Advanced Air Mobility Market Size, Share & Trends Analysis Report By Component, By Application, By End-use, By Operating Mode, By Type, By Product, By Propulsion Type, By Maximum Take-off Weight, By Range, By Region, And Segment Forecasts, 2025 - 2035

Advanced Air Mobility Market Growth & Trends

The global advanced air mobility market size is estimated to reach USD 137.11 billion by 2035, registering a CAGR of 25.5% from 2025 to 2035, according to a new report by Grand View Research, Inc. The development of flight technologies and modern aircraft designs is anticipated to add to the demand in the market. Moreover, the increasing issue of vehicular traffic congestion around the world is further expected to drive the demand for Advanced Air Mobility (AAM) solutions to transport cargo and people. The drone type segment is anticipated to record a CAGR of 23.6% over the forecast period as a result of the application of drones in e-commerce, healthcare, and logistics, among other sectors. Furthermore, the market is anticipated to grow due to the trend of autonomous flight and controls as it helps increase flight efficiency and reduce fuel consumption.

The fully autonomous operating mode segment is expected to witness a significant CAGR over the forecast period due to the investment in automation technology by industry players to attain full autonomy. In addition, partnerships and collaborations between companies in the AAM industry is a key factor for the market growth. For instance, in May 2023, Supernal LLC and Inmarsat Global Ltd. entered into a partnership to deploy satellite connectivity in advanced air mobility. In addition, the developments in electrical propulsion systems are anticipated to be a key factor for market growth. The cost-effective and minimal carbon output advantages of electrical propulsion are predicted to attract companies to develop innovative solutions. The electric propulsion type segment held the largest share in 2024, due to its high efficiency and minimum noise.

Advanced Air Mobility Market Report Highlights

• The hardware component segment recorded the highest share of 84.0% in 2024, owing to the growing demand for aerostructures and avionics used in AAM solutions.
• The surveillance & monitoring application segment dominated the market in 2024, due to the use of drones for inspection in remote and inaccessible areas.
• The commercial end-user segment accounted for the largest market share in 2024, primarily driven by the need for efficient, sustainable, and cost-effective transportation solutions.
• The rotary blade product segment accounted for the largest market share in 2024, primarily driven by the versatility and operational flexibility of rotary-wing aircraft.
• Based on maximum takeoff weight, the <100 kg segment dominated the market in 2024, due to the use of lightweight drones in logistics, surveying, mapping, monitoring, security, and law, among other applications
• Based on range, the intracity (20km-100km) range segment accounted for the largest revenue share in 2024.
• North America accounted for the largest revenue share of 37.0% in 2024, owing to the adoption of drones for various commercial applications in the region.

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