Global Advanced Air Mobility Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Advanced Air Mobility Market 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.

5 Advanced Air Mobility Specifications

Source: According to CMI Market Research Team Analysis

The Advanced Air Mobility (AAM) market is an emerging sector in aviation that centres on developing and integrating electric and autonomous aircraft for urban and regional transportation. This market involves various stakeholders, such as manufacturers, technology firms, service providers, and government entities, collaborating to transform air transportation and offer innovative mobility solutions.

The AAM market is characterized by continuous technological advancements in electric propulsion, autonomous flight capabilities, and smart infrastructure. It emphasizes sustainability, safety, and efficient transportation solutions to address urban congestion and environmental concerns.

Key trends in the AAM market include a strong emphasis on sustainability, the integration of autonomous technologies, increased government support, strategic partnerships between established players and startups, and the development of innovative air mobility services. These trends shape the market’s growth and pave the way for a transformative future of urban air transportation.

Advanced Air Mobility Market – Significant Growth Factors

The Advanced Air Mobility Market presents significant growth opportunities due to several factors:

• Urban Congestion and Traffic Woes: The increasing urbanization and traffic congestion in major cities have intensified the need for alternative transportation solutions. Advanced Air Mobility offers the potential to alleviate ground congestion by providing aerial transportation, which is faster and more efficient, driving the demand for AAM solutions.

• Environmental Sustainability: The aviation industry’s environmental impact has led to a growing emphasis on sustainable transportation options. AAM’s electric and hybrid-electric aircraft promise reduced carbon emissions and noise pollution, making it an attractive choice for environmentally conscious consumers and governments seeking eco-friendly mobility solutions.

• Technological Advancements: Ongoing advancements in electric propulsion systems, battery technologies, and autonomous flight capabilities are fuelling the growth of the AAM market. These technological developments enable the creation of efficient, safe, and cost-effective aerial mobility solutions, driving increased interest and investment in the sector.

• New Urban Mobility Ecosystems: AAM presents opportunities to establish new urban mobility ecosystems, where aerial transportation integrates seamlessly with existing transportation infrastructure. Developing efficient aerial routes and infrastructure, along with smart mobility integration, can enhance urban connectivity and accessibility.

• Air Cargo and Logistics: AAM offers promising opportunities for the transportation of goods and cargo. Expanding the use of autonomous and electric aircraft for cargo delivery can revolutionize the logistics industry, providing faster and more flexible transportation of goods, especially in challenging terrains or remote areas.

• Air Taxi and Ride-Sharing Services: AAM enables the emergence of on-demand air taxis and ride-sharing services, transforming how people commute within and between cities. The development of affordable and convenient air mobility services can revolutionize urban transportation, providing time-saving and efficient travel options for passengers.

Advanced Air Mobility Market – Mergers and Acquisitions

The Advanced Air Mobility Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Advanced Air Mobility Market include:

• Joby Aviation and Toyota: In January 2020, Joby Aviation, a leading AAM company, secured a significant partnership with Toyota to collaborate on the development and commercialization of electric vertical takeoff and landing (eVTOL) aircraft. The partnership aimed to leverage Toyota’s automotive expertise and Joby Aviation’s AAM technology to accelerate the adoption of urban air mobility solutions.

• Wisk Aero and New Zealand Government: In October 2019, Wisk Aero, a joint venture between Boeing and Kitty Hawk, partnered with the New Zealand government to conduct an on-demand urban air mobility trial. The partnership focused on integrating Wisk Aero’s autonomous eVTOL aircraft into New Zealand’s transportation ecosystem to explore new mobility solutions.

• Hyundai Motor and Urban Airport: In February 2021, Hyundai Motor acquired a stake in Urban Air Port, a company specializing in developing urban air mobility infrastructure. The acquisition allowed Hyundai to explore advanced infrastructure solutions for AAM, including eVTOL landing and charging stations, to support the future growth of air mobility services.

• EHang and Yunfu City Government: In February 2021, EHang, an autonomous aerial vehicle (AAV) company, partnered with the Yunfu City government in China to establish an urban air mobility pilot city. The partnership aimed to conduct tests and trials for EHang’s passenger drones, showcasing their potential for urban transportation and aerial mobility services.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Advanced Air Mobility Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Advanced Air Mobility Market – Significant Threats

The Advanced Air Mobility Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Safety Concerns: The development and integration of electric and autonomous aircraft present unique safety challenges. Ensuring the reliability and redundancy of technologies, along with addressing potential system failures and cybersecurity risks, is crucial to gaining public trust and regulatory approval for widespread adoption.

• Regulatory Hurdles: The AAM market is heavily dependent on regulatory approvals and airspace integration. The complex and evolving regulatory environment for urban air mobility poses a significant threat to market growth. Delays in obtaining necessary certifications and approvals can hinder the commercialization and expansion of AAM services.

• High Development Costs: The R&D and manufacturing costs associated with advanced air mobility technologies can be substantial. As the market continues to evolve and competition intensifies, companies may face challenges in securing sufficient funding and managing the financial risks involved in bringing AAM solutions to market.

• Competition and Market Fragmentation: The AAM market has witnessed a surge in players, ranging from established aerospace companies to startups, leading to market fragmentation and intense competition. This competition could result in pricing pressures, reduced profit margins, and potential consolidation, posing threats to smaller players in the market.

Report Scope

Category-Wise Insights

By Event Type :

• Parallel Hybrid Propulsion: Parallel hybrid propulsion combines both traditional internal combustion engines and electric motors to power the aircraft. Both power sources work together, providing improved fuel efficiency and reduced emissions. In the market, parallel hybrid propulsion systems are gaining traction due to their potential for greener aviation. Airlines and manufacturers are exploring hybrid electric solutions to reduce carbon footprints and comply with stricter environmental regulations.

• Electric Propulsion: Electric propulsion systems solely rely on electric motors to drive the aircraft. They offer zero-emission flights, contributing to a more sustainable aviation sector. The market for electric propulsion is rapidly growing, driven by advancements in battery technology and increased environmental awareness. Electric aircraft development has seen significant investments from both established aviation players and startups.

• Turboshaft Propulsion: Turboshaft propulsion uses a gas turbine engine to drive a shaft that powers the aircraft’s rotor system. It is commonly used in helicopters and vertical take-off and landing (VTOL) aircraft. Turboshaft propulsion remains essential for vertical flight capabilities, especially in the growing urban air mobility market. As demand for VTOL aircraft and air taxis increases, turboshaft propulsion systems continue to play a crucial role.

• Turboelectric Propulsion: Turboelectric propulsion involves using a gas turbine engine to generate electrical power, which drives electric motors to propel the aircraft. It provides benefits like reduced emissions and fuel consumption. The market is witnessing a rise in interest and research in turboelectric propulsion for larger aircraft. The potential for more efficient, long-haul flights is driving investments and collaborations to make turboelectric technology a reality.

By Mode of Operation:

• Piloted Mode of Operation: In piloted mode, Advanced Air Mobility (AAM) vehicles are operated by human pilots who control the aircraft’s functions and navigation. Piloted AAM aircraft require trained pilots onboard to ensure safe and efficient flight operations. While piloted AAM vehicles offer familiarity and assurance to passengers, there is a growing trend towards autonomous operations. The market is witnessing an increased focus on the development of autonomous AAM technologies, aiming for safer, more efficient, and cost-effective urban air transportation.

• Autonomous Mode of Operation: These aircraft utilize advanced technologies such as artificial intelligence, sensors, and automation to control all aspects of flight, including navigation, obstacle detection, and decision-making. Autonomous AAM vehicles aim to provide efficient and safe urban air transportation with minimal human involvement. The AAM market is witnessing a strong trend towards the development and integration of autonomous technologies. Companies are investing in research and development to achieve higher levels of autonomy, aiming to enhance safety, reduce human error, and optimize air traffic management for seamless urban air mobility. The growing interest in autonomous AAM vehicles reflects the industry’s commitment to revolutionizing urban transportation.

By End Use

• Cargo: Cargo in the AAM market refers to the transportation of goods and packages using electric and autonomous aircraft. The cargo segment is witnessing a rising demand for efficient and fast delivery solutions, driven by e-commerce growth. Trends include the development of autonomous cargo drones and partnerships between logistics companies and AAM providers to streamline last-mile deliveries.

• Passenger: Passenger in the AAM market refers to the transportation of individuals and commuters via electric and autonomous aircraft. The passenger segment is driven by the need for time-efficient urban mobility solutions and sustainable transportation options. Trends include the emergence of air taxi services and partnerships between AAM companies and cities to create efficient aerial transportation networks.

Advanced Air Mobility Market – Regional Analysis

The Advanced Air Mobility Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North America leads the AAM market with significant investments and regulatory advancements driving adoption. Increasing collaborations with traditional aerospace players and growing interest in urban air mobility, especially air taxis, propel the region’s growth. Dominating players include Joby Aviation, Archer Aviation, Wisk Aero, and Volocopter, focusing on electric VTOL aircraft for urban transportation.

• Europe: Europe explores AAM integration with regulatory frameworks for commercial operations. Sustainable transportation solutions, electric aircraft development, and partnerships with cities drive the market. Dominant players are Lilium, Volocopter, Vertical Aerospace, and Urban Aeronautics, working on innovative aerial mobility solutions.

• Asia-Pacific: Rapid AAM market growth in Asia-Pacific, fueled by government support and urbanization. Investment in eVTOL aircraft and interest in aerial cargo delivery marks the region’s trends. Key players are EHang, Volocopter, Joby Aviation, and Hyundai Urban Air, focusing on electric and autonomous mobility solutions.

• LAMEA: LAMEA witnesses increasing interest in AAM solutions, supported by partnerships and sustainable transportation initiatives. LAMEA is witnessing a growing interest in AAM solutions, driven by urbanization and the need for efficient transportation options. Partnerships between AAM companies and regional airlines to explore aerial mobility services for remote areas. Government initiatives promoting sustainable transportation, leading to increased AAM investments. Key players include Lilium, Volocopter, Wisk Aero, and various regional startups, catering to specific market needs in Latin America, the Middle East, and Africa.

Competitive Landscape – Advanced Air Mobility Market

The Advanced Air Mobility Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships. For example, in 2021, one major partnership in the Advanced Air Mobility market was the collaboration between Lilium, a leading AAM startup, and Qell Acquisition Corp, a special purpose acquisition company (SPAC). The partnership allowed Lilium to go public, raising funds to accelerate the development of its electric vertical takeoff and landing (eVTOL) aircraft.

New players entering the Advanced Air Mobility (AAM) market are adopting innovation and development strategies to establish their presence. These newcomers focus on electric and autonomous aircraft technologies, urban air mobility services, and sustainable transportation solutions. Collaborations with established aerospace companies and government support further facilitate their entry.

Dominating the AAM market are key players that have established a strong foothold through significant investments in technology, regulatory advancements, and market presence. They lead in the development of electric vertical takeoff and landing (eVTOL) aircraft for urban transportation, including air taxis and cargo delivery solutions. These dominant players leverage their expertise, partnerships, and successful deployment of AAM services to shape the industry’s growth and transform the future of air transportation.

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

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• 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