Latest News- Urban Air Mobility (UAM) Market: Autonomous is expected to lead the Type segment during 2025-2029

The Urban Air Mobility (UAM) Market is being driven by Rising urbanization and traffic congestion

The Urban Air Mobility (UAM) Market is expected to grow at a CAGR of 42.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 16898.4 million. The urban air mobility (UAM) market is witnessing a significant surge in strategic partnerships and collaborations, with the latest announcement being made on January 14, 2025, between Tata Elxsi and CSIR-National Aerospace Laboratories (CSIR-NAL), both based in India. This alliance aims to bolster UAM solutions, primarily focusing on the development of unmanned aerial vehicles (UAVs) and electric vertical take-off and landing (eVTOL) aircraft. The collaboration combines CSIR-NAL's aeronautical expertise with Tata Elxsi's capabilities in electrification, artificial intelligence/machine learning (AI/ML), sensor fusion, and certification processes. By merging resources, the partnership intends to spearhead advancements in aerodynamic design, autonomous systems, and secure communications, catering to the unique requirements of both manned and unmanned air mobility systems. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Autonomous
  • Piloted
• Application
  • Delivery
  • Passenger mobility
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
  • Middle East and Africa
  • South America

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rising urbanization and traffic congestion
• Increasing demand for emergency services and logistics
• Advancements in eVTOL technology

However, the market also witnesses some limitations, which are as follows:

• Safety and reliability concerns
• Regulatory and certification hurdles
• Battery technology limitations

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Market Scope in Urban Air Mobility (UAM) Market Research Report

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Research Analysis Overview

The Urban Air Mobility (UAM) market is experiencing significant growth with the integration of autonomous aerial vehicles, such as flying cars, into urban transportation. The Federal Aviation Administration (FAA) is spearheading rulemaking through committees to facilitate the introduction of Uber Air, air taxis, air metro, air ambulance, and last-mile delivery services. Aerospace players are developing eVTOL, electric aircraft, utilizing electric motors and batteries, fly-by-wire systems, sensors, and control systems for the autonomous segment, including vehicle type and air taxis and air ambulance segments. CO2 emissions are being addressed through battery-powered UAM vehicles, contributing to a greener future for urban areas.

Market Research Overview

The Urban Air Mobility (UAM) market encompasses the revenue generated by companies offering autonomous aerial vehicle services, such as flying cars and air taxis, approved by the Federal Aviation Administration (FAA). Technavio estimates the UAM market size based on the revenue generated from battery-powered UAM vehicles, including air ambulances, air taxis, air metro, and last-mile delivery services. Factors driving market growth include the increasing popularity of autonomous aerial transportation for various applications, such as reducing CO2 emissions and expediting last-mile delivery. Cross-border e-commerce activities and the evolution of FAA regulations will further fuel market expansion.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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