Air Taxi Market Report 2026

The air taxi market size has grown rapidly in recent years. It will grow from $48.62 billion in 2025 to $53.5 billion in 2026 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to advancements in lightweight aircraft materials, early adoption of rotorcraft-based air services, congestion in urban ground transportation, expansion of private aviation services, initial regulatory sandbox programs.

The air taxi market size is expected to see strong growth in the next few years. It will grow to $77.02 billion in 2030 at a compound annual growth rate (CAGR) of 9.5%. The growth in the forecast period can be attributed to increasing commercialization of urban air mobility, rising investments in vertiport infrastructure, expansion of electric aviation ecosystems, growing regulatory clarity for air taxi operations, increasing demand for rapid urban transportation. Major trends in the forecast period include increasing development of electric vtol aircraft, rising focus on urban air mobility infrastructure, growing investment in autonomous flight technologies, expansion of intercity and intracity air taxi networks, enhanced emphasis on energy-efficient aircraft designs.

The rising demand for short-distance air travel is expected to propel the growth of the air taxi market going forward. Short-distance air travel generally refers to flights covering relatively short ranges, often within a region or country, where speed, convenience, and point-to-point connectivity are critical. Air taxis, which are small aircraft designed for short-haul operations, are increasingly being used to meet this demand by offering fast, flexible, and personalized transportation solutions. These services are particularly valuable in densely populated urban areas and geographically constrained regions, where ground congestion limits mobility and increases travel time. By enabling direct routes and reduced travel durations, air taxis address the growing need for efficient short-range air connectivity. For instance, in May 2023, according to the International Air Transport Association (IATA), a Canada-based trade association, global air travel demand surged in March 2023, with revenue passenger kilometers (RPKs) increasing by 52.4% compared to March 2022. Therefore, the rising demand for short-distance air travel is driving the growth of the air taxi market.

Major companies operating in the air taxi market are focusing on technological advancements such as electric vertical take-off and landing (eVTOL) aircraft prototyping to improve sustainability, operational efficiency, and noise reduction in urban air mobility. Electric vertical take-off and landing aircraft prototyping involves the design, development, and testing of electrically powered aircraft that use distributed electric propulsion to achieve vertical lift and efficient forward flight. These aircraft enable low-noise operations, zero in-flight emissions, and safe short-range transportation suitable for urban environments. For instance, in July 2024, Eve Air Mobility, a Brazil-based advanced air mobility company, launched its first full-scale eVTOL prototype. The aircraft features multiple electric propellers for vertical lift, a fixed-wing configuration for efficient cruising, and a full-scale airframe intended for extensive ground and flight testing. This prototype supports progress toward certification, safety validation, and commercial readiness by enabling detailed evaluation of flight performance, system reliability, and integration with emerging urban air mobility infrastructure.

In June 2024, Joby Aviation, a US-based aircraft manufacturer developing electric vertical take-off and landing aircraft, acquired Xwing for an undisclosed amount. Through this acquisition, Joby Aviation aims to strengthen its autonomous flight technology capabilities, which are critical for scaling and commercializing future electric air taxi services. Xwing is a US-based autonomous aircraft company specializing in advanced aviation autonomy systems, and its technology is expected to accelerate Joby’s development of safe, efficient, and autonomous eVTOL operations.

Major companies operating in the air taxi market are 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 2025. The regions covered in the air taxi market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

This product will be delivered within 1-3 business days.