Advanced Air Mobility Market Outlook and Revenue Forecast 2026 to 2035

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Advanced Air Mobility Market Size, Share & Trends Analysis Report By Mode of Operation (Autonomous/Remotely Operated and Pilot Operated), Propulsion Type (Turbine Engines (Turbo), Gasoline, Electric Propulsion, Hybrid Propulsion, and Reciprocating (Piston) Engines), Vehicle Type (STOL (Short Takeoff and Landing) Aircraft, EVTOL (Electric Vertical Takeoff and Landing) Aircraft, and Conventional Fixed-wing Aircraft), Application (Cargo Transport, Mapping & Surveying, Surveillance & Monitoring, Passenger Transport, Special Mission, and Others), Range (Below 100 km, 100 km - 250 km, 250 km - 500 km, and More than 500 km), End-use (Commercial and Government & Military),-Market Outlook And Industry Analysis 2035"

Global Advanced Air Mobility Market Size is valued at US$ 14.40 Bn in 2025 and is predicted to reach US$ 93.54 Bn by the year 2035 at an 20.7% CAGR during the forecast period for 2026 to 2035.

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Advanced Air Mobility (AAM) encompasses a comprehensive air transportation system designed to facilitate the movement of passengers and cargo through a range of aircraft, including autonomous vehicles, vertical takeoff and landing (VTOL) platforms, and remotely piloted systems. The primary objective of AAM is to integrate environmentally sustainable aircraft-such as electric VTOL (eVTOL) vehicles-and unmanned aerial systems (UAS) into both national and international airspace. Market expansion is being driven by heightened emphasis on reducing carbon emissions and addressing climate change, coupled with accelerated development of AAM infrastructure supported by strategic public and private sector investments.

Innovations in hydrogen fuel cells, eVTOL technologies, and autonomous flight systems are enabling the delivery of more cost-efficient, sustainable, and operationally effective air mobility solutions. Concurrently, regulatory authorities worldwide are implementing safety standards and certification frameworks, while substantial investment in critical infrastructure-including vertiports and charging facilities-is enhancing market readiness. Together, these developments are expected to drive the global adoption and growth of advanced air transportation solutions.

List of Prominent Players in the Advanced Air Mobility Market:
• Bell Textron Inc.
• Airbus
• Aurora Flight Sciences
• The Boeing Company
• Guangzhou EHang Intelligent Technology Co. Ltd.

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Market Dynamics
Drivers:
The Advanced Air Mobility (AAM) market is being propelled by escalating urban congestion in major metropolitan areas, continuous advancements in battery and electric propulsion technologies, and substantial investments from both established aerospace companies and emerging market entrants. The growing emphasis on environmentally sustainable transportation solutions further supports market expansion. Strategic collaborations between original equipment manufacturers (OEMs) and technology providers are accelerating innovation, while the development of urban air traffic management (UTM) systems is establishing the critical infrastructure required for widespread adoption.

Additional growth opportunities are emerging through the integration of AAM with existing transportation networks, enabling seamless multimodal mobility solutions. Moreover, the expansion of commercial applications beyond passenger transport-including emergency response, specialized logistics, and recreational use-represents a significant avenue for market development.

Challenges:
Market growth is constrained by stringent regulatory and certification requirements imposed by aviation authorities, which can extend development and commercialization timelines. Infrastructure limitations, particularly the deployment of vertiport networks, remain a significant barrier to large-scale adoption. Current limitations in battery technology affect operational range and cargo capacity, while high initial development and operational expenditures reduce short-term economic feasibility. Furthermore, the complexity of urban air traffic management and dependence on specialized supply chain components pose additional challenges that may influence regional adoption rates.

Regional Trends:
North America, led by the United States, represents the largest global market for AAM, supported by established aerospace infrastructure, active technological investment, and favorable regulatory frameworks. The Federal Aviation Administration's (FAA) proactive approach to defining urban air mobility regulations, coupled with the presence of leading industry players such as Boeing and Joby Aviation, reinforces the region's position as a leader in commercialization and adoption of AAM solutions.

Europe is also witnessing robust growth, driven by sustainability initiatives, technological innovation, and evolving regulatory policies. The European Union, through aviation research funding programs and regulations administered by the European Aviation Safety Agency (EASA), is promoting AAM development. Several European nations are actively establishing vertiports for electric vertical takeoff and landing (eVTOL) aircraft, enhancing infrastructure readiness and fostering a regulatory environment conducive to the integration of advanced air mobility solutions.

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Recent Developments:
• May 2025: A new 1,000-mile hybrid-electric VTOL variant based on Vertical Aerospace Group Ltd.'s VX4 aircraft is being developed with the intention of catering to the defense, logistics, and broader commercial markets. With its substantial range and payload expansion, this hybrid-electric model opened up new applications like air ambulance services and defense missions that demand greater payloads and longer endurance.
• January 2025: A Memorandum of Understanding (MoU) was signed by Tata Elxsi and CSIR-National Aerospace Laboratories (NAL) to work together on Advanced Air Mobility (AAM) technology. The collaboration centered on the development of UAVs, UAMs, and eVTOLs, fusing the technological know-how of Tata Elxsi with the aeronautical experience of NAL to spur innovation, quicken product development, and serve both Indian and international markets.
• April 2023: During the XPONENTIAL 2024 convention, , AFWERX demonstrated its efforts to securely incorporate Advanced Air Mobility (AAM) into national airspace. Discussions on AAM issues, such as airspace modernization, autonomy, and security covered at the event. To hasten the development of AAM, AFWERX also organized meetings and panels with government and industry players.

Segmentation of Advanced Air Mobility Market-
By Mode of Operation-
• Autonomous/remotely operated
• Pilot operated
By Propulsion Type -
• Turbine engines (turbo)
• Gasoline
• Electric propulsion
• Hybrid propulsion
• Reciprocating (piston) engines
By Vehicle Type-
• STOL (short takeoff and landing) aircraft
• EVTOL (electric vertical takeoff and landing) aircraft
• Conventional fixed-wing aircraft
By Application-
• Cargo transport
• Mapping & surveying
• Surveillance & monitoring
• Passenger transport
• Special mission
• Others
By Range-
• Below 100 km
• 100 km - 250 km
• 250 km - 500 km
• More than 500 km
By End-use-
• Commercial
• Government & Military
By Region-
North America-
• The US
• Canada
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Mexico
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of Middle East and Africa

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This release was published on openPR.