Advanced Air Mobility Market Forecasts to 2032 - Global Analysis By Type, Propulsion Type, Component, Operating Mode, Range, Application, End User and By Geography

According to Stratistics MRC, the Global Advanced Air Mobility Market is accounted for $16.5 billion in 2025 and is expected to reach $86.1 billion by 2032 growing at a CAGR of 26.6% during the forecast period. Advanced Air Mobility (AAM) is an emerging air transportation system that uses new aircraft technologies such as electric vertical takeoff and landing (eVTOL) vehicles, drones, and other advanced aircraft to move people and cargo between urban, suburban, and rural locations. It focuses on improving mobility by offering safe, efficient, and sustainable low-altitude operations. AAM includes applications like urban air taxis, regional passenger transport, emergency services, and cargo delivery. It integrates advanced automation, air traffic management systems, and electric or hybrid propulsion to reduce emissions and noise.

According to McKinsey & Company, Inc., the future air mobility industry received aircraft orders worth around USD 26 billion in 2021, of which approximately 80% of orders were for pilot-operated AAM aircraft.

Market Dynamics:

Driver:

Urban congestion and demand for efficient mobility

Increasing traffic congestion in cities worldwide has highlighted the need for innovative transportation solutions, such as electric vertical takeoff and landing (eVTOL) aircraft and drones. Additionally, the demand for efficient mobility has spurred advancements in autonomous flight systems, electric propulsion, and lightweight materials, making AAM solutions more feasible and sustainable. As urbanization accelerates, AAM is poised to transform urban transportation, offering faster, greener, and more accessible alternatives

Restraint:

High initial capital investment and development costs

Developing eVTOL aircraft requires significant funding for prototype testing, certification, and large-scale production. Additionally, building the necessary vertiports, charging stations, and air traffic management systems demands extensive capital expenditure. Securing financial backing from investors and stakeholders remains a hurdle, particularly for emerging startups in the sector. The long development cycles and return-on-investment concerns further slow down commercialization efforts hampering the growth of the market.

Opportunity:

Development of supporting infrastructure and services

Establishing vertiports, maintenance facilities, and charging stations for electric vertical takeoff and landing (eVTOL) aircraft ensure seamless operations and accessibility. Efficient airspace management systems and regulatory frameworks are essential to integrate AAM into existing transportation networks. These infrastructure developments not only enable the scalability of AAM solutions but also foster public acceptance and trust. As urbanization intensifies, robust infrastructure will drive the adoption of AAM, transforming urban mobility.

Threat:

Competition from conventional and emerging mobility solutions

The AAM sector faces intense competition from traditional ground transportation modes and emerging autonomous mobility solutions. High-speed rail, electric buses, and self-driving vehicles are continuously improving in efficiency and accessibility, posing a challenge to the adoption of aerial mobility. Additionally, the presence of established aviation players and new market entrants intensifies competition within the sector impeding the market growth.

Covid-19 Impact:

The COVID-19 pandemic initially disrupted the AAM market due to supply chain constraints, funding delays, and regulatory slowdowns. However, the crisis underscored the need for decentralized, contactless transportation solutions, accelerating interest in urban air mobility. Governments and private stakeholders increased investments in autonomous air travel to reduce congestion and improve urban connectivity. Additionally, pandemic-induced shifts in consumer behavior, such as increased demand for on-demand mobility, created new opportunities for aerial transport.

The emergency medical services (EMS) drones segment is expected to be the largest during the forecast period

The emergency medical services (EMS) drones segment is expected to account for the largest market share during the forecast period attributed to enhancing rapid response capabilities. These drones, equipped with medical supplies and advanced communication systems, provide swift access to critical care in emergencies, especially in remote or congested areas. Their ability to bypass ground traffic significantly reduces response times, improving patient outcomes. As public trust and regulatory frameworks evolve, EMS drones are expected to play a pivotal role in integrating AAM solutions into healthcare, fostering market growth and innovation.

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

Over the forecast period, the software segment is predicted to witness the highest growth rate enabling seamless operations and enhancing efficiency. Enterprise software platforms manage vast data generated by AAM systems, supporting predictive maintenance, fleet management, and operational optimization. Advanced air traffic management software ensures safe integration of AAM vehicles into existing airspace. Software also facilitates passenger services, including booking, payment processing, and real-time flight tracking making it a basis for the growth and adoption of AAM solutions.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share which is projected to dominate the AAM market, driven by rapid urbanization, high population density, and growing investments in smart city infrastructure. Countries like China, Japan, and South Korea are actively promoting air mobility solutions to address traffic congestion and environmental concerns. The region's strong manufacturing ecosystem further supports large-scale production and cost efficiencies. With increasing regulatory approvals and pilot programs, Asia Pacific is set to lead the adoption of AAM solutions.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR during the forecast period, supported by strong technological advancements and a favorable regulatory environment. The presence of key industry players, including eVTOL manufacturers and aviation technology firms, is driving market expansion. U.S. government agencies, such as the Federal Aviation Administration (FAA), are actively working on policy frameworks to integrate AAM into the national airspace. As urban air mobility trials gain traction, North America is poised for rapid AAM adoption and expansion.

Key players in the market

Some of the key players in Advanced Air Mobility Market include Workhorse Group, Inc, Wisk Aero, Volocopter GmbH, Vertical Aerospace Group Ltd., The Boeing Company, Archer Aviation, Terrafugia, PIPISTREL, Opener, Inc., Neva Aerospace , Lilium GmbH, Joby Aviation, Guangzhou EHang Intelligent Technology Co. Ltd., Embraer S.A., Bell Textron Inc., Aurora Flight Sciences and Airbus S.A.S.

Key Developments:

In March 2025, Joby Aviation announced a partnership with Virgin Atlantic to introduce an electric air taxi service in the United Kingdom. This collaboration aims to integrate Joby's all-electric vertical takeoff and landing (eVTOL) aircraft into Virgin Atlantic's operations, offering sustainable and efficient urban air mobility solutions.

In March 2025, Joby Aviation announced plans to launch its air taxi service in the United Arab Emirates, marking a significant expansion into the Middle Eastern market.

In May 2024, Archer Aviation announced partnership with Etihad Aviation Training. This partnership aims to establish a pipeline of qualified pilots for future urban air mobility services.

Types Covered:

• Electric Vertical Takeoff and Landing (eVTOL) Aircraft
• Drones
• Emergency Medical Services (EMS) Drones
• Hybrid Aircraft
• Urban Air Mobility (UAM) Vehicles
• Other Types

Propulsion Types Covered:

• Electric Propulsion
• Hybrid Propulsion
• Gasoline Propulsion

Components Covered:

• Hardware
• Software
• Other Components

Operating Modes Covered:

• Piloted
• Autonomous
• Hybrid Operation

Ranges Covered:

• Intracity (20 km - 100 km)
• Intercity (Above 100 km)

Applications Covered:

• Urban Air Mobility & Regional Air Mobility
• On-Demand Air Taxi Services
• Heavy Cargo Transport
• Surveillance & Reconnaissance
• Disaster Response
• Organ Transport & Medical Evacuation
• Other Applications

End Users Covered:

• Commercial
• Government
• Military & Defense
• Medical & Healthcare
• 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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