Urban Air Mobility Market By Aircraft Type (Rotor Wing, Fixed Wing, and Hybrid Wing), By Infrastructure (Vertiports, Charging Stations, and Traffic Management Systems), By Operation (Piloted, and Autonomous), By Travel Range (Intercity, and Intracity), By Application (Air Taxi, Air Ambulance, Airport Shuttle, Last Mile Delivery, Personal Air Vehicle, and Air Metro), – By Region–Trends, Analysis, and Forecast Till 2034

Urban Air Mobility Market was valued at USD 3.4 Billion in 2024 and is projected to grow at a CAGR of 32.10% to reach USD 55.0 Billion by 2034.

Urban air mobility systems were developed to move people by air and ultimately to reduce traffic congestion. Urban air mobility is the safe and efficient air traffic operation for passengers and goods in both directions i.e., manned and unmanned. Aircraft are mainly created, and tested for commercial purposes, and air taxis along with other mobility vehicles may be the best transportation in 2020. Increasing technological demands in developed cities are the reason for the high utilization of drones, air taxis, and others.

Day by day growing traffic issues, especially in larger cities, focus more on the faster and more efficient mode of transportation. Key players are now focusing and investing on the urban air mobility market because of high growth potentials. This market provides safe and economically profitable transportation for intracity and intercity communication. For urban air quality operations, aboard alternative operations within the airspace; craft makers, infrastructure suppliers and aerospace integration researchers make the vast investments in the target market. Tremendous increase in town initiatives has increase the necessity of UAM.

Need for Faster and Cleaner Urban Transportation is Driving Investments in the Market

Day by day increasing number of vehicles on-road in every year leads to increase the traffic problems. Especially in certain hours, high load of traffic on the roads significantly increase the passengers time taken to reach towards destination place. Hence the urban air mobility is the best option for passengers and cargo. It is safe and efficient air transportation system, where passengers-along with air taxis are operating above populates areas, hence there will be significant time saving as well as help to reduce the atmospheric pollution. For this reason many companies are highly investing in this industry to achieve the technological advancements. The target market is highly focused on environmental property area unit, which is the main factor for the increase in demand for sensible town solutions. In addition, wide of urban air vehicles in commercial and civil applications boost the market growth. Moreover, factors such as need for efficient transportation and logistics, environmental concerns and energy impacts, and shipment of smart handheld devices are fuelling the demand for the market.

However, along with technological advancements, the target market is challenged by many aspects like stricter regulatory challenges associated with UAVs, privacy and safety issue, infrastructural challenges with air taxis, and technological complications. By overcoming these challenges, the market is expected to grow and meet the needs as an alternate transport in commercial and civil applications.

Urban air mobility market is segmented based on the aircraft type, infrastructure, operation, travel range, application and region.

Based on the aircraft type, the global market is segmented into rotor wing, fixed wing and hybrid wing. Many organizations and manufacturers are putting efforts in electric VTOL aircraft to enhance the growth in longer flights and target cost effectiveness. Aurora flight sciences and joby aviation are developing their all electric fixed-wing VTOL aircraft prototype for managing costs. On the basis of Infrastructure the urban air mobility market is divided into vertiports, charging stations, and traffic management systems.

Depending upon the operation the target market is explore into piloted and autonomous. These autonomous eVTOLs can operate in urban areas as they are equipped with high-quality sensors and proven technology for human-free operations. Presently, the market for fully-autonomous aerial vehicles is smaller than that of the piloted aerial vehicles. The travel range is classified into intracity which have the range in between 20 to 100 Kilometers and intercity within the range of 100 to 400 Kilometers.

The application segmentation is further sub-segmented into air taxi, air ambulance, airport shuttle, last mile delivery, personal air vehicle, and air metro. Air taxis are in the development phase but they may be commercializing in the coming years. These air taxis have the great capability to vertically take-off and land, hence it is easier for them to land in crowded locations. Personal air vehicles are likely to be used for point to point pick up and drop services in less time.

Regional insights:

According to the region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Many startups from the United States are working together to develop and implement these technologies for bringing the UAM into commercial usage in the next 5-6 years. With these efforts, North America is also projected to embrace the urban air mobility concept faster than the other regions barring Europe. Asia Pacific region is followed by the North America market and is expected to be a significant market for vertical mobility owing to increasing demand for drones for inspection purposes. Aerospace giants from the regions, like Boeing and Airbus, investing in these technologies and the emergence of many startups from both regions have made them an important market for the industry. It is expected that the growth of the market will be higher in Europe compared to other regions. Germany and France have contributed heavily in the development and investigation of advanced eVTOL systems for commercial operations. Additionally, the ever-increasing trend of automation and globalization in these countries is fueling the growth target market. Mexico, New York, and  Tokyo in providing air support with helicopters for stranded passengers. Europe is anticipated to participate in the rising number of urban air mobility projects on transportation activities.

Report scope:

Segments covered in the report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034.  For the purpose of this study, has segmented the global urban air mobility market report based on aircraft, operation, travel range, application and region.

Urban Air Mobility Market, By Aircraft:

• Rotor Wing
• Fixed Wing
• Hybrid Wing

Urban Air Mobility Market, By Operation:

• Piloted
• Autonomous

Urban Air Mobility Market, By Travel Range:

• Intercity
• Intracity

Urban Air Mobility Market, By Application:

• Air Taxi
• Air Ambulance
• Airport Shuttle
• Last Mile Delivery
• Personal Air Vehicle
• Air Metro

Urban Air Mobility Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Key players involved in the urban air mobility market include Uber Technologies Inc., Airbus SE, The Boeing Company, Textron Inc., Safran SA, Bombardier Inc., Embraer SA, Hyundai Motor Co., Pipistrel, Karem Aircraft, Honeywell International Inc., and Jaunt Air Mobility LLC. Key players have adopted various strategies such as new product launches, merges and acquisitions to expand their market presence. For instance, in October 2020, Helicopter manufacturer Leonardo and air navigation service provider ENAV have signed a Letter of Intent (LoI) in Italy primarily aimed at modernising and making safer, efficient and sustainable the use of helicopters and airspace leveraging the most advanced navigation technologies and paving the way for urban air mobility operations.

• In November 2023: Eve Air Mobility this week announced plans to launch eVTOL air services in the UAE and India through a pair of new partnerships launched at the Dubai Airshow. The aircraft manufacturer also confirmed it is working with the UK's NATS to offer urban air traffic management services to support any eVTOL operations worldwide. This collaboration with Eve Air Mobility underscores the commitment to contribute to India’s growth story by addressing the bottleneck of road congestion in the country.
• In December 2023: Concerns over the deployment of drones and air taxis in Europe have prompted the European Aviation Safety Agency (EASA) to create a new digital information space to facilitate information sharing. A variety of information providers, including as cities, national authorities, operators, and manufacturers, will be able to connect to the Innovative Air Mobility Hub (IAM Hub) and submit data, which will subsequently be made available on the EASA website.

• Uber Technologies Inc.
• Airbus SE
• The Boeing Company
• Textron Inc.
• Safran SA
• Bombardier Inc.
• Embraer SA