At 31.4% CAGR, Urban Air Mobility Market is expected to reach USD 4.41 billion by 2031 | The Insight Partners
NEW YORK, July 29, 2025 /PRNewswire/ - According to a comprehensive new report from The Insight Partners, the global urban air mobility market is observing healthy growth owing to urban congestion and traffic mitigation, technological advancements, and increased investment and government support.
The urban air mobility market is expected to reach USD 4.41 billion by 2031 from USD 41.23 billion in 2024; it is expected to record a CAGR of 31.4% during the forecast period. Urban Air Mobility (UAM) refers to the use of electric or hybrid aircraft, such as eVTOLs, for short-range transportation of passengers and cargo within urban and suburban environments. As cities face increasing traffic congestion and pollution, UAM presents a sustainable and time-efficient alternative to traditional ground transport. Driven by advancements in aerospace technology, battery efficiency, and autonomous systems, the market is rapidly evolving. Strong government support, regulatory developments, and growing private investment are accelerating commercialization and infrastructure development worldwide.
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The report runs an in-depth analysis of market trends, key players, and future opportunities. The urban air mobility market is rapidly growing due to rising urban congestion, sustainability goals, and technological advancements in eVTOL aircraft. Increasing government support and private investment are accelerating commercialization. Demand for faster, flexible urban transport is driving adoption. The market is poised for strong growth across passenger and cargo segments.
Overview of Urban Air Mobility Market Report Findings
- Urban Congestion and Traffic Mitigation: Urban congestion has become a significant challenge in rapidly growing cities, where increasing populations and vehicle usage lead to traffic jams, longer commutes, and reduced overall productivity. Traditional ground transportation infrastructure struggles to keep pace with urbanization, resulting in overburdened roads and public transit systems. Urban Air Mobility (UAM) presents a transformative solution by utilizing underutilized low-altitude airspace for short-distance travel. Electric vertical take-off and landing (eVTOL) aircraft can bypass road traffic entirely, significantly reducing travel times and easing pressure on ground infrastructure. UAM can significantly improve urban mobility and enhance the overall quality of life in congested metropolitan areas by providing fast, efficient, and flexible transportation options.
- Increased Investment and Government Support: Increased investment and strong government support are crucial in accelerating the growth of the Urban Air Mobility (UAM) market. Private companies such as Joby Aviation, Archer, and Volocopter have attracted significant funding from investors, enabling them to advance aircraft development, conduct test flights, and build necessary infrastructure. Simultaneously, national and municipal governments worldwide recognize the potential of UAM to address urban mobility challenges and actively participate in its development. They are investing in pilot programs, supporting research initiatives, and crafting regulatory frameworks to ensure the safe and efficient integration of UAM into existing transportation systems. Agencies like NASA and the FAA in the United States, along with their European and Asian counterparts, are working on air traffic management systems and certification standards specific to UAM. This collaboration between public and private sectors is laying the groundwork for the commercialization and scalability of urban air transport.
- Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific, respectively. Asia Pacific is expected to register the highest CAGR during the forecast period.
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Urban Air Mobility Market Segmentation
- The urban air mobility market is segmented by platform into air taxi, passenger aerial vehicle, cargo aerial vehicle, and air ambulance. The passenger aerial vehicle segment held the largest urban air mobility market share in 2024.
- Based on operation, the urban air mobility market is segmented into piloted and autonomous. The piloted segment held the largest urban air mobility market share in 2024.
Competitive Strategy and Development
- Key Players: A few of the major companies operating in the urban air mobility market are Airbus SAS; Aurora Flight Sciences; Airspace Experience Technologies, Inc.; Bell Textron Inc; EHang Holdings; Embraer; Jaunt Air Mobility LLC; Kitty Hawk; Hyundai Motor Company; and Volocopter GmbH.
- Trending Topics: automated aircraft, electric vertical takeoff and landing (eVTOL), urban air traffic management, urban air taxis etc.
Global Headlines on Urban Air Mobility Market
- In June 2025, Eve Air Mobility signed its first binding framework agreement with Revo [flyrevo.com], an advanced urban air mobility (UAM) operator headquartered in São Paulo, Brazil, and its parent company, Helicopters International SA (OHI). The contract includes purchasing up to 50 electric Vertical Takeoff and Landing (eVTOL) aircraft, associated entry into service and aftermarket services. This milestone marks Eve's transition from development to execution, solidifying its position as a leading provider of next-generation UAM solutions.
- In January 2025, JetSetGo, a private airline that operates private jets and helicopter charters in India, announced its partnerships with SkyDrive and Eve Air Mobility to develop and deploy urban air mobility (UAM) services in India.
- In June 2024, Airbus and Avincis, a well-established European helicopter operator, signed a Memorandum of Understanding (MoU) to partner on developing Advanced Air Mobility (AAM). The companies will collaborate to explore opportunities for operating electric vertical take-off and landing (eVTOL) aircraft throughout Europe.
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Conclusion:
Urban Air Mobility (UAM) is an emerging transportation solution that leverages electric or hybrid vertical take-off and landing (eVTOL) aircraft to move people and goods efficiently within urban and suburban areas. As cities face increasing congestion and pollution, UAM offers a faster, cleaner alternative to traditional ground transport. Advances in battery technology, autonomous systems, and lightweight materials have made these aircraft more practical and affordable. Governments and private companies heavily invest in UAM, supporting pilot projects, infrastructure development, and regulatory frameworks. This growing collaboration is helping to overcome operational challenges and accelerate market readiness. With increasing demand for sustainable, on-demand mobility, UAM is set to transform urban transportation, reduce travel times, and enhance overall quality of life in the near future.
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