Urban Air Mobility [UAM] Market Size, Share Global Analysis Report, 2025 – 2034

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global urban air mobility (UAM) market size was worth around USD 4.80 billion in 2024 and is predicted to grow to around USD 50.54 billion by 2034, with a compound annual growth rate (CAGR) of roughly 34.20% between 2025 and 2034.

Market Overview

Urban Air Mobility (UAM) is a transportation system comprising air vehicles like drones, eVTOLs, etc., for transporting goods and passengers in urban settings. UAM eases traffic congestion, provides faster and more efficient transportation, and reduces pollution by using airspace above cities.

The global urban air mobility [UAM] market is projected to witness notable growth due to technological improvements in electric propulsion and aircraft design, growing urbanization, sustainability goals, and ecological concerns.

The advancements of autonomous aircraft solutions and eVTOL significantly drive the global market. These improvements enhance vertical take-off and landings, allowing operations in dense urban settings and lowering the need for larger runways. Electric propulsion also adds to the reduction of emissions, thus increasing UAM's sustainability.

Moreover, population growth and speedy urbanization in cities have resulted in strained infrastructure and congestion. UAM offers an effective solution to these difficulties by providing alternate air transport, enhancing accessibility to urban centers, and decreasing traffic.

With rising concerns regarding air pollution and climate change, corporations and governments are seeking eco-friendly options in the global market. Electric aircraft are a quieter, more sustainable, and cleaner option than traditional gas vehicles.

However, the global market is restrained by high operational and development costs and public security and safety concerns. UAM technologies are still developing and witnessing significant initial capital investment prices.

Also, high operational costs like infrastructure development and maintenance, among others, are hampering the broader adoption.

Furthermore, issues regarding the safety of manned air vehicles and autonomous cars in urban areas still prevail. Perception of possible risks like malfunctions, accidents, and privacy issues may further reduce the adoption. Cybersecurity issues may also increase illegal access to infrastructure and aircraft.

Yet, the market is opportune for urban transport solutions, e-commerce delivery, and logistics. UAM offers an opportunity to provide alternate transport solutions that improve mobility and reduce congestion.

Also, e-commerce growth has increased demand for efficient and fast delivery services. UAM can deliver faster, especially in urban settings where heavy traffic may delay traditional delivery techniques. Mainly, drones are an ideal option for last-mile delivery.

Key Insights:

• As per the analysis shared by our research analyst, the global urban air mobility [UAM] market is estimated to grow annually at a CAGR of around 34.20% over the forecast period (2025-2034)
• In terms of revenue, the global urban air mobility (UAM) market size was valued at around USD 4.80 billion in 2024 and is projected to reach USD 50.54 billion by 2034.
• The urban air mobility [UAM] market is projected to grow significantly due to improved aviation technologies, urbanization, and rising demand for more efficient and ecological transport options.
• Based on vehicle type, the air taxis segment is expected to lead the market, while the last-mile delivery segment is expected to register considerable growth.
• Based on range, the intercity segment is projected to dominate the market, while the intracity segment is expected to be the second-leading.
• Based on operation, the autonomous segment is the dominating segment, while the piloted segment is projected to witness sizeable revenue over the forecast period.
• Based on end user, the ridesharing companies segment is expected to lead the market compared to the e-commerce companies segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Europe.

Growth Drivers

• Growing demand for efficient and faster transportation to spur the urban air mobility [UAM] market growth

The demand for more efficient and faster transport in urban environments is growing considerably. UAM can potentially decrease travel time by directly traveling to destinations, avoiding road delays and traffic. The growing attraction of cargo drones or air taxi services is powerful in metro cities.

A Deloitte report predicts that urban air mobility could reduce travel times by approximately 40%. The air taxi market is anticipated to progress and reach USD 15 billion by 2030, fueled by the increasing consumer demand for more efficient mobility technologies.

Blade Urban Air Mobility, in New York, offers helicopter services that plan to reduce travel times to JFK from Manhattan by 8 minutes via air and 60 minutes by car. This already fuels the demand for more accessible air mobility solutions.

• Improvements in air traffic management systems to fuel the market growth

For the success of urban air mobility, air traffic management or ATM systems should transform to manage a larger volume of aircraft, comprising autonomous, electric, small vehicles. Improvements in air traffic management systems, unified airspace systems, and AI-based flight control will be necessary to ensure the efficient and safe operation of UAM and, thus, the progress of the urban air mobility [UAM] market.

The Airports Authority of India has lately introduced the 'One Airspace' initiative, designed to offer cohesive air traffic management in different aviation divisions, providing efficient UAM integration.

NASA and the FAA have been cooperating on the growth and expansion of UAM traffic management systems. These systems adopt AI to prioritize and manage air traffic, promising that UAM aircraft operate beside conventional aircraft in the same airspace.

Restraints

• Infrastructure restrictions are likely to adversely impact the progress of the market

For efficient and effective functioning of UAM, a strong system of vertiports (dedicated take-off and landing areas), air traffic management systems, and charging stations should be constructed.

Nonetheless, the time and cost needed to develop this infrastructure in heavily urban areas pose a significant challenge to the urban air mobility industry.

The United States government proposed a USD 25 million investment to construct vertiports in urban locations, but this is a tiny fragment of the overall required investment.

Opportunities

• Growing adoption of sustainability and green technology to drive the urban air mobility [UAM] market growth

With the global pressure towards green technology and sustainability, UAM offers an exceptional opportunity to decrease carbon emissions in urban cities. Electric propulsion in eVTOL drones and aircraft is projected to be a leading contributor to meeting ecological goals. This is attractive to governments and cities seeking to decrease carbon footprints and improve air quality.

The IATA (International Air Transport Association) estimates that electric aviation will reduce emissions by nearly 60% by 2050. This increases the significance of UAM in reducing transport-related emissions.

Lilium declared its plans to grow a zero-emission eVTOL aircraft in 2023. This will be used in urban air taxi services, aiming for carbon-neutral cities in the coming ten years.

Challenges

• Battery life and technological limitations limit the growth of the urban air mobility [UAM] market

UAM solutions, especially electric propulsion systems, are experiencing range and battery life restrictions. The existing battery technology does not presently have the potential to support long-distance operations, thus restricting eVTOL aircraft to short-range urban air taxi operations.

The dependency on battery-based systems also offers challenges for fast charging times, which may negatively impact the overall service scalability and efficiency of UM operations. This may ultimately affect the growth of the urban air mobility [UAM] market.

Vertical Aerospace is focused on enhancing the battery efficiency of its aircraft, but it experiences competition from other domains like EVs, where improvements in battery technology are occurring at a speedy pace.

Report Scope

Segmentation Analysis

The global urban air mobility [UAM] market is segmented based on vehicle type, range, operation, end user, and region.

Based on vehicle type, the global market is divided into air taxis, air metros, air ambulances, last-mile delivery, and others. The air taxis segment is anticipated to lead the market over others. These vehicles are primarily based on eVTOL technologies and are being upgraded to offer on-demand air transport in urban areas. Air taxis hold the potential to transform urban transportation by providing congestion-free and quick travel in cities.

Based on range, the global urban air mobility industry is segmented into intercity and intracity. The intercity segment registered a significant market share in 2024 and will lead over the estimated period in terms of range. It comprises using UAM vehicles to travel long distances or between different cities.

Although the majority of the focus of UAM development has been on intracity, there is increasing pressure for intercity services for efficient and faster transportation among urban hubs at a distance of 100-200 miles.

Based on end user, the global urban air mobility market is segmented as ridesharing companies, scheduled operators, e-commerce companies, hospitals and medical agencies, and private operators.

The ridesharing companies are presently leading the global market. These companies are majorly invested in improving air taxi services to provide urban mobility solutions that avoid ground traffic, offering cost-effective, quick, and efficient air travel in cities.

In Dubai, Volocopter has joined with Dubai's RTA (Roads and Transport Authority) to develop urban air mobility services, emphasizing air taxis for ridesharing. The collaboration is projected to allow ridesharing via air taxis by 2025.

Regional Analysis

• North America to witness significant growth over the forecast period

North America is projected to progress as the dominating region in the global urban air mobility (UAM) market owing to innovations and technological improvements, funding and investment, and regulatory backing. North America is home to many of the largest UAM companies, which are pioneering the expansion of air taxi and eVTOL services.

Also, the regional companies have gained significant funding from the United States government in UAM R&D to create infrastructure for UAM operations and better air traffic management.

Moreover, the Federal Aviation Administration is highly focused on regulatory frameworks for certification of eVTOL, safety standards, and air traffic management, thus creating a helpful regulatory environment for urban air mobility operations.

Europe is anticipated to lead as the second-leading region in the urban air mobility [UAM] industry, owing to leading projects and the presence of companies, and collaborative industry and government support.

Key UAM companies like Lilium and Volocopter are based in Europe, with Lilium improving its high-speed eVTOL for local flights and Volocopter emphasizing air taxis. Europe also imposes key initiatives like pilot projects in the Netherlands and France, and the UAM Grand Challenge in Germany.

The region also promotes cooperative efforts among aviation authorities, governments, and private companies. In addition, Europe is projected to capture more than 30% of the industry share by 2030.

The regional market is anticipated to progress at an 18% CAGR between 2023 and 2030, fueled by innovations, regulatory support, and regional demand for ecological transport options.

Competitive Analysis

The global urban air mobility [UAM] market is led by players like:

• Joby Aviation
• Lilium
• Volocopter
• Archer Aviation
• Vertical Aerospace
• Aeromobil
• Skyports
• Terrafugia
• Klein Vision
• Bell Textron
• Urban Aeronautics
• Pipistrel
• Vertical Flight Society
• Elroy Air
• Quantum Systems

Key Market Trends

• Certification and regulatory advancements:

Regulatory agencies like EASA of Europe and FAA of the United States increasingly focus on the certification processes and safety standards for UAM and eVTOL operations. The foundation of these frameworks is the root of enabling extensive commercial operations in city airspace.

• Progress of Electric Vertical Take-Off and Landing (eVTOL) aircraft:

eVTOL aircraft are the foundation of urban air mobility, with many companies working rigorously on testing and developing these aircraft for air taxi services. These electric aircraft are projected to offer quiet, ecological, and efficient transport options, with commercial operations scheduled to commence in the coming 2-3 years.

The global urban air mobility [UAM] market is segmented as follows:

By Vehicle Type Segment Analysis

• Air Taxis
• Air Metros
• Air Ambulance
• Last-Mile Delivery
• Others

By Range Segment Analysis

• Intercity
• Intracity

By Operation Segment Analysis

• Piloted
• Autonomous
• Hybrid

By End User Segment Analysis

• Ridesharing Companies
• Scheduled Operators
• E-Commerce Companies
• Hospitals and Medical Agencies
• Private Operators

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America