Advanced Air Mobility Market Size, Share, Growth Analysis, By Mode of Operation (Piloted, Autonomous), By End Use (Cargo, Passenger), By Propulsion Type (Parallel Hybrid, Electric), By Region -Industry Forecast 2024-2031


Report ID: SQMIG20A2271 | Region: Global | Published Date: November, 2024
Pages: 194 |Tables: 0 |Figures: 0

Advanced Air Mobility Market Insights

Global Advanced Air Mobility Market size was valued at USD 10.15 Billion in 2022 poised to grow from USD 12.65 Billion in 2023 to USD 15.77 Billion by 2031, growing at a CAGR of 24.6% in the forecast period (2024-2031).

The vehicle concept termed "flying car," which can operate both on the land and in the air depending on the circumstances, is poised to epitomize the urban mobility of the future. Most of the options envisaged for the future flying cars are expected to incorporate vertical take-off and landing systems, thus making it easy for the vehicles to fit within the urban aerial transportation systems that do not require long runways for take-off and landing. In response to the changes in the urban commuting space, there is a need for policy makers to implement enabling legislation and policies. There are many applications for flying cars from professional use such as law enforcement or medical aid, commercial transport such as air taxis to personal travel.

Infrastructure development is anticipated to be just as important as product creation in the future period. Due to growing innovations, falling drone prices, and the advancement of automation technologies, the worldwide cargo drone services market is expected to grow. As new technologies are used and integrated into many industries and customers' daily lives, drone services become more and more economical. It is posited that timely delivery services and evolving urban transportation patterns will cause an upsurge in the demand for the global advanced air mobility market. Nevertheless, the market growth is hampered by stringent restrictions on traffic and aviation licenses and the market infiltration issued by the use of drones.

Market Snapshot - (2024-2031)

Global Market Size

Largest Segment

Fastest Growth

Growth Rate

CAGR

Global Advanced Air Mobility Market ($ Bn)
Country Share by North America (%)

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Advanced Air Mobility Market Segmental Analysis

The Global Advanced Air Mobility Market is segmented based on Mode of Operation, End Use, Propulsion Type, and Region. In terms of Mode of Operation, the market is bifurcated into Piloted and Autonomous. Based on End Use, the market is divided into Cargo and Passenger. Based on the Propulsion Type, the market is grouped into Parallel Hybrid, Electric, Turboshaft, and Turboelectric. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and Middle East & Africa.

Analysis by Mode of Operation

As per categorization by mode of operation, the market is classified as piloted and autonomous. Among these, piloted operations earned the largest share and continue to dominate the market. Piloted operation is dominating the global advanced air mobility market due to its enhanced safety and regulatory compliance, providing a trusted transition from traditional aviation to autonomous solutions. Today’s technological advancements are primarily targeted at enhancing the existing urban and regional air mobility architectures with advanced avionics, intelligence navigation systems, and live data systems. They incorporate piloted aircraft as a regression bridge for the operators, passengers and authorities allowing for gradual acceptance of the operations instead of the full-fledged self-operating flights that raise regulatory issues and public uneasiness.

It is anticipated that the autonomous operation will be the most dynamic driven growth segment in the global advanced air mobility market as it is expected to transform the urban air transport ecosystem by having lower operational costs, greater efficiency and on-demand scalable services. The development of artificial intelligence, machine learning and sensor technology has greatly facilitated the development of autonomous flight systems that can make instantaneous decisions and navigate safely. Furthermore, the increasing need for speed, well-organized and unimpeded travel coupled with the constant maturation of legislations governing autonomous systems are hastening its acceptance. With age comes wisdom; fully autonomous AAM capabilities will change the way goods, passengers and emergency services are handled across the globe.

Analysis by End Use

Cargo end use is dominating the global advanced air mobility market due to the increasing demand for efficient, fast, and cost-effective logistics solutions. Innovations today primarily concentrate on the use of drones and autonomous aircraft in various supply chain aspects, especially in last-mile delivery, medical goods, and other time-critical commodities. Firms are taking advantage of AI-powered route planning, up-to-date monitoring, and self-piloted cargo transportation systems to improve the movement of goods. This predominance is driven by the increased demand for adaptable logistics within enplaned urban confines, as well as underserved dodgy terrains, therefore AAM is becoming a necessity to the changing dynamics of e-commerce and distribution systems.

Passenger end use is poised to be the fastest growing segment in the global advanced air mobility market owing to the growing need for efficient and quicker urban transportation solutions. This development is supported by the innovations in electric vertical takeoff and landing (eVTOL) aircraft as well as AI systems for navigation and safety. Rapid urbanization, gridlock, and the pressing need for efficient transportation systems are all driving forces in the design of air taxis and their impromptu passenger services. Traffic Air Mobility or passenger mobility conducted in the air, using rapidly expanding urban centers and their terrestrial transport strategies is being embraced as an alternative due to the growing evolution in terms of legislation and human disposition.

Global Advanced Air Mobility Market By Mode of Operation (%)

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Advanced Air Mobility Market Regional Insights

The AAM market in North America, and especially the US, is the largest in the world, which can be attributed to the development of key aerospace infrastructures, active investments in technological innovations, as well as the existing policies and regulations that favor the induction of new aviation technologies. The US contains several AAM related companies and state of the art research centers that augment the use of electric vertical take-off and landing aircraft, artificial intelligence navigation systems and autonomous systems. Additionally, proactive involvement from the Federal Aviation Administration (FAA) in developing regulations for urban air mobility and the presence of key players such as Boeing and Joby Aviation further solidify the region’s leadership in accelerating AAM commercialization and adoption.

Europe is the fastest-growing region in the global advanced air mobility market due to its strong focus on sustainability, stringent emissions regulations, and increasing urban mobility needs. The European Union’s push for greener transportation through initiatives like the European Green Deal has spurred investments in electric vertical takeoff and landing (eVTOL) aircraft and autonomous air mobility solutions. Furthermore, it can be noted that the AAM evolution is led by countries such as Germany and the U.K. owing to the strong partnerships amongst the state, aerospace industry and technology start-ups. The development of the AAM field in the region is facilitated by the increasing regulatory environment and carbon neutrality obligations in Europe.

Global Advanced Air Mobility Market By Geography
  • Largest
  • Fastest

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Advanced Air Mobility Market Dynamics

Drivers

Rise of Advanced Air Mobility Solutions

  • There is an up rise in demand for the global advanced air mobility market with regards to urban transportation systems, in order to include solutions to excessive traffic. With the expansion of cities, ground transportation systems age incapable of expanding, creating the demand for quicker and efficient transport systems that operate above the men non-elevated transportation, like eVTOLs and air taxis, to ease the urban mobility.

Accelerated Adoption of Sustainable Electric and Hybrid Aircraft

  • The increasingly important issue of sustainability and cutting down carbon emissions. There is a worldwide renaissance where governments and industries are channeling their investments towards the production of electric and hybrid airplanes aimed at achieving climate targets. Such cleaner and energy efficient means of air transport are encouraging faster development and consequently advancements in the use of advanced air mobility.

Restraints

Public Skepticism and Safety Concerns

  • The global advanced air mobility market is public skepticism and safety concerns. A fear of crashes, malfunctions, and system trustworthiness among potential customers, especially in the case of new aerial transport technologies such as autonomous systems makes it quite difficult for consumers to accept new technologies and may also limit market growth.

Infrastructure Challenges for Advanced Air Mobility Integration

  • The provisioning of supporting structures for AAM activities, including vertiports, charging points, and air traffic control systems, remains few. The lack of this specific operational facility poses challenges to the acceptance of AAM into the existing urban transportation modalities making it further cumbersome in the wide adoption and operational effectiveness of the air mobility solutions.

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Advanced Air Mobility Market Competitive Landscape

The competition within the global advanced air mobility market is generally built on engagements and creativity of its very players. The main highlights are Joby Aviation, Archer Aviation, Volocopter, and Boeing which are all working on electric vertical take-off and landing (eVTOL) aircrafts and related technologies. Also, closing of aerospace industries, tech entry businesses and regulatory bodies is paramount to the growth of AAM solutions. This fast evolving scenario is the one making rapid developments and urban air mobility the focus of attention all over the world.

Top Player’s Company Profiles

  • Joby Aviation (USA)
  • Archer Aviation (USA)
  • Volocopter (Germany)
  • Boeing (USA)
  • Bell Textron (USA)
  • Lilium (Germany)
  • EHang (China)
  • Kitty Hawk (USA)
  • Pipistrel (Slovenia)
  • Urban Aeronautics (Israel)
  • Airbus (France)
  • Rolls-Royce (UK)
  • Vertical Aerospace (UK)
  • XTI Aircraft (USA)
  • OHM Aviation (France)

Recent Developments

  • In September 2024, Joby Aviation recently achieved a notable achievement in aviation history as it performed its first crewed test flight of the Joby eVTOL aircraft within a designed city’ setting. This achievement indicates the company’s advancement towards realizing its goal of commercial passenger operations, which entails providing air taxi services in urban regions by 2025.
  • In August 2024, Archer Aviation officially introduced its most recent eVTOL model, Dope, demonstrating impressive technology in the aspect of flight and sustainability. The company highlighted the fact that they are carbon neutral and expects the Maker to be in service for urban air mobility activities by 2026, which will be a huge leap towards the AAM industry.
  • In July 2024, The European Union Aviation Safety Agency (EASA) issued Volocopter's VoloCity air taxi the first air operator certificate (AOC) for its class of aeronautics. This particular certification allows Volocopter to conduct its planned commercial demand for passenger inter-city air travel which cements the already existing ultra-modern aerial variability leader position.

Advanced Air Mobility Key Market Trends

  • Rise of Electric and Sustainable Aviation Technologies: The global advanced air mobility market is progressively emphasizing more on electric and hybrid aircraft technologies in order to meet the goals of sustainability. Most major players are sinking their resources into eVTOL due to the urgency of green transportation and controlling the levels of carbon emissions in urban air mobility.
  • Integration of Autonomous Systems in Urban Air Mobility: It is evident that there exists a growing tendency of merging autonomous and AAM systems. In this context, Organizations are creating sophisticated navigation and safety systems powered by AI technologies for autonomous flight operations. All these activities of urban air mobility solutions, it is for the upliftment of efficiency, cost reduction, and safety provision.

Advanced Air Mobility Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

As per SkyQuest analysis, the global advanced air mobility market services show one or more markers of impending change, principally innovations that cut across flying cars, driverless operations, and green aviation technologies. With such developments, urbanization continues to be at odds with the conventional means of transport which are both passenger and freight applications as the main drivers of expansion.

North America leads the charge with robust infrastructure and investment, while Europe rapidly advances through regulatory support and sustainability initiatives. Despite obstacles like safety concerns and infrastructure limitations, the market's trajectory suggests a promising future for AAM, revolutionizing how we perceive urban mobility and logistics.

Report Metric Details
Market size value in 2022 USD 10.15 Billion
Market size value in 2031 USD 15.77 Billion
Growth Rate 24.6%
Base year 2023
Forecast period (2024-2031)
Forecast Unit (Value) USD Billion
Segments covered
  • Mode of Operation
    • Piloted and Autonomous
  • End Use
    • Cargo and Passenger
  • Propulsion Type
    • Parallel Hybrid, Electric, Turboshaft, and Turboelectric
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Joby Aviation (USA)
  • Archer Aviation (USA)
  • Volocopter (Germany)
  • Boeing (USA)
  • Bell Textron (USA)
  • Lilium (Germany)
  • EHang (China)
  • Kitty Hawk (USA)
  • Pipistrel (Slovenia)
  • Urban Aeronautics (Israel)
  • Airbus (France)
  • Rolls-Royce (UK)
  • Vertical Aerospace (UK)
  • XTI Aircraft (USA)
  • OHM Aviation (France)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Advanced Air Mobility Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Advanced Air Mobility Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Advanced Air Mobility Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Advanced Air Mobility Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Advanced Air Mobility Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Advanced Air Mobility Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Advanced Air Mobility Market size was valued at USD 10.15 Billion in 2022 poised to grow from USD 12.65 Billion in 2023 to USD 15.77 Billion by 2031, growing at a CAGR of 24.6% in the forecast period (2024-2031).

The competition within the global advanced air mobility market is generally built on engagements and creativity of its very players. The main highlights are Joby Aviation, Archer Aviation, Volocopter, and Boeing which are all working on electric vertical take-off and landing (eVTOL) aircrafts and related technologies. Also, closing of aerospace industries, tech entry businesses and regulatory bodies is paramount to the growth of AAM solutions. This fast evolving scenario is the one making rapid developments and urban air mobility the focus of attention all over the world. 'Joby Aviation (USA)', 'Archer Aviation (USA)', 'Volocopter (Germany)', 'Boeing (USA)', 'Bell Textron (USA)', 'Lilium (Germany)', 'EHang (China)', 'Kitty Hawk (USA)', 'Pipistrel (Slovenia)', 'Urban Aeronautics (Israel)', 'Airbus (France)', 'Rolls-Royce (UK)', 'Vertical Aerospace (UK)', 'XTI Aircraft (USA)', 'OHM Aviation (France)'

There is an up rise in demand for the global advanced air mobility market with regards to urban transportation systems, in order to include solutions to excessive traffic. With the expansion of cities, ground transportation systems age incapable of expanding, creating the demand for quicker and efficient transport systems that operate above the men non-elevated transportation, like eVTOLs and air taxis, to ease the urban mobility.

Rise of Electric and Sustainable Aviation Technologies: The global advanced air mobility market is progressively emphasizing more on electric and hybrid aircraft technologies in order to meet the goals of sustainability. Most major players are sinking their resources into eVTOL due to the urgency of green transportation and controlling the levels of carbon emissions in urban air mobility.

The AAM market in North America, and especially the US, is the largest in the world, which can be attributed to the development of key aerospace infrastructures, active investments in technological innovations, as well as the existing policies and regulations that favor the induction of new aviation technologies. The US contains several AAM related companies and state of the art research centers that augment the use of electric vertical take-off and landing aircraft, artificial intelligence navigation systems and autonomous systems. Additionally, proactive involvement from the Federal Aviation Administration (FAA) in developing regulations for urban air mobility and the presence of key players such as Boeing and Joby Aviation further solidify the region’s leadership in accelerating AAM commercialization and adoption.

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