Urban Air Mobility Market Forecasts to 2032 – Global Analysis by Type (Air Taxis, Urban Air Shuttles, Personal Air Vehicles, Cargo Air Vehicles, Emergency Medical Vehicles and Last-Mile Delivery Vehicles), Component, Take-off Weight, Operation Type, Range

According to Stratistics MRC, the Global Urban Air Mobility Market is accounted for $6.11 billion in 2025 and is expected to reach $45.4 billion by 2032 growing at a CAGR of 33.2% during the forecast period. Urban Air Mobility (UAM) is the utilization of modern air transportation systems, such as electric vertical takeoff and landing (eVTOL) planes, drones, and autonomous aerial vehicles, to facilitate the movement of passengers and freight within urban areas. It seeks to offer sustainable mobility solutions, improve transportation efficiency, and lessen traffic congestion. To guarantee safe and effective operations, UAM incorporates cutting-edge technologies like air traffic control, autonomous flight systems, and artificial intelligence. It is propelled by developments in battery technology, electrification, and regulatory structures.

According to the American Bar Association, the U.S., Germany, France, and the U.K. combined spent USD 200 billion on just traffic congestion operation in 2013.

Market Dynamics:

Driver:

Rising Traffic Congestion

Rising traffic congestion is a major driver of the urban air mobility (UAM) market, increasing demand for faster, and more efficient transportation alternatives. UAM is a viable substitute for the increasingly congested roads, cutting down on travel time and improving urban connectedness. In addition to encouraging sustainable, low-emission transportation, the drive for aerial mobility is speeding up developments in electric vertical takeoff and landing (eVTOL) aircraft. UAM is positioned as a revolutionary force in contemporary urban transportation due to growing investments and legislative backing that further accelerate market expansion.

Restraint:

High Infrastructure Costs

High infrastructure costs significantly hinder the growth of the urban air mobility (UAM) market by increasing entry barriers and limiting large-scale deployment. The need for vertiports, charging stations, and air traffic management systems demands substantial investments, discouraging investors and city planners. Additionally, high costs delay regulatory approvals and technological advancements, making UAM less accessible and financially unfeasible for widespread adoption, thereby slowing market expansion and commercialization efforts.

Opportunity:

Advancements in Electric Aircraft Technologies

Advancements in electric aircraft technologies are significantly driving the growth of the urban air mobility (UAM) market. Innovations in battery efficiency, lightweight materials, and autonomous flight systems are enhancing the feasibility of eVTOL (electric vertical takeoff and landing) aircraft. These improvements lead to lower operational costs, reduced emissions, and quieter air travel, making urban air transport more accessible and sustainable. As cities seek efficient mobility solutions, electric aircraft advancements are accelerating the adoption of UAM, reshaping urban transportation with faster, eco-friendly aerial commutes.

Threat:

Regulatory & Safety Concerns

Regulatory and safety concerns significantly hinder the market by delaying approvals, increasing compliance costs, and limiting operational scalability. Strict air traffic regulations, safety certification challenges, and evolving policies create uncertainty, discouraging investments. Concerns over passenger safety, cybersecurity, and airspace management further slow adoption. These barriers impede technological advancements and commercialization, restricting UAM’s growth and integration into urban transportation ecosystems.

Covid-19 Impact:

The COVID-19 pandemic disrupted the Urban Air Mobility (UAM) market by delaying R&D, slowing regulatory approvals, and reducing investments due to economic uncertainty. Supply chain disruptions affected aircraft production, while reduced air travel demand hindered market growth. However, the crisis also highlighted the need for innovative, contactless transportation solutions, driving renewed interest in autonomous air mobility and eVTOL development for future urban transport resilience.

The air taxis segment is expected to be the largest during the forecast period

The air taxis segment is expected to account for the largest market share during the forecast period because of increased urban congestion, air taxis offer an alternative to traditional ground transportation, saving travel time and emissions. Technological developments in electric vertical takeoff and landing (eVTOL) improve accessibility, affordability, and safety. Air taxis are positioned as a revolutionary force in urban mobility because to increased investment, legislative support, and technology advancements that are driving market expansion.

The software segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the software segment is predicted to witness the highest growth rate as cutting-edge software solutions, such as real-time data analytics, predictive maintenance, and AI-driven navigation, increase productivity and lower operating expenses. Strong cybersecurity safeguards also guarantee safe communication between control systems and autonomous aircraft. Software advancements will hasten the implementation of UAM as smart cities develop, making air travel in cities safer, more effective, and more environmentally friendly.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share because of reducing traffic congestion, and lowering carbon emissions. With advancements in electric vertical takeoff and landing (eVTOL) aircraft, UAM is fostering sustainable urban transit and improving connectivity in metropolitan areas. Backed by technological innovations, government initiatives, and private investments, UAM is creating new economic opportunities, boosting job growth, and revolutionizing mobility. This market is set to redefine urban transportation with faster, safer, and eco-friendly aerial solutions.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR Due to increased urbanization and technology improvements, UAM is reinventing logistics, promoting economic growth, and improving emergency response times. In order to foster innovation and infrastructure development, governments and commercial entities are investing in electric vertical take-off and landing (eVTOL) aircraft. This market encourages environmentally friendly mobility options that lower carbon emissions, generate new employment possibilities, and improve accessibility and efficiency of transportation.

Key players in the market

Some of the key players in Urban Air Mobility Market include Joby Aviation, Volocopter, Lilium, Archer Aviation, EHang, Eve Air Mobility, Hyundai's Supernal, Bell Textron, Airbus, Vertical Aerospace, AutoFlight, Beta Technologies, Wisk Aero, SkyDrive, Aerodyne Group, Porsche and Boeing, Stellantis and Archer Aviation, Xpeng AeroHT and VINATA Aeromobility.

Key Developments:

In March 2025, GDAT has signed an HCare In-Service contract with Airbus to cover ten H225 helicopters. The HCare In-Service contract ensures optimised spare parts availability, streamlined logistics, and cost-effective maintenance planning, allowing GDAT to maximise operational efficiency and fleet readiness.

In March 2025, Metro Aviation and Airbus Helicopters have signed an agreement for up to 36 H140 helicopters in the emergency medical services (EMS) sector. Metro Aviation is one of the launch customers for the new H140 helicopter that was unveiled at the vertical lift industry show VERTICON in Dallas, Texas.

In March 2025, Airbus Helicopters has introduced its H140 at the vertical lift industry show VERTICON in Dallas, Texas. The multi-mission helicopter raises the bar in the light twin-engined category, for performance, cost-effectiveness, and passenger and crew comfort.

Types Covered:
• Air Taxis
• Urban Air Shuttles
• Personal Air Vehicles
• Cargo Air Vehicles
• Emergency Medical Vehicles
• Last-Mile Delivery Vehicles

Components Covered:
• Hardware
• Software
• Aerostructure
• Avionics
• Flight Control System
• Propulsion System

Take-off Weights Covered:
• <100 Kg
• 100 – 300 Kg
• >300 Kg

Operation Types Covered:
• Piloted
• Autonomous
• Remotely Piloted

Ranges Covered:
• Intracity (Short-Range UAM)
• Intercity (Long-Range UAM)

Applications Covered:
• Passenger Transportation
• Freight & Logistics
• Emergency Services
• Corporate & Private Use

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances