The global Advanced Air Mobility (AAM) market size was estimated at USD 8.6 billion in 2023 and is projected to reach USD 37.6 billion in 2030 at a CAGR of 23.5% during the forecast period 2024-2030.
The advanced air mobility (AAM) market represents a revolutionary shift in aviation, focused on developing electric or hybrid-electric Vertical Take-Off and Landing (eVTOL) aircraft for urban and regional transportation. AAM holds significant promise as a solution to air pollution, as electric and hybrid-electric aircraft can drastically reduce emissions compared to traditional aircraft. This environmental benefit is crucial, given that the aviation industry is responsible for approximately 2% of global greenhouse gas emissions. Governments worldwide are setting ambitious targets to reduce these emissions, thereby creating a demand for more sustainable aviation technologies. The growing emphasis on sustainability is a key driver of the AAM market, as these technologies offer the potential to mitigate climate change impacts and are expected to gain importance in the coming years. AAM aims to revolutionize both passenger and cargo mobility by providing efficient, sustainable, and low-altitude flight options. This innovation could significantly reduce congestion and environmental impacts in densely populated areas while offering faster and more convenient transportation alternatives. The ability to operate more efficiently than traditional aircraft further underscores AAM's potential to minimize its environmental footprint. As urban areas continue to expand and face increasing congestion, the need for innovative transportation solutions like AAM becomes even more critical. The market for AAM is anticipated to grow rapidly in the coming years, driven by technological advancements and increasing investment. However, it will face competition from other modes of transportation, such as helicopters, Personal Air Vehicles (PAVs), and existing eVTOL aircraft. To achieve success, AAM vehicles must outperform these alternatives in terms of affordability, efficiency, and safety. Integration into existing airspace and transportation systems is also essential, requiring robust regulatory frameworks and infrastructure development. The COVID-19 pandemic posed significant challenges to the advancement of the AAM sector. The aerospace industry, already dealing with economic difficulties, saw reduced funding and slowed development timelines for AAM projects. Travel restrictions and decreased demand for commercial aviation hindered the testing and adoption of eVTOL vehicles. Additionally, supply chain disruptions impacted the production of critical components, further delaying progress. As governments prioritized healthcare and economic recovery, regulatory frameworks for air mobility experienced delays, impeding the industry's ability to scale. These setbacks highlighted the need for resilience and adaptability within the AAM sector.
Despite these challenges, the AAM market remains poised for growth. The pandemic underscored the importance of sustainable and efficient transportation solutions, reinforcing the potential of AAM technologies. As the world recovers and adapts to new norms, the focus on reducing emissions and improving urban mobility will likely drive continued investment and innovation in the AAM market. The integration of AAM into existing transportation systems, coupled with advancements in technology and regulatory support, will be crucial in realizing its full potential. As such, the AAM market is set to play a pivotal role in the future of sustainable and efficient transportation, offering promising solutions to some of the most pressing environmental and logistical challenges faced by urban areas today.
The advanced air mobility (AAM) industry is experiencing significant growth, driven by increased investments from both traditional aerospace giants and innovative startups. This surge in funding has propelled the development of electric Vertical Take-Off and Landing (eVTOL) aircraft, which are seen as key to urban air mobility solutions. Collaborations between tech companies and aviation firms are accelerating advancements in this sector, while governments are actively working on regulatory frameworks to support AAM commercialization. The rise in environmental concerns and urban traffic congestion further fuels the demand for AAM, positioning it as a sustainable and efficient transportation solution. Experts highlight that the global market for enhanced aerial transportation is expanding rapidly due to several factors. The growing need for time-efficient courier services and urban transportation solutions is a primary driver. Advances in automation, robotics, and aircraft technology, coupled with consumer preferences for digitally enhanced services, are also contributing to market growth. As urbanization and industrialization continue, the demand for affordable and efficient transportation alternatives increases, necessitating supportive policies and guidelines from policymakers to facilitate urban commuting solutions. The implementation of drone-based delivery technologies is expected to revolutionize the market by enhancing efficiency and reducing costs. E-commerce customers are increasingly demanding superior aerial delivery services and are willing to pay premiums for same-day shipping. However, stringent licensing requirements for pilots pose a potential hurdle to the rapid expansion of sophisticated aerial transportation. Despite this, the overall outlook for the AAM industry remains positive, with significant opportunities for growth as it addresses critical transportation challenges in urban areas and beyond. This promising trajectory underscores the transformative potential of AAM in reshaping the future of urban mobility and logistics.
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Report Feature |
Descriptions |
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Growth Rate |
CAGR of 23.5% during the forecasting period, 2024-2030 |
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Historical Data |
2020-2022 |
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Forecast Years |
2024-2030 |
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Base Year |
2023 |
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Units Considered |
Revenue in USD billion and CAGR from 2024 to 2030 |
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Report Segmentation |
Component, Application, Type, Operating Mode, Propulsion Type, End Use, and Region. |
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Report Attribute |
Market Revenue Sizing (Global, Regional and Country Level) Company Share Analysis, Market Dynamics, Company Profiling |
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Regional Level Scope |
North America, Europe, Asia-Pacific, South America, and Middle East, and Africa |
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Country Level Scope |
U.S., Japan, Germany, U.K., China, India, Brazil, UAE, and South Africa (50+ Countries Across the Globe) |
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Companies Profiled |
Airbus S.A.S., Aurora Flight Sciences, Bell Textron Inc., The Boeing Company, Guangzhou EHang Intelligent Technology Co. Ltd., Embraer S.A., Joby Aviation, Lilium GmbH, Neva Aerospace, Opener, Inc., PIPISTREL (Textron Inc.), Terrafugia, Vertical Aerospace Group Ltd., Volocopter GmbH, Wisk Aero, and Workhorse Group, Inc. |
The Advanced Air Mobility (AAM) Market is segmented into various segments such as Component, Application, Type, Operating Mode, Propulsion Type, End Use, and Region:
Based on Component
Based on Type
Based on Operating Mode
Based on region
The prominent players in the Advanced Air Mobility (AAM) market are
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