Advanced Air Mobility Market - By Component (Hardware, Software), By Application (Cargo Transport, Passenger Transport, Mapping & Surveying, Special Mission, Surveillance & Monitoring), By Type, By Operating Mode, By Propulsion Type, By End Use & Forecast

Advanced Air Mobility Market - By Component (Hardware, Software), By Application (Cargo Transport, Passenger Transport, Mapping & Surveying, Special Mission, Surveillance & Monitoring), By Type, By Operating Mode, By Propulsion Type, By End Use & Forecast - 2032

Advanced Air Mobility Market size is poised to expand at over 20% CAGR from 2023 to 2032 fueled by the higher investments for fueling research, development, and infrastructure. The increasing interest from both private and public sectors is injecting capital into research, development, and infrastructure for advanced air mobility (AAM) for accelerating technological innovation. This financial support is enabling numerous companies to push the boundaries of electric propulsion, autonomy, and sustainable aviation, thereby augmenting the industry outlook. For instance, in November 2023, EANAN, a U.A.E. technology business, spearheaded the next evolutionary step in transportation by launching Dubai's first unmanned aircraft to become the city's first commercially running air mobility enterprise.

The advanced air mobility industry is segmented into component, application, type, operating mode, propulsion type, end-user, and region.

Based on type, the market value from the air taxi segment is anticipated to witness high demand between 2023 and 2032. Technological advancements in electric vertical takeoff and landing (eVTOL) aircraft along with the increasing investments from aerospace and technology companies are accelerating the development of air taxi services. The surging demand for convenient point-to-point aerial mobility solutions, especially in densely populated urban areas will further fuel the need for air taxis, adding to the segment growth.

In terms of application, the advanced air mobility industry gained significant traction from the mapping & surveying application segment in 2022 and is likely to record considerable growth through 2032. AAM platforms equipped with advanced sensors and imaging technologies are revolutionizing aerial mapping and surveying operations. With industries increasingly recognizing the benefits of aerial mapping, the rising demand for precise, real-time mapping capabilities is spurring investments and innovations in advanced air mobility technology, propelling the segment expansion.

Regionally, the Asia Pacific AAM industry is poised to exhibit robust growth rate from 2023 to 2032 led by the dynamic aviation sector coupled with the growing tech-savvy population. Due to the rapidly urbanizing landscapes and the burgeoning population base, multiple countries in Asia Pacific are further exploring innovative solutions to address urban transportation challenges. For instance, in June 2023, Honeywell Technology Solutions announced plans to launch an Advanced Air Mobility Lab specialized in drone testing in Madurai to cater to military applications. Moreover, several government-led and private sector investments are driving the development of AAM infrastructure, fostering the growth of air taxis and eVTOL services in the region.