The global advanced air mobility (AAM) market was valued at USD 11.75 billion in 2024 and is anticipated to grow significantly, reaching USD 137.11 billion by 2035. This growth corresponds to a CAGR of 25.5% from 2025 to 2035. Key drivers behind this expansion include increasing urbanization, worsening traffic congestion, and rising environmental concerns.

Technological advancements in electric vertical takeoff and landing (eVTOL) aircraft, hydrogen fuel cells, and autonomous flight systems are playing a pivotal role in enabling efficient, eco-friendly, and widely accessible air mobility solutions. Concurrently, regulatory bodies worldwide are actively shaping certification frameworks and safety standards. Substantial investment is also being made into supporting infrastructure such as vertiports and charging stations, further boosting market growth.

As cities around the world grow denser, ground traffic congestion is becoming a critical issue. Advanced air mobility offers a compelling solution by enabling fast, point-to-point transport that avoids traditional roadways. This, combined with the global push toward zero-emission transportation, is spurring investment in eVTOL aircraft and related ecosystems, positioning AAM as a transformative approach to urban transit.

Key Market Trends & Insights

• North America led the global market in 2024, accounting for over 37% of the total share, driven by strong infrastructure, public-private partnerships, and high demand for on-demand urban air transportation.
• The hardware segment dominated the market by component in 2024, with an 84.0% share, due to advancements in lightweight materials and electric propulsion, which support higher efficiency and environmental compliance.
• Surveillance & monitoring was the leading application segment in 2024, supported by growing reliance on real-time tracking, AI-powered analytics, and integration with Unmanned Aircraft System Traffic Management (UTM) systems.
• The commercial sector was the largest end-use segment in 2024, with businesses in logistics, travel, and services adopting AAM solutions to improve sustainability and operational efficiency.
• Among product types, rotary blade aircraft held the largest share in 2024, valued for their versatility in applications like emergency services, search and rescue, and military operations.
• By maximum take-off weight, the <100 kg category led the market in 2024, reflecting growing demand for lightweight drones used in sectors like surveying, photography, and delivery.
• The remotely piloted mode held the largest share in 2024 by operating mode, owing to its adaptability and the critical role of human oversight in complex missions and harsh conditions.
• Electric propulsion systems led the market by propulsion type in 2024, driven by the need for carbon-neutral aviation. Battery technology improvements continue to enhance aircraft range and energy efficiency.
• The intracity (20km–100km) range segment dominated in 2024 due to its suitability for addressing urban congestion and supporting rapid, on-demand services within cities.
• The drones segment was the top type in 2024, backed by breakthroughs in AI, machine learning, and sensor integration, enabling real-time decision-making and operational autonomy.

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Market Size & Forecast

• 2024 Market Size: USD 11.75 Billion
• 2035 Projected Market Size: USD 137.11 Billion
• CAGR (2025-2035): 25.5%
• North America: Largest market in 2024

Key Companies & Market Share Insights

• Airbus S.A.S. is at the forefront of AAM innovation, developing the CityAirbus NextGen, an all-electric eVTOL with an 80 km range and 120 km/h cruise speed, aimed at short-range urban operations.
• Guangzhou EHang Intelligent Technology Co. Ltd. specializes in autonomous passenger drones like the EHang 216, offering pilotless, low-emission transport and logistics solutions powered by AI.
• Lilium GmbH, a German aerospace firm, is developing the Lilium Jet, an all-electric VTOL with a range exceeding 250 km, designed for regional intercity transport using a distributed propulsion system.
• Vertical Aerospace Group Ltd. is working on the VA-X4, a four-passenger eVTOL with a 160 km range and a top speed of 320 km/h. The UK-based company focuses on regulatory readiness and infrastructure partnerships for commercial passenger services.

Other major players include Siemens AG and Rockwell Automation, Inc., contributing through component innovation and system integration.

Key Players

• Airbus S.A.S.
• Aurora Flight Sciences
• Bell Textron Inc.
• Guangzhou EHang Intelligent Technology Co. Ltd.
• Embraer S.A.
• Joby Aviation
• Lilium GmbH
• Neva Aerospace
• Opener, Inc.
• PIPISTREL (Textron Inc.)
• Vertical Aerospace Group Ltd.
• Volocopter GmbH
• Workhorse Group, Inc.
• Wisk Aero (The Boeing Company)

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Conclusion

The global advanced air mobility market is entering a transformative phase, driven by the convergence of technological innovation, urban transportation needs, and environmental imperatives. With a projected value of USD 137.11 billion by 2035, and a robust CAGR of 25.5%, AAM is set to redefine the future of urban and regional transit. Investments in eVTOL aircraft, infrastructure, and regulatory frameworks are laying the foundation for scalable, sustainable aerial mobility. North America currently leads in market share, but global participation is expanding rapidly. As key players advance toward commercialization, the AAM ecosystem will increasingly integrate into the broader transportation landscape, addressing congestion, emissions, and mobility challenges across urban environments.