The global urban air mobility market size was estimated at USD 3.58 billion in 2023 and is projected to reach USD 29.19 billion by 2030, growing at a CAGR of 34.2% from 2024 to 2030. The rapid expansion of this market is primarily driven by the rising need for faster, more efficient, and flexible transportation solutions in response to increasing urbanization and a growing global population.

Urban areas around the world are grappling with severe traffic congestion, which has become a major challenge for daily commuting. Urban air mobility presents a potential solution by offering aerial transport options that can significantly reduce travel times, alleviate road congestion, and improve the overall quality of life for urban residents. Additionally, the rise of ride-hailing services has created a demand for convenient and on-demand mobility solutions. UAM vehicles, particularly electric vertical take-off and landing (eVTOL) aircraft, are well-positioned to meet this demand, serving as the next generation of flexible urban transport. These factors are expected to create lucrative growth opportunities for the UAM market over the coming years.

Technological advancements in mobility solutions are further propelling the growth of the UAM market. Innovations in electric propulsion systems and autonomous flight control technologies are making eVTOL vehicles increasingly viable for urban air mobility applications. These vehicles are environmentally friendly, supporting the growing consumer preference for sustainable and low-emission transportation options. Furthermore, improvements in battery energy density and the development of efficient charging infrastructure are critical to enabling longer flight ranges and shorter charging times. These advancements enhance the operational feasibility, commercial viability, and adoption rate of UAM vehicles, further driving the expansion of the market globally.

Key Market Trends & Insights:

• In 2023, North America dominated the global urban air mobility (UAM) market, accounting for the largest revenue share of over 40%. The region’s leadership is largely attributed to advanced infrastructure, strong technological capabilities, favorable regulatory frameworks, and increasing investments in innovative mobility solutions. Within North America, the U.S. is estimated to experience a significant growth rate of more than 29% from 2024 to 2030, driven by rising urban congestion, growing adoption of electric vertical take-off and landing (eVTOL) vehicles, and the demand for efficient, sustainable, and on-demand transportation options.

• By component, the hardware segment held the largest revenue share of nearly 59% in 2023. Hardware components, including propulsion systems, airframes, avionics, and landing gear, are critical for the performance, safety, and reliability of UAM vehicles, which explains their dominant contribution to the market revenue.

• By type, the personal air vehicles segment is expected to register a considerable CAGR from 2024 to 2030. This growth is driven by increasing demand for individual, on-demand aerial transport that can reduce commute times, offer flexible routing, and enhance urban mobility, particularly in densely populated cities.

• By propulsion, the electric segment accounted for the largest revenue share in 2023. Electric propulsion is preferred due to its energy efficiency, lower operational costs, minimal environmental impact, and alignment with the global shift toward sustainable and green transportation solutions. The adoption of electric-powered UAM vehicles is expected to continue growing as battery technology, energy density, and charging infrastructure improve, further boosting their commercial viability.

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Market Size & Forecast:

• 2023 Market Size: USD 3.58 Billion

• 2030 Projected Market Size: USD 29.19 Billion

• CAGR (2024-2030): 34.2%

• North America: Largest market in 2023

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Some of the key players operating in the urban air mobility (UAM) market include Guangzhou EHang Intelligent Technology Co. Ltd., Airbus, Lilium GmbH, Joby Aero, Inc., and Embraer Group, among others. These companies are at the forefront of developing innovative solutions to transform urban transportation through advanced aerial mobility systems.

• Lilium GmbH focuses on creating accessible and sustainable modes of high-speed regional transportation. The company collaborates with technology, aerospace, and infrastructure partners across the U.S., Brazil, China, UAE, Saudi Arabia, the U.K., and other European countries to deliver advanced, high-performance aircraft designed for safe, efficient, and environmentally conscious air travel.

• Guangzhou EHang Intelligent Technology Co. Ltd. specializes in safe, autonomous, and eco-friendly air mobility solutions. Its portfolio includes unmanned aerial vehicle (UAV) systems, passenger and logistics air mobility services, aerial media solutions, and smart city management platforms, highlighting its multi-faceted approach to urban air transportation and city integration.

• Joby Aero, Inc., a U.S.-based company, develops all-electric, vertical take-off and landing (eVTOL) air taxis aimed at providing fast, convenient, and quiet urban aerial transportation. The company has formed strategic partnerships with Toyota Motor Corporation and Uber Technologies, Inc., among others, to strengthen its position in the aerial ridesharing and urban air mobility sectors.

Emerging participants in the UAM market include The AIRO Group, Inc., Wingcopter GmbH, and BETA Technologies, Inc., which are driving innovation with specialized technologies and services.

• The AIRO Group, Inc. operates as a comprehensive air mobility, autonomy, and aerospace platform provider. It offers a broad range of drone technologies, services, and defense training solutions, catering to evolving trends in the drone and aerial mobility ecosystem.

• Wingcopter GmbH manufactures unmanned, all-electric delivery drones and provides specialized drone delivery services, particularly for medical supply chains and urgent logistics. The company benefits from investment partners such as REWE Group, Salvia, XAI Technologies, Xplorer Capital, and Futury Capital, supporting its growth and technological advancements.

• BETA Technologies, Inc. focuses on the production of eVTOL aircraft and recharging pad systems. While initially serving military applications, the company aims to expand into passenger and cargo operations. BETA has established electrification partnerships with U.S. Fixed Base Operators (FBOs) like Atlantic Aviation and Shoreline Aviation, which provide charging infrastructure for both eVTOL and electric conventional takeoff and landing (eCTOL) aircraft, supporting broader adoption of electric urban air mobility solutions.

Key Players

• Airbus

• Lilium GmbH

• Guangzhou EHang Intelligent Technology Co. Ltd

• Eve Holding, Inc.

• Vertical Aerospace

• Textron Inc.

• Joby Aero, Inc.

• Embraer Group

• Hyundai Motor Company

• Archer Aviation Inc.

• The AIRO Group, Inc.

• Wingcopter GmbH

• BETA Technologies, Inc.

• Volocopter GmbH

• Uber Technologies, Inc.

• Safran Group

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Conclusion:

The Grand View Research report concludes that the global urban air mobility (UAM) market is positioned for rapid growth due to increasing urbanization, growing demand for faster and more efficient transportation solutions, and rising investments in advanced aerial mobility technologies. Expansion is driven by technological advancements such as electric propulsion and autonomous flight systems, as well as public private partnerships and supportive government initiatives aimed at developing the necessary infrastructure for UAM operations. These factors are contributing to stronger market adoption and broader commercialization of UAM solutions over the coming years.