US Air Taxi Market 2026-2035

US Air Taxi Market Size, Share & Trends Analysis Report by Propulsion Type (Electric, Parallel Hybrid, Turboshaft, and Turboelectric), By Operation (Autonomous and Piloted), Forecast Period (2026-2035)

Industry Overview

US air taxi market was valued at $184.5 million in 2025 and is projected to reach $878.6 million by 2035, growing at a CAGR of 17.0% during the forecast period (2026-2035). The US air taxi market is accelerating as aerospace innovators and urban mobility operators advance next-generation aviation platforms focused on electrification, autonomy, and sustainable short-haul transport. Growth is being strengthened by rapid progress in eVTOL engineering, battery efficiency improvements, and digital fleet-management systems that enhance operational reliability and airspace integration. Adoption is further supported by expanding pilot programs across major U.S. cities, where increasing congestion and demand for faster intra-urban mobility underscore the need for flexible point-to-point transportation. With regulatory bodies such as the FAA prioritizing safety-driven certification pathways for advanced air mobility (AAM), air taxi developers are leveraging simulation-based testing, real-time navigation technologies, and noise-optimized rotor architectures to meet compliance requirements.

Market Dynamics

Rising Deployment of Advanced Urban Air Mobility (UAM) Solutions Across U.S. Cities

Urban and regional transportation planners in the US are increasingly integrating air taxi systems into future mobility frameworks to address congestion, reduce travel times, and expand intercity connectivity. Leading aerospace and eVTOL manufacturers are collaborating with federal and state agencies to advance pilot programs, establish vertiport infrastructure, and standardize airspace integration protocols. The market is witnessing strong momentum as electric and hybrid-electric propulsion technologies mature, enabling quieter, cleaner, and more cost-efficient operations. With regulatory bodies such as the FAA accelerating certification pathways and updating operational guidelines, demand for reliable and scalable air taxi platforms continues to rise. This growing emphasis on sustainable, high-efficiency aerial mobility is becoming a primary force shaping the U.S. air taxi landscape.

Expanding Integration of Autonomous Flight Technologies and Digital Mobility Platforms

US air taxi developers are increasingly adopting autonomous flight systems, advanced navigation software, and AI-driven fleet management tools to enhance operational efficiency and reduce human-pilot dependency over time. Innovations in sensor fusion, real-time airspace monitoring, and predictive maintenance analytics are enabling higher safety standards and improved aircraft utilization rates. At the same time, mobility service providers are investing in digital platforms that support route optimization, passenger scheduling, and multimodal transport integration. These technologies allow operators to scale services rapidly while maintaining low operating costs. As autonomous capabilities progress toward regulatory approval, the growing deployment of intelligent, connected air taxi ecosystems is emerging as a major driver of market expansion in the US.

Market Segmentation

• Based on the propulsion type, the market is segmented into electric, parallel hybrid, turboshaft, and turboelectric.
• Based on the operation, the market is segmented into autonomous and piloted.

Electric Segment to Lead the Market with the Largest Share

The electric segment is emerging as the most influential component of the U.S. air taxi market, supported by strong regulatory momentum toward cleaner aviation technologies and substantial industry investment in electric vertical take-off and landing (eVTOL) systems. Manufacturers and operators across the country are prioritizing fully electric propulsion to meet national sustainability goals, reduce carbon emissions, and offer quieter mobility solutions suited for dense metropolitan areas. Electric systems provide clear advantages in operating cost efficiency, noise reduction, and maintenance simplicity, making them ideal for high-frequency urban routes in major U.S. cities. Ongoing improvements in battery density, charging infrastructure, and advanced flight control systems are further solidifying the dominance of electric platforms in upcoming commercial deployments. As federal and state authorities push for greener aviation pathways, the electric segment continues to anchor the U.S. market's strong growth trajectory.

Piloted: A Key Segment in Market Growth

Piloted air taxi operations remain central to market expansion in the United States, driven by the need to ensure high safety standards, regulatory compliance, and passenger trust during the early commercialization phase of urban air mobility. Operators are actively deploying certified pilots to manage eVTOL and hybrid-electric aircraft across complex U.S. airspaces, enabling smoother alignment with Federal Aviation Administration (FAA) requirements. This model provides a reliable pathway for integrating air taxis into existing aviation and urban transport networks while minimizing operational risk. Investments in pilot training, simulation technologies, and enhanced navigation systems are further strengthening the capabilities of piloted operations. As U.S. cities prepare for large-scale air taxi rollout, the piloted segment remains a critical contributor to market maturity and overall adoption, laying the groundwork for future autonomous operations.

Market Players Outlook

The major companies operating in the US air taxi market include Archer Aviation Inc., Boeing, Honeywell International Inc, Joby Aviation, Inc., Textron Inc, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

• In May 2025, Joby Aviation successfully conducted its first dual-aircraft test flight, flying two of its eVTOL aircraft simultaneously, underscoring progress toward scalable commercial operations in urban air mobility.
• In September 2025, Joby joined the national eVTOL Integration Pilot Program (eIPP), initiated by the Federal Aviation Administration (FAA) and U.S. Department of Transportation, to fast-track limited eVTOL operations ahead of full certification, a key step toward launching air taxi services in select US markets.

The Report Covers:

• Market value data analysis of 2025 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the US air taxi market. Based on the availability of data, information related to new products and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying 'who-stands-where' in the market.