.9% and 20.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.6% CAGR.

Global Advanced Air Mobility Market – Key Trends & Drivers Summarized

What Is Driving the Evolution of Advanced Air Mobility?

Advanced Air Mobility (AAM) is redefining the transportation landscape by introducing innovative air travel solutions designed for urban, regional, and rural connectivity. AAM leverages electric vertical take-off and landing (eVTOL) aircraft, drones, and autonomous air vehicles to address the challenges of traffic congestion, environmental sustainability, and last-mile delivery. This revolutionary sector is a critical component of future urban mobility systems, offering faster, more efficient, and eco-friendly alternatives to traditional transportation methods.

The increasing demand for on-demand air services, such as air taxis and cargo delivery, has positioned AAM as a transformative force in the aviation industry. Governments and private organizations are investing heavily in infrastructure development, regulatory frameworks, and pilot projects to accelerate the adoption of AAM solutions. With the promise of reducing travel times and environmental impact, AAM is set to play a pivotal role in shaping the future of mobility.

How Are Technological Innovations Shaping AAM Solutions?

Technological advancements are at the core of the AAM revolution, driving the development of safe, efficient, and scalable solutions. Electric propulsion systems, powered by high-capacity batteries, are enabling zero-emission flights, aligning with global sustainability goals. Autonomous flight technologies, guided by artificial intelligence (AI) and machine learning algorithms, are enhancing the operational efficiency and safety of AAM vehicles.

Integration with advanced navigation systems, such as GPS and LiDAR, ensures precise route planning and obstacle detection. The adoption of digital twins and simulation platforms is helping manufacturers optimize vehicle designs and conduct virtual testing, accelerating the development cycle. Additionally, innovations in materials science, such as lightweight composites, are improving the energy efficiency and payload capacity of AAM vehicles. These advancements collectively enhance the feasibility and scalability of advanced air mobility solutions.

What Market Segments Are Driving AAM Adoption?

The AAM market spans diverse applications, including passenger transportation, cargo delivery, emergency response, and surveillance. Urban air mobility (UAM) is a key segment, focused on providing on-demand air taxi services in densely populated cities. These services aim to alleviate traffic congestion while offering faster commute times. Regional air mobility extends the reach of AAM, connecting underserved areas with limited access to traditional transportation networks.

The logistics and cargo sector is another significant driver, with drones and eVTOL aircraft revolutionizing last-mile delivery services. Emergency response applications, such as medical supply transport and disaster relief, highlight the critical role of AAM in life-saving operations. Defense and surveillance are also emerging as growth areas, leveraging AAM technologies for reconnaissance, border security, and rapid troop deployment. These diverse applications underline the vast potential of AAM to address a range of mobility challenges.

What Factors Are Driving Growth in the Advanced Air Mobility Market?

The growth in the advanced air mobility market is driven by several factors. Rapid urbanization and increasing traffic congestion in metropolitan areas have created a strong demand for alternative transportation solutions. Advancements in electric propulsion and autonomous flight technologies have made AAM vehicles more efficient, sustainable, and commercially viable.

Government initiatives to develop infrastructure, such as vertiports and air traffic management systems, have provided a significant boost to market adoption. Rising investment from venture capitalists and aerospace giants has accelerated innovation and the commercialization of AAM solutions. Furthermore, the growing emphasis on reducing carbon emissions and achieving net-zero goals has positioned AAM as a critical component of sustainable mobility strategies. These factors collectively highlight the transformative impact of AAM on the future of transportation.

SCOPE OF STUDY:

The report analyzes the Advanced Air Mobility market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Advanced Air Mobility Hardware, Advanced Air Mobility Software); Product Type (Fixed Wing AAM, Rotary Blade AAM, Hybrid AAM); Type (Air Taxis, Drones, Other Types); Application (Cargo Transport Application, Passenger Transport Application, Mapping and Surveying Application, Special Mission Application, Surveillance and Monitoring Application, Other Applications); End-Use (Commercial End-Use, Government and Military End-Use)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 48 Featured) -

• Airbus SE
• Arc Aero Systems
• Archer Aviation Inc.
• Aurora Flight Sciences
• Bell Textron, Inc.
• Elroy Air
• Guangzhou EHang Intelligent Technology Co. Ltd
• Joby Aviation
• Lilium GmbH
• Vertical Aerospace Group Ltd
• Volocopter GmbH
• Wisk Aero, LLC

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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