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Global Urban Air Mobility (UAM) Market Report 2023: Sector to Reach $15.54 Billion by 2030 at a CAGR of 25.9%
[March 28, 2023]

Global Urban Air Mobility (UAM) Market Report 2023: Sector to Reach $15.54 Billion by 2030 at a CAGR of 25.9%

DUBLIN, March 28, 2023 /PRNewswire/ -- The "Global Urban Air Mobility (UAM) Market, Operation (Piloted and Hybrid), Component (Platform and Infrastructure), Range (Intracity and Intercity), End-use, and Region - Forecast to 2030" report has been added to's offering.

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The global market for Urban Air Mobility (UAM) is expected to experience significant growth during the forecast period, with a projected market size of USD 15.54 billion by 2030 and a revenue CAGR of 25.9%.

Companies Mentioned

  • Textron Inc.
  • Volocopter GmbH
  • Uber Technologies Inc.
  • Airbus
  • Lockheed Martin Corporation
  • Lilium
  • Jaunt Air Mobility LLC.
  • Ehang
  • Airspace Experience Technologies Inc.
  • Boeing
  • JetPack Aviation

One of the key factors driving this growth is increasing environmental concerns and demand for green transportation solutions, particularly in the aviation industry. UAM is an emerging form of air transportation that is expected to be commercialized by 2023, with a focus on highly automated aircraft that can transport passengers and freight at lower altitudes throughout urban and suburban areas.

The technical advancements in the aviation industry are essential to achieve current UAM objectives, such as all-electric Vertical Take-Off and Landing (eVTOL) aircraft that use electric motors and autonomous fighting systems. UAM is expected to offer on-demand mobility in densely populated and rural areas, as well as regional seamless mobility with efficient and environment-friendly manned and unmanned transportation services. UAM is primarily concerned with mobility planning and urban development rather than aviation and mobility technology innovation.

The rising demand for intracity movement is driving market growth by reducing the pressure on existing urban mobility solutions. However, the scarcity of high-powered, lightweight lithium-ion batteries and proper infrastructure for charging these batteries has led some companies to deploy autonomous aircraft for intracity transportation purposes, while most manufacturers are still in the Research & Development (R&D) phase.

The rapid urbanization is leading to mobility and infrastructure problems due to congestion, pollution, and high economic cost. As a result, there is an increasing need for an innovative mobility paradigm for shorter commute times, avoidance of ground congestion, and facilitation of point-to-point flights across cities. Advanced Air Mobility (AAM) is an extension of the UAM concept that integrates use cases such as cargo delivery, commercial intercity, and public services, among others, to aid in better air traffic management.

However, various regulations imposed by aviation authorities, such as the FAA and EASA, are currently hindering the effective adoption of UAM due to political, economic, social, technological, and legal issues.

Market Dynamics

Driving Force: Smart city initiatives are fueling the demand for Urban Air Mobility (UAM).

As more cities embrace smart city technology to optimize traffic flow, reduce pollution, and enhance public safety, the demand for UAM is on the rise. These cities are leveraging intelligent transportation systems, open data frameworks, and AI-pwered apps to transform urban driving into on-demand Mobility as a Service (MaaS), which helps to reduce congestion and increase mobility.

By collecting data from various sources such as traffic lights, public safety cameras, and embedded devices on public transportation, smart cities can use AI to analyze the data and distribute it through open data pools. This ensures that circumstances are continuously monitored and may be used for route planning, traffic management, public safety, and emergency response.

Recently, on September 22, 2022, EIT Urban Mobility joined a 10-partner collaboration led by VITO to manage the smart cities marketplace. This initiative aims to bring together cities, investors, industries, Small and Medium Enterprises (SMEs), academics, and other smart city initiatives to expand the market for smart and sustainable city solutions.

Challenge: Passenger mobility, affordability, and social equity are limiting the adoption of UAM.

Existing UAM passenger services are often considered premium solutions and have an average cost of around USD 149-300 per seat employing regular helicopters.

However, the high cost may prevent lower- and middle-income households from utilizing UAM services, which may only be accessible to upper-income households to avoid traffic congestion. Additionally, UAM services must be accessible to individuals with impairments and other special requirements.

There are also affordability concerns associated with emergency response use cases, such as medical transport. Individuals without sufficient medical insurance coverage may be unable to afford aeromedical use cases, which could result in expensive medical transportation bills.

Furthermore, most aviation authorities lack specific certification categories for UAM aircraft, which may incorporate innovative features and combinations of features not commonly found in conventional aircraft. These factors could limit the growth of the UAM market over the forecast period.

Key Takeaways

Operation Outlook

The global urban air mobility market has been categorized based on operation, component, range, and end-use. Under operation, it has been segmented into piloted, hybrid, and fully autonomous, with the hybrid segment expected to grow significantly during the forecast period.

This is because hybrid operations for Vertical Takeoff and Landing (VTOL) aircraft, which combine features of fixed-wing drones and multi-rotor platforms, are becoming more popular due to their adaptability for both military and commercial use. They allow for flying transition between two modes, do not require a runway, have higher endurance, and can cover more land. In addition, research and development projects for hydrogen and hybrid propulsion systems are contributing to the growth of this segment.

Component Outlook

Under component, the market has been segmented into platform and infrastructure, with the platform segment expected to have a significantly larger revenue share due to rapid technological advancements, such as the development of prototypes. The infrastructure segment includes charging stations, traffic management, and vertiports.

Range Outlook

Under range, the market has been segmented into intracity and intercity, with the intercity segment expected to register significant revenue growth due to rapid technological advancements in areas such as Unmanned Traffic Management (UTM), noise management, operations in GPS-denied environments, and automation. Planes equipped with technology that can transport up to 4 passengers over distances ranging from 50 to 250 kilometers without requiring a lot of infrastructure are contributing to the growth of the UAM market.

End-Use Outlook

Under end-use, the market has been segmented into ride-sharing companies, E-commerce companies, schedule operators, hospitals and medical agencies, and private operators. The ride-sharing segment is expected to register significant revenue growth due to increasing traffic congestion and the need for faster and more efficient transit options. Companies such as Uber and Hyundai are partnering to develop proper frameworks for the integration of drones and air taxis into the ride-sharing network.

Regional Outlook

In terms of regional outlook, the largest revenue share is expected to come from the North America market, driven by an increasing number of start-ups and organizations involved in developing urban air mobility, as well as significant investments. To further this growth, on August 23, 2022, Eve Holding, Inc. will conduct its first North American UAM simulation using Blade Air Mobility, Inc.'s helicopters as a surrogate for an eVTOL.

This will enable research into operations, ground services, passenger trips, and eVTOL operator requirements, with the aim of providing more accessible and faster connectivity to Downtown Chicago. Ground testing will take place at Vertiport Chicago, mimicking eVTOL's services, infrastructure, and equipment needs.

In Europe, the market is expected to see rapid growth owing to the presence of major companies and various governmental efforts for urban air transportation. The implementation of new technology, such as electric propulsion and increased battery capacity in vertical take-off and landing systems, is also contributing to revenue growth.

The EU-funded project AURORA (sAfe Urban aiR mObility for euRopeAn citizens), which aims to develop and integrate safety-critical technologies to support autonomous flight UAM in urban environments, is expected to provide ample growth opportunities for extending current mobility systems.

Finally, the Asia Pacific market is expected to see steady revenue growth, driven by a rapidly growing population resulting in high traffic congestion. Additionally, countries like Japan, China, India, and Singapore are working to improve and extend their transportation and logistics sectors.

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