Air Taxi Market Size, Share, By Mode of Operation (Autonomous and Piloted), By Range (Intercity (100 Km-400 Km) and Intracity (20 Km-100 Km)), By Propulsion Type (Electric, Parallel Hybrid, Turboshaft, Turboelectric), By Service Type (Air Taxi Platform Services, Air Taxi MRO Services, and Air Taxi Pilot Training Services), and By Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) - Trends, Analysis and Forecast till 2034

Air Taxi Market Size was valued at US$ 1.3 billion in 2024 and is expected to grow at a CAGR of 25.1% to reach US$ 10.0 billion by 2034

The air taxi market uses advanced air mobility, or AAM, which refers to air transportation systems for short- to medium-range on-demand flights that use cutting-edge technologies such as fully electric systems, autonomous capabilities, and vertical takeoffs. Short and landing (STOL) and vertical takeoff and landing (VTOL) are two common uses for AAM vehicles; electric VTOL aircraft, or eVTOLs, are also widely used. Urban Air Mobility (UAM) is another important term for the air taxi industry. It is a subcategory of AAM that focuses on applications in urban environments. Different designs of air taxis accommodate different passenger counts. These taxis are a practical means of getting short to medium distances inside urban or suburban areas. They are built to accommodate a small number of passengers. Their main goal is reducing commuter travel times and traffic congestion while cutting emissions.

Innovative technology is used in air taxis, which combine electric motor systems with vertical takeoff and landing capabilities. Since these vehicles can take off and land vertically, they do not require large runways, making them ideal for convenient and effective urban transportation solutions. Electric motors, which are quieter and more ecologically friendly than traditional combustion engines, power eVTOL air taxis. Multiple rotors or propellers spaced throughout the aircraft's frame are a common element of eVTOL designs, guaranteeing stability and exact control while in flight.

The growing need for an alternative mode of transportation and the developing problem of traffic congestion in metropolitan areas are expected to be the main drivers of the air taxi market growth during the projected period. However, strict government laws governing aviation licensing and the large price difference between air taxis and the current transit networks may limit the market's expansion during the projected period.  

Key Drivers of Target Market:

A rise in congestion in traffic:

• The air taxi industry is predicted to expand due to increased traffic congestion. The condition of having many people or cars in one place is known as traffic congestion. Thanks to air taxis, the increase in traffic has given airports, airlines, cities, hotels, and other businesses a new source of income. They also offer a novel means of on-time cargo and passenger arrival. Traditional ground transit is becoming more constrained as metropolitan populations continue to rise. Convenience and efficiency make air taxis an attractive option for short-distance transportation.

High Technological Progress:

• The development of advanced transportation technology, such as driverless cars and trains, has boosted the need for alternative modes of transportation on a global scale. As a result, companies in the aviation sector are focusing on introducing air taxis globally. To this aim, several businesses have joined together to investigate new concepts for the development of air taxi. Research and development expenditures in the air taxi industry are surging, drawing in a large number of start-ups and aerospace companies that perceive the industry's enormous growth potential. 

Restrains:

High expenses for the development of facilities and associated regulatory obstacles:

• Vertiport construction demands a sizeable financial outlay, particularly for vertihubs with sophisticated infrastructure. In the early going, this might act as a barrier to the target products' widespread acceptance. To further guarantee efficiency and safety, a robust regulatory framework for eVTOL operations—including air traffic control in urban areas—must be developed. The variables above could impede the target market's growth throughout the projected period.

Opportunities:

An increase in potential investments and government backing:

• Government funding and financial possibilities have the potential to promote the development and implementation of air taxis. A few strategies to encourage companies to invest in the infrastructure and technology required for air taxi operations are tax advantages, financial help, and research grants. Furthermore, government support, which provides funding for R&D and commercialization, helps quicken the market's expansion. These facets of the government's support are expected to offer significant opportunities for the sector to grow.

The market is segmented based on Mode of Operation, Range, Propulsion Type, Service Type, and Region.

Mode of Operation Insight:

• Autonomous: Autonomous air taxis operate without a driver and are managed by software and artificial intelligence. In the long term, they may result in cheaper operating costs and higher levels of safety.
• Piloted: In the early phases of air taxi operations, industry participants emphasize pilot-driven air taxi services. The pilot deployment will let the public become more accustomed to air taxis until autonomous operations are put into place. This is anticipated to strengthen the air taxis' value proposition during the projected period. 

Range Insights

• Intercity (100 Km-400 Km): The intercity segment dominated the market. This segment aims to enable more swift and effective transit between cities, balancing convenience and speed for regional travel.
• Intracity (20 Km-100 Km): Short-distance travel-focused intracity air taxis are expected to become more popular as cities look for creative ways to improve mobility, which is expected to support the segment's growth.

Propulsion Type Insight:

• Electric: Electric propulsion systems are considered a viable solution for the target market, delivering environmental benefits, operational efficiency, and the possibility for growth and innovation in the upcoming years. The electric sector is predicted to increase fastest throughout the forecast period.
• Parallel Hybrid: During the projection period, the parallel hybrid segment is expected to develop at a notable rate and maintain its large market share. Parallel hybrid systems enable flying taxis that combine the advantages of conventional combustion and electric engines. Because of the combustion engine's longer range, flying taxis can travel farther between charges without stopping frequently to refuel or recharge.
• Turboshaft: Turbine engines are used by turboshaft air taxis to provide a greater payload capacity and a more extended range. Typically, it is more expensive to operate and noisy than electric or hybrid alternatives.
• Turboelectric: A turbine engine that produces power for the motors is combined with electric motors to create a turboelectric air taxi. In contrast to turboshaft vehicles, they may have a more excellent range with fewer emissions.

Service Type Insight:

• Air Taxi Platform Services: The most revenue was produced by the air taxi platform services category. Air taxi platform services provide the infrastructure and technology needed to connect passengers and operators and facilitate reservations, scheduling, and other logistical parts of flying in an air taxi.
• Air Taxi MRO Services: Air taxi vehicles' maintenance, overhaul, and repair are among the specialised services provided by air taxi MRO Services. MRO services will be more crucial as the air taxi fleet expands to maintain operating effectiveness and safety.
• Air Taxi Pilot Training Services: These services include programmes created especially to prepare pilots for flying eVTOL aircraft. Creating uniform training curricula is essential for regulatory compliance and safety.

Regional Insights

• North America: The North American region will be the first to offer air taxi services in the future due to the availability of the aviation infrastructure needed for urban air mobility. There will likely be a significant demand for air taxi services in the US, a major market in the area. Since these are the optimum conditions for air taxi services, high customer demand, a highly established air traffic control infrastructure, and an increasing emphasis on manned and unmanned traffic management are all projected to contribute to the market's growth in the area.
• Asia Pacific: The fastest predicted CAGR is the Asia-Pacific air taxi market. Significant investments made by several flying vehicle companies, such as Macchina Volantis, an Australian industry player getting ready to build a road-worthy prototype of its five-seat electric aircraft, are responsible for the notable increase in growth. In addition, the Asia-Pacific region's fastest-growing air taxi market was India, while China held the most significant market share.
• Europe: Due to the development of 5G and other communications technologies, as well as the increasing funding for air taxi startups, the European air taxi sector has the second-largest market share. Several European aviation companies are concentrating on developing and regional commercializing air taxi services. Furthermore, the UK air taxi market was developing quickly in Europe, while the German air taxi sector retained the greatest market share.
• Latin America: The increasing urbanization and need for efficient transit in the Latin American region present market opportunities, but regulatory frameworks and infrastructural development need to be prioritized.
• Middle East and Africa: Although infrastructural improvement is required to spur it, government actions and interest in creative solutions position this region for future target market growth.

Air Taxi Market 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 segmented the target market report based on Mode of Operation, Range, Propulsion Type, Service Type, and Region:

Segmentation:

By Mode of Operation:

• Autonomous
• Piloted

By Range:

• Intercity (100 Km-400 Km)
• Intracity (20 Km-100 Km)

By Propulsion Type:

• Electric
• Parallel Hybrid
• Turboshaft
• Turboelectric

By Service Type:

• Air Taxi Platform Services
• Air Taxi MRO Services
• Air Taxi Pilot Training Services

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

The key players operating in the Air Taxi Market include Volocopter GmbH, Boeing, Guangzhou EHang Intelligent Technology Co. Ltd, Jaunt Air Mobility Corporation, Lilium GmbH, Joby Aero, Uber Technologies, Beechcraft Corporation (a subsidiary of Textron Aviation), Dassault Systèmes, and Hyundai Motor Company.

• In February 2024, UAE gave Joby Aero, Inc. a contract to start an air taxi service in Dubai. It is projected that the air-taxi network will go live in 2026, ushering in a new era of urban transportation. For a period of six years, Joby will have the only authority to run air taxis in Dubai thanks to this arrangement. The agreement guarantees the RTA a range of support, including financial tools, for initiating and developing service operations in Dubai.
• In April 2023, The FAA unveiled version 2.0 of its Urban Air Mobility (UAM) Concept of Operations (ConOps). This thorough strategy establishes guidelines for air taxi operations in the future national airspace. In essence, this blueprint describes the operational and technical specifications needed to integrate air taxis into the national airspace. 

• Volocopter GmbH *
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
  • Boeing
  • Guangzhou EHang Intelligent Technology Co. Ltd
  • Jaunt Air Mobility Corporation
  • Lilium GmbH
  • Joby Aero
  • Uber Technologies
  • Beechcraft Corporation (subsidiary of Textron Aviation)
  • Dassault Systèmes
  • Hyundai Motor Company

“*” marked represents similar segmentation in other categories in the respective section

1. Research Objective and Assumption
   • Research Objectives
   • Assumptions
   • Abbreviations
2. Market Preview
   • Report Description
     • Market Definition and Scope
   • Executive Summary
     • Market Snippet, By Mode of Operation
     • Market Snippet, By Range
     • Market Snippet, By Propulsion Type
     • Market Snippet, By Service Type
     • Market Snippet, By Region
   • Opportunity Map Analysis
3. Market Dynamics, Regulations, and Trends Analysis
   • Market Dynamics
     • Drivers
     • Restraints
     • Market Opportunities
   • Market Trends
   • Product Launch
   • Merger and Acquisitions
   • Impact Analysis
   • PEST Analysis
   • Porter’s Analysis

Market Segmentation, Mode of Operation, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Autonomous
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Piloted
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Segment Trends

Market Segmentation, Range, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Intercity (100 Km-400 Km)
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Intracity (20 Km-100 Km)
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Propulsion Type, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Electric
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Parallel Hybrid
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Turboshaft
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

• Turboelectric
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Service Type, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Air Taxi Platform Services
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Air Taxi MRO Services
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Air Taxi Pilot Training Services
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (US$ Bn), By Mode of Operation, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Range, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Propulsion Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Service Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • U.S
    • Canada
• Asia Pacific
  • Market Size and Forecast (US$ Bn), By Mode of Operation, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Range, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Propulsion Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Service Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Europe
  • Market Size and Forecast (US$ Bn), By Mode of Operation, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Range, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Propulsion Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Service Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
• Latin America
  • Market Size and Forecast (US$ Bn), By Mode of Operation, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Range, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Propulsion Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Service Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • Brazil
    • Mexico
    • Rest of Latin America
• Middle East and Africa
  • Market Size and Forecast (US$ Bn), By Mode of Operation, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Range, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Propulsion Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Service Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East and Africa

Competitive Landscape

• Heat Map Analysis
• Company Profiles
  • Volocopter GmbH
  • Boeing
  • Guangzhou EHang Intelligent Technology Co. Ltd
  • Jaunt Air Mobility Corporation
  • Lilium GmbH
  • Joby Aero
  • Uber Technologies
  • Beechcraft Corporation (subsidiary of Textron Aviation)
  • Dassault Systèmes
  • Hyundai Motor Company

The Last Word

• Future Impact
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