Advanced Air Mobility (AAM) Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Advanced Air Mobility (AAM) Market size was estimated at USD 11,500 million in 2024 and is projected to reach USD 57,340.61 million in 2031 at a CAGR of 25.8 % during the forecast period 2025-2031.

Advanced Air Mobility (AAM) refers to a transformative air transportation system that leverages emerging aviation technologies, such as electric vertical takeoff and landing (eVTOL) aircraft, to move people and cargo between locations—both urban and regional—previously underserved by conventional aviation. It encompasses a wide range of platforms, including passenger drones, air taxis, and cargo drones, all designed to improve accessibility, reduce travel time, and lower environmental impact. AAM aims to redefine transportation through autonomous operations, electrification, and integration with existing air traffic management systems.

The scope of the AAM market spans multiple sectors including urban air mobility (UAM), regional air mobility (RAM), cargo logistics, and emergency response. It encompasses a broad spectrum of stakeholders such as aircraft manufacturers, technology providers, infrastructure developers, regulatory bodies, and service operators. As the market matures, its scope is expected to broaden beyond major urban centers to include rural and underserved areas, making point-to-point air travel more efficient and equitable. The global nature of this market also highlights the importance of international regulatory harmonization and infrastructure standardization.

Current trends shaping the AAM market include the rise of electric propulsion, increasing autonomy in flight operations, and growing investment from both public and private sectors. Partnerships between traditional aerospace companies and tech startups are driving innovation and accelerating time-to-market for new aircraft. Governments around the world are initiating pilot projects, testing corridors, and developing air traffic management systems tailored for low-altitude operations. Public acceptance, infrastructure development, and safety certification remain central themes, with increasing emphasis on sustainability and noise reduction.

Key drivers of the AAM market include urban congestion, the need for faster and more flexible transportation solutions, and environmental concerns pushing for zero-emission mobility. Technological advancements in battery energy density, lightweight materials, and AI-based flight systems are making AAM more viable and cost-effective. Government initiatives, such as funding and supportive regulatory frameworks, are further propelling the market. Additionally, the demand for contactless logistics, particularly post-pandemic, has accelerated the deployment of unmanned cargo delivery systems, positioning AAM as a crucial component of future mobility ecosystems.

Impacts USA tariff rates on the Advanced Air Mobility (AAM) Market

The imposition of tariffs by the Trump administration in 2025 has introduced notable volatility within the global advanced air mobility (AAM) market. By targeting aerospace components and electric propulsion systems—many of which are sourced from international suppliers—these tariffs have created supply chain inefficiencies and increased the cost of manufacturing for key AAM players. The policy shift has particularly affected U.S.-based startups and established OEMs that rely on critical imports from Europe and East Asia, leading to delays in R&D activities and prototype rollouts. Furthermore, retaliatory trade measures by affected nations have diminished transatlantic partnerships and joint ventures that previously underpinned AAM ecosystem development, curbing momentum for global regulatory alignment and certification harmonization.

Delvens Industry Expert's Standpoint

Experts in the Advanced Air Mobility (AAM) Market highlight several key trends driving growth and innovation. The Advanced Air Mobility (AAM) market represents a new era in transportation, using electric and autonomous aircraft like eVTOLs to move people and goods quickly across urban and regional areas. Its scope includes passenger transport, cargo logistics, emergency response, and more, involving a wide range of industry players and requiring new infrastructure and regulatory frameworks. Key trends include electric propulsion, increased autonomy, and strong investment from both public and private sectors. Driven by urban congestion, environmental concerns, and advances in technology, AAM is gaining momentum as a sustainable, efficient solution to modern mobility challenges.

Analyst view on the impacts of U.S. tariff rates on the Advanced Air Mobility (AAM) Market

Despite these near-term headwinds, the long-term outlook for the AAM market remains fundamentally resilient, driven by escalating urban congestion, growing investments in electric vertical takeoff and landing (eVTOL) aircraft, and rising commitments to zero-emission mobility. Market stakeholders are expected to recalibrate their supply chains to mitigate tariff exposure, including increased domestic sourcing and strategic collaborations with neutral nations. Governments in Asia-Pacific and the Middle East are also capitalizing on the geopolitical reshuffle by accelerating their AAM infrastructure development through favorable policies and public-private partnerships. As urban air mobility transitions from conceptual validation to commercial deployment, the market is anticipated to progress steadily, supported by advancements in battery technology, public acceptance programs, and integration into smart city frameworks.

Market Portfolio

Key Findings

• The AAM market is divided into two primary operational modes: piloted and autonomous/remotely operated. The piloted segment currently leads the market, accounting for the highest revenue share. This dominance is attributed to regulatory approvals, safety concerns, and passenger trust, as many early deployments focus on piloted operations to ensure controlled and safe integration into urban airspace. The autonomous segment, while still emerging, is gaining attention due to advancements in AI and machine learning, offering potential for increased efficiency and reduced human error in the long term.

• The AAM market encompasses various vehicle types, including eVTOL (electric vertical takeoff and landing) aircraft, STOL (short takeoff and landing) aircraft, and conventional fixed-wing aircraft. Among these, eVTOLs dominate the market, driven by advancements in battery technology, increasing urban air mobility initiatives, and growing investments from aerospace giants. Their ability to operate in urban environments with reduced infrastructure requirements makes them a preferred choice for future air mobility solutions.

• AAM vehicles utilize various propulsion types, including gasoline, electric, and hybrid systems. The electric propulsion segment leads the market, accounting for a significant share. This growth is attributed to the alignment with global sustainability goals and the ongoing shift towards clean energy solutions. Electric propulsion systems offer benefits such as reduced carbon emissions, lower noise pollution, and lower operational costs, contributing to their widespread adoption in AAM applications.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as Urbanization, Traffic Congestion, Technological Advancements, Government Support and Regulations, Environmental Concerns, Demand for Fast and Efficient Transportation, Investment and Funding, Infrastructure Development, Military and Defense Applications, Rising E-commerce and Logistics Demand, Autonomy and AI Integration, Public-Private Partnerships, Increasing Pilot Shortages, Cost Reduction in Electric Propulsion Systems, Growing Demand for Air Taxis have triggered the Advanced Air Mobility (AAM) Market in the region.

Regional Analysis

North America to Dominate the Market

• North America leads the Advanced Air Mobility (AAM) market, driven by robust infrastructure, significant investments, and proactive regulatory frameworks. The U.S. serves as a global hub for eVTOL and autonomous aviation advancements, with the Federal Aviation Administration (FAA) actively developing integration frameworks. Collaborations between aerospace companies, technology firms, and government agencies are fostering innovation and infrastructure development, propelling the region's market growth.

• Europe is at the forefront of adopting AAM solutions, with countries like Germany, France, and the United Kingdom leading in eVTOL aircraft development and urban air mobility initiatives. The European Union has been proactive in establishing regulations and standards for unmanned aerial systems, fostering an environment conducive to AAM development. Public-private partnerships and investments in sustainable aviation solutions are accelerating the commercialization of AAM technologies across the region.

• Asia-Pacific is witnessing rapid growth in the AAM sector, fueled by rapid urbanization, increasing congestion in major cities, and strong government initiatives supporting smart mobility. Countries like China, Japan, and South Korea are leading investments in AAM infrastructure, focusing on deploying eVTOL aircraft and unmanned aerial vehicles for passenger and logistics applications. The region's demand for efficient urban mobility solutions is driving investments in vertiports and air traffic management systems.

• Latin America is gradually emerging in the AAM landscape, with countries like Brazil showing interest in developing air mobility solutions. Collaborations between local startups and international companies are fostering innovation in the region. While the market is still in its nascent stages, ongoing research and development efforts indicate a growing potential for AAM technologies in addressing urban transportation challenges.

• The Middle East and Africa (MEA) region is experiencing a surge in AAM interest, with countries like the UAE leading in adopting advanced aviation technologies. Government initiatives and investments in infrastructure are facilitating the development of AAM solutions. The region's strategic location and focus on innovation are positioning it as a key player in the global AAM market.

Competitive Landscape

• Airbus S.A.S.
• Aurora Flight Sciences
• Bell Textron Inc.
• Embraer S.A.
• Garmin Aviation
• GE Aviation
• GKN Aerospace
• Guangzhou EHang Intelligent Technology Co. Ltd.
• Honywell
• Joby Aviation
• Lilium GmbH
• Opener, Inc.
• Safran
• Siemens
• Thales Group
• The Boeing Company

Recent Developments

• Joby Aviation has made significant strides in 2025, pushing the boundaries of commercial air taxi services. The company is preparing for large-scale deployment of its electric vertical take-off and landing (eVTOL) aircraft, capable of flying 100 miles at speeds of up to 200 mph. Joby has also expanded its exclusive air taxi operations in Dubai, targeting high-traffic urban corridors. CEO JoeBen Bevirt publicly emphasized that flying taxis are now just “a few steps from the finish line,” reinforcing the company’s readiness for real-world service. Their collaboration with the UAE solidifies their international expansion strategy.

• Archer Aviation achieved a major regulatory milestone by receiving Part 141 certification from the FAA in February 2025, enabling it to launch its own pilot training academy—an essential step toward operational readiness. Archer has also finalized a strategic partnership with the Abu Dhabi Investment Office to create a comprehensive air taxi ecosystem in the emirate, including vertiports and infrastructure support. These moves indicate Archer’s ambition not only to serve U.S. markets but also to play a central role in shaping urban air mobility in the Middle East.

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