Advanced Air Mobility Market Size, Share, Growth, Trends, Forecast, 2032

According to Fortune Business Insights™, the global advanced air mobility market size was valued at USD 11.41 billion in 2024 and is projected to grow from USD 13.27 billion in 2025 to USD 65.91 billion by 2032, exhibiting a robust CAGR of 25.7% during the forecast period.

Advanced Air Mobility is set to transform the future of transportation by introducing innovative aircraft designs, electric propulsion systems, and advanced air traffic management solutions into existing airspace. This technology encompasses Urban Air Mobility (UAM) for intra-city transport, Regional Air Mobility (RAM) for inter-city connectivity, and specialized cargo delivery services, all aimed at enhancing speed, safety, and sustainability in transportation networks.

Key Industry Players

• Airbus S.A.S. (France)

• Aurora Flight Sciences (U.S.)

• Bell Textron Inc. (U.S.)

• The Boeing Company (U.S.)

• Guangzhou EHang Intelligent Technology Co., Ltd. (China)

• Embraer S.A. (Brazil)

• Joby Aviation (U.S.)

• Lilium GmbH (Germany)

• Neva Aerospace (U.K.)

• Opener, Inc. (U.S.)

Information Source:

https://www.fortunebusinessinsights.com/advanced-air-mobility-market-113574

Market Dynamics

Drivers

• Technological Advancements in Electric Propulsion & Autonomous Flight
  Improvements in battery energy density, charging efficiency, and safety are making electric vertical takeoff and landing (eVTOL) aircraft increasingly viable. Autonomous flight systems, powered by artificial intelligence, advanced sensors, and control algorithms, are enabling safer operations, reducing pilot dependency, and lowering operational costs.

• Growing Urban Congestion
  Rising traffic congestion in global cities is driving demand for faster and more efficient transport alternatives. AAM leverages vertical air corridors to bypass road congestion, significantly cutting travel times while offering an environmentally friendly transportation option.

Restraints

• Regulatory and Certification Challenges
  Complex certification processes from aviation authorities such as the FAA and EASA require extensive testing and compliance with evolving safety regulations. These hurdles can delay commercialization and increase development costs for AAM solutions.

Opportunities

• Leveraging Existing Aviation Infrastructure
  Utilizing regional airports and general aviation facilities as operational hubs can significantly reduce capital investment requirements, streamline regulatory approvals, and speed up deployment timelines for AAM services.

Challenges

• Safety, Noise, and Privacy Concerns
  Public acceptance depends on addressing concerns about operational safety, noise pollution from rotor systems, and privacy issues linked to aerial surveillance. Transparent communication, quieter technologies, and robust safety measures will be essential for building trust and ensuring adoption.

Key Trends

• Rise of Regional Air Mobility (RAM)
  While UAM dominates media attention, RAM is gaining traction by connecting smaller cities and rural areas, improving regional connectivity, and utilizing hybrid-electric and hydrogen propulsion systems for longer ranges.

Segmentation Overview

By Component

Hardware dominated the market in 2024, driven by strong demand for electric motors, batteries, sensors, and airframes, which are essential for the development and operation of eVTOL and other AAM platforms. The software segment is projected to grow the fastest, supported by the integration of artificial intelligence and automation technologies to ensure safe, efficient, and increasingly autonomous flight operations.

By Product

Rotary blade aircraft led the market in 2024 due to their vertical takeoff and landing (VTOL) capabilities and operational flexibility, enabling operations in space-constrained urban environments. The hybrid product segment is expected to witness the fastest growth, combining the efficiency of fixed-wing designs with VTOL functionality to achieve extended range and higher payload capacity.

By Propulsion Type

Electric propulsion accounted for the largest share in 2024, favored for its sustainability, lower operating costs, and reduced noise emissions. Hybrid propulsion is anticipated to record the highest CAGR through 2032 by leveraging both electric motors and auxiliary power sources to improve performance over longer distances.

By Application

Cargo transport dominated the market in 2024, fueled by the rapid growth of e-commerce and increasing demand for fast, direct delivery services. The surveillance and monitoring segment is projected to expand the fastest, driven by applications in security, search and rescue, and infrastructure inspection, particularly in hard-to-reach areas.

By End-Use

The commercial segment led the market in 2024, supported by rising adoption of aerial delivery and passenger transport solutions. The government and military segment is poised for strong growth, benefiting from applications in emergency response, disaster relief, and national security operations.

Regional Insights

• North America (USD 3.92 Billion in 2024): Leads global AAM innovation, with the U.S. as a hub for eVTOL development, regulatory progress, and infrastructure planning.

• Asia Pacific: China, Japan, and South Korea driving growth through government-backed initiatives and rapid urbanization.

• Europe: Strong sustainability focus with Germany, France, and the U.K. leading regulatory and R&D efforts.

• Rest of the World: UAE and Brazil exploring AAM for air taxi and regional connectivity solutions.

Competitive Landscape

The market features both aerospace giants and agile startups. Airbus, Boeing, and Bell Textron are investing in AAM programs, while Embraer’s Eve is advancing eVTOL designs. Pure-play innovators like Joby Aviation and Aurora Flight Sciences are pushing commercial air taxi readiness.

Key Industry Developments

• May 2025 – Wisk Aero Partnership with NASA
  Wisk Aero, a leading advanced air mobility (AAM) company known for developing the first U.S. all-electric, self-flying air taxi, announced a new five-year partnership with NASA under a Non-Reimbursable Space Act Agreement (NRSAA). This collaboration supports NASA’s Air Traffic Management Exploration (ATM-X) project, focusing on critical research to enable autonomous aircraft operations under Instrument Flight Rules (IFR) within the National Airspace System (NAS).

• January 2025 – Tata Elxsi and CSIR-NAL Collaboration
  Tata Elxsi, an Indian technology company, entered into a Memorandum of Understanding (MoU) with the Council of Scientific and Industrial Research – National Aerospace Laboratories (CSIR-NAL) to advance innovations in the AAM sector. The partnership aims to drive developments in Unmanned Aerial Vehicles (UAVs), Urban Air Mobility (UAM), and electric vertical takeoff and landing (eVTOL) aircraft, leveraging both organizations’ expertise in engineering and aerospace research.