Advanced Air Mobility Market Report 2026

Advanced Air Mobility Market Overview

• Advanced Air Mobility market size has reached to $11.6 billion in 2025 • Expected to grow to $29.68 billion in 2030 at a compound annual growth rate (CAGR) of 20.7% • Growth Driver: Increasing Urbanization And Traffic Congestion Drive Growth In The Advanced Air Mobility Market • Market Trend: Innovation And Electrification Accelerating Next-Generation Air Mobility Solutions • Europe was the largest region in 2025 and North America is the fastest growing region.

What Is Covered Under Advanced Air Mobility Market?

Advanced air mobility (AAM) refers to the deployment of cutting-edge aircraft technologies to revolutionize air transportation. It aims to improve transportation efficiency in various settings, from cities to remote areas, by facilitating passenger travel, cargo transport, emergency response, and other services using advanced technology and air traffic systems. The main types of advanced air mobility are air taxis, drones, and others. Air taxis are small aircraft designed to transport passengers on short urban or suburban routes, often offering on-demand services similar to traditional taxis but in the air. The various components include hardware and software. The different modes of operation are piloted mode of operation, autonomous mode of operation for many propulsion types, such as parallel hybrid propulsion, electric propulsion, turboshaft propulsion, and turboelectric propulsion used for a variety of applications, including cargo transport, passenger transport, mapping and surveying, special missions, surveillance and monitoring, and others.

What Is The Advanced Air Mobility Market Growth Forecast?

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.

Global Advanced Air Mobility Market Segmentation

1) By Type: Air Taxis, Drones 2) By Component: Hardware, Software 3) By Mode Of Operation: Piloted Mode Of Operation, Autonomous Mode Of Operation 4) By Propulsion Type: Parallel Hybrid Propulsion, Electric Propulsion, Turboelectric Propulsion 5) By Application: Cargo Transport, Passenger Transport, Mapping And Surveying, Special Mission, Surveillance And Monitoring, Other Applications Subsegments: 1) By Air Taxis: Electric Vertical Takeoff And Landing (eVTOL) Aircraft, Hybrid VTOL Aircraft, Autonomous Air Taxis, Piloted Air Taxis 2) By Drones: Delivery Drones, Passenger Drones, Surveillance Drones, Cargo Drones

What Is The Driver Of The Advanced Air Mobility Market?

The increasing urbanization and traffic congestion in major cities are expected to propel the growth of the advanced air mobility market going forward. Urbanization and traffic congestion refer to the increase in population in urban areas, leading to overcrowded roads and increased vehicular traffic. The increasing urbanization and traffic congestion are due to several factors, such as population growth, economic development, inadequate public transportation infrastructure, and the rise in private vehicle ownership. Advanced air mobility helps alleviate urbanization and traffic congestion by providing efficient, on-demand air transportation, reducing the reliance on ground-based vehicles. For instance, in April 2025, according to the US Census Bureau, a US-based federal government agency, the number of people residing in the nation’s 387 metro areas rose by nearly 3.2 million (1.1%) between 2023 and 2024, slightly outpacing US population growth over the same period (1.0%) Therefore, the increasing urbanization and traffic congestion in major cities will drive the advanced air mobility industry.

What Is The Driver Of The Advanced Air Mobility Market?

The increasing urbanization and traffic congestion in major cities are expected to propel the growth of the advanced air mobility market going forward. Urbanization and traffic congestion refer to the increase in population in urban areas, leading to overcrowded roads and increased vehicular traffic. The increasing urbanization and traffic congestion are due to several factors, such as population growth, economic development, inadequate public transportation infrastructure, and the rise in private vehicle ownership. Advanced air mobility helps alleviate urbanization and traffic congestion by providing efficient, on-demand air transportation, reducing the reliance on ground-based vehicles. For instance, in April 2025, according to the US Census Bureau, a US-based federal government agency, the number of people residing in the nation’s 387 metro areas rose by nearly 3.2 million (1.1%) between 2023 and 2024, slightly outpacing US population growth over the same period (1.0%) Therefore, the increasing urbanization and traffic congestion in major cities will drive the advanced air mobility industry.

Global Advanced Air Mobility Market Trends and Insights

Major companies operating in the advanced air mobility market are focusing on 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 (UATM) systems are digital platforms that coordinate and control the movement of advanced air mobility vehicles, such as drones and eVTOL aircraft, within urban airspace, helping optimize flight routes, prevent collisions, manage traffic congestion, and ensure safe, efficient, and reliable operations in densely populated areas. For instance, in May 2025, JetSetGo, an India-based private jet and helicopter charter company, launched Air Mobility India, an innovative platform dedicated to advanced air mobility. The platform is structured around four core pillars, providing 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 forecast user needs. Unique features include fostering community discussions tailored to local priorities, such as enhancing medical transport in remote areas and reducing commute times in metropolitan hubs, thereby accelerating India’s leadership in sustainable air mobility solutions.

What Are Latest Mergers And Acquisitions In The Advanced Air Mobility Market?

In July 2023, Ampaire, a US-based aviation and aerospace equipment manufacturing company, acquired Talyn Air for an undisclosed amount. Ampaire aims to enhance its leadership in aviation electrification through this acquisition. It also drives profitable growth and expands into adjacent markets such as defense, drones, and electric vertical takeoff and landing (eVTOL). Talyn Air is a US-based company that develops advanced air mobility solutions such as electric vertical takeoff and landing (eVTOL) aircraft systems.

Regional Outlook

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 this market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Advanced Air Mobility Market?

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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Advanced Air Mobility Market Report 2026?

The advanced air mobility market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the advanced air mobility industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.