Urban Air Mobility (UAM) Market Size
Study Period | 2019 - 2037 |
Market Size (2025) | USD 4.45 Billion |
Market Size (2037) | USD 56.21 Billion |
CAGR (2025 - 2037) | 23.54 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Urban Air Mobility (UAM) Market Analysis
The Urban Air Mobility Market size is estimated at USD 4.45 billion in 2025, and is expected to reach USD 56.21 billion by 2037, at a CAGR of 23.54% during the forecast period (2025-2037).
The urban air mobility industry is experiencing rapid technological evolution, characterized by significant advancements in electric vertical takeoff and landing (eVTOL) aircraft design and autonomous flight capabilities. Various R&D efforts in the industry are progressing at a healthy pace, with several product testing initiatives demonstrating the technical feasibility of urban air transport solutions. The industry has witnessed substantial investment activity, with approximately USD 5 billion announced for the development of eVTOL vehicles, highlighting the growing confidence in the sector's potential. Companies are focusing on developing both piloted and autonomous systems, with increasing emphasis on safety features, battery technology, and operational efficiency.
The regulatory landscape for urban air mobility is gradually taking shape, with aviation authorities worldwide working to establish comprehensive frameworks for certification and operation. The Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) are actively engaging with manufacturers to ensure relevant standards are implemented, while also developing specific certification requirements for urban air mobility vehicles. In February 2023, Volocopter won the Franco-German Business Award, demonstrating the growing recognition of UAM solutions at the governmental level. Infrastructure development remains a critical focus area, with NASA identifying it as a significant barrier to widespread UAM adoption.
Industry partnerships and collaborations are emerging as key enablers for market development, with traditional aerospace companies, automotive manufacturers, and technology firms forming strategic alliances. Market data indicates that manufacturers have received approximately 6,850 UAM orders, reflecting strong commercial interest in these solutions. In November 2022, Eve Air Mobility and Investor Pacific Group signed a memorandum of understanding for up to 90 flying vehicles, while Hyundai Motor Group partnered with the Nusantara Capital City Authority in Indonesia to establish an advanced air mobility ecosystem. These collaborations are crucial for addressing technical challenges and accelerating market adoption.
The urban air mobility market is progressing toward commercial maturity, with several companies preparing for initial operations in the coming years. Wisk Aero unveiled its sixth-generation four-seater autonomous eVTOL aircraft in late 2022, featuring advanced capabilities including a cruising speed of 120 knots at an altitude of 2,500 to 4,000 ft and a range of 140 km. The industry is moving toward a phased approach to implementation, with piloted operations expected to commence before autonomous systems. Companies are increasingly focusing on developing vertiport infrastructure, with Urban-Air Port announcing development plans for 65 urban air mobility infrastructure hubs in key locations across the United States, the United Kingdom, the European Union, and Asia-Pacific.
Urban Air Mobility (UAM) Market Trends
Frequent Traffic Congestions Due to Increasing Urbanization
The rapid pace of global urbanization has created unprecedented challenges for city transportation infrastructure, with the World Bank reporting that the global urban population has grown by approximately 3.44 billion in the last 50 years. This dramatic population shift has not been matched by corresponding infrastructure development, resulting in severe congestion issues that significantly impact both economic productivity and quality of life. In the United States alone, traffic congestion accounts for an estimated economic loss of around USD 120 billion annually, highlighting the urgent need for alternative transportation solutions. The situation has become particularly critical as existing ground infrastructure struggles to accommodate the growing urban population, which is projected to comprise two-thirds of the global population by 2050.
The environmental impact of increasing traffic congestion has become equally concerning, with growing on-road passenger vehicle volumes contributing significantly to urban pollution levels. Urban air mobility presents a promising solution to these challenges, offering electric-powered or fuel-cell-powered air taxis that can operate above congested street-level traffic while minimizing environmental impact. These urban air mobility vehicles can provide efficient point-to-point transportation without requiring extensive ground infrastructure development, making them particularly attractive for densely populated urban areas where traditional infrastructure expansion is often impractical or impossible. Many governments worldwide are now actively considering urban air mobility (UAM) as a viable future transport option, with several research and development projects underway to evaluate the operational and economic feasibility of UAM systems in real-time scenarios.
Increasing Investments into the Urban Air Mobility Ecosystem
The UAM industry has witnessed unprecedented levels of investment, reflecting growing confidence in its potential to transform urban transportation. In 2021 alone, investments worth approximately USD 5 billion were announced for the development of eVTOL vehicles, with major companies including Joby Aviation, Archer Aviation, Lilium, and Vertical Aerospace securing significant funding through SPAC mergers. This surge in investment has been accompanied by strategic partnerships between UAM companies and established airlines, demonstrating the industry's movement toward commercialization. Notable examples include United Airlines' USD 1 billion pre-order for Archer Aviation's electric aircraft and American Airlines' agreement to purchase up to 250 aircraft from Vertical Aerospace, with an option for an additional 100 aircraft.
The investment landscape continues to evolve with recent developments focusing on both vehicle development and infrastructure. In 2023, Volocopter secured Series E funding worth USD 182 million, adding to its previous USD 170 million raise, demonstrating ongoing investor confidence in the sector. Infrastructure development has also gained momentum, with Urban-Air Port announcing plans to develop 65 urban air mobility infrastructure hubs across key locations in the United States, the United Kingdom, the European Union, and Asia-Pacific. These investments extend beyond vehicle manufacturing to encompass the entire urban air mobility market ecosystem, including vertiport infrastructure, air traffic management systems, and operational services. The comprehensive approach to ecosystem development, supported by substantial financial commitments from both traditional aerospace players and new entrants, is creating a strong foundation for the industry's future growth.
Segment Analysis: By Vehicle Type
Piloted Segment in Urban Air Mobility Market
The piloted segment continues to dominate the urban air mobility market, holding approximately 53% market share in 2024. This significant market position is driven by extensive investments in research and development of piloted UAMs, with major aviation companies and startups focusing on developing certified piloted vehicles. The segment's leadership is further strengthened by the current regulatory frameworks that favor piloted operations, as they align more closely with existing aviation safety standards. Several strategic partnerships between aircraft manufacturers and airlines have emerged, with companies like United Airlines and American Airlines placing substantial pre-orders for piloted eVTOL aircraft. The preference for piloted vehicles is also supported by public perception and acceptance, as passengers generally feel more confident with a human pilot in control during these early stages of urban air mobility adoption.
Autonomous Segment in Urban Air Mobility Market
The autonomous segment is projected to experience remarkable growth at approximately 26% CAGR from 2024 to 2029, driven by rapid technological advancements in autonomous flight systems and artificial intelligence. This growth trajectory is supported by significant investments in autonomous technology development from both established aerospace companies and innovative startups. Companies like Wisk Aero and EHang are leading the charge in autonomous eVTOL development, with advanced sensing technologies and sophisticated flight control systems being continuously refined. The segment's expansion is further propelled by the potential cost advantages of autonomous operations, as eliminating the need for pilots could significantly reduce operational expenses. Additionally, the development of robust air traffic management systems and improved safety features is enhancing the viability of autonomous urban air mobility solutions.
Segment Analysis: By Application
Freighter Segment in Urban Air Mobility Market
The freighter segment has emerged as the dominant force in the urban air mobility market, commanding approximately 55% market share in 2024. This segment's leadership position is driven by the increasing demand for efficient cargo transportation in urban environments, particularly for time-sensitive and high-value goods. Major companies like Boeing, Pipistrel, and Hyundai Motor Group are actively developing heavy-weight cargo air vehicles with VTOL capability specifically designed for urban environments. The segment's growth is further supported by the establishment of new cargo drone hubs at strategic locations, with companies like Urban-Air Port Ltd planning to develop over 200 vertiports worldwide. The freighter segment's success is particularly notable in addressing last-mile delivery challenges and supporting various applications, including medical supply transport, e-commerce deliveries, and industrial logistics.
Passenger Transport Segment in Urban Air Mobility Market
The passenger transport segment represents a significant portion of the UAM market, accounting for approximately 45% of the market share in 2024. This segment is driven by the increasing need for faster intracity transportation solutions, particularly in congested urban areas. The segment's growth is supported by substantial investments from major airlines and mobility companies, with several players developing various seating capacity options to address different consumer segments. The passenger transport segment is witnessing significant technological advancements in areas such as autonomous flight systems and safety mechanisms, making air taxis a viable alternative for urban transportation. The segment's development is further bolstered by strategic collaborations between manufacturers, operators, and infrastructure developers to create comprehensive urban air mobility ecosystems.
Urban Air Mobility Market Geography Segment Analysis
Urban Air Mobility Market in North America
North America stands as the dominant force in the global urban air mobility market, commanding approximately 41% of the market share in 2024. The region's leadership position is driven by its advanced technological infrastructure, supportive regulatory environment, and strong presence of key industry players. The Federal Aviation Administration (FAA) continues to play a crucial role in shaping the urban air mobility industry through collaborative efforts with NASA's Advanced Air Mobility National Campaign. The region benefits from an extensive network of existing helicopter infrastructure, including routes, helipads, and air traffic control services, which provides a strong foundation for UAM operations. Major airlines and aerospace companies are actively investing in eVTOL development, while cities across the United States and Canada are developing comprehensive implementation strategies for UAM integration. The presence of numerous regional airports and heliports across the United States particularly positions the region favorably for widespread urban air mobility adoption. Additionally, the region's focus on sustainability and reducing carbon emissions has created a strong market pull for electric aviation solutions.
Urban Air Mobility Market in Europe
Europe represents a significant market for urban air mobility, demonstrating remarkable growth with an impressive CAGR of approximately 30% from 2019 to 2024. The region's market development is characterized by strong institutional support through initiatives like the Single European Sky ATM Research Joint Undertaking (SESAR-JU) and the European Union Aviation Safety Agency (EASA). European cities are actively embracing UAM concepts, with many metropolitan areas developing dedicated infrastructure and regulatory frameworks to support future operations. The region's commitment to sustainable transportation solutions and reducing urban congestion has created a favorable environment for UAM development. Multiple European countries are collaborating on cross-border UAM initiatives, fostering a unified approach to implementation. The presence of established aerospace manufacturers and innovative startups has created a robust ecosystem for technological advancement. Cities across the region are particularly focused on integrating urban air mobility solutions with existing transportation networks, ensuring seamless mobility solutions for urban residents.
Urban Air Mobility Market in Asia-Pacific
The Asia-Pacific region is emerging as a powerful force in the urban air mobility market, with projections indicating a strong CAGR of approximately 24% from 2024 to 2029. The region's rapid urbanization and increasing traffic congestion in major metropolitan areas create compelling use cases for UAM solutions. Countries like China, Japan, Singapore, and South Korea are leading the charge in UAM development, with supportive government policies and significant private sector investments. The region's technological capabilities, particularly in electric vehicle manufacturing and battery technology, provide a strong foundation for UAM development. Major cities across Asia-Pacific are actively developing UAM infrastructure and conducting pilot programs to demonstrate the feasibility of urban air mobility solutions. The region's focus on smart city initiatives and sustainable urban development aligns perfectly with UAM implementation goals. Furthermore, the presence of multiple megacities with pressing transportation challenges creates an ideal environment for UAM adoption and scaling.
Urban Air Mobility Market in Latin America
Latin America presents unique opportunities for urban air mobility development, driven by its distinct geographical and urban challenges. The region's major metropolitan areas face significant transportation infrastructure constraints, making UAM an attractive solution for urban mobility. Countries like Brazil are taking the lead in developing comprehensive UAM frameworks, leveraging their existing aerospace expertise and manufacturing capabilities. The region's focus on sustainable transportation solutions and the need to connect remote areas with urban centers create compelling use cases for UAM implementation. Latin American cities are particularly interested in using UAM to address their unique topographical challenges and improve connectivity between urban and suburban areas. The presence of established aviation companies and emerging startups is fostering innovation in the UAM sector. Additionally, the region's experience with helicopter operations in urban environments provides valuable insights for UAM implementation.
Urban Air Mobility Market in Middle East & Africa
The Middle East and Africa region represents an emerging market for urban air mobility, with development primarily concentrated in the Gulf Cooperation Council (GCC) countries. The region's focus on smart city initiatives and technological innovation creates a favorable environment for UAM adoption. Countries like the United Arab Emirates and Saudi Arabia are leading the way with ambitious plans for UAM integration into their urban transportation networks. The region's commitment to diversifying from traditional energy sectors has led to increased investment in advanced transportation technologies. Cities in the Middle East are particularly well-suited for UAM implementation due to their modern infrastructure and willingness to adopt innovative transportation solutions. The region's extreme climate conditions are driving innovations in UAM technology adaptation. Furthermore, the potential for UAM to connect urban centers with remote areas makes it an attractive solution for the region's unique geographical challenges.
Urban Air Mobility (UAM) Industry Overview
Top Companies in Urban Air Mobility Market
The urban air mobility market is characterized by intense innovation and strategic positioning among key players like Embraer SA, Volocopter GmbH, EHang, and Joby Aviation. Urban air mobility companies are heavily investing in research and development to advance electric vertical takeoff and landing (eVTOL) technologies, with a particular focus on developing both piloted and autonomous aircraft solutions. Strategic partnerships with airlines, infrastructure providers, and technology companies have become increasingly common as firms seek to build comprehensive ecosystems around their offerings. Operational agility is demonstrated through the establishment of testing facilities and demonstration programs across multiple geographies, while expansion strategies typically involve targeting early-adopter cities and regions with favorable regulatory environments. Product portfolios are being diversified to include not just aircraft but also supporting infrastructure, traffic management systems, and maintenance services, reflecting a holistic approach to market development.
Dynamic Market with Strong Growth Potential
The UAM market exhibits a mix of established aerospace conglomerates and specialized startups, creating a diverse competitive landscape. Traditional aerospace giants like Boeing and Airbus leverage their extensive manufacturing experience and regulatory compliance expertise, while innovative startups bring agility and fresh perspectives to aircraft design and service models. The market is currently in a consolidation phase, with larger companies actively acquiring or partnering with promising startups to accelerate technology development and market entry.
Market dynamics are shaped by significant barriers to entry, including high capital requirements, complex regulatory frameworks, and the need for specialized technical expertise. Mergers and acquisitions activity is particularly intense in the technology and infrastructure segments, as companies seek to build comprehensive solution portfolios. Regional markets are developing distinctly, with North America and Europe leading in terms of regulatory framework development and infrastructure planning, while Asia-Pacific markets are characterized by strong government support and rapid urban development initiatives.
Innovation and Partnerships Drive Market Success
Success in the urban air mobility market requires a multi-faceted approach combining technological innovation, strategic partnerships, and regulatory compliance. Incumbent UAM companies must focus on developing scalable manufacturing capabilities, establishing robust maintenance networks, and building strong relationships with aviation authorities. The ability to demonstrate safety and reliability while maintaining cost-effectiveness will be crucial for market leadership. Companies must also invest in customer education and acceptance programs to build trust in this new mode of transportation.
For new entrants and contenders, differentiation through specialized use cases or unique technological solutions offers a path to market penetration. The concentration of end-users in urban areas necessitates careful planning of route networks and infrastructure placement. Regulatory developments, particularly around autonomous operations and urban airspace management, will significantly impact market evolution. Companies must maintain flexibility in their business models to adapt to emerging regulations while building strong relationships with local authorities and infrastructure providers. The risk of substitution from ground-based transportation alternatives requires clear value proposition development focusing on time savings and convenience.
Urban Air Mobility (UAM) Market Leaders
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Joby Aero, Inc.
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Embraer SA
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Volocopter GmbH
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Jaunt Air Mobility Corporation
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Guangzhou EHang Intelligent Technology Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Urban Air Mobility (UAM) Market News
- In January 2023, Geely Aerofugia, a subsidiary of the Chinese automaker Geely, announced that it completed the test flight of its prototype flying car AE200, taking a step closer to its goal of delivering electric vertical take-off and landing (eVTOL) vehicles to market. This company first unveiled a full-size demonstrator for its TF-2 five-seater eVTOL in August 2022.
- In February 2022, Eve UAM LLC signed a partnership agreement with SkyportsPte Ltd for the development of a new Concept of Operations (CONOPS) for Advanced Air Mobility (AAM) (including UAM) for the Japan Civil Aviation Bureau (JCAB). The initiative aims to provide a vision of airspace design, operation, and infrastructure, to enable AAM operation in Japan. The collaboration includes partners like Kanematsu Corporation and Japan Airlines (JAL).
Urban Air Mobility (UAM) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Piloted
5.1.2 Autonomous
5.2 Application
5.2.1 Passenger Transport
5.2.2 Freighter
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Airbus SE
6.1.2 Volocopter GmbH
6.1.3 Embraer SA
6.1.4 Honeywell International Inc.
6.1.5 Hyundai Motor Group
6.1.6 Jaunt Air Mobility Corporation
6.1.7 Karem Aircraft Inc.
6.1.8 Opener Inc.
6.1.9 PIPISTREL d.o.o.
6.1.10 Safran SA
6.1.11 Textron Inc.
6.1.12 The Boeing Company
6.1.13 Joby Aero Inc.
6.1.14 Guangzhou EHang Intelligent Technology Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Urban Air Mobility (UAM) Industry Segmentation
The urban air mobility (UAM) market is an aviation industry term for on-demand and automated passenger or cargo-carrying air transportation services around cities and urban areas.
The UAM market is segmented by vehicle type, application, and geography. By vehicle type, the market is segmented into piloted and autonomous. By application, the market is segmented into passenger transport and freighter. The report also covers the market sizes and forecasts for the UAM market across major regions. The market sizing and forecasts have been done for each segment based on value (USD billion).
The scope of the study is limited to electric vertical takeoff and landing (eVTOL) systems and does not include gas turbine engine-powered helicopters. The report also encompasses both intercity and intracity aspects of the operation of the eVTOLs.
Vehicle Type | |
Piloted | |
Autonomous |
Application | |
Passenger Transport | |
Freighter |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle-East and Africa |
Urban Air Mobility (UAM) Market Research FAQs
How big is the Urban Air Mobility Market?
The Urban Air Mobility Market size is expected to reach USD 4.45 billion in 2025 and grow at a CAGR of 23.54% to reach USD 56.21 billion by 2037.
What is the current Urban Air Mobility Market size?
In 2025, the Urban Air Mobility Market size is expected to reach USD 4.45 billion.
Who are the key players in Urban Air Mobility Market?
Joby Aero, Inc., Embraer SA, Volocopter GmbH, Jaunt Air Mobility Corporation and Guangzhou EHang Intelligent Technology Co. Ltd are the major companies operating in the Urban Air Mobility Market.
Which is the fastest growing region in Urban Air Mobility Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2037).
Which region has the biggest share in Urban Air Mobility Market?
In 2025, the North America accounts for the largest market share in Urban Air Mobility Market.
What years does this Urban Air Mobility Market cover, and what was the market size in 2024?
In 2024, the Urban Air Mobility Market size was estimated at USD 3.40 billion. The report covers the Urban Air Mobility Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Urban Air Mobility Market size for years: 2025, 2026, 2027, 2028, 2029, 2030, 2031, 2032, 2033, 2034, 2035, 2036 and 2037.
Urban Air Mobility Market Research
Mordor Intelligence offers extensive expertise in the advanced air mobility market, providing comprehensive insights into the rapidly evolving UAM industry. Our detailed analysis covers the entire ecosystem of urban air mobility. This includes developments in flying taxis and the role of advanced air mobility companies in shaping the future. The report provides in-depth coverage of UAM infrastructure market developments. It pays particular attention to the integration of the commercial drone market with urban air mobility and the emergence of urban air mobility vehicles.
Stakeholders benefit from our thorough examination of the global urban air mobility market size and the UAM market forecast. This information is available in an easy-to-read report PDF format for download. The analysis encompasses key air mobility companies and their technological innovations. It also provides detailed insights into urban air mobility manufacturing trends. Our research specifically addresses the future of urban air mobility. We include comprehensive UAM market size projections and a detailed assessment of flying taxi companies positioning themselves in this transformative sector. The report delivers actionable intelligence for investors, manufacturers, and operators looking to navigate the expanding urban aviation landscape.