Global Advanced Air Mobility Market Grows at a Staggering CAGR of 22.47%

Introduction

Advanced Air Mobility (AAM) refers to a transformative approach to air transportation that leverages innovative technologies, such as electric vertical takeoff and landing (eVTOL) aircraft, drones, and hydrogen propulsion systems, to enable new forms of urban and regional mobility. AAM aims to provide sustainable, efficient, and on-demand air travel solutions, primarily for passenger transport, cargo delivery, and emergency response.

This next-generation transportation system seeks to reduce congestion, cut emissions, and enhance connectivity in densely populated urban areas. With advancements in automation, battery technology, and regulatory support, AAM is poised to revolutionize the way people and goods move, offering new possibilities for the future of transportation.

Market Dynamics

Rising demand for sustainable urban transportation drives the global market

As urbanization accelerates and traffic congestion worsens, cities are increasingly turning to AAM solutions as a cleaner, more efficient alternative to traditional transportation methods. AAM technologies, particularly electric vertical takeoff and landing (eVTOL) aircraft, provide zero-emission mobility, supporting global sustainability objectives. Governments and regulatory bodies are actively encouraging the adoption of green technologies, with significant investments in sustainable infrastructure to drive growth.

• For example, in 2024, the European Union launched the SESAR AAM program, dedicating €450 million to develop and integrate sustainable air traffic management systems across urban centers.

This growing demand for sustainable urban transportation is positioning AAM as a key player in the future of eco-friendly mobility.

Integration with smart city infrastructure creates tremendous opportunities

Smart cities are leveraging advanced air traffic management systems, IoT technologies, and AI-driven analytics to streamline advanced air mobility operations. Key advancements like vertiports, charging hubs, and digital airspace management systems are accelerating the adoption of AAM. To ensure seamless integration with existing transport networks, governments, urban planners, and private stakeholders are collaborating to build the necessary infrastructure.

• For instance, in 2024, Skyports Infrastructure partnered with the City of Los Angeles to develop vertiport infrastructure for urban air mobility (UAM) services, with commercial operations set to launch by 2026. As global smart city initiatives grow, the alignment of urban air mobility with connected infrastructure will create new opportunities, fueling the commercialization and expansion of AAM technologies.

Regional Analysis

North America dominates the global advanced air mobility market, driven by its advanced aviation infrastructure, significant research and development (R&D) investments, and strong regulatory framework. The U.S. leads the charge, serving as a global hub for eVTOL and autonomous aviation advancements. Moreover, the region's well-established aerospace ecosystem fosters innovation, making it a prime market for early adoption.

• For instance, in 2024, the FAA granted Joby Aviation the first Special Airworthiness Certificate for its eVTOL prototype, marking a major milestone in regulatory approval. Likewise, Archer Aviation secured partnerships with major U.S. airlines, further solidifying North America's leadership in AAM.

Key Highlights

• The global advanced air mobility market size was valued at USD 2,365.87 million in 2024 and is expected to grow from USD 2,832.97 million in 2025 to reach USD 14,336.35 million by 2033, growing at a CAGR of 22.47% during the forecast period (2025-2033).
• Based on vehicle type, the global market is divided into eVTOL, Fixed-Wing Aircraft, Rotary-Wing Aircraft, and Drones/Unmanned Aerial Vehicles (UAVs). The eVTOL segment dominates the market and is estimated to exhibit a significant CAGR.
• Based on Mode of Operation, the global advanced air mobility market is divided into piloted, autonomous, and remotely operated. The piloted mode of operation accounted for the largest market share.
• Based on Application, the global market is divided into passenger transport, cargo transport, emergency services, military and defense, and others. The passenger transport subsegment accounted for the largest market share.
• Based on Propulsion Type, the global advanced air mobility market is divided into electric, hybrid-electric, hydrogen fuel cell, and others. The electric subsegment accounted for the largest market share.
• North America is the highest shareholder in the global advanced air mobility market.

Competitive Players

1. Joby Aviation
2. Archer Aviation
3. Lilium GmbH
4. Volocopter GmbH
5. EHang Holdings Limited
6. Vertical Aerospace
7. Hyundai Motor Group (Supernal)
8. Beta Technologies
9. Textron Inc. (Bell Textron)
10. Embraer S.A. (Eve Air Mobility)

Recent Developments

• In November 2024, Volocopter partnered with SEA Milan Airports to launch its first commercial eVTOL routes in Italy, scheduled to begin operations in 2026. As part of the partnership, Volocopter will leverage SEA Milan’s infrastructure expertise to construct vertiports designed for seamless passenger experiences.

Segmentation

1. By Vehicle Type
   1. eVTOL (Electric Vertical Takeoff and Landing)
   2. Fixed-Wing Aircraft
   3. Rotary-Wing Aircraft
   4. Drones/Unmanned Aerial Vehicles (UAVs)
2. By Mode of Operation
   1. Piloted
   2. Autonomous
   3. Remotely Operated
3. By Applications
   1. Passenger Transport
   2. Cargo Transport
   3. Emergency Services
   4. Military and Defense
   5. Others (e.g., Tourism, Inspection, Maintenance)
4. By Propulsion Type
   1. Electric
   2. Hybrid-Electric
   3. Hydrogen Fuel Cell
   4. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia Pacific
   4. Latin America
   5. The Middle East & Africa