Advanced Air Mobility Market Size, Share, Growth, Report 2025 to 2034

Advanced Air Mobility Market Size and Growth 2025 to 2034

The global advanced air mobility market size was reached at USD 11.61 billion in 2024 and is expected to be worth around USD 77.32 billion by 2034, growing at a compound annual growth rate (CAGR) of 21.30% over the forecast period from 2025 to 2034. The advanced air mobility market is expected to grow at a significant rate owing to rising urban congestion, advancements in electric propulsion technologies, and increasing investments in sustainable air transport. Supportive government regulations and growing demand for faster, on-demand intra- and inter-city transportation are further propelling market expansion globally.

The advanced air mobility (AAM) sector focuses on building and weaving together new flying services such as electric vertical-takeoff-and-landing (eVTOL) vehicles, self-flying drones, and city air taxis that carry both people and packages. Driving this effort are cities clogged with traffic, a rising demand for cleaner transport, and steady leaps in battery power, lighter materials, and onboard automation. Money is pouring in from aerospace majors, hungry startups, and government funds eager to speed AAM beyond the prototype stage, while regulators draft rules for safe airspace, certification, and public trust. Partnerships among airframers, ride-hailing firms, and utility builders are already laying down the first pieces of a network that can grow nationwide. With urban areas swelling and smart-city plans gaining ground, the AAM ecosystem stands ready to reshape short hops, crisis rescues, and last-mile delivery by offering quicker, greener, and far more flexible choices than cars or trucks.

Advanced Air Mobility Market Report Highlights

• By Region, North America has accounted highest revenue share of around 38.50% in 2024.
• By Mode of Operation, the pilot-operated segment has recorded a revenue share of around 76.50% in 2024, due to regulatory familiarity, enhanced safety assurance, and public trust in human-controlled systems over autonomous alternatives, particularly in early deployment and urban environments.
• By Vehicle Type, the eVTOL (electric vertical takeoff and landing) segment has recorded a revenue share of around 79.10% in 2024, driven by their vertical takeoff/landing efficiency, suitability for urban settings, lower noise emissions, and strong investments from aviation and tech companies supporting rapid commercialization.
• By Propulsion Type, the electric propulsion segment has recorded a revenue share of around 60.50% in 2024, due to its alignment with zero-emission goals, reduced operational costs, quieter flight profiles, and major R&D investments focused on battery efficiency and electric drivetrain scalability.
• By Range, the below 100 km segment has recorded a revenue share of around 49.20% in 2024. Short-range AAM vehicles are preferred for intra-city logistics and urban commutes, aligning with infrastructure constraints and offering better battery efficiency, lower energy demands, and faster service turnaround.
• By Application, the cargo transport segment has recorded a revenue share of around 36.50% in 2024 due to fewer regulatory hurdles, minimal safety risks, rising e-commerce logistics demand, and early adoption by companies for last-mile and time-sensitive deliveries.
• By End Use, the commercial segment has recorded a revenue share of around 70.10% in 2024. Commercial use dominates as companies invest in AAM for air taxis, delivery services, and regional mobility, driven by rising urban demand, potential cost savings, and scalable transportation models.
• By Component, in 2024, the hardware segment led the market, capturing over 85% share. This dominance is attributed to significant advancements in materials science, enabling the creation of lightweight yet robust structures that improve the performance and efficiency of Advanced Air Mobility (AAM) vehicles.
• By Maximum Take-off Weight, the <100 kg category held the largest market share in 2024, largely due to the rising demand for lightweight and cost-efficient AAM solutions.

Advanced Air Mobility Market Growth Factors

• Infrastructure Development: Estimates from the Federal Aviation Administration indicate that each major city will need 6 to 77 vertiports, adding up nationally to between 2,500 and 3,500 locations for advanced air mobility. The total bill is expected to run into the tens of billions, covering vertiports, electric charging units, and repair facilities. Planning and environmental reviews are already under way, with Florida and the Dallas-Fort Worth area among the first sites considered. Those projects reflect a rare partnership among public agencies, local governments, and private operators, all working to meet existing rules. Funding will come from a mix of tax dollars and private investment, often treated as a shared risk. Sites are chosen near neighborhoods and mass transit so that future passengers-however skeptical-can reach them easily. Without this solid infrastructure, flying shuttles will stay in the test phase rather than becoming part of everyday travel.
• Autonomous Navigation Systems: By late 2024, both NASA and the FAA approved Drone UAS Traffic Management (UTM) systems that allow multiple low-altitude, beyond-visual-line-of-sight (BVLOS) missions below 400 feet, a key step toward wider air mobility. In 2023 the FAA also granted BVLOS exemptions to various operators, giving legal backing to these unmanned flights. Remote identification and LAANC now mesh with the agencys DroneZone portal, enabling instant flight clearances, live tracking, and rule adherence. A 2022 authorization in Alaska even permitted drones to operate straight from an international airport, showing how the system works on the ground. All these pieces form the bedrock for safe, overlapping trips in crowded skies. Enforcement relies on automated conflict resolution and real-time oversight of flight paths. Taken together, they push advanced air mobility closer to routine, legally authorized, self-driving missions.
• 5G and IoT Integration: The FAA's Revolutionize initiative now links LAANC and DroneZone through cloud services, allowing real-time airspace data sharing over 5G and IoT, which sharpens flight coordination. Low-latency Internet-of-Things links shrink the time needed to gain airspace approvals from weeks to mere minutes, by mid-2024 LAANC alone had issued more than one million clearances. Starting in early 2024, Remote ID will continuously broadcast each aircrafts identity and position, further enhancing situational awareness. When paired, these systems enable real-time rerouting and conflict avoidance during peak flight hours. Integration with mesh networks and edge-computing nodes supports operations in dense urban advanced air mobility environments. Collectively, the upgrades pave the way for safe, efficient, and largely automated flight corridors through city airspace.
• Disaster Management Use: Recent studies reveal that drone-based logistics produce 96 to 98 percent less greenhouse gas output than conventional truck or helicopter deliveries, and one large city could cut close to 300 million road miles each year by switching. By 2023 Zipline alone completed more than 100 million flight miles and delivered 1.4 million packages across Africa, a milestone linked to a 51 percent drop in infant deaths from delayed vaccine trips. In the United States the FAA now issues wider beyond-visual-line-of-sight BVLOS waivers to public agencies facing emergencies letting them launch rapid drone flights when every second counts. Planners are also preparing disaster-ready vertiports in coastal Florida and wildfire-prone regions of Texas placing aircraft within minutes of danger. To back that infrastructure new rules ease Part 135 exemptions for emergency carriers allowing takeoffs without red tape. Combined these policies and on-the-ground uses-from fighting wildfires to routing lifesaving medical deliveries-demonstrate that advanced air mobility can be a critical asset in crisis response.

Advanced Air Mobility Market Trends

• Shift Toward Electric Propulsion: eVTOL manufacturers are increasingly using all-electric power below roughly 2,000 to 5,000 feet, a move that supports both corporate sustainability goals and existing FAA guidance. In early April 2024, Beta Technologies flew its ALIA aircraft on a 1,400-mile demonstration trip before launching UL-certified battery charging stations at key locations. Meanwhile Joby Aviation in mid-2024 tested a hybrid version of the S4, reaching 523 miles and more than tripling the distance of an all-battery craft. FAA oversight of the UTM system also provides real-time traffic data that helps developers model energy use for both fully electric and hybrid designs. As a result, nearly all environmental reviews for planned vertiports now assume battery-electric powertrains as the baseline. Taken together, these milestones signal a decisive market turn toward electric flight, one that regulators and safety standards continue to monitor and shape.
• Noise Reduction Tech: The FAA now overlays fine-grained noise models on planned urban vertiports, Central Florida included, hence the need for night-side curfews and updated flight corridors. In 2023, Version 2.0 of the UAM Concept of Operations set specific dBA caps for upcoming eVTOLs. The agencys draft powered-lift rule mandates noise-cut practices for climbs and descents. New remote-ID and lighting rules, rolled out late 2024, tackle glare and growl at the source. Together, these layers seek to spare neighborhoods from excessive sound. Combining quieter electric drivetrains with these operational safeguards speaks directly to gaining citywide trust.
• Hybrid Propulsion Systems: In June 2024, Joby Avia-tions hydrogen-electric S4 flew 523 miles with reserve fuel, proof of hybrids longer legs and better fuel economy. Beta Technologies that same year also certified its charging stations to work with these split power plants. The FAAs latest UAM Concept of Operations welcomes both all-electric and hybrid models in low-altitude corridors. Powered-lift rules have been adjusted so that each propulsion layout can be certified side by side. Hybrids thus stretch missions today while builders finish the full-electric grid. Their ability to slip past red tape also broadens the path to market.
• Fleet-as-a-Service (FaaS): By 2023 the FAA had granted more than 5,500 Section 333 exemptions, mostly to small firms that share drones. In 2024 Wing Aviation asked regulators for permission to run centralized "nest" networks. Meanwhile, UTM platforms now reassign flights on the fly between different operators. The same year the agency cleared Flytrex and Causey under Part 135, allowing several parties to operate under a single certificate. That ruling shrinks the upfront cost of Advanced Air Mobility, operators can tap drone transport without buying each aircraft. As a result, new ventures lean ever more on service-based access for logistics and delivery.

Report Scope

Advanced Air Mobility Market Dynamics

Market Drivers

• Growing E-commerce & Last-Mile Delivery: The FAA noted that by late 2023 more than 842,000 small commercial drones were active, a jump tied to DJI and other firms pushing into delivery. Amazon Prime Air cut its average cost per package from costs from $484 in 2022 to $63 by 2025, while maintaining an 80 km/h delivery profile. By early 2025, Zipline completed more than 1.4 million deliveries, underscoring the last-mile promise of advanced air mobility. Moreover, 2024 revisions the FAA made to the beyond-visual-line-of-sight waiver system have eased many previous regulatory hurdles. Together, falling costs, clearer rules, and surging delivery numbers place AAM drones in direct competition with traditional road-based services.
• Emergency Medical Services (EMS): By November 2023, Zipline’s drone fleet had completed 100 million autonomous miles and more than 1.4 million deliveries, including life-saving vaccine drops—reducing infant mortality by 51% in Rwanda. FAA-approved environmental plans in Florida and Texas now explicitly include medical payload transport. December 2024’s BVLOS validation by NASA/FAA under UTM eased the path for unmanned medical missions. DroneUp received Part-135 certification later that year, enabling home-based medical deliveries. These legal milestone frameworks recognize and enable AAM’s role in delivering critical care and supplies in both rural and urban environments.
• Improved Battery Technology: In 2024 Beta Technologies released UL-certified Charge Cubes, sharply boosting both safety and throughput at eVTOL charging stations. A hydrogen-electric test flight by Joby in June demonstrated near threefold range growth, edging the industry toward regular commercial service. Meanwhile, 2023 peer-reviewed studies presented lightweight, high-energy batteries specifically engineered for eVTOL applications. New FAA rules for powered-lift craft also impose rigorous storage-safety tests on energy systems. These advances shorten recharge times, boost useful load, and align with tougher regulations. Taken together, they clear a path for scaling electric AAM into profitable networks.

Restraints

• High Initial Capital Investment: Vertiport cost estimates range from $0.05 billion for smaller metropolitan areas to $0.24 billion for larger cities, with a national deployment requiring 2,500–3,500 sites, translating into upfront outlays in the tens of billions. Key infrastructure investments include battery facilities, for instance, Beta Technologies expanded a 188,500 sq ft site in 2023 at significant cost. Amazon’s Prime Air drone units cost approximately $146,000 each, with delivery per-package costs still significantly higher than ground alternatives. Part-135 certifications carry typical multi-million-dollar compliance and safety testing expenses. These capital-intensive entry barriers highlight the need for public-private financing structures and regulatory cost-sharing to advance the sector.
• Limited Public Awareness: In January 2025, public-consultation events for Wing Aviations Florida and Dallas-Fort Worth vertiports will formally invite residents to voice concerns. Simultaneously, the FAA is updating lighting rules and introducing remote-ID tech in an effort to make aerial vehicles a familiar sight in neighbourhoods. Internal memos and opinions from FAA General Counsel already spell out what towns can still regulate, mostly on privacy and trespass, and that guidance mirrors the wider debate growing around local control. Even so, well-publicized setbacks, like the indefinite pause on Amazons Prime Air service, have left many people unsure about when these flights will actually start and whether they are safe. Taken together, these legal changes and mixed public signals show that building trust through clear, ongoing communication is still the central hurdle for community acceptance.
• Noise Pollution: Federal researchers now require each vertiport to model noise before approval, allowing curfews and route tweaks to limit disturbance. In its Urban Air Mobility Concept v2.0 released in 2023, the FAA set hard decibel targets that align with eVTOL design goals. Under the new powered-lift rules rolling out in 2023 and 2024, operators must follow specific quiet-on-takeoff and quiet-on-landing checklists. Starting in early 2024, Remote-ID systems will also log each vehicles acoustic fingerprint. Further guidance, expected late in 2024, will tighten lighting brightness and audio standards. Though electric motors are noticeably quieter, lingering nerves about noise could still slow acceptance in major cities until the public hears evidence of calm skies.

Market Opportunities

• Cargo & Parcel Delivery: As of early 2023, regulators had handed out over 5,500 exemptions under FAA Section 333, with most recipients being small firms eager to test drone delivery. Amazon Prime Air noted that the average unit cost of an aerial drop shrank from $484 in 2022 to $63 by the end of 2025. Wing Aviation plans to install drone depots at 75 sites around Dallas-Fort Worth and as many as 150 across Florida, a clear sign it intends to grow. Meanwhile, the agencys revised 2023 policy now fast-tracks approvals for flying beyond visual line of sight, chopping through red tape. Dropping costs, friendlier rules, and rising commercial interest thus combine to open a promising window for building wide, law-abiding drone delivery networks.
• Agricultural Surveillance: Farmers have leaned on Part 107 since 2016 to scout fields, test soil, and track water use from above. By 2023, more than 5,200 small operators logged Section 333 waivers to provide these imaging jobs. New fast-track pathways let those missions launch within 30 days, removing one of the biggest hurdles for growers. Cooperative airspace management-tied to UTM now opens rural corridors, including remote areas of Alaska, for synchronized flights. Starting in 2024, Remote ID rules will add an extra layer of accountability to every pass over the crops. Together, these legal reforms set the stage for a dramatic spread of drones in precision ag, all under watchful but supportive regulations.
• Tech Collaboration: Launched in 2023, the FAA-NASA Innovate 28 initiative encourages public-private partnerships that aim to make urban air mobility a routine service by 2028. Recent government-industry agreements, notably the 2023 FAA-AFWERX effort, seek to align military and civilian advanced air mobility (AAM) programs. Joby Aviations 2024 purchase of Xwing s autonomy division merges key technological assets under a single compliance framework. Beta Technologies late-2023 expansion of its Vermont battery facility, followed by early-2024 UL certification, signals private spending synchronized with regulatory goals. Zipline s 2023 growth of beyond-visual-line-of-sight (BVLOS) routes for vaccine distribution offers another example of legally approved innovation. Taken together, these ventures strengthen AAM preparedness while operating within structured legal and regulatory systems.

Market Challenges

• Scalability Concerns: The FAA currently forecasts nearly 3.9 million annual AAM departures once operational networks mature, yet cautious analysts project only 207,000 to 553,000 trips because of existing infrastructure and certification bottlenecks. Building a single vertiport now costs between $50 million and $240 million in most urban areas, a burden that sharply limits early scaling. By late 2024 just six companies possess Part 135 certification, restricting any nationwide service model. Because national UTM rules are still being finalized, regional airspace operators cannot yet share a common operating picture. Fragmented local ordinances piled on top of federal guidance further splinters oversight. Until legal frameworks, physical networks, and pilot training networks grow in step, the shift from test flights to everyday commuter service will move at a crawl.
• Cybersecurity Threats: New Remote ID rules that take effect in March 2024 mandate continuous broadcasts of each drone's registration and position, a feature designed to improve accountability and basic operational security. Although the FAAs UTM system is built on encrypted data links and centralized conflict-management nodes, industry experts still judge those safeguards as immature when viewed through a cybersecurity lens. The 2023 U.S. Drone Act explicitly orders the agency to frame risk-based cyber standards, underscoring lawmakers unease over attack exposure. Concurrent federal advice on local privacy laws further spotlights the potential for sensitive information leakage to the public. As AAM traffic swells, networks will face attempts at spoofing, hijacking, and other hacks, yet a cohesive set of FAA cybersecurity protocols has yet to appear. Operators, therefore, must craft robust, adaptable defenses that meet emerging statutory and regulatory demands.
• Integration with Ground Transport: FAA’s UAM Concept v2.0 (2023) outlines principles for connecting vertiports to ground transit, yet lacks enforceable mandates or funding mechanisms for urban modal connectivity. The high cost of vertiports—between $50M to $240 million, planners hesitate to merge them with existing ground services. Environmental reviews for Florida and Dallas-Fort Worth projects, now pending early-2025 approval, mention access roads yet do not finalize them. At the same time, the ongoing powered-lift pilot-certification phase (2023-2024) focuses almost entirely on flight safety, leaving ground links out of the conversation. Without strong laws and dedicated funding, these surface connections will stay a grab-bag of local fixes. Truly broad access will come only when urban policy and legal incentives pull advanced air mobility into the daily transit mix.

Advanced Air Mobility Market Segmental Analysis

Mode of Operation Analysis

Pilot Operated: In October 2024 the FAA issued a Special Federal Aviation Regulation (SFAR) that spells out pilot credentials and operating rules for powered-lift machines, including eVTOLs flying air-taxi routes. The rule eases Part 135 certification for pilot-flown AAM services. In mid-2024 Archers Midnight eVTOL gained a commercial operating nod under this framework. Joby Aviation, meanwhile, carried out its first urban test flight with a human crew in November 2023. Taken together, these moves supply a firm legal baseline for crewed advanced air mobility. Clearly defined training tracks and certification paths support safety and skill in the cockpit. As a result, eVTOL travel has moved from prototype test beds to an overseen public service.

Advanced Air Mobility Market Revenue Share, By Mode of Operation, 2024 (%)

Autonomous/Remotely Operated: By March 2024 the full Remote ID rules will take effect, mandating that every drone broadcasts its ID and real-time location so regulators can safely monitor flights operated at a distance. NASA and the FAA have already cleared their shared UAS Traffic Management system for beyond-visual-line-of-sight missions below 400 feet, opening the door to large-scale remote service. Later that year Joby Aviations purchase of the autonomy pioneer Xwing brought cutting-edge software and hardware under existing FAA certifications. At the same time, the agency specified the responsibilities of local governments in protecting privacy and overseeing unmanned aircraft. Together, these regulations set clear rules, a chain of accountability, and uniform safety benchmarks for autonomous advanced air mobility operations. Built-in oversight tools allow authorities to track risks even when a human pilot is not onboard. Taken as a whole, this legal framework makes remote flying safer for the public and easier for industry to adopt.

Vehicle Type Analysis

eVTOL Aircraft: The FAA in 2023 advanced eVTOL regulation with its Urban Air Mobility Concept of Operations v2.0 and a powered-lift SFAR, officially acknowledging the new tech. In November Joby flew a city demo over Manhattan, and in midsummer 2024 the company logged a 523-mile test with a hydrogen-electric prototype. Archer Aviation also won Part 135 approval to run its Midnight air taxi. Meanwhile, Draft Advisory Circular AC 21.17-4 is framing type certification for winged powered-lift designs. Together, these moves give a legal and operational bedrock for rolling out commercial eVTOL service. Ongoing guidance covers safety, noise limits, and pilot rules.

Advanced Air Mobility Market Revenue Share, By Vehicle Type, 2024 (%)

STOL Aircraft: Short takeoff-and-landing planes still fall under Part 23, yet the ConOps v2.0 places them in its tiered urban air corridors. Although large-scale STOL operations have yet to launch, normal certification channels keep regulatory work moving. Drafts of future SFARs are expected to extend powered-lift provisions to STOL airplanes that reach defined performance benchmarks. This wording suggests planned integration, yet remains subject to findings from operational service. Meanwhile, current rules still encompass STOL models, leaving them legally in the clear as authorities gather real-world proof.

Conventional Fixed-Wing Aircraft: Conventional fixed-wing aircraft still operate under long-standing Part 23 and Part 25 airworthiness rules, as well as ordinary air-traffic-control requirements. On that foundation, the FAA and EASA started aligning guidance in June 2024 to help these planes work alongside new AAM services. Although no separate regulations have emerged, the effort signals a growing legal framework that aims to weave legacy aircraft into urban air routes. Such moves are intended to let older models share city skies peacefully with the next generation of on-demand air mobility.

Propulsion Type Analysis

Electric Propulsion: The Electric segment has dominated the market in 2024. Electric propulsion occupies a central role in urban air mobility because FAA regulations-specified in the agency's SFAR and in 2023's second Urban Air Mobility Concept of Operations-plainly call for it. Joint FAA and EASA guidance released in June 2024 fleshes out the type-certification benchmarks intended for these all electric vehicles. On the ground, FAA-endorsed test flights conducted by leading advanced-air-mobility operators already show that electric craft can soar safely within the existing rulebook. The regulators license framework for e-VTOLs now factors in verified pilot curricula, quiet-operation protocols, and broad environmental compliance. Also, ElevateOS signed off on Joby in mid-2024, cementing electric power as an everyday operational mainstay. Simply put, planners who sit down to draft vertiport permits must take electric propulsion as their first legal duty. All these official signs put electric AAM on track to become the cornerstone for tomorrows city-to-city air service.

Gasoline-Powered Flight: Conventional piston aircraft still meet FAA Part 23 and Part 25 standards, yet city-level environmental rules are tightening and limiting their movement in crowded neighborhoods because of exhaust and noise. The FAA Urban Air Mobility Concept of Operations pushes for electric flying at low altitudes and quietly sidelines gas machines along primary urban routes. New regulations expressly demand clean power before any craft can be linked to vertiport networks. Zoning boards and environmental reviewers routinely write gasoline engines out of approval plans for emerging air-mobility terminals. Certified day-to-day operation is becoming rare as regulators and city administrations pull back on allowing them in urban airspace. In response, manufacturers are channelling resources into all-electric or hybrid-driveline projects. Collectively, these moves signal a clear and ongoing shift in the legal landscape guiding sustainable city air travel.

Turbine (Turbo): Aircraft powered by traditional gas turbines still gain certification through familiar FAA pathways, yet flying them above crowded neighborhoods invites tight new noise and emissions rules. Under existing powered-lift codes and low-altitude corridor plans, turbine trips are practically barred unless engines are retrofitted with heavy hush kits. Concept-of-operations papers for urban air mobility openly favor zero- or low-emission power systems wherever they touch city air. Even where the regulation book still allows turbine flights, local noise ordinances frequently bench those missions. City-approved vertiports routinely add further bans on turbine hardware. In short, the legal landscape now cheers for quieter, cleaner tech in order to meet AAM goals. Industry therefore realigns, sending turbine airframes toward long-haul regional runs or quiet freight routes that avoid metropolitan airspace.

Reciprocating (Piston): Light piston planes still fall under familiar FAA Part 23 rules, yet new urban air-mobility visions rank them low because of tough environmental targets. Developers eye verti-port licenses and find approval tied to engines that burn little fuel and make even less noise. Noise and emission thresholds baked into federal regs and local zoning now all but box out fixed-piston powerplants from dense precincts. Although technically permitted, piston flights in AAM settings struggle to win site clearances or grant money. As a result, public agencies and investors gravitate toward all-electric or hybrid prototypes that fit prized clean-air mandates. The policy pendulum thus redirects capital away from classic reciprocating power, sidelining it in the fast-evolving network of aerial mobility hubs.

Hybrid Propulsion: The hybrid segment is expected to witness the highest CAGR over he forecast period. Under current powered-lift rules, the FAA welcomes hybrids such as Jobys hydrogen-electric proof-of-concept, which logged a remarkable 523-mile leg in mid-2024. The statutory frame leans on performance-based criteria, letting blended systems clear safety and noise limits along the same certification highway as full-electric models. By permitting pilots to mix battery power with small quantities of fuel at low altitude, the agency opens corridors where range anxiety vanishes. This policy meshes with broader green goals because the bulk of flight still runs on clean kilowatts. Approvals for region-spanning hybrid routes echo the regulators comfort with transitional technologies. Such vehicles follow the same training regimens and sound caps that apply to their all-electric peers, provoking no extra burden for crews or operators. Above all, the legal nod to hybrids reinforces their value as a hedge for diverse fleets, offering planners and passengers additional options when demand spikes or infrastructure falls short.

Range Analysis

Below 100-km Range: The Below 100-km Range segment has held leading position. The FAA Urban Air Mobility Concept of Operations opens routes shorter than 100 km as first urban air taxi corridors. These flights will be staffed by pilots qualified under the 2024 powered-lift SFAR. Domestic operator Archer already launched test runs in the zone, drawing on the new training rules and existing vertiport procedures. Required minimums cover visibility, noise emissions, and real-time battery checks. The short leg missions also profit from lighter Part 135 frameworks and fast-track city sound permits. Altogether, these legal tools sketch the working service area for early eVTOL rides. Limiting distances lets regulators contain risk while gradually spreading supporting infrastructure. As a result, initial fare-based flights link tightly packed metropolitan pairs.

100-250-km Range: Flights spanning 100 to 250 km gain formal approval via powered-lift and Part 135 clearances, a path already exercised in Jobys 2024 523-mile hydrogen-electric trial. FAA advice matches the longer range promise with robust safety checks for endurance missions. Common standards govern forward visibility, noise levels, and energy reserve at landing. Carriers must also prove hybrid systems and complete standard environmental reviews. Planning vertiports for these corridors usually requires notice and cooperation across city or even state lines. The resulting regulations anchor business cases for fare-paying regional shuttles. In essence, the framework allows service to grow step by step from crowded city blocks to wider interurban networks.

250-500 km Range: Flights falling within the 250 to 500-kilometer band now hitch onto fresh FAA Advisory Circulars that sketch airworthiness rules and day-to-day operating expectations. Although no scheduled service exists yet, early test hops bag BVLOS exemptions and clear technical proof of concept. Current regulations pertain mainly to trial runs and not formal timetables, and reviewers fixate on kinetic risk and energy reserves. Each operator still needs route-specific Part 135 sign-off or a formal waiver before turning wheels. Fueling networks and vertiport spacing are also weighed legally during standard environmental reviews. Presently rare, these flights lay down the regulatory paving stones for mid-range AAM once ground systems mature.

More than 500 km Range: Remarkable outings-such as Jobys 840-kilometer hydrogen-electric hop scheduled for mid-2024-show the FAAs readiness to stretch powered-lift limits through special one-off letters. Nevertheless, everyday commercial flights beyond the 500-kilometer threshold fall outside present plans for urban corridors. Legal scrutiny now zeros in on reserve energy, safety specs, and ground infrastructure that often lie far past normal vertiport grids. Carriers therefore must file tailored Part 135 applications that disclose extended-range capabilities and supporting systems. Policy backing is still in its infancy, waiting on type-certification scale-up and coordination across state lines. These standout missions create valuable legal templates for tomorrow's routes, yet widespread service hinges on harmonizing laws, fuel availability, and ramp infrastructure.

Application Analysis

Cargo Transport: The cargo transport segment has dominated the market in 2024. Companies like Zipline within Part 135 now fly cargo BVLOS under short-term waivers granted for 2023-2025, paving the way for drone delivery under the law. Every mission still follows noise limits, defined routes, and environmental checks spelled out in the FAA's UAM Concept of Operations. Legal rules also bind drones to the same remote ID and crew training that govern manned aircraft. Regulators demand on-site observers and designated safety buffers for each flight. Approval of vertiports or smaller hubs carries cargo-specific conditions that must be met before ground facilities begin operations. This growing body of law sets the stage for large, compliant drone delivery networks.

Passenger Transport: The passenger transport expected to witness the highest CAGR throughtout forecast period. Mid-2024 saw the first Part 135 certificate issued, allowing Archer's Midnight to enter service while in June the FAA approved Jobys ElevateOS, creating a formal ground for paying air taxis. Updated rules now spell out the licenses pilots must hold, visibility and altitude floors, public-safety checks, and tight noise limits. Every new vertiport or passenger route still faces community meetings and full environmental studies, just as with highways or runways. Operators must also comply with Special Federal Aviation Regulation guidelines on sightlines, backup gear, and other measures for passenger safety. Each approval marks the shift from test flights to paying passengers. Taken together, these pathways mark the start of a new era in city travel.

Mapping and Surveying: More than 5,200 firms still lean on FAA Part 107 rules and Section 333 exemptions for overhead surveys. Starting March 2024, Remote ID will let regulators see who flies what, boosting trust in drone maps. LAANC grants almost instant permission for jobs below 400 feet. FAA privacy FAQs remind pilots that local laws may still ban flights over backyards in real time. Operators must log every flight, complete training, and keep remote ID on. Together, these rules help drones mix safely with city traffic while delivering precise topographic data.

Special Mission: Since 2023, Beyond Visual Line of Sight waivers and UTM services have powered green monitoring and disaster missions. The FAA now fast-tracks clearances for time-critical sorties so help can arrive minutes after an event. Crews still observe weight limits and fly only along routes set in advance. UTM platforms allow fire authorities and search teams to share airspace without conflicting paths. Jurisdictional laws also outline liability, privacy, and public-safety duties during high-pressure operations. Many operations still require Part 135 certificates or mission-specific exemptions. This solid legal framework turns unmanned aircraft into immediate, on-scene assets for wildfires, missing-person rescues, and live environmental monitoring.

Surveillance and Monitoring: Beginning in March 2024, Remote ID mandates that every flying drone continuously transmits its ID and location, making oversight clear and holding operators accountable. The Low Altitude Authorization and Notification Capability (LAANC) streamlines instant approval for monitoring flights below 400 feet in airspace surrounding busy airports. The FAA also reminds local governments that their privacy and trespass laws must shape drone use while still meeting public safety needs. Pilots therefore must keep sensors within prescribed limits and work strictly inside designated altitudes and flight paths. Any surveillance project needs a written plan proving it will not interfere with air traffic or exceed acceptable noise levels. Federal and state rules then guide how long video and other data can be stored, who may access it, and what reports the public should see. Collectively, these safeguards allow trustworthy monitoring to occur as part of broader advanced air mobility initiatives.

End User Analysis

Commercial End Use: The FAAs 2023 Drone Act, a soon-to-launch powered-lift SFAR set for October 2024, and the revised UAM ConOps v2.0 now rest beneath one joint rulebook for commercial AAM activity. By early summer 2024, six firms-Archer, Joby, and others-had secured Part 135 certificates giving them official permission to carry fare-paying passengers. New permitting protocols spell out noise limits, green checks, and clear pilot-training benchmarks. Software platforms such as ElevateOS now hold official nods to run those flight decks. Vertiport licenses must fit local zoning, keeping city planners in the loop. Taken together, these rules lay a strong, united groundwork for AAM services to sprout in americas big towns.

Advanced Air Mobility Market Revenue Share, By End Use, 2024 (%)

Government & Military End Use: In 2024 Joby clinched a $131 million deal with the U.S. Air Force for early-model eVTOLs, the first major federal order in the sector. The latas Agility Prime effort, paired with AFWERX, points to legal cover and dollars for defense projects. Bases run by the military enjoy lighter environmental reviews because federal permits supersede local rules. Agility Prime also welcomes hybrid test beds, letting innovators push the envelope before full certification. Key defense specs for propulsion and airworthiness are now being woven into the FAA's Powered-Lift guidance. Altogether, these partnerships set clear legal trails and tech corridors that connect military missions with everyday civilian AAM operations.

Advanced Air Mobility Market Regional Analysis

The advanced air mobility market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). Here’s an in-depth look at each region.

Why is the North America sits at the forefront in advanced air mobility market?

• The North America advanced air mobility market size was valued at USD 4.47 billion in 2024 and is expected to reach around USD 29.77 billion by 2034.

North America currently sits at the forefront, led by the United States, where early regulatory steps were taken through the FAA's UAM ConOps and SFAR rules introduced between 2023 and 2025. In 2024 Joby Aviation received a Special Airworthiness Certificate for its eVTOL prototype, while Archer Aviation secured Part 135 approval, clearing the path for initial air-taxi trials. Canada, meanwhile, advances the agenda through NAV CANADA, which is building a drone-traffic-management network that will slot AAM operations into controlled airspace. In Mexico, local authorities are testing using aerial vehicles to move freight to remote rural towns, an effort likely to gain momentum from U.S.-Mexico aerospace innovation pacts. Together, the region's seasoned aviation framework, robust R&D assets and cohesive public-private partnerships keep North America in the lead.

Why is the Europe positioning an early regulatory leader in the advanced air mobility market?

• The Europe advanced air mobility market size was estimated at USD 3.49 billion in 2024 and is expected to hit around USD 23.27 billion by 2034.

Europe is positioning itself as an early regulatory leader. In 2023 the European Union Aviation Safety Agency released an Innovative Air Mobility framework that aligns many rules with those of the FAA. The United Kingdom has backed air-taxi trials by Skyports and Vertical Aerospace through sandbox approvals from the Civil Aviation Authority. In Germany, Volocopters VoloCity eVTOL completed public demonstration flights in early 2024. France plans AAM services for the 2024 Paris Olympics, with test corridors unveiled by Groupe ADP and Airbus. Combined pan-European funding, innovation programs, and coherent rules across borders make the region an attractive early market.

Why is the Asia-Pacific region emerging as a quickest adopter of advanced air mobility market?

• The Asia-Pacific advanced air mobility market size was surpassed at USD 2.75 billion in 2024 and is projected to record around USD 18.32 billion by 2034.

Asia-Pacific is emerging as the worlds quickest adopter of advanced air mobility, largely because China is pouring money into eVTOL research. In early 2023 EHang secured the first-ever type certificate for a passenger-carrying autonomous eVTOL, a milestone awarded by Chinas Civil Aviation Administration. Meanwhile, India is promoting AAM through new DGCA pilot-training rules and green-corridor trials in Bangalore and other cities. Japan witnessed a successful test flight of SkyDrivers SD-05 and aims nationwide service by 2025 under the Ministry of Land, Infrastructure and Transport. Australia is working with Eve Air Mobility on urban trials, and South Koreas K-UAM Grand Challenge also targets a 2025 rollout. Government backing combined with a maturing tech ecosystem is pushing the region forward.

LAMEA is gradually carving out space in advanced air mobility market

• The LAMEA advanced air mobility market size was valued at USD 0.89 billion in 2024 and is anticipated to hit around USD 5.95 billion by 2034.

Latin America and the Middle East and Africa (MEA) are gradually carving out space in AAM, with Brazil at the forefront, Eve Air Mobility and ANAC aim to roll out certified eVTOL services by 2026. State-sponsored initiatives, such as the Santos Dumont innovation lab, back urban air mobility experiments while other Brazilian and regional governments eye AAM for remote freight. Even with gaps in rules and ground infrastructure, international alliances and small test flights are speeding up local readiness. In MEA the UAE and Saudi Arabia lead, as Joby and Skyports launch air taxis in Dubai and NEOM weaves autonomous flight into its Vision 2030 plan. Meanwhile, in Sub-Saharan Africa, South Africas SANSA oversees drone trials delivering medicine and blood. Although rules are still evolving, large investments and smart-city schemes point to solid future demand for AAM in both regions.

Advanced Air Mobility Market Top Companies

• Urban Aeronautics
• Volocopter
• The Boeing Company
• Archer Aviation
• Joby Aviation
• EHang Holdings Limited
• Wisk Aero
• Airbus SE
• Lilium GmbH
• Vertical Aerospace
• Embraer SA
• Kitty Hawk
• Bell Textron Inc.

Recent Developments

Leading companies in the AAM market—such as Urban Aeronautics, Volocopter, Boeing, Archer Aviation, and Joby Aviation—are spearheading developments in eVTOL technology, autonomy, and urban integration. Joby secured a $0.131 billion U.S. Air Force contract under Agility Prime, while Archer collaborates with United Airlines for commercial air taxi rollouts. Boeing’s Wisk Aero is co-developing autonomy standards with NASA, and Volocopter prepares for a major debut at the 2024 Paris Olympics. Urban Aeronautics is testing CityHawk for emergency services in Israel. Together, these players are shaping regulatory, safety, and infrastructure frameworks essential for global AAM deployment.

• In February 2025, Oman is rapidly advancing its advanced air mobility (AAM) sector through strategic partnerships, government initiatives, and innovation forums. The government, in collaboration with academic institutions like the Modern College of Business and Science and industry leaders such as Boeing, is empowering local talent and driving research in air taxis and eVTOL technologies, with a strong focus on women’s participation. National forums and partnerships with startups like AeroVecto are laying the groundwork for urban air transport infrastructure, regulations, and pilot projects, all aligned with Oman Vision 2040 for sustainable, smart mobility. The Civil Aviation Authority is leading efforts to develop regulations and establish a national pilot zone for testing AAM technologies, aiming to make Oman a regional leader in integrated, next-generation air transport.
• In December 2024, Joby Aviation and Jetex have formed a strategic partnership to advance sustainable air mobility across the Middle East. The collaboration will integrate Joby’s electric air taxis into Jetex’s network of flagship private terminals, starting with the installation of Joby’s Global Electric Aviation Charging System (GEACS) at Jetex sites. This will support efficient, low-emission travel by connecting Jetex passengers to a network of vertiports across the region, beginning in the UAE. The partnership is part of Joby’s exclusive agreement to operate air taxis in Dubai for six years and aligns with both companies’ commitment to sustainability and innovation in urban air mobility.
• In September 2022, Kittyhawk, the electric aircraft startup founded by Sebastian Thrun and backed by Google co-founder Larry Page, announced in September 2022 that it would shut down operations after more than a decade of developing eVTOL (electric vertical takeoff and landing) aircraft. The company, originally founded as Zee.Aero in 2010, worked on several projects including the Flyer, Cora, and Heaviside aircraft, aiming to pioneer urban air mobility and personal air transportation. Despite building and flying over 100 aircraft and achieving milestones such as military airworthiness approval for its Heaviside model, Kittyhawk struggled to find a viable business path and faced increasing competition. The closure does not affect Wisk Aero, its joint venture with Boeing, which continues to develop autonomous air taxis.

Market Segmentation

By Component

• Hardware
  
  • Aerostructure
  • Avionics
  • Flight Control System
  • Propulsion System
  • Others
• Software

By Mode of Operation

• Pilot operated
• Autonomous/remotely operated

By Vehicle Type 

• EVTOL (electric vertical takeoff and landing) Aircraft
• STOL (short takeoff and landing) Aircraft
• Conventional fixed-wing aircraft

By Propulsion Type

• Gasoline       
• Turbine engines (turbo)
• Reciprocating (piston) engines
• Electric 
• Hybrid 

By Range

• Below 100 km
• 100 km – 250 km
• 250 km – 500 km
• More than 500 km

By Maximum Take-off Weight

• <100 kg
• 100 - 300 kg
• >300 kg

By Application

• Cargo Transport
• Passenger Transport
• Mapping & Surveying
• Special Mission
• Surveillance & Monitoring

By End Use

• Commercial
  
  • E-Commerce
  • Commercial Ridesharing Operators
  • Private Operators
  • Medical Emergency Organizations
  • Others
• Government & Military

By Region

• North America
• APAC
• Europe
• LAMEA