Air Taxi Market Report 2025

The air taxi market size has grown strongly in recent years. It will grow from $44.62 billion in 2024 to $48.86 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to urbanization and traffic congestion, rising demand for time-efficient travel, advancements in urban air mobility (UAM), emerging technologies and infrastructure, environmental concerns and sustainable mobility.

The air taxi market size is expected to see strong growth in the next few years. It will grow to $71.33 billion in 2029 at a compound annual growth rate (CAGR) of 9.9%. The growth in the forecast period can be attributed to increased urbanization and megacity growth, growing population mobility needs, regulatory support and frameworks, evolving consumer preferences, collaborations and partnerships. Major trends in the forecast period include collaborations and partnerships, customer acceptance and public perception, market competition and entry of new players, environmental sustainability, market expansion and global reach.

The rise in traffic congestion is projected to enhance the growth of the air taxi market moving forward. Traffic congestion refers to areas that are heavily crowded with vehicles or people. As road congestion continues to escalate, air taxis have opened a new avenue for airports, airlines, cities, hotels, and other businesses, offering an innovative means for passengers and packages to reach their destinations punctually. For instance, a report by INRIX, a US-based leader in transportation analytics solutions, noted that the 2023 Global Traffic Scorecard highlighted and ranked congestion and mobility trends in micromobility usage, showing an 8.3% increase from 2022 to 2023, along with an 8.6% growth in Q1 2024 compared to Q1 2023. Thus, the increase in traffic congestion is propelling the growth of the air taxi market.

The burgeoning interest in short-distance air travel is poised to significantly propel the expansion of the air taxi market in the foreseeable future. This form of travel typically involves flights covering relatively short distances, often within a specific region or country. The utilization of air taxis, which are small aircraft specifically designed for short-haul flights, has gained traction to facilitate convenient and efficient transportation, enabling swift point-to-point connectivity within regions. Air taxis cater to the increasing demand for faster and personalized travel options, particularly in densely populated areas or regions with challenging geographical landscapes. As an example, the International Air Transport Association (IATA), a Canada-based trade association, reported a remarkable surge in air travel demand in March 2023, with revenue passenger kilometers (RPKs) soaring by 52.4% compared to March 2022. This surge underscores the escalating interest in short-distance air travel, consequently fueling the growth trajectory of the air taxi market.

Technological advancements stand out as the predominant trend gaining momentum within the air taxi market. Major industry players are dedicatedly fostering innovative technologies to fortify their foothold in this domain. For instance, in October 2022, Wisk Aero, a prominent US-based advanced air mobility company, unveiled its 6th generation air taxi. This cutting-edge aircraft boasts several distinctive features, including a streamlined design with reduced moving components, human flight control integration, and state-of-the-art autopilot technology that sets an industry benchmark. Notably, the 6th generation air taxi is specifically engineered to become the pioneering vehicle of its kind to receive certification from the Federal Aviation Administration (FAA), signaling a significant milestone in advancing the technological landscape of air mobility. This strategic focus on technological innovation exemplifies the commitment of key market players to push the boundaries of air taxi capabilities, fostering safer, more efficient, and pioneering transportation solutions for the future.

Major companies within the air taxi market are strategically adopting partnerships to enhance urban mobility across significant Indian cities. A strategic partnership involves a collaborative agreement or alliance between multiple entities, such as corporations, organizations, or governments, to achieve mutually beneficial goals. A notable instance occurred in September 2022 when InterGlobe Enterprises, an India-based aviation company, forged a partnership with Archer Aviation, a US-based aircraft company. This collaboration aims to introduce an all-electric air taxi service in India. The envisioned electric air taxis, designed to be competitively priced compared to conventional road-based services, aim to address issues related to ground travel congestion and environmental pollution. The eVTOL (electric vertical takeoff and landing) aircraft, christened 'Midnight,' is capable of carrying four passengers and a pilot for distances of up to 100 miles. The aircraft's design prioritizes safety and sustainability, offering a promising solution for urban transportation challenges while contributing to a cleaner environment. This strategic partnership signifies a concerted effort by industry leaders to revolutionize urban mobility through innovative and eco-friendly transportation alternatives.

In June 2024, Joby Aviation, a US-based aircraft manufacturer focused on developing electric vertical takeoff and landing (eVTOL) aircraft, acquired Xwing for an undisclosed amount. This acquisition is intended to bolster Joby Aviation's capabilities in autonomous flight technology, which is essential for advancing its electric taxi services. Xwing is a US-based autonomous aircraft company that has developed innovative technology for the aviation sector.

Major companies operating in the air taxi market include Hyundai Motor Company, The Boeing Company, Airbus SE, Zhejiang Geely Holding Group Co. Ltd., Textron Inc., Embraer S.A., Beta Technologies Inc., Volocopter GmbH, Wisk Aero LLC, Skyports AeroSystems Ltd., Archer Aviation Inc., Neva Aerospace Ltd., Ehang Inc., Jaunt Air Mobility LLC, Zeva Aero Inc., Lilium Air Mobility AG, Skyway Air Taxi, Talkeetna Air Taxi Inc., Joby Aviation Inc., SpaceRyde Inc., Okona Aero Inc., Vertical Aerospace Ltd.

North America was the highest region in the air taxi market in 2024. The regions covered in the air taxi market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air taxi market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An air taxi pertains to a compact or medium-sized commercial aircraft designed for transporting passengers and occasionally mail to destinations not regularly covered by scheduled airlines. Characterized by strength, lightweight construction, and energy-efficient operation, the air taxi is also recognized as an urban air mobility (UAM) vehicle. Positioned as an alternative mode of transportation in urban areas grappling with congested roadways, the air taxi serves as a solution for efficient and convenient aerial mobility within metropolitan landscapes.

Diverse types of air taxis include multi-copters, quadcopters, and other variations. Multi-copters, characterized by mechanical simplicity, operate by adjusting the speed of multiple downward-thrusting motors and propeller units. These air taxis provide a range of services, encompassing air taxi platform services, air taxi maintenance, repair, and operations (MRO) services, as well as air taxi pilot training services. They are equipped with propulsion systems such as parallel hybrid, electric, turboshaft, and turboelectric, enabling operations across intercity and intracity ranges. Furthermore, these air taxis can operate in both optionally piloted and piloted modes, offering versatility in their modes of operation.

The air taxi market research report is one of a series of new reports that provides air taxi market statistics, including targeted therapy industry global market size, regional shares, competitors with an air taxi market share, detailed air taxi market segments, market trends and opportunities, and any further data you may need to thrive in the air taxi industry. This air taxi market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The air taxi market consists of sales of volocopter, turboprops, piston aircraft and very light jets. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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