Urban Air Mobility Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Autonomous, Piloted), By Application (Passenger Transport, Freighter), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.08 Billion
CAGR (2026-2031)	21.87%
Fastest Growing Segment	Piloted
Largest Market	North America
Market Size (2031)	USD 16.64 Billion

Market Overview

The Global Urban Air Mobility Market will grow from USD 5.08 Billion in 2025 to USD 16.64 Billion by 2031 at a 21.87% CAGR. Urban Air Mobility constitutes a transportation system dedicated to the aerial movement of passengers and cargo within metropolitan environments utilizing electric vertical takeoff and landing aircraft. This market is propelled by the urgent necessity to alleviate ground traffic congestion in densely populated cities and a global shift toward sustainable transit solutions. Furthermore, rapid progress in battery energy density and autonomous flight control systems serves as a primary catalyst for operational feasibility.

Despite the sector's momentum, the establishment of a comprehensive regulatory framework for safety certification and air traffic management remains a significant impediment to widespread commercialization. The complexity of integrating these aircraft into existing airspace requires rigorous testing and standardization before large-scale operations can commence. According to the Vertical Flight Society, in March 2025, the number of electric vertical takeoff and landing aircraft concepts tracked in its directory exceeded 1,100 designs. This volume highlights the intense competitive pressure and the massive certification workload currently facing aviation authorities.

Key Market Drivers

The rise in strategic partnerships between aerospace and automotive sectors serves as a vital accelerator for the Global Urban Air Mobility Market by addressing critical manufacturing scalability and capital requirements. Since the certification and production of electric vertical takeoff and landing aircraft require immense financial resources, collaboration with automotive leaders allows aviation startups to leverage established supply chains and mass-production expertise. This synergy significantly lowers per-unit costs and mitigates the technical risks associated with ramping up assembly lines for complex electric propulsion systems. According to Joby Aviation, October 2024, in the 'Joby Aviation Announces $500 Million Investment from Toyota Motor Corporation', the company secured an additional $500 million investment specifically to support the certification and commercial production of its electric air taxi.

Simultaneously, the implementation of supportive regulatory frameworks and certification standards establishes the mandatory legal foundation required for safe, large-scale commercial operations. Clear guidelines regarding airspace integration, pilot licensing, and operational safety provide certainty to manufacturers and operators, allowing them to transition from experimental flight testing to scheduled passenger services. Regulatory progress also fosters investor confidence by defining a clear path to market entry and integration with existing air traffic management. According to the Federal Aviation Administration, October 2024, in the 'FAA Issues Final Rule for Powered-Lift Pilot Certification and Operations', the agency finalized regulations establishing the training and certification standards for pilots of powered-lift aircraft. This operational clarity is already translating into tangible market activity, as manufacturers begin fulfilling orders. According to EHang, in 2024, the company successfully delivered 63 units of its EH216-S aircraft during the third quarter to various clients.

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Key Market Challenges

The establishment of a comprehensive regulatory framework acts as a significant bottleneck impeding the growth of the Global Urban Air Mobility Market. Although aircraft designs are maturing, the absence of standardized certification pathways for electric propulsion and autonomous traffic management prevents manufacturers from transitioning from testing to commercial operations. Aviation authorities are tasked with defining these complex new safety standards while simultaneously managing the oversight of a growing legacy aviation sector, creating a resource crunch that inevitably delays approvals for new entrants.

This strain on regulatory bandwidth is illustrated by the immense volume of traditional activity currently requiring oversight. According to the General Aviation Manufacturers Association, in February 2025, the general aviation industry reported preliminary aircraft deliveries valued at $31.2 billion for the year 2024, representing a 13.3% increase from the previous year. This surge in traditional aviation shipments demands substantial attention from regulators, limiting the personnel and resources available to process the certification of urban air mobility aircraft. Consequently, this backlog forces extended timelines for market entry, stalling fleet deployment and revenue generation for the sector.

Key Market Trends

The expansion of dedicated vertiport infrastructure is transitioning from theoretical planning to physical construction, addressing the critical need for specialized landing zones distinct from existing airports. Developers are prioritizing high-throughput locations integrated with public transit to ensure seamless passenger connectivity, thereby validating the operational ecosystem required for commercial launch. This shift towards physical realization is evident in key early-adopter markets where government support accelerates site approvals. According to Skyports Infrastructure, November 2024, in the 'Skyports and RTA break ground on first vertiport in Dubai', the company officially commenced construction on the first of four permanent vertiports planned for the initial Dubai network.

Simultaneously, early adoption by defense sectors is emerging as a primary revenue stream, allowing manufacturers to refine aircraft performance in rigorous environments prior to civilian certification. Military agencies are actively funding electric vertical takeoff and landing platforms for logistics and surveillance missions, serving as a strategic proving ground for the industry. This focus on defense applications is driving specialized product lines and robust funding rounds dedicated to government contracts. According to Archer Aviation, December 2024, in the 'Archer Announces Strategic Partnership With Anduril to Develop Hybrid VTOL Military Aircraft', the company entered an exclusive agreement to jointly develop a next-generation hybrid-propulsion aircraft specifically targeted at potential programs of record for the U.S. Department of Defense.

Segmental Insights

The piloted segment represents the fastest-growing category within the global urban air mobility market due to stringent safety requirements and current regulatory standards. Aviation authorities, including the Federal Aviation Administration and the European Union Aviation Safety Agency, currently prioritize human oversight for commercial operations to ensure passenger safety and operational reliability. Consequently, manufacturers are focusing on the development of manned aircraft to expedite certification processes and facilitate earlier market entry. This approach allows market players to establish service networks and build essential consumer confidence before transitioning to fully autonomous systems.

Regional Insights

North America leads the global Urban Air Mobility market due to substantial investment in electric vertical takeoff and landing aircraft development and a cohesive regulatory environment. The Federal Aviation Administration plays a critical role by collaborating with industry stakeholders to establish clear certification pathways and safety standards. Additionally, initiatives like the NASA Advanced Air Mobility National Campaign support the creation of necessary infrastructure and air traffic management systems. This alignment between government oversight and private sector innovation accelerates commercial operations and reinforces the region's market authority.

Recent Developments

• In December 2024, Archer Aviation Inc. announced a strategic multi-party collaboration with the Abu Dhabi Investment Office and key aviation entities to accelerate the launch of commercial electric air taxi operations across the United Arab Emirates. The consortium committed to establishing the necessary infrastructure and regulatory framework, positioning the manufacturer to commence passenger services as early as the following year. As part of this agreement, the company outlined plans to build a dedicated engineering center and manufacturing facilities in the region, solidifying Abu Dhabi's status as a global hub for smart and autonomous urban mobility solutions.
• In November 2024, Beta Technologies reached a significant manufacturing milestone by conducting the maiden flight of an ALIA electric aircraft produced on its full-scale production line. Following the issuance of a Multipurpose Special Airworthiness Certificate by the Federal Aviation Administration, the company demonstrated the operational readiness of its serial production capabilities. This achievement allowed the manufacturer to transition into a new phase of market survey and crew training operations. The successful flight validated the efficiency of the facility's assembly processes, which are designed to support the delivery of electric aircraft to a diverse customer base.
• In October 2024, Lilium N.V. marked a pivotal step in its development program by successfully powering on the first production-conforming Lilium Jet. This high-voltage test confirmed the proper functioning of the aircraft's complex electrical systems, including the cockpit display, flight controls, and navigation equipment, under a 900-volt load. The event served as a crucial quality assurance checkpoint on the final assembly line, demonstrating that the vehicle was built to exact design specifications. This progress paved the way for the commencement of extensive ground testing, a prerequisite for the planned first piloted flight and eventual type certification.
• In April 2024, EHang Holdings Limited received a Production Certificate from the Civil Aviation Administration of China for its EH216-S pilotless electric vertical takeoff and landing aircraft. This landmark regulatory achievement verified that the company had established a mass production quality management system in full compliance with national airworthiness standards. The certificate authorized the manufacturer to scale up its operations and deliver aircraft for commercial use, covering aspects from supplier management to pre-delivery testing. This development cleared the path for the widespread deployment of autonomous aerial vehicles for low-altitude tourism and urban transportation services.

Key Market Players

• Airbus S.E.
• Volocopter GmbH
• Embraer S.A.
• Honeywell International Inc.
• Hyundai Motor Group
• Jaunt Air Mobility LLC
• Karem Aircraft, Inc.
• Pivotal Aero, LLC
• Pipistrel d.o.o.
• Safran S.A

By Vehicle Type	By Application	By Region
Autonomous Piloted	Passenger Transport Freighter	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Urban Air Mobility Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Urban Air Mobility Market, By Vehicle Type:

• Autonomous
• Piloted

• Urban Air Mobility Market, By Application:

• Passenger Transport
• Freighter

• Urban Air Mobility Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE