Global Advanced Air Mobility Market Size Likely to Grow at a CAGR of 35.2% By 2033

As per the current market research conducted by CMI Team, the global Advanced Air Mobility Market size is expected to record a CAGR of 35.2% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 8.2 billion. By 2032, the valuation is anticipated to reach USD 68.1 billion.

Advanced Air Mobility Market: Growth Factors and Dynamics

• Technological Advancements: The Advanced Air Mobility (AAM) market is witnessing significant growth due to continuous technological advancements in electric propulsion systems, battery technologies, and autonomous flight capabilities. These advancements have paved the way for more efficient and sustainable air transportation solutions, driving market expansion.

• Urbanization and Traffic Congestion: Rapid urbanization and increasing traffic congestion in major cities have created a demand for alternative transportation modes. AAM offers the potential to alleviate urban congestion by providing aerial mobility options, leading to increased interest and investment in the market.

• Environmental Concerns and Sustainable Solutions: The aviation industry’s impact on the environment has raised concerns, leading to a growing focus on sustainable transportation options. AAM, with its electric and hybrid-electric aircraft, promises reduced carbon emissions and noise pollution, making it an attractive solution for environmentally conscious consumers and authorities.

• Government Initiatives and Regulatory Support: Governments and regulatory authorities worldwide are showing interest in and supporting the development of AAM. Various countries are investing in infrastructure development and offering incentives to accelerate the adoption of electric aircraft and AAM services, fostering market growth.

• Vertical Integration and Collaborations: The AAM market is witnessing increased collaboration between traditional aerospace companies, tech firms, and startups. These partnerships aim to combine expertise in aviation, electric propulsion, and autonomous technologies to create comprehensive AAM solutions, further propelling market expansion.

• Diverse Applications and Industries: AAM has the potential to cater to various industries, including passenger transportation, cargo delivery, emergency medical services, and tourism. This versatility attracts investment from multiple sectors and contributes to the growth of the AAM market.

• Rising Investment and Funding: The AAM market is attracting significant investment and funding from venture capitalists, private investors, and government agencies. The increasing interest in AAM technologies and services has led to substantial financial support for research, development, and commercialization, accelerating market growth.

Advanced Air Mobility Market: Partnership and Acquisitions

• Volocopter and Geely: In August 2019, Volocopter, a leading AAM company, entered into a strategic partnership with Geely, a Chinese automotive giant. The partnership aimed to develop and commercialize electric air taxis for urban transportation in China. Geely’s automotive expertise combined with Volocopter’s AAM technology aimed to drive the adoption of electric air taxis in the Chinese market.

• Lilium and Qell Acquisition Corp: In March 2021, Lilium, an AAM startup, announced its merger with Qell Acquisition Corp, a special purpose acquisition company (SPAC). The partnership enabled Lilium to go public and raised funds for its expansion plans to commercialize its electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility services.

• Uber Elevate and Joby Aviation: In December 2020, Joby Aviation acquired Uber Elevate, Uber’s aerial ridesharing division. The acquisition allowed Joby Aviation to incorporate Uber Elevate’s expertise in air mobility services and expand its presence in the urban air transportation market.

• DroneBase and AirMap: In June 2020, DroneBase, a drone service provider, acquired AirMap, an airspace management platform. The acquisition aimed to enhance DroneBase’s capabilities in airspace intelligence and management, catering to the growing demand for safe and efficient drone operations in the AAM market.

Report Scope

Advanced Air Mobility Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Advanced Air Mobility Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Delay in Technology Development and Testing: The COVID-19 pandemic disrupted supply chains and led to restrictions on travel and gatherings, causing delays in the development and testing of AAM technologies. Companies faced challenges in conducting physical tests and collaborative efforts, impacting the overall progress of AAM projects.

• Reduced Investor Confidence and Funding: The economic uncertainty caused by the pandemic resulted in reduced investor confidence, leading to a slowdown in funding for AAM initiatives. Many investors shifted their focus to more established industries, creating funding challenges for AAM startups and projects.

• Government Support and Incentives: Governments are likely to provide increased support and incentives to revive industries affected by the pandemic. Incentives such as grants, tax benefits, and regulatory easing for AAM projects can attract investment and accelerate market recovery.

• Resilience and Adaptability: The COVID-19 pandemic underscored the importance of resilience and adaptability in industries. AAM companies that can quickly adapt their business models, operations, and offerings to the changing market conditions are more likely to recover swiftly and capitalize on emerging opportunities.

• Partnerships and Collaborations: Collaboration between AAM companies, established aerospace players, and technology firms can foster innovation and the sharing of resources. Partnerships can lead to the pooling of expertise, faster technology development, and more comprehensive solutions for the market.

• Growing Demand for Sustainable Transportation: The pandemic has amplified the importance of sustainable transportation options. AAM’s potential to offer eco-friendly and efficient mobility solutions aligns with the post-pandemic focus on sustainability. This growing demand can create new opportunities and drive market recovery.

• Focus on Health and Safety: Post-pandemic, there will be an increased emphasis on health and safety in all aspects of transportation, including air mobility. AAM companies that prioritize passenger safety and implement stringent health protocols are likely to gain consumer trust and confidence, leading to a faster recovery of passenger demand.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Advanced Air Mobility Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.

List of the prominent players in the Advanced Air Mobility Market:

• Joby Aviation
• Volocopter
• Wisk Aero (a joint venture between Boeing and Kitty Hawk)
• eHang
• Urban Aeronautics
• Lilium
• A³ by Airbus
• Vertical Aerospace
• Bell Textron
• Archer Aviation
• Others

The Advanced Air Mobility Market is segmented as follows:

By Propulsion Type

• Parallel Hybrid
• Electric
• Turboshaft
• Turboelectric

By Mode of Operation

• Piloted
• Autonomous

By End-Use

• Cargo
• Passenger

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• 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