Urban Air Mobility Market Opportunities and Strategies to 2033

This report describes and explains the urban air mobility market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global urban air mobility market reached a value of nearly $3.6 billion in 2023, having grown at a compound annual growth rate (CAGR) of 11.31% since 2018. The market is expected to grow from $3.6 billion in 2023 to $11.7 billion in 2028 at a rate of 26.55%. The market is then expected to grow at a CAGR of 26.07% from 2028 and reach $37.2 billion in 2033.

Growth in the historic period resulted from rising investment in infrastructure for smart cities, increasing investments in urban air mobility, rising interest from air logistics and e-commerce sectors, improved safety standards and vehicle certification and increased air travel. Factors that negatively affected growth in the historic period were the lack of raw materials.

Going forward, growing focus on airspace integration and management, strict environmental regulations and sustainable mobility, government initiatives and support, rapid urbanization and growing tourism industry will drive growth. Factor that could hinder the growth of the urban air mobility market in the future include lack of pilot expertise and concerns over airspace congestion.

The urban air mobility market is segmented by vehicle type into piloted and autonomous. The piloted market was the largest segment of the urban air mobility market segmented by vehicle type, accounting for 95.71% or $3.4 billion of the total in 2023. Going forward, the autonomous segment is expected to be the fastest growing segment in the urban air mobility market segmented by vehicle type, at a CAGR of 46.05% during 2023-2028.

The urban air mobility market is segmented by range into intercity and intracity. The intracity market was the largest segment of the urban air mobility market segmented by range, accounting for 70.54% or $2.5 billion of the total in 2023. Going forward, the intercity segment is expected to be the fastest growing segment in the urban air mobility market segmented by range, at a CAGR of 31.76% during 2023-2028.

The urban air mobility market is segmented by end user into ride sharing companies, scheduled operators, e-commerce companies, hospitals and medical agencies, private operators and other end users. The ride sharing companies market was the largest segment of the urban air mobility market segmented by end user, accounting for 35.64% or $1.3 billion of the total in 2023. Going forward, the ride sharing companies segment is expected to be the fastest growing segment in the urban air mobility market segmented by end user, at a CAGR of 31.19% during 2023-2028.

North America was the largest region in the urban air mobility market, accounting for 32.24% or $1.2 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the urban air mobility market will be Asia-Pacific and Middle East and where growth will be at CAGRs of 29.13 and 28.34% respectively. These will be followed by Africa and North America where the markets are expected to grow at CAGRs of 27.42% and 26.06% respectively.

The global urban air mobility market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up 22.4% of the total market in 2023. Airbus SE was the largest competitor with a 3.3% share of the market, followed by The Boeing Company with 3.1%, Lockheed Martin Corporation with 2.8%, United Parcel Service Inc. with 2.7%, Deutsche Post DHL Group with 2.3%, FedEx Corporation with 2.2%, Textron Inc. with 1.7%, Amazon’s Prime Air drones with 1.4%, Uber Technologies, Inc. with 1.4% and Skyworks Aeronautics with 1.3%.

The top opportunities in the urban air mobility market segmented by vehicle type will arise in the piloted segment, which will gain $7.2 billion of global annual sales by 2028. The top opportunities in the urban air mobility market segmented by range will arise in the intracity segment, which will gain $4.9 billion of global annual sales by 2028. The top opportunities in the urban air mobility market segmented by end user will arise in the ride sharing companies segment, which will gain $3.7 billion of global annual sales by 2028. The urban air mobility market size will gain the most in the USA at $2.2 billion.

Market-trend-based strategies for the urban air mobility market include focus on innovative solutions to transform urban air mobility operations, seamless integration of air vehicles promises enhanced urban mobility solutions, strategic partnerships and collaborations among major players and launch of new urban air mobility services to revolutionize travel in traffic-heavy cities.

Player-adopted strategies in the urban air mobility market include focuses on enhancing its business operations through new launches, enhancing its operational capabilities through a significant investment to advance air mobility and through strategic partnerships and collaborations.

To take advantage of the opportunities, the analyst recommends the urban air mobility companies to focus on innovative vertiport management solutions, focus on eVTOL prototype development for urban mobility, focus on launching new UAM services, focus on the autonomous market segment, focus on the intracity market segment, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, focus on strategic partnerships and focus on ride-sharing companies.