Air Taxi Market By Aircraft Type (Quadcopter & Multicopter,Fixed-Wing, Hybrid, Others), By Propulsion Type (Electric, Hybrid Electric, Others), By Mode of Operation, By Application (Urban Air Mobility (UAM), Cargo Transport & Logistics, Emergency Medical Services (EMS), Search and Rescue Operations), By End-User, By Region and By Country: Industry Size, Share, Trends Outlook and Forecast, 2025 – 2035

Report Summary

Air Taxi Market Statistics

• Global air taxi market size is projected to reach USD 15 Billion by 2035.

• The market share to expand at CAGR 24% between 2025-2035.

• Worldwide air taxis market size stood at USD 1.4 Billion in 2024.

Air taxi market growth is driven by rapid advancements in electric vertical take-off and landing (eVTOL) aircraft technology, growing investment from aerospace and mobility innovators, and the rising need to alleviate urban congestion. Demand for air taxis is also fueled by rapidly increasing urbanization, increasing need for alternatives to congested road transport, and strong government support for smart city infrastructure and sustainable urban air mobility (UAM).

By 2035, the global fleet of air taxi aircrafts (eVTOLs) is expected to be in the range of 12,000 to 15,000 units. Technological innovations in electric propulsion, battery technology, and autonomous flight modalities and accompanying positive regulatory changes are expected to propel air taxis to accelerated growth during the forecast period to 2035.

The air taxis market is in a nascent but rapidly developing stage, driven by technological innovations, regulatory advancements, and strategic investments. Around 250 firms globally are in the process of developing or testing prototype air taxi designs, indicating a transition from conceptual design to pilot implementations and early-stage commercialization. The air taxi market is attracting a wide range of companies from venture-backed startups to leading industry giants from the aerospace and automotive industries. One of the top priorities of air taxi companies is is achieving regulatory approval and airworthiness certifications with significant aviation regulatory bodies such as European Union Aviation Safety Agency, and Federal Aviation Administration, among others.

The Air Taxis Market Landscape 

Air taxis are next-generation aerial vehicles using electric or hybrid-electric propulsion systems for short-range intra-city and inter-city passenger or cargo transportation. These air taxis have vertical take-off and landing (VTOL) capabilities, making them capable of flying without using conventional runways. Their key purpose is to offer a faster, quieter, and zero-emission mode of transport compared to ground-based modes, especially in high-density and congested metropolitan regions. Generally planned to fly along pre-established flight paths or on-demand through ride-hailing apps, air taxis will utilize a distributed network of vertiports that are part of smart city infrastructure for efficient takeoff and landing operations.

Most of the air taxi designs utilize electric vertical take-off and landing (eVTOL) aircraft architecture and employ battery-driven electric propulsion to ensure low operating costs, minimal noise pollution, and zero tailpipe emissions. Some air taxi models feature distributed electric propulsion (DEP) and employ redundant multiple motors and rotors in order to advance safety and add control and stability in congested urban airspaces. Aerodynamic airframe designs such as tilt-rotors and lift-plus-cruise systems are able to provide effective vertical lift and forward flight. 

Air Taxi Market – Key Insights

• Based on Aircraft Type, Quadcopter & Multicopter segment dominated the global Air Taxi market with more than 70% market share in 2024. 

• Based on Propulsion Type, Electric segment is anticipated to dominate global Air Taxi market with 28% CAGR during the forecast period till 2035.

• Based on Mode of Operation, Autonomous segment is projected to grow with fastest CAGR throughout the forecast period.

• Based on Application, Urban Air Mobility (UAM) segment is expected to lead the global Air Taxi market during the forecast period till 2035.

• Based on End-User, Businesses and Industries segment is projected to expand with fastest CAGR during the forecast period.

• Based on Region, North America region led the global Air Taxi market in 2024 with around 40% market share. Asia Pacific region is projected to expand with fastest CAGR during the forecast period till 2035.

Air Taxis Market Top Drivers 

• Urban Congestion Propelling the Demand for Alternative Transport Modes such as Air Taxis.

• Air Taxis Meet the Growing Demand for Speedy and Efficient Travel.

• Government Initiatives and Support Facilitating Air Taxi Integration into Smart City and UAM Infrastructure.

• Advances in Technology in eVTOL Systems Make Air Taxis Financially Feasible.

• Increasing Investments in Urban Air Mobility (UAM) Driving Air Taxi Market Expansion.

• On-Demand Mobility Trends Boosting Consumer Demand for Air Taxi Services.

Air Taxis Market – Key Trends 

• Dominance Of Electric Propulsion Systems in Air Taxis.

• Increased Emphasis on eVTOL Aircraft Designs for Urban Use-cases.

• Improved Safety through Distributed Propulsion Redundancy.

• Early Deployment to Depend on Piloted and Semi-Autonomous Air Taxi Operations and Autonomous Air Taxis are Long-Term Vision.

• Expansion of Urban Air Mobility (UAM) Infrastructure Including Vertiports.

• Creation of Sophisticated Air Traffic Management Systems.

Air Taxis Industry Ecosystem

The air taxi ecosystem is a multifaceted and evolving network comprising a wide range of stakeholders across the value chain. It begins with raw material suppliers and component manufacturers, followed by OEMs (original equipment manufacturers) responsible for aircraft design and assembly. Propulsion system suppliers, battery makers, and battery technology companies are key to making electric vertical take-off and landing (eVTOL) possible, complemented by charging infrastructure developers. The ecosystem also comprises vertiport developers and operators, who play a key role in developing ground infrastructure, and software and platform providers for navigation, fleet management, and ride-hailing integration. Operators of air taxi services, urban planners, and infrastructure developers work together to integrate smoothly into urban transport systems. The government bodies and civil aviation authorities are regulatory and policy enablers that provide safety compliance, airspace management, and public acceptance. This interconnected stakeholder framework is essential to drive innovation, commercialization, and scalability in the air taxi market.

What are Air Taxi Market Segmentations and Market Shares?

Air Taxi Market Segments based on Aircraft Type

• Quadcopter & Multicopter
• Fixed-Wing
• Hybrid
• Others

Quadcopter and Multicopter segment dominated the global air taxi market in 2024 with more than 70% of the market share. Quadcopter & Multicopter is benefited by the facility of Vertical Take-Off and Landing (VTOL), which is suitable for cities where space is scarce for the runways. Multicopters, having fewer and shorter development times relative to tilt-rotor or fixed-wing solutions, are appropriate for short-haul intra-city travel and feature prominently in Urban Air Mobility (UAM) solutions. Enhanced by the advances in electric vertical take-off and landing (eVTOL) technology, these are low-emission, power-efficient, and affordable modes of transport. The Hybrid aircraft segment, which brings together the fixed-wing flight design and VTOL capabilities, is likely to expand as it brings the operational efficiency and longer range of fixed-wing designs to the table. In the meantime, tilt-rotor aircraft offer flexibility of use but are as yet less prevalent, although their share of the market is likely to rise with technology and infrastructure improvements.

Air Taxi Market Segments based on Propulsion Type

• Electric
• Hybrid Electric
• Others

Electric propulsion is expected to dominate the global Air Taxi market, with a 28% CAGR by 2035. Electric propulsion is enormously beneficial with low operating costs, zero emissions, and low noise pollution, making it an ideal choice for urban air mobility. The developments in high-density battery technology and advancements in energy storage technologies are propelling the demand for all-electric air taxis. Such systems enable sustainable mobility, which corresponds to environmental needs and the increased demand for eco-friendly mobility solutions. Improved battery technology is advancing range and performance, further making electric propulsion market-viable. Governments and regulatory agencies are actively promoting electric aviation, bolstering the expansion of this segment.

The others segment such as hydrogen-based propulsion systems, are in the early stages of development. Although hydrogen has tremendous potential for reducing carbon emissions, fuel cell technology needs to be developed further before it can emerge as a dominant propulsion system in the air taxi market.

Air Taxi Market Segments based on Mode of Operation

• Piloted
• Autonomous

In the Air Taxi Market, the autonomous segment is expected to experience the fastest growth throughout the forecast period. This growth is driven by advancements in AI-powered navigation systems, machine learning algorithms, and advanced avionics, all of which contribute to the rising demand for autonomous air taxis. The primary benefits of autonomy are lower operating expenses, improved safety via elimination of human factors error, and the possibility of increased frequency of trips and better airspace management, all of which combine to make it an attractive solution for mass-scalable air taxi fleets.

In the initial phase, piloted air taxis will dominate the market since developers will fine-tune the technology and regulatory structures will be in place. Piloted variants will be important in demonstrating the concept and establishing public trust. Nevertheless, once autonomous technology is ready, the market will increasingly make a transition towards full autonomy. For the meantime, semi-autonomous air taxis can bridge the gap, and a transition towards full autonomy will be feasible.

Air Taxi Market Segments based on Application

• Urban Air Mobility (UAM)
  • Passenger Intra-City Transportation
  • Passenger Inter-City Transportation
• Cargo Transport & Logistics
• Emergency Medical Services (EMS)
• Search and Rescue Operations
• Others

Urban Air Mobility (UAM) segment is expected to lead the Air Taxi Market in the forecast period through 2035. The UAM demand growth is pushed by high urban density, the demand for quicker mobility solutions, and the need to ease the congestion on conventional roads and metro transit systems in megacities.

Under UAM, the passenger intra-city transportation sub-segment is expected to be the largest. This segment provides a quick, point-to-point mode of transportation between city centers, avoiding the traffic and delays normally encountered on the roads. Although passenger inter-city transportation will not be the leading application initially, its growth prospects are strong, especially as long-distance electric propulsion systems keep advancing, opening up longer-distance air taxi travel as more feasible.

Air Taxi Market Segments based on End-User

• Individual Consumers
• Businesses & Industries
• Others

The businesses & industries segment is expected to grow at fastest CAGR throughout the forecast period in the Air Taxi Market. This growth is largely attributed to the increasing adoption of air taxis for corporate travel, logistics, and various industrial applications. Companies are in pursuit of improved productive and more efficient modes of transportation to minimize costs and ensure more efficient operating systems. The deployment of air taxis for logistics, infrastructure inspection, and on-demand cargo delivery is growing their utilization from purely passenger transportation. The growing boom in e-commerce and the demand for quick delivery are propelling the logistics sector growth, particularly for last-mile delivery, which is generally the most challenging and costly segment of the delivery process.

The individual consumers segment is well-placed for long-term growth, particularly with the emergence of autonomous air taxis and ride-hailing platforms. However, broader adoption of air taxis by individual consumers will depend on cost savings, evolving regulatory scenario, and increased public confidence in air mobility technologies.

Air Taxi Market Report Scope & Snapshot

What are Regional & Country Trends in Global Air Taxi Market?

Global Air Taxi Market - Regional Insights

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

North America is expected to dominate the world air taxi market during the forecast period, with the United States leading most of this growth. The region's dominance is a result of a mix of high investments in urban air mobility (UAM), early-stage regulatory progress by the Federal Aviation Administration (FAA), and the existence of innovative air taxi operators. Cities such as Los Angeles, New York, and Dallas are leading the way with UAM pilot programs, backed by robust infrastructure development and public-private partnerships. The U.S. enjoys a relatively advanced and developing regulatory environment which encourages innovation and safety. Increased interest in utilizing air taxis for local and urban mobility is fueling technology trials as well as commercialization at fast pace. 

Europe is experiencing robust growth in the air taxi market, fueled by environmentally friendly objectives, urban mobility planning integrated, and cross-country cooperation. Government incentives for electric aviation and urban air mobility have propelled growth in the region. Emphasis is placed on the integration of air taxis with existing public transport modes to reduce urban congestion as well as reduce emissions. Germany, France, and the United Kingdom are leading the charge in this regional development with companies pursuing test flight programs and early commercial rollout preparations. 

Asia Pacific is the fastest-expanding regional market for air taxis driven by rapidly expanding urbanization, essential traffic congestion, and growing investments in nascent mobility solutions. Regional governments are fostering smart city initiatives and subsidizing eVTOL adoption at the policy and funding levels. Countries such as China, Japan, South Korea, India, and Singapore are heavily investing in pilot initiatives, eVTOL infrastructure, and R&D. China is currently ahead of the region in eVTOL patent filings and public investment, supported by national targets for green aviation. In Japan, although early plans were for commercial air taxi services during the 2025 Osaka Expo, delays in certification have restricted activity to demonstration flights, with SkyDrive and Joby Aviation among companies planning non-passenger demonstration flights. India is also a new and promising air taxi market with the Directorate General of Civil Aviation (DGCA) already drafting new regulations for supporting the integration of eVTOL aircraft in national airspace in a safe way. 

Air Taxi Industry – Key Regulatory Developments by Regions & Countries

• In Europe, the European Commission together with the European Union Aviation Safety Agency (EASA) has adopted a package of legislation which defines the last regulatory framework for Innovative Air Mobility (IAM). This framework stipulates precise requirements of compliance by piloted electric air taxis as well as by standards of Air Operations (Air OPS), Standardized European Rules of the Air (SERA), Air Traffic Management (ATM), and Flight Crew Licensing. 

• In China, Civil Aviation Administration of China i.e., CAAC has already issued air operator certificates to EHang Holdings and Hefei Hey Airlines, which licenses the commercial operation of autonomous passenger drones such as the EHang EH216-S. This is after EHang attained a production certificate in April 2024, permitting mass production of autonomous eVTOLs for urban transport and tourism services.

• In the U.S., the Federal Aviation Administration (FAA) completed important updates to bring powered-lift aircraft into the National Airspace System (NAS), including pilot licensing and training requirements, in October 2024. In July 2023, the FAA had issued earlier the Advanced Air Mobility (AAM) Implementation Plan Version 1.0. The plan under the Innovate28 (I28) initiative defines near-term milestones toward paving the way for AAM implementation in chosen regions by 2028. While certification of airplanes for platforms being developed by Joby Aviation, Archer Aviation, and others is still in process, the operating framework is generally established.

• India has planned to launch air taxis by 2026. The Directorate General of Civil Aviation (DGCA) has issued airworthiness standards for Vertical Take-Off and Landing-capable Aircraft (VCA) and made out preliminary vertiport specifications. One such key milestone was achieved in January 2025 when The ePlane Company received the first DGCA type certification for an eVTOL aircraft in India from an Indian manufacturer.

• In South Korea, the Ministry of Land, Infrastructure, and Transport (MOLIT) took the initiative to develop the K-UAM Roadmap that focused on vertiport construction and the deployment of operational procedures. The roadmap also introduces a 2026 deadline for trial air taxi flights and initial infrastructure deployment.

• The United Arab Emirates is actively developing its air mobility infrastructure. The General Civil Aviation Authority (GCAA) has started mapping urban air corridors and preparing regulatory guidelines, to be completed within a year. Air taxi services are expected to start by 2026, backed by the approval of the Dubai International Vertiport (DXV)—the nation's first commercial vertiport near Dubai International Airport (DXB).

How is the Competition Dynamics in Air Taxi Market?

The air taxi industry is marked by highly competitive scenario driven by the integration of traditional aerospace giants and emerging start-ups. Players in the market are actively forming strategic alliances with technology companies, vertiport infrastructure developers, commercial airlines, and urban mobility authorities to hasten aircraft development and enable rapid market deployment. There is a strong emphasis on regulatory convergence, with firms working closely with aviation regulators to obtain type certifications, operating clearances, and airworthiness certificates. A number of major players are vertically integrating their businesses across aircraft design, manufacturing, and service deployment, to rationalize value chains and improve cost-effectiveness. Safety, reliability, and sustainability continue to be at the heart of corporate plans with businesses seeking to build consumer confidence, secure public approval, and be ready for the upcoming age of advanced air mobility.

Some of the key manufacturers operating in Air Taxi Market includes:

• Airbus
• Archer Aviation
• Autoflight
• Beta Technologies
• EHang
• Eve Air Mobility (Embraer)
• Jaunt Air Mobility (Airo Group)
• Joby Aviation
• Robinson Helicopter Company
• Rottnest Air Taxi
• Lilium
• Sarla Aviation
• SkyDrive
• Supernal (Hyundai)
• The ePlane Company
• Vertical Aerospace
• Volocopter  
• Wisk Aero (Boeing)
• Others