North America Advanced Air Mobility Market Forecast to 2030 - Regional Analysis - by Component (Hardware and Software), Operation Mode (Piloted and Autonomous), Propulsion Type (Fully Electric and Hybrid), and End Use (Passenger and Cargo)

The North America advanced air mobility market was valued at US$ 192.83 million in 2022 and is expected to reach US$5.06 billion by 2030; it is estimated to grow at a CAGR of 50.5% from 2022 to 20 30.

Embracing Air Taxis Owing to the Advancement of Urban Air Mobility Fuels North America Advanced Air Mobility Market

Technological advancements, UAMs usage in different civil and commercial applications, and considerable investments in emerging nations fuel the urban air mobility industry. Several cities are expected to adopt the new generation of transportation using eVTOL aircraft due to recent technological breakthroughs in urban air mobility. The eVTOL aircraft are most suitable for shorter trips across congested cities to avoid traffic. The aircraft also helps with middle-mile and last-mile cargo delivery and medical services. Therefore, the adoption of air taxis is growing. The air taxis used for urban air mobility are mostly electric-powered. Hence, they do not cause atmospheric pollution. The urban air mobility industry is at an early stage, which is expected to drive the adoption of air taxis in the coming years. In the first quarter of 2020, Toyota invested US$ 394 million in Joby Aviation eVTOL Aircraft. This comes as an additional step toward co-creating an urban air mobility ecosystem in the country. In January 2022, Boeing made an investment worth US$ 450 million in Wisk Aero to support the development of future pilotless flying taxis. Further, Joby Aviation is planning to achieve certification for its aircraft from the Federal Aviation Administration (FAA) along with its plan to launch commercial operations and passenger service by 2024.

The favorable government initiatives from leading countries and a growing number of startups entering the market fuel the adoption of air taxis. The funding aims to accelerate the adoption of urban air mobility transportation, which consists of drones, eVTOL aircraft, and alternative propulsion systems. According to the FAA, the US is engaged with more than 15 eVTOL aircraft manufacturers. Uber Air, EHang, Volocopter, Joby, and Lilium are among those who have forefront their intent to launch commercial passenger operations within the next three to five years. Thus, upcoming developments and initiatives from leading countries for incorporating the adoption of air taxis would strengthen the demand for urban air mobility, which is expected to provide lucrative opportunities for advanced air mobility market growth during the forecast period.

North America Advanced Air Mobility Market Overview

Geographic diversification across different North American countries and the presence of major aircraft manufacturers, such as Bell Textron Inc., Joby Aviation, and Kitty Hawk, are the major factors driving the sales of eVTOL aircraft in North America. The US Air Force had officially introduced its Agility Prime initiative to accelerate the growth of eVTOL technology. The growing competition in the market is mainly focusing on to achieve the US Federal Aviation Administration aircraft certification and enter commercial service. In April 2022, Jaunt Air Mobility attracted two new private investors to help fund its plans to bring a four-passenger eVTOL aircraft to commercialize in 2026. Thus, such developments in eVTOL aircraft are fueling the market growth of advanced air mobility in North America.

The growing demand for advanced air mobility vehicles from the rest of the world is primarily attributed to the rise in demand for zero-emission aircraft, the increase in demand for last-mile delivery, and the rise in the trend of adopting eVTOL aircraft, air taxis and unmanned small cargo drones. Thus, such factors are holding potential demand for advanced air mobility, which will further propel the market growth.

North America Advanced Air Mobility Market Segmentation

The North America advanced air mobility market is segmented based on component, operation mode, propulsion type, end-use, and country.

Based on component, the North America advanced air mobility market is bifurcated into hardware and software. The hardware segment held a larger North America advanced air mobility market share in 2022.

In terms of operation mode, the North America advanced air mobility market is bifurcated into piloted and autonomous. The piloted segment held a larger North America advanced air mobility market share in 2022.

By end-use, the North America advanced air mobility market is segmented into passenger and cargo. The cargo segment held a larger North America advanced air mobility market share in 2022.

By propulsion type, the North America advanced air mobility market is segmented into fully electric and hybrid. The fully electric segment held a larger North America advanced air mobility market share in 2022.

Based on country, the North America advanced air mobility market is categorized into the US, Canada, and Mexico. The US dominated the North America advanced air mobility market in 2022.

Airbus SE, EHang Holdings Ltd, Bell Textron Inc, The Boeing Co, Embraer SA, Elbit Systems Ltd, Joby Aviation Inc, and Archer Aviation Inc are some of the leading companies operating in the North America advanced air mobility market.