US Advanced Air Mobility Market Research Report: By Application (Passenger Transport, Cargo Transport, Emergency Medical Services, Urban Air Mobility, Defense Operations), By Vehicle Type (Electric Vertical Take-Off and Landing, Hybrid Vertical Take-Off and Landing, Fixed-Wing Aircraft, Multi-Rotor Drones), By Technology (Electric Propulsion, Hybrid Propulsion, Autonomous Systems, Artificial Intelligence, Advanced Navigation Systems) and By End Use (Commercial, Government, Military, Personal) - Forecast to 2035

US Advanced Air Mobility Market Overview

The US Advanced Air Mobility Market Size was estimated at 1.01 (USD Billion) in 2023. The US Advanced Air Mobility Market Industry is expected to grow from 1.23(USD Billion) in 2024 to 4.32 (USD Billion) by 2035. The US Advanced Air Mobility Market CAGR (growth rate) is expected to be around 12.135% during the forecast period (2025 - 2035).

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Key US Advanced Air Mobility Market Trends Highlighted

The US Advanced Air Mobility market is witnessing significant trends shaped by the increasing interest in sustainable transportation solutions. One key market driver is the need for reduced congestion in urban areas, prompting innovation in electric vertical takeoff and landing (eVTOL) aircraft. This shift aligns with federal initiatives aimed at enhancing air transportation efficiency, as the U.S. Department of Transportation promotes advanced air mobility as a means to accelerate infrastructure improvements and boost the economy. Additionally, advancements in battery technology and aerodynamics support the development of more efficient and environmentally friendly aircraft, fostering a shift towards zero-emission travel.Opportunities to be explored include public-private partnerships that can enhance research and development capabilities in this sector. The involvement of private companies with governmental support can help streamline regulations and provide pathways for pilot programs. As cities like Los Angeles and Dallas actively explore air taxi services, there is a growing potential for urban air mobility networks to take shape, enhancing the commuting experience while decreasing dependency on traditional ground-based transport. Recent trends also indicate increased collaboration among aerospace manufacturers, technology firms, and regulatory bodies, which is essential for defining safety standards and operational guidelines necessary for the integration of advanced air mobility solutions.This collaborative approach is vital since public acceptance of these new aircraft technologies hinges on perceived safety measures. As the US continues to invest in airspace modernization and regulatory frameworks, the Advanced Air Mobility market is expected to evolve, promoting innovative solutions for transportation across urban and rural environments.

US Advanced Air Mobility Market Drivers

Rising Demand for Urban Air Mobility Solutions

The US Advanced Air Mobility Market Industry is witnessing a significant demand for urban air mobility solutions due to increasing urbanization, with projections indicating that about 82% of the population in the United States will live in urban areas by 2050 according to the US Census Bureau. This urbanization trend has led to congested roadways and increased commuting times, stimulating the need for efficient air transportation options. Major companies like Joby Aviation and Archer are investing heavily in developing electric vertical takeoff and landing (eVTOL) aircraft to address this issue, illustrating the potential for market growth as cities seek to reduce traffic congestion and improve transportation efficiency.The investment in Research and Development (R&D) by these companies, boosted by government support such as those offered by the Federal Aviation Administration (FAA), further highlights the urgency of integrating air mobility solutions into urban infrastructure.

Technological Advancements in Electric Propulsion Systems

The US Advanced Air Mobility Market Industry is significantly driven by advancements in electric propulsion technologies, which are crucial for the viability of future air mobility solutions. The Department of Energy has reported that electric propulsion can reduce operational costs by 50% compared to traditional aviation engines, promoting the adoption of cleaner and more efficient flying vehicles. With organizations like NASA focusing on innovation in electric aircraft technologies, the market is poised to benefit from lower emissions and increased sustainability, drawing interest from both commercial and governmental entities highly invested in reducing the carbon footprint of the transportation sector.

Increased Government Initiatives and Funding

Government support acts as a major driving force in the US Advanced Air Mobility Market Industry, with an increase in federal initiatives aimed at encouraging the development and integration of advanced air mobility solutions. The American Jobs Plan proposed by the Biden administration includes significant funding aimed at infrastructure for transportation innovation, which could account for billions of dollars being allocated to air mobility projects.The FAA has also established the Advanced Air Mobility Integration Pilot Program, which allows cities to test air mobility technology and services, thereby fostering an environment conducive to innovation. These initiatives signal strong governmental backing, which is crucial for attracting private investment and accelerating market growth.

US Advanced Air Mobility Market Segment Insights

Advanced Air Mobility Market Application Insights

The Application segment of the US Advanced Air Mobility Market is rapidly evolving, encompassing a variety of sectors that highlight its versatile utility. Passenger Transport is a significant focus area, driven by urbanization and increasing traffic congestion in major U.S. cities. City planners and authorities are increasingly looking towards advanced air mobility as a solution to streamline urban transport and reduce road traffic, which directly aligns with the U.S. government’s initiatives toward sustainable transportation. Cargo Transport also plays a crucial role in this segment, as e-commerce growth continues to demand faster delivery times.The potential to utilize airspace for moving goods can significantly alter logistics in metropolitan areas. Emergency Medical Services have gained attention as well, with the capability to deploy air ambulances quickly can be life-saving in critical situations. This segment is considered vital, particularly in rural or underserved areas where ground transport may be slower and less accessible. Urban Air Mobility is reshaping how cities perceive transportation, offering a modern solution that integrates aerial vehicles into existing urban infrastructures.This transformation can greatly enhance connectivity within urban landscapes. Additionally, Defense Operations utilize advanced air mobility to foster troop mobility and logistics in the field, which is essential for maintaining national security. As a result, these various applications collectively drive market expansion by meeting the needs of a diverse range of stakeholders, thereby solidifying the relevance of the US Advanced Air Mobility Market in contemporary transportation dialogues. Overall, the segmentation showcases a robust framework that not only addresses current challenges but also positions itself for significant growth amid evolving technological advancements and regulatory support in the U.S.

 

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Advanced Air Mobility Market Vehicle Type Insights

The Vehicle Type segment of the US Advanced Air Mobility Market is poised for significant growth as the industry evolves. Within this segment, Electric Vertical Take-Off and Landing (eVTOL) aircraft are gaining popularity due to their eco-friendly designs and ability to operate in urban environments, making them ideal for air taxi services. Hybrid Vertical Take-Off and Landing vehicles are bridging the gap between traditional aviation and advanced electric technologies, offering versatility that caters to various operational needs. Fixed-Wing Aircraft continue to play a crucial role, particularly in freight transport applications, due to their efficiency over longer distances.Meanwhile, Multi-Rotor Drones are seeing increased integration in various sectors such as logistics, surveillance, and agricultural monitoring, underscoring their multipurpose capabilities. As more stakeholders invest in these technologies, innovation and advancements will enhance operational efficiency and safety. The US Advanced Air Mobility Market is benefiting from supportive regulatory frameworks and government interest in revolutionizing transportation, thereby creating abundant opportunities for growth across these vehicle types. This segment is expected to remain a focal point in the market's expansion due to its diverse applications and technological advancements.

Advanced Air Mobility Market Technology Insights

The US Advanced Air Mobility Market, focusing on the Technology segment, encompasses various innovative systems that are crucial for facilitating urban air transportation. Electric Propulsion has emerged as a pivotal technology, minimizing carbon emissions and operating costs, hence gaining traction among operators. Hybrid Propulsion systems are also gaining significance due to their efficiency, enabling longer flight ranges while maintaining lower environmental impacts. Autonomous Systems play a key role in enhancing safety and operational efficiency, allowing for reduced human intervention.Additionally, Artificial Intelligence is transforming data analysis and decision-making processes, optimizing flight routes and vehicle maintenance. Advanced Navigation Systems are vital for ensuring precise and safe operations in increasingly congested airspaces. As a result, the incorporation of these technologies is shaping the future of air mobility in the US, driven by the need for sustainable transportation solutions and enhanced urban connectivity. The trends indicate a strong emphasis on innovation and seamless integration of these technologies to address the growing demands in the aerial transportation sector, promoting significant advancements in the industry.

Advanced Air Mobility Market End Use Insights

 

The US Advanced Air Mobility Market is experiencing rapid growth, driven by technological advancements and increasing demand for efficient transportation solutions. Within the segment of End Use, the Commercial sector plays a crucial role, as businesses seek innovative ways to enhance logistics and urban mobility. The Government segment is also significant, with various initiatives aimed at integrating advanced air mobility solutions into public transport systems and emergency services. Additionally, the Military sector is capitalizing on advanced aerial capabilities for reconnaissance and troop movement, focusing on improving operational efficiency and response time.Meanwhile, the Personal segment is evolving, reflecting rising consumer interest in individual air travel options. As these sectors continue to develop, key drivers such as urbanization, regulatory support, and advancements in autonomous technology will facilitate the growth of the US Advanced Air Mobility Market, creating opportunities for improved connectivity and reduced congestion in urban areas. The segmentation within this market is critical, as it highlights distinct use cases and customer needs that can inform future advancements and investments in the industry.

US Advanced Air Mobility Market Key Players and Competitive Insights:

The US Advanced Air Mobility Market is characterized by rapid innovation and the entry of numerous players aiming to transform the transportation landscape. The market has gained considerable traction due to increasing urbanization, the demand for efficient transportation solutions, and advances in technology, such as electric vertical takeoff and landing (eVTOL) aircraft. Competitive insights underscore the importance of strategic collaborations, regulatory landscape navigation, and technological advancements among key players. Companies are actively seeking to address challenges related to infrastructure, air traffic management, safety, and public acceptance while striving to establish their market presence in a burgeoning sector that promises a new era of air transportation.Volocopter has made significant strides within the US Advanced Air Mobility Market, showcasing its strengths in innovative design and technology development. With a focus on eVTOL aircraft, Volocopter aims to operate urban air mobility services that can tackle congestion in metropolitan areas. The company has developed a strong brand reputation centered around safety and sustainability, establishing itself as a key contender in this space. Its emphasis on user-friendly and efficient flight solutions, alongside collaborations with various partners in the aviation and urban planning sectors, enhances its market presence in the United States. Volocopter's adaptability and commitment to regulatory compliance further solidify its position, creating a promising pathway for the commercialization of its air mobility solutions.Airbus, with its extensive experience in aerospace, is actively participating in the US Advanced Air Mobility Market with notable ambitions to innovate urban transportation. The company has developed key products and services focused on autonomous flight technologies and efficient aerial vehicles. Airbus's strengths lie in its established industry relationships, engineering prowess, and robust R&D efforts, which allow it to remain competitive against emerging players. The company's focus on sustainable aviation solutions aligns well with growing environmental concerns, enhancing its attractiveness to a wide range of stakeholders in the US market. Moreover, Airbus has pursued strategic mergers and acquisitions to bolster its capability in advanced air mobility, ensuring a strong position as the market evolves. By leveraging its historical presence in the aviation sector, Airbus is well-positioned to explore new opportunities as it scales its operations in the United States.

Key Companies in the US Advanced Air Mobility Market Include:

• Volocopter


• Airbus


• Wisk Aero


• Boeing


• Northrop Grumman


• Bell Textron


• Lilium


• Hyundai


• Karem Aircraft


• Pipistrel


• Ehang


• Skydweller Aero


• Archer Aviation


• Joby Aviation


• General Motors

US Advanced Air Mobility Market Industry Developments

The US Advanced Air Mobility Market has recently witnessed significant developments, with notable progress in the regulatory and operational landscape. Companies such as Joby Aviation, Archer Aviation, and Wisk Aero are actively conducting flight testing of their electric vertical takeoff and landing (eVTOL) aircraft, pushing towards certification and commercial deployment. In October 2023, Joby Aviation announced their partnership with United Airlines for aerial taxi services, enhancing their market presence. Additionally, Volocopter has made strides in securing partnerships for urban air mobility operations, showcasing the increasing interest and investment in this sector. The market valuation for firms in this space has seen commendable growth, with increased funding driving innovation and competition. In a notable acquisition, Lilium announced a merger with a special purpose acquisition company in July 2023, aiming to capitalize on the burgeoning demand for air travel solutions. Moreover, regulatory support from the Federal Aviation Administration is proving crucial, exemplified by ongoing initiatives aimed at streamlining the certification process for eVTOL aircraft. These advancements signal a vibrant and rapidly evolving landscape as stakeholders strive to establish the future of transportation in the United States.

US Advanced Air Mobility Market Segmentation Insights

Advanced Air Mobility Market Application Outlook

• Passenger Transport


• Cargo Transport


• Emergency Medical Services


• Urban Air Mobility


• Defense Operations

Advanced Air Mobility Market Vehicle Type Outlook

• Electric Vertical Take-Off and Landing


• Hybrid Vertical Take-Off and Landing


• Fixed-Wing Aircraft


• Multi-Rotor Drones

Advanced Air Mobility Market Technology Outlook

• Electric Propulsion


• Hybrid Propulsion


• Autonomous Systems


• Artificial Intelligence


• Advanced Navigation Systems

Advanced Air Mobility Market End Use Outlook

• Commercial


• Government


• Military


• Personal

 

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	1.01(USD Billion)
MARKET SIZE 2024	1.23(USD Billion)
MARKET SIZE 2035	4.32(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	12.135% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Volocopter, Airbus, Wisk Aero, Boeing, Northrop Grumman, Bell Textron, Lilium, Hyundai, Karem Aircraft, Pipistrel, Ehang, Skydweller Aero, Archer Aviation, Joby Aviation, General Motors
SEGMENTS COVERED	Application, Vehicle Type, Technology, End Use
KEY MARKET OPPORTUNITIES	Urban air taxi services, Logistics and cargo delivery, Emergency medical services, Tourism and sightseeing flights, Infrastructure development partnerships
KEY MARKET DYNAMICS	Technological advancements in aviation, Regulatory framework evolution, Urbanization and population growth, Investment in infrastructure development, Environmental sustainability initiatives
COUNTRIES COVERED	US