Urban Air Mobility Market Forecasts to 2032 - Global Analysis By Component, Platform Type, Platform Operation, Mode of Operation, Propulsion Type, End User and By Geography

According to Stratistics MRC, the Global Urban Air Mobility (UAM) Market is accounted for $6.64 billion in 2025 and is expected to reach $57.74 billion by 2032 growing at a CAGR of 36.2% during the forecast period. The term "Urban Air Mobility" (UAM) describes the practice of moving people or goods within urban and suburban regions using highly automated, sophisticated aircraft, usually electric vertical takeoff and landing (eVTOL) vehicles. UAM incorporates air travel into daily city life in an effort to alleviate ground traffic congestion, shorten travel times, and promote sustainable mobility. It includes cutting-edge air traffic control systems, vertiports, and smart city integration, among other revolutionary infrastructure. UAM seeks to revolutionise the movement of people and products across crowded areas by offering safe, effective, and environmentally friendly airborne transportation.

According to the U.S. Environmental Protection Agency, an average passenger car emits 4.7 metric tonnes of CO2 each year.

Market Dynamics:

Driver:

Rising urban congestion and traffic delays

UAM provides a feasible substitute for rapid and effective urban transit as road infrastructure cannot keep up with expanding populations. By avoiding ground-level traffic, it shortens travel times, particularly in crowded cities. This change lessens the stress brought on by lengthy commutes and increases commuter productivity. Additionally, by facilitating quicker reaction times, UAM aids emergency and logistics services. Investment and innovation in the UAM ecosystem are being propelled by the need for quicker, more adaptable transit options.

Restraint:

Regulatory and airspace management challenges

Manufacturers and service providers face uncertainty as a result of the lack of uniform laws across regions. It is difficult and expensive to integrate UAM vehicles into current airspace systems without sacrificing safety. Frameworks for certification, operations, and pilot requirements are still being developed by regulatory agencies. UAM scalability is further limited by delays in modernising air traffic management. Investments, technology deployment, and the commercial acceptance of UAM solutions are all slowed down by these obstacles.

Opportunity:

Advancements in electric propulsion systems and battery technology

Modern electric propulsion technologies provide more sustainable and greener alternatives to conventional internal combustion engines. Longer flight lengths and higher payload capacities are made possible by advancements in battery technology, which raise energy density. Increased fleet utilisation and operational frequency are further supported by faster charging capabilities. These developments increase the viability and appeal of UAM by reducing operating expenses and carbon emissions. They thereby hasten the commercialisation and widespread adoption of UAM solutions.

Threat:

Cybersecurity and system hacking risks

Flight control software access without authorisation may result in operational problems and safety violations. Possible cyberattacks have the potential to erode public confidence and postpone regulatory approvals. The expense of creating and maintaining secure systems has gone up for airlines and service providers. Operational intelligence and passenger privacy may be jeopardised by data breaches. As a result, worries about online safety hinder the widespread use and implementation of UAM systems.

Covid-19 Impact

The Covid-19 pandemic significantly disrupted the Urban Air Mobility (UAM) market by delaying research, development, and regulatory approvals due to global lockdowns and travel restrictions. Supply chain interruptions and reduced investments slowed prototype testing and commercialization efforts. However, the crisis also highlighted the need for contactless and efficient transportation, spurring renewed interest in autonomous and electric air vehicles for cargo and emergency services. Post-pandemic, the market witnessed a gradual rebound with increased focus on resilient, smart mobility solutions.

The aircraft segment is expected to be the largest during the forecast period

The aircraft segment is expected to account for the largest market share during the forecast period, due to advancements in electric and hybrid-electric propulsion systems. Manufacturers are increasingly focusing on developing lightweight, efficient, and noise-reduced aircraft tailored for urban environments. The demand for vertical take-off and landing (VTOL) aircraft supports rapid transit in congested cities, enhancing mobility. Continuous R&D investments in autonomous and semi-autonomous flight capabilities are further accelerating market growth. Additionally, prototype testing and pilot programs by key players are pushing the aircraft segment toward commercial viability.

The infrastructure inspection segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the infrastructure inspection segment is predicted to witness the highest growth rate by enabling faster and more efficient monitoring of critical assets like bridges, power lines, and pipelines. UAM vehicles reduce the need for manual inspections, minimizing risks to human workers and cutting operational costs. Their ability to access hard-to-reach areas enhances inspection accuracy and coverage. Integration of advanced sensors and AI-driven analytics in UAM systems streamlines data collection and decision-making. This growing demand for aerial inspection solutions accelerates the adoption of UAM technologies in urban infrastructure management.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share due to the increasing investments in smart city infrastructure and rising demand for traffic decongestion solutions. Countries like China, Japan, and South Korea are at the forefront of UAM development, supported by proactive government initiatives and large tech conglomerates. Strategic partnerships between aerospace firms and mobility startups are accelerating eVTOL deployment. The region also benefits from strong manufacturing capabilities and pilot testing in megacities, making it a critical hub for future UAM commercialization.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to regulatory progress, and prototype development. Strong support from NASA and the FAA, combined with the presence of key players like Joby Aviation and Archer Aviation, fuels industry momentum. Investment from venture capital and defense sectors has further accelerated progress. However, public acceptance and airspace integration remain significant challenges. Despite regulatory hurdles, North America maintains a leadership position due to its robust R&D ecosystem and first-mover advantage in UAM deployment.

Key players in the market

Some of the key players profiled in the Urban Air Mobility (UAM) Market include Joby Aviation, Archer Aviation, Volocopter, Lilium, EHang, Vertical Aerospace, Beta Technologies, Wisk Aero, Eve Air Mobility (Embraer), Supernal (Hyundai), Bell Textron, Airbus, Jaunt Air Mobility, AutoFlight, SkyDrive, TCab Tech, Doroni Aerospace and Urban Aeronautics.

Key Developments:

In June 2025, Joby signed a Memorandum of Understanding (MoU) with Abdul Latif Jameel to explore opportunities for distributing Joby's electric air taxis in Saudi Arabia. The collaboration aims to deliver up to 200 electric aircraft and related services valued at approximately $1 billion over the coming years.

In March 2025, Joby announced a partnership with Virgin Atlantic to launch electric air taxi services in the UK. The collaboration will offer zero-emission, short-range journeys, starting with regional and city connections from Virgin Atlantic's hubs at Heathrow and Manchester Airport.

In December 2024, Archer Aviation entered into a multi-party collaboration agreement with key UAE and Abu Dhabi stakeholders, including the Abu Dhabi Investment Office, Abu Dhabi Airports, and the Integrated Transport Centre (Abu Dhabi Mobility). The agreement aims to formalize cooperation for the launch of the first commercial eVTOL (electric vertical takeoff and landing) air taxi operations in Abu Dhabi, making Archer the first manufacturer to launch such services in the MENA region.

Components Covered:

• Aircraft
• Infrastructure
• Platform
• Software
• Service
• Other Components

Platform Types Covered:

• Air Taxis
• Air Shuttles & Air Metro
• Personal Aerial Vehicles
• Cargo Aerial Vehicles
• Last-Mile Delivery Drones
• Emergency Services
• Other Platform Types

Platform Operations Covered:

• Piloted
• Autonomous

Mode of Operations Covered:

• Manned
• Unmanned
• Optionally Piloted

Propulsion Types Covered:

• Fully Electric
• Hybrid Electric
• Hydrogen Electric

End Users Covered:

• Passenger Transportation
• Cargo Transportation
• Emergency Medical Services (EMS)
• Military & Defense
• Infrastructure Inspection
• Surveying & Mapping
• Law Enforcement
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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