Advanced Air Mobility Market: Current Analysis and Forecast (2024-2032)

Advanced Air Mobility refers to new-age technologies which focuses on how to transform air-based travel and goods transport across the globe. As air mobility is one of the key reasons for the carbon emissions, the companies in the sector are extensively investing towards the adoption of electric based air mobility solutions in order to enhance the efforts towards carbon-neutrality of the countries. Various type of aircraft as Electric vertically take-off and landing vehicles, electric and hybrid aircraft, urban air mobility, and Unmanned aerial aircraft are among the prominent category of vehicles used for advanced air mobility solutions.

The Advanced Air Mobility Market is expected to grow at a significant rate of around 23.44% during the forecast period (2024-2032). With the rising urbanization and growing traffic congestion within the major cities across the globe the demand for alternative mobility mediums is on the rise. Some other factors that have been attributed to the growth are increasing focus towards electrification of air fleet as well as development of the infrastructure in the cities and other urban centers to cater to the EVTOLs. One of the key factors that have been attributed to the growth is the increasing number of companies offering advanced air mobility solutions. With the growing numbers of companies increasing their offering in new regions the available options for advanced air mobility solutions would also be a viable alternative for the customers. For instance, in 2024, the aviation ministry of India launched urban air mobility project to initiate first air taxi in India by the year 2026. These air taxis will start in Delhi NCR, Mumbai, and Bengaluru by 2026.

In another instance, in 2024, South Korean telecom company SK Telecom showcased its prototype air taxis named UAM which the company is anticipating initiating operations by the year 2025.

With the rising demand for commercial air mobility and the increasing traffic congestion leading to higher time of travel for both within city and intercity travel the demand for advanced air mobility is further anticipated to increase. Additionally, the services have also become crucial for transporting various crucial services such as air ambulance, disaster management etc. Additionally, various new government policies and regulations placed for the development of the air mobility services, the demand for the advanced air mobility services is further anticipated to rise during 2024-2032.

Based on Application the Global Air Mobility market is segmented into cargo, passenger, mapping, special mission, surveillance & monitoring, and others. OF these cargo segment has held the major market share owing to the higher demand for shipment delivery from one place to another. Companies such as DHL, Amazon, etc., are extensively investing into the advance air mobility solutions especially in the EVTOL category in order to reduce the cost of parcel delivery as well as improve the environmentally friendly aspect of the business and operations. Some other segments as passenger and special missions are also projecting high growth owing to the higher inclination of the customers to opt for the advanced air mobility solutions for ease of transportation.

Based on the End-User, the market is segmented into Commercial and Government. Of these the commercial category has held the major market share across the globe. Some of the factors that have attributed to the growth are higher demand for advanced air mobility solutions for the cargo as well as passenger carrying applications.

Based on propulsion, the market is segmented into gasoline, electric and hybrid. Of these hybrid segment has exhibited the highest CAGR as the technology provides a bridging gap between fully conventional aircraft as well as electric mobility solutions. This type of aircraft also provides a significant range of electric aircraft, also reducing the carbon emission as compared to the conventional aircraft using solely gasoline.

For a better understanding of the market adoption of the Advanced Air Mobility market, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America holds a significant share of the advanced air mobility market and is anticipated to maintain a steady growth rate over the forecast period. North America has a vast aviation industry, and it is looking forward to comprehensively supporting research & development around aviation challenges and their potential technological solutions. Additionally, the region is home to some of the largest manufacturers of commercial and military jets across the globe. Considering the vast volume of production, and the high demand for aircraft for air ambulances, disaster management, passenger carrying and goods shipment, etc., the region is further anticipated to dominate the demand for Advanced Air Mobility Market in the coming period.

Some of the major players operating in the market include Airbus S.A.S., Aurora Flight Sciences, Bell Textron, The Boeing Company, EHang, Eve Air Mobility (Embraer S.A.), Joby Aviation, Lilium GmbH, JetSet Go Aviation, and Volocopter GmbH.