PUBLISHER: The Business Research Company | PRODUCT CODE: 1999545
PUBLISHER: The Business Research Company | PRODUCT CODE: 1999545
Advanced air mobility (AAM) refers to the use of innovative aircraft technologies to transform air transportation. Its goal is to enhance transportation efficiency across diverse environments, from urban areas to remote locations, by enabling passenger travel, cargo transport, emergency response, and other services through advanced technologies and air traffic management systems.
AAM encompasses several key types, including air taxis, drones, and others. Air taxis are compact aircraft intended for short urban or suburban journeys, offering on-demand services similar to traditional taxis but in the air. The main components of AAM include both hardware and software. The different operational modes include piloted and autonomous systems. Various propulsion types, such as parallel hybrid, electric, turboshaft, and turboelectric propulsion, are utilized for different applications, including cargo and passenger transport, mapping and surveying, special missions, and surveillance and monitoring.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the advanced air mobility market by increasing the cost of imported avionics, flight control systems, lightweight composite structures, electric propulsion components, and battery systems. AAM developers and aerospace firms in North America and Europe are particularly affected due to reliance on globally sourced high-precision components, while Asia-Pacific manufacturers face export cost pressures. These tariffs are raising prototype and certification costs and slowing commercialization timelines. However, they are also encouraging localized aerospace manufacturing, regional supply chain development, and innovation in modular and cost-efficient AAM platforms.
The advanced air mobility market research report is one of a series of new reports from The Business Research Company that provides advanced air mobility market statistics, including advanced air mobility industry global market size, regional shares, competitors with a advanced air mobility market share, detailed advanced air mobility market segments, market trends and opportunities, and any further data you may need to thrive in the advanced air mobility industry. This advanced air mobility market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The advanced air mobility market size has grown exponentially in recent years. It will grow from $11.6 billion in 2025 to $13.99 billion in 2026 at a compound annual growth rate (CAGR) of 20.5%. The growth in the historic period can be attributed to drone technology advancements, urban congestion challenges, early pilot aam projects, venture capital investments, aerospace innovation.
The advanced air mobility market size is expected to see exponential growth in the next few years. It will grow to $29.68 billion in 2030 at a compound annual growth rate (CAGR) of 20.7%. The growth in the forecast period can be attributed to acceleration of urban air mobility regulations, electric propulsion adoption, autonomous navigation development, smart city airspace planning, commercialization of air taxis. Major trends in the forecast period include growth of urban air taxi programs, development of autonomous flight systems, expansion of electric vtol platforms, integration with air traffic management, rising investment in aam infrastructure.
The rising urbanization and traffic congestion in major cities are expected to drive the growth of the advanced air mobility market in the coming years. Urbanization and traffic congestion refer to the growing population in urban areas, resulting in crowded roads and increased vehicle traffic. These trends are driven by factors such as population growth, economic development, limited public transportation infrastructure, and higher private vehicle ownership. Advanced air mobility offers a solution by providing efficient, on-demand air transportation, reducing dependence on ground-based vehicles. For example, in April 2025, according to the US Census Bureau, the population in the nation's 387 metro areas increased by nearly 3.2 million (1.1%) between 2023 and 2024, slightly exceeding overall US population growth (1.0%). Therefore, increasing urbanization and traffic congestion are propelling the advanced air mobility market.
Key companies in the advanced air mobility market are leveraging innovative solutions such as urban air-traffic management (UATM) systems to ensure safe, efficient, and coordinated operations of air vehicles in congested urban environments. Urban air-traffic management systems are digital platforms that coordinate and control the movement of advanced air mobility vehicles, including drones and eVTOL aircraft, within urban airspace. They optimize flight routes, prevent collisions, manage air traffic, and ensure safe and efficient operations in densely populated areas. For instance, in May 2025, JetSetGo, an India-based private jet and helicopter charter company, launched Air Mobility India, a platform dedicated to advanced air mobility. The platform is built around four core pillars, offering a comprehensive resource hub for AAM-related news, blogs, and global content. It also plans to introduce a video library and an AI assistant named "Ami" to guide users, collect interaction data, and predict user needs. Unique features include fostering community discussions focused on local priorities, such as improving medical transport in remote areas and reducing commute times in metropolitan hubs, supporting India's leadership in sustainable air mobility solutions.
In July 2023, Ampaire, a US-based aviation and aerospace equipment manufacturer, acquired Talyn Air for an undisclosed sum. This acquisition is part of Ampaire's strategy to strengthen its position in aviation electrification, foster profitable growth, and expand into related sectors such as defense, drones, and electric vertical take-off and landing (eVTOL) technology. Talyn Air, a US-based company, develops advanced air mobility solutions, including eVTOL aircraft systems.
Major companies operating in the advanced air mobility market report include The Boeing Company, Airbus SE, Honeywell International Inc., Bell Textron Inc., Bristow Group Inc., Joby Aviation, Archer Aviation Inc., Lilium GmbH, Volocopter GmbH, Aurora Flight Sciences Corporation, Eve Air Mobility Inc., Wisk Aero LLC, Vertical Aerospace Ltd, Elroy Air Inc., Opener Inc., Urban Aeronautics Ltd, EHang Holdings Limited, Workhorse Group Inc., Pipistrel Co, The Helicopter Company
Europe was the largest region in the advanced air mobility market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the advanced air mobility market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the advanced air mobility market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The advanced air mobility market consists of sales of electric vertical takeoff and landing (eVTOL) aircraft, autonomous aerial vehicles, air traffic management systems, batteries, and electric propulsion systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Advanced Air Mobility Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses advanced air mobility market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for advanced air mobility ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The advanced air mobility market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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