Global Advanced Air Mobility Market Size Likely to Reach at a CAGR of 24.8% By 2034

Advanced Air Mobility Market Size

As per the Advanced Air Mobility Market size analysis conducted by the CMI Team, the global advanced air mobility market is expected to record a CAGR of 24.8% from 2025 to 2034. In 2024, the market size is projected to reach a valuation of USD 15.6 Billion. By 2034, the valuation is anticipated to reach USD 114.5 Billion.

Advanced Air Mobility Market Overview

According to industry experts at CMI, advanced air mobility is defined as an innovative method to move people and objects by means of air that uses advanced aircraft technology such as electric vertical takeoff and landing (eVTOL) aircraft. They perform their services where traditional aircraft are limited to use. They emphasize making things more cost-effective, safe, and environmentally friendly, and it may be used for a wide range of things, such as moving people and goods among regions and cities (UAM).

Advanced Air Mobility Market Growth Factors and Dynamics

• Rising Adoption of Electric and Hybrid Aircraft: The growing significance of sustainability and reducing carbon emissions. The production of electric and hybrid aircraft is experiencing a global revival as governments and businesses focus their resources on meeting climate goals. The utilization of advanced air mobility is advancing more quickly as a result of these cleaner and more energy-efficient modes of transportation. For instance, in July 2024, through its subsidiary, Nidec Motor Corporation, Nidec stated that it will invest USD 20 million in a minority ownership stake in Eve Air Mobility (“Eve”), a producer of electric vertical take-off and landing (eVTOL) aircraft and a partner in the launch of Nidec Aerospace’s propulsion system.

• Urban Congestion and Environmental Sustainability: The growing number of people moving to cities and the traffic jams that happen there have made the need for other ways to get about even greater. Advanced Air Mobility could help ease traffic on the ground by offering aerial transportation, which is faster and more efficient. This is what drives the desire for AAM solutions. Also, the aviation industry’s effect on the environment has made people more interested in environmentally friendly ways to go about. AAM’s electric and hybrid-electric planes promise to lower carbon emissions and noise pollution, which makes them a beneficial alternative for people and governments who care about the environment and want eco-friendly ways to go about.

• Rise of Advanced Air Mobility Solutions: There is an increasing need for the global advanced air mobility sector to help with urban transportation systems to deal with too much traffic. As cities grow and ground transportation networks can’t keep up, we need faster and more efficient transportation systems that work above men’s non-elevated transit, such as eVTOLs and air taxis, to make it easier for people to get around in cities.

Report Scope

Advanced Air Mobility Market SWOT Analysis

• Strengths: The advanced air mobility market is being driven by technological innovation. Advances in electric propulsion, AI, autonomy, and lightweight materials have enabled eVTOLs, drones, and hybrid AAM platforms. For instance, in July 2024, Delkia launched its Dragonfly program at Farnborough 2024. This is an innovative project to develop uncrewed air systems and advanced air mobility prototypes. This could offer cost-effective and low carbon solutions to replace some of the tasks currently performed by larger, more costly aircraft.

• Weakness: The weakness of the sector is its high development cost, as the product is equipped with advanced technology such as sensors, advanced software, AI algorithms, and many others. High development costs in AAM refer to the substantial investments required in the research, design, prototyping, certification, and commercialization of AAM aircraft and supporting infrastructure (e.g., vertiports, charging stations, and air traffic systems).

• Opportunities: The growing traffic congestion is what provides a lucrative opportunity for the market development. For instance, as per the stats given by the UK government, road traffic saw an increase of 2.2% from 2023, to 148.7 billion vehicle miles.

• Threats: The major threats for the advanced air mobility industry are technological uncertainty. The AAM depends on future breakthroughs in batteries, AI, or materials, which may delay scaling.

List of the prominent players in the Advanced Air Mobility Market:

• Airbus S.A.S.
• Aurora Flight Sciences
• Bell Textron Inc.
• Guangzhou EHang Intelligent Technology Co. Ltd.
• Embraer S.A.
• Joby Aviation
• Lilium GmbH
• Neva Aerospace
• Opener Inc.
• PIPSTREL (Textron Inc.)
• Vertical Aerospace Group Ltd.
• Volocopter GmbH
• Wisk Aero (The Boeing Company)
• Workhorse Group Inc.
• Others

The Advanced Air Mobility Market is segmented as follows:

By Component

• Hardware
• Software

By Type

• Air Taxis
• Drones
• Others

By Propulsion Type

• Gasoline
• Electric
• Hybrid

By Application

• Cargo Transport
• Passenger Transport
• Mapping & Surveying
• Special Mission
• Surveillance & Monitoring
• Others

By End User

• Commercial
• Government & Military

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America