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Advanced Air Mobility Market Size Outlook: How Quickly Will Revenue Expand Through 2030?
The advanced air mobility market size has grown exponentially in recent years. It will grow from $11.6 billion in 2025 to $13.99 billion in 2026 at a compound annual growth rate (CAGR) of 20.5%. The growth in the historic period can be attributed to drone technology advancements, urban congestion challenges, early pilot aam projects, venture capital investments, aerospace innovation.
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.
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Advanced Air Mobility Market Development Factors: What’s Supporting Demand?
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 market.
Advanced Air Mobility Market Segment Analysis And Revenue Potential
The advanced air mobility market covered in this report is segmented –
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
Advanced Air Mobility Market Transformation Trends: What Innovations Are Driving Change?
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.
Advanced Air Mobility Market Key Players Shaping Industry Direction
Major companies operating in the advanced air mobility market report include The Boeing Company, Airbus SE, Honeywell International Inc., Bell Textron Inc., Bristow Group Inc., Joby Aviation, Archer Aviation Inc., Lilium GmbH, Volocopter GmbH, Aurora Flight Sciences Corporation, Eve Air Mobility Inc., Wisk Aero LLC, Vertical Aerospace Ltd, Elroy Air Inc., Opener Inc., Urban Aeronautics Ltd, EHang Holdings Limited, Workhorse Group Inc., Pipistrel Co, The Helicopter Company
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Advanced Air Mobility Market Regional Analysis: Which Geography Leads On Revenue?
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 the advanced air mobility market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
