The global urban air mobility market size was valued at USD 2,808.23 million in 2024 and is expected to reach from USD 3,293.77 million in 2025 to USD 11,797.27 million by 2033, growing at a CAGR of 17.29% during the forecast period (2025–2033).
Urban Air Mobility (UAM) refers to the use of compact, highly automated aircraft to transport passengers or freight at lower altitudes in urban and suburban regions as a reaction to traffic congestion. It typically refers to existing and developing technology such as conventional helicopters, vertical-takeoff-and-landing aircraft (VTOL), electrically propelled vertical-takeoff-and-landing aircraft (eVTOL), and unmanned aerial vehicles (UAVs).
Urban air mobility is part of the Advanced Air Mobility (AAM) concept, encompassing more use cases than intracity passenger transportation. This rapidly developing mode of transportation offers seamless regional mobility, on-demand mobility in isolated and densely populated locations, efficient and environmentally responsible human and unmanned passenger and freight transport, and on-demand mobility nationwide.
| Year | Public Interest Survey Findings |
|---|---|
| 2020 | 45% of respondents were open to using air taxis for short trips |
| 2021 | 52% of urban residents expressed interest in UAM services |
| 2022 | 55% of respondents showed increased interest in air mobility |
| 2023 | 60% of urban residents are interested in using air taxis |
Public awareness of Urban Air Mobility (UAM) services has been steadily increasing, with acceptance rising from 45% in 2020 to 60% in 2023. This growing interest in air taxis, especially in urban areas, is being driven by the challenges posed by rapid urbanization and the acceleration of technological advancements.
However, to fully realize the potential of UAM, significant investment and regulatory reforms are required to address critical concerns around safety and to build public trust in these emerging transport solutions. As cities continue to expand, UAM offers a promising alternative, but it must be supported by robust infrastructure and clear regulatory frameworks to ensure its success.
The UAM market is witnessing a significant rise in public interest and acceptance, fueled by advancements in aviation technology and the escalating issue of urban congestion. With urban populations rising, there is an increasing demand for efficient transportation alternatives, making air taxis a promising solution. Companies are actively working to enhance safety, reliability, and regulatory frameworks to facilitate the seamless integration of UAM services into existing transportation networks.
Moreover, the growing emphasis on sustainability and reducing carbon footprints is drawing investment as eco-conscious consumers look for innovative transportation options. This shift towards air mobility not only addresses the pressing challenges of urban transportation but also positions UAM as a transformative force in the future of commuting.
The transportation sector is accountable for effective energy use and is the second most polluting industry. The climate is negatively impacted by this sector's significant greenhouse gas emissions. Such issues may have a workable solution in UAM, which employs electric vertical take-off and landing (eVTOL) aircraft.
Cities' adoption of unmanned systems for next-generation transportation will likely open up attractive growth opportunities for this industry. Achieving net-zero carbon emissions for the aviation sector by 2050 is one of the International Air Transport Association’s (IATA) goals. Sustainable aviation fuels (SAF) and cutting-edge new propulsion technologies would be used to accomplish this.
All industry players are committed to mitigating their environmental impact by modifying their policies, goods, and activities by implementing practical steps with specific deadlines in response to zero-emission expectations.
Given these patterns, the demand for sustainable fuel aircraft, such as UAM aircraft, will rise in the upcoming years due to increasing environmental concerns.
According to the NASA UAM Market Study, public sentiment toward Urban Air Mobility (UAM) is generally neutral to positive, with men, younger individuals, and those from affluent backgrounds expressing the most enthusiasm. However, the willingness-to-fly model revealed that none of the metropolitan areas demonstrated significant relevance in this regard.
A major psychological barrier is the prevalent concern that the increased use of new aircraft—such as air taxis, air ambulances, and cargo deliveries—could result in substantial job losses. Moreover, potential passengers harbor worries about security screening processes and typically consider UAM only for longer journeys. These concerns pose significant obstacles to the widespread adoption of UAM technology.
Until these psychological barriers are addressed, public acceptance and trust in UAM services may remain limited, hindering market growth.
The evolution of aviation technology presents significant opportunities for urban areas to provide easy and cost-effective on-demand transportation for people and goods. UAM has the potential to revolutionize how individuals navigate cities, offering highly accessible, rapid, and economical air transit that can alleviate ground traffic congestion by utilizing existing transportation infrastructure.
Key advancements driving UAM include distributed electric propulsion, innovative business models such as app-based ride-sharing, and breakthroughs in advanced aerospace manufacturing that lower production costs. To realize the vision of autonomous UAM, enhancing vehicle automation and operational efficiency is crucial. An economically viable transportation system must incorporate autonomy to meet the growing demand.
As these factors converge, the global UAM market is poised for significant growth in the coming years.
| Study Period | 2021-2033 | CAGR | 17.29% |
| Historical Period | 2021-2023 | Forecast Period | 2025-2033 |
| Base Year | 2024 | Base Year Market Size | USD 2808.23 million |
| Forecast Year | 2033 | Forecast Year Market Size | USD 11,797.27 million |
| Largest Market | North America | Fastest Growing Market | Europe |
North America is expected to dominate the global urban air mobility market, driven by initiatives from the Federal Aviation Administration (FAA) and NASA. The FAA is actively planning UAM’s development across five key areas: aircraft, airspace, operations, infrastructure, and community. In collaboration with NASA, the FAA is advancing the Advanced Air Mobility (AAM) National Campaign to streamline UAM integration.
Strategic alliances are also shaping the UAM landscape, exemplified by United Airlines’ 2021 investment in Archer, a UAM manufacturing company aiming to raise USD 1.1 billion through a SPAC partnership. Archer is developing a pilot eVTOL aircraft with a range of 60 to 150 mph and an innovative battery pack.
Such collaborations, along with strategic infrastructure developments, are expected to fuel UAM market growth in North America.
Europe is expected to grow significantly over the forecast period. Due to mobility congestion, Europe faces significant productivity losses, estimated at EUR 100 billion annually. To tackle this issue, the European Union (EU) is actively promoting UAM through the European Innovation Partnership in Smart Cities and Communities' UAM Initiative.
This initiative aims to develop UAM demonstrators across multiple cities by focusing on creating a deployment strategy and roadmap to boost public support for the UAM concept. These demonstration projects will foster collaboration among stakeholders, encourage the exchange of innovative ideas, and enhance the performance of electric vertical take-off and landing vehicles (eVTOLs).
Since 2018, 17 leading cities have participated in the UAM Initiative, establishing 12 demonstrators, including two cross-border projects involving multiple towns. The program emphasizes optimizing multimodal transport interfaces to improve travel efficiency, reduce traffic congestion, and cut CO2 emissions. By leveraging native digital applications and real-time data, UAM aims to streamline urban mobility.
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The autonomous segment is projected to hold the largest market share throughout the forecast period. Companies like Wisk and EHang are pioneering the development of autonomous aircraft. While fully autonomous flight is viewed as a significant advancement by some industry experts, others recognize the existing levels of autonomy in commercial and military aviation as a precedent.
Moreover, most manufacturers plan to secure approval for pilot-operated aircraft before transitioning to fully autonomous models by the decade's end. However, the certification process for autonomous vehicles poses a complex challenge that will be a significant hurdle for manufacturers moving forward.
The passenger transport segment is anticipated to hold the largest market share. Safety is a critical consideration in civil aviation, leading eVTOL manufacturers to create systems capable of both automatic and manual flight control through joystick-based interfaces. These manufacturers are also designing vehicles with varying seating capacities to cater to different customer segments. To effectively implement air mobility in urban areas, necessary infrastructure, such as vertiports for passenger boarding, will need to be developed. The emerging concept of air taxis is expected to revolutionize the market.
Key players in the global urban air mobility market are focusing on innovation and strategic partnerships to enhance their market presence and meet the rising demand for air mobility solutions.
Joby Aviation, a California-based company, is a prominent UAM sector player known for its electric vertical take-off and landing (eVTOL) aircraft. Recently, Joby received FAA certification for its aircraft, positioning itself for commercial operations by 2025.
The company has also secured partnerships with major players, including Uber, to develop integrated urban air transport services, solidifying its leadership position in the rapidly evolving UAM landscape.
As per our analyst, the global urban air mobility (UAM) market is poised for significant growth, driven by increasing demand for efficient transportation solutions to combat urban congestion and reduce carbon emissions. Advancements in eVTOL technology, coupled with government initiatives promoting sustainable transportation, are expected to accelerate market adoption.
Key regions like North America, Europe, and Asia-Pacific are investing heavily in UAM infrastructure, with several pilot projects and regulatory frameworks already in place. As public interest in air taxis and short-haul flights grows, the market is likely to witness rapid expansion in the coming years, positioning UAM as a transformative solution for urban transport.
