Urban Air Mobility (UAM) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Urban Air Mobility (UAM) Market size was estimated at USD 4.7 billion in 2023 and is projected to reach USD 14.2 billion in 2030 at a CAGR of 21.8% during the forecast period 2024-2030.

Urban Air Mobility (UAM) represents a transformative vision for the future of transportation, aiming to alleviate urban congestion and enhance mobility through electric-powered Vertical Take-off and Landing (eVTOL) aircraft. These innovative vehicles, equipped with multiple rotors or ducted fans, enable vertical flight capabilities, making them suitable for operation in densely populated urban environments where space is limited.

The UAM market has garnered significant attention and investment in recent years due to escalating challenges with traffic congestion in cities worldwide. As urbanization continues to intensify, traditional ground transportation networks are strained, prompting the need for faster, more efficient modes of intra-city travel. UAM promises to address these challenges by offering quicker point-to-point transportation, potentially reducing travel times significantly compared to ground vehicles.

Key to the concept of UAM is the use of electric propulsion, which makes these aircraft quieter, cleaner, and more environmentally friendly than conventional helicopters. This aspect is crucial for gaining public acceptance and regulatory approval, especially in urban areas sensitive to noise and air pollution.

Technological advancements play a pivotal role in the development of UAM. These aircraft are designed to operate autonomously or semi-autonomously, incorporating advanced navigation systems, sense-and-avoid technology, and robust communication networks. Autonomous capabilities are essential for managing fleets of air taxis efficiently and ensuring safe operations in complex urban airspace.

Several companies and start-ups are at the forefront of developing eVTOL aircraft for UAM applications. Companies like Joby Aviation, Volocopter, Lilium, and EHang have made significant strides in designing and testing prototype aircraft. Major tech and transportation firms, including Uber and Boeing, have also entered the UAM space, indicating the sector's potential for disruption and growth.

Regulatory frameworks are critical for the deployment of UAM services. Governments and aviation authorities are actively collaborating with industry stakeholders to establish rules and standards that ensure safety and integration into existing airspace management systems. Initiatives such as NASA's Urban Air Mobility Grand Challenge and partnerships with the Federal Aviation Administration (FAA) underscore efforts to accelerate the regulatory pathway for UAM deployment.

The COVID-19 pandemic briefly disrupted the UAM sector's momentum, causing delays in project timelines and affecting short-term investments. However, the resilience of the sector and its strategic importance in addressing future transportation needs have sustained long-term confidence and commitment from investors and stakeholders.

Looking forward, the UAM market is poised for substantial growth as technological advancements mature, regulatory frameworks evolve, and public acceptance increases. Beyond alleviating traffic congestion, UAM holds promise for applications in emergency response, aerial tourism, and logistics, further expanding its potential impact across various sectors. Continued investment in research and development, along with partnerships between industry players and regulators, will be crucial in realizing the full potential of urban air mobility in transforming urban transportation landscapes globally.

Delvens Industry Expert's Standpoint

The Urban Air Mobility (UAM) market is currently positioned at the forefront of transportation innovation, driven by increasing urbanization and the need for efficient intra-city mobility solutions. Electric-powered Vertical Take-off and Landing (eVTOL) aircraft are central to this vision, offering the potential to alleviate traffic congestion and reduce travel times significantly compared to traditional ground transportation. Technological advancements in electric propulsion, autonomous flight capabilities, and navigation systems are accelerating the development of eVTOLs, with companies like Joby Aviation, Volocopter, Lilium, and EHang leading the way in prototype testing and commercialization efforts. Regulatory frameworks, crucial for ensuring safety and integration into urban airspace, are progressively evolving with initiatives like NASA's UAM Grand Challenge and collaborations with aviation authorities worldwide. Despite initial setbacks from the COVID-19 pandemic, which caused temporary delays, the UAM sector has demonstrated resilience and continues to attract substantial investments and partnerships. Looking ahead, the market is poised for significant growth as infrastructure matures, public acceptance increases, and operational deployments expand beyond pilot projects. Beyond urban congestion relief, UAM holds promise for applications in emergency response, tourism, and logistics, shaping the future of transportation with transformative potential across global metropolitan landscapes.

Market Portfolio

Key Findings

• On the basis of Vehicle Type, The segmentation of the Urban Air Mobility (UAM) market by vehicle type plays a pivotal role in driving market expansion and adoption across various sectors. Air Taxis offer rapid point-to-point transportation solutions in congested urban areas, addressing the increasing demand for efficient and time-saving travel options. This segment is poised to grow significantly as technological advancements in battery efficiency and autonomous systems enhance operational capabilities and safety, making air taxis a viable alternative to traditional ground transportation. Air Ambulances provide critical emergency medical services, particularly in remote and inaccessible areas, thereby expanding the reach and effectiveness of healthcare delivery. The Last-Mile Delivery segment promises to revolutionize logistics by enabling swift and direct delivery of goods, optimizing supply chain efficiencies in urban settings. As these segments mature with infrastructure development and regulatory support, they collectively contribute to the broader adoption and integration of UAM solutions, reshaping urban transportation landscapes worldwide.

• On the basis of Range, Segmenting the Urban Air Mobility (UAM) market by range enhances its growth by addressing distinct transportation needs. The Intracity segment tackles urban congestion in cities like New York, Munich, Rio de Janeiro, and Bengaluru, offering efficient point-to-point travel solutions amidst increasing urbanization and migration. Meanwhile, the Intercity segment utilizes technological advancements to enable swift travel between cities spanning 50 to 250 km, reducing travel times significantly and requiring minimal infrastructure. These segments drive demand for UAM by providing fast, reliable, and cost-effective transportation alternatives tailored to urban and regional contexts. As infrastructure and regulatory frameworks evolve to support these solutions, the range segmentation fosters market adoption, stimulates innovation in aircraft technology, and expands operational efficiencies, positioning UAM as a pivotal solution for future urban and regional transportation challenges globally.

• On the basis of Operation, Segmenting the Urban Air Mobility (UAM) market by operation significantly impacts its growth trajectory by catering to diverse operational capabilities and regulatory requirements. Piloted operations serve as an initial step in integrating UAM into urban environments, addressing regulatory concerns and familiarizing the public with aerial transportation. This phase establishes a foundation of safety and reliability crucial for building trust and expanding market acceptance. Autonomous operations represent the forefront of UAM innovation, leveraging advanced AI and sensing technologies to enable efficient, cost-effective, and scalable aerial mobility solutions. These systems enhance airspace management, optimize fleet utilization, and reduce operational costs, making autonomous UAM viable for air taxi services and logistics. Hybrid operations combine piloted control with autonomous capabilities, offering flexibility and redundancy to ensure continuous service in varying conditions. As technological advancements in autonomy mature and regulatory frameworks evolve to support safe operations, the operation segmentation drives innovation, investment, and broader adoption of UAM, positioning it as a transformative solution for urban transportation challenges globally.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America held the largest Urban Air Mobility (UAM) Market share driven by Boeing's investment in prototypes. The U.S. sets adoption standards, supported by numerous start-ups collaborating to bring UAM into commercial operation within five to six years.

Regional Analysis

North America to Dominate the Market

• North America dominates the Urban Air Mobility (UAM) market, holding the largest share compared to other regions. This leadership is bolstered by the presence of industry giant Boeing, which plays a pivotal role by heavily investing in prototype development and testing. The United States, within North America, sets the standard for adopting this cutting-edge mode of transportation, driven by a collaborative effort among numerous American startups. These startups are actively involved in the local development and implementation of UAM technologies, contributing to the region's leadership in innovation and market readiness. Over the next five to six years, North America aims to establish a structured timeline for the commercial deployment of UAM solutions, leveraging its technological prowess and regulatory advancements. This proactive approach positions North America as a key driver in shaping the future of urban transportation through UAM, showcasing its potential to revolutionize mobility in metropolitan areas across the continent.

Competitive Landscape

• Airbus S.A.S.
• The Boeing Company
• Volocopter GmbH
• Joby Aviation, LLC
• EHang Holdings Limited
• Bell Textron Inc.
• Embraer S.A.
• Lilium GmbH
• Hyundai Motor Group
• SkyDrive Inc.
• Terrafugia Inc.
• Kitty Hawk Corporation
• AeroMobil Limited
• Pipistrel d.o.o.
• Safran S.A.
• Eve Urban Air Mobility Solutions, Inc.
• Honeywell Aerospace
• Uber Technologies Inc.
• Zipline International, Inc.
• Textron Inc.

Recent Developments

• In June 2022, American Airlines announced its investment in Vertical Aerospace, a leading engineering and aviation firm headquartered in the United Kingdom, specializing in electric vertical takeoff and landing (eVTOL) aircraft. This move underscores American Airlines' dedication to environmental sustainability by adopting advanced technologies aimed at reducing carbon emissions and improving customer experience.

• In May 2021, ANRA Technologies was awarded the Aeronautics Research Mission Directorate National Campaign 2 for Advanced Air Mobility (AAM) for Community Planning and Integration by NASA, securing victory in the NASA advanced air mobility project.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.

• Gain authentic and granular data access for the Urban Air Mobility (UAM) Market to understand the trends and the factors involved in changing market situations.

• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.

• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope