The U.S. urban air mobility market is projected to reach $18.8 billion in 2035, at a compound annual growth rate (CAGR) of 23.1% during the forecast period 2023-2035. The current 2020 domestic value of the "piloted" UAM market at approximately $800 million.
The increase in traffic congestion and rapid growth of urbanization are the significant challenges faced by some of the mobility industry in the world today, and innovative solutions in urban mobility are important for a sustainable future. There are several new mobility initiatives such as automotive transportation-as-a-service, high-speed train concepts such as hyperloop, autonomous cars, and aerial transportation.
The major driving factors are the growing need for an alternate mode of transportation in urban mobility and demand for an efficient mode of logistics and transportation services. Players operating in the U.S. urban air mobility market are developing innovative products and vehicles to enhance the capabilities of their product offerings and have been collaborating with other companies to establish a larger market presence in the industry.
Depending on the destination, travel distance, location of transportation, and duration of the journey, a passenger can select various modes of transportation. The concept of urban air mobility (UAM) was first realized in Sao Paulo, Brazil, where air mobility was provided by helicopters. The UAM adoption level in Brazil was higher than in Tokyo and New York City combined.