What is the global market size of Urban Air Mobility (UAM) Market?

Urban Air Mobility (UAM) Market size was valued at USD 2.85 billion in 2022 and is poised to grow from USD 3.80 billion in 2023 to USD 38.34 billion by 2031, growing at a CAGR of 33.5% in the forecast period (2024-2031).

Who are the key vendors in the Global Urban Air Mobility (UAM) Market?

In coming years, a number of companies will try to deploy their UAM systems through partnerships and collaborations as the market is still in its early stages. However, there is still a great deal of preparation needed for the required infrastructure and air traffic control. The participants have joined forces with a number of other businesses or institutions that can offer the necessary technologies. 'Airbus S.A.S.', 'The Boeing Company', 'Volocopter GmbH', 'Joby Aviation, LLC', 'EHang Holdings Limited', 'Bell Textron Inc.', 'Embraer S.A.', 'Lilium GmbH', 'Hyundai Motor Group', 'SkyDrive Inc.', 'Terrafugia Inc.', 'Kitty Hawk Corporation', 'AeroMobil Limited', 'Pipistrel d.o.o.', 'Safran S.A.', 'Eve Urban Air Mobility Solutions, Inc.', 'Honeywell Aerospace', 'Uber Technologies Inc.', 'Zipline International, Inc.', 'Textron Inc.'

Urban Air Mobility (UAM) Market Size

Urban Air Mobility (UAM) Market Insights

Global Urban Air Mobility (UAM) Market size was valued at USD 3.6 billion in 2023 and is poised to grow from USD 4.21 billion in 2024 to USD 14.68 billion by 2032, growing at a CAGR of 16.9% during the forecast period (2025-2032).

Ground transportation networks are being stressed to the breaking point by increasing urbanization and traffic. A faster, safer, more secure, and more interconnected transportation system could be created by taking urban air mobility into the third dimension. Due to ongoing projects and tests around the world, autonomous aircraft and flying cars are no longer the stuff of science fiction. With more than US$ 1 billion invested in the first few months of the pandemic, the UAM sector, which is still in its early stages, experienced significant growth. The two most notable investments were Guangzhou EHang Intelligent Technology Co. Ltd.'s US$ 650 million IPO value and Toyota's US$ 590 million in Joby Aviation. Additionally, the Federal Aviation Administration (FAA) collaborates with more than 15 manufacturers of eVTOL aircraft. Uber Air, Guangzhou EHang Intelligent Technology Co. Ltd, Volocopter GmbH, Joby Aviation, and Lilium GmbH all intend to launch commercial passenger operations within the following three to five years.

Globally, increasing intra city transportation demand is being driven by problems with traffic congestion, particularly in larger cities. Given that several start-ups and aerospace companies view it as a high-growth market, this is likely to increase focus on this technology development and R&D investment. These elements are therefore anticipated to fuel market growth during the projected period.

US Urban Air Mobility (UAM) Market is poised to grow at a sustainable CAGR for the next forecast year.

FAQs

In coming years, a number of companies will try to deploy their UAM systems through partnerships and collaborations as the market is still in its early stages. However, there is still a great deal of preparation needed for the required infrastructure and air traffic control. The participants have joined forces with a number of other businesses or institutions that can offer the necessary technologies. 'Lilium Aviation GmbH (Germany) ', 'Archer Aviation Inc. (USA) ', 'Eve Holdings, Inc. (Brazil) ', 'Airbus SE (France) ', 'EHang Holdings Limited (China) ', 'Joby Aviation, Inc. (USA) ', 'Vertical Aerospace Ltd. (UK) ', 'Volocopter GmbH (Germany) ', 'Bell Textron Inc. (USA) ', 'Embraer S.A. (Brazil) ', 'Hyundai Motor Group (South Korea) ', 'Boeing Company (USA) ', 'Textron Inc. (USA) ', 'Urban Aeronautics Ltd. (Israel) ', 'Kitty Hawk Corporation (USA) ', 'Pipistrel d.o.o. (Slovenia) ', 'AeroMobil s.r.o. (Slovakia) ', 'SkyDrive Inc. (Japan) ', 'Wisk Aero LLC (USA)'

In order to support mass mobility in cities with growing populations, transportation infrastructure needs to be managed properly. Cities all over the world are therefore looking into alternative forms of transportation to lessen traffic congestion. The goal of using autonomous drones for urban air mobility is to reduce traffic congestion and pollution while also reducing the amount of current transportation infrastructure that must be used. An important factor fueling this market's expansion is the rise in congestion in densely populated cities. Urban areas' growing road traffic causes long traffic jams, which add unnecessary travel time.

Commuters spent significantly more time on the road due to increased traffic, especially during peak hours. Most countries' current road systems are unable to handle peak-hour traffic without creating queues. It challenges governments as well as wasting the time of citizens. Additionally, the number of on-road passenger vehicles, which burn fossil fuels, is rising and is negatively impacting the environment. Governments and technology companies have started to take urban automated vehicles (UAMs) into consideration as a potential passenger and cargo transportation option due to the significant concerns about traffic congestion and urban road mobility. This could save a lot of time because it is a reliable and secure air transportation system where passenger-carrying air taxis operate above populated areas.

With a market size of 1.19 billion, North America held the largest portion. Compared to other regions, the region is the market leader in this one. The Boeing Company's presence has also helped to foster a positive environment for the industry because the company is heavily investing in the development of prototypes for testing. In North America, the U.S. is setting the standard for adoption of this cutting-edge mode of transportation. Working together to develop and implement these technologies locally is a large number of American start-ups. Over the following five to six years, a schedule will be established for bringing the UAM into commercial use.