Flying Taxis Are Coming. Can Regulators Keep Up?

The global AAM market is forecast to surge from $14bn to $121bn by 2035, fueled by eVTOLs and US regulatory momentum

11 May 2026

Global advanced air mobility (AAM), a sector covering electric aircraft designed for urban and regional transport, is forecast to grow from $14.14bn this year to $121.53bn by 2035, according to research from SNS Insider. An implied annual growth rate of 24% places it among the fastest-expanding segments in aviation.

America accounts for the largest share of that growth. US demand, currently valued at $5.05bn, is projected to reach $42.79bn within a decade, supported by regulatory movement at the Federal Aviation Administration, rising private investment, and early-stage infrastructure for vertical landing sites known as vertiports.

Electric vertical takeoff and landing aircraft, or eVTOLs, hold 55% of the vehicle-type market in 2025. Operating without runways makes them viable in dense cities where conventional aircraft cannot function. Electric propulsion accounts for roughly 48% of all AAM investment, while hybrid systems are expected to grow fastest as demand for longer intercity routes increases.

Air taxis represent 46% of commercial applications this year. Most current operations cover routes under 100 kilometres, a constraint tied to the energy limits of lithium-ion batteries. Advances in solid-state battery technology are expected to extend that range, opening new commercial territory.

Certification remains the sector's central risk. No US eVTOL developer has yet completed Type Inspection Authorization, the regulatory step required before commercial passenger flights can begin. Independent market estimates vary widely, from $90bn to over $130bn by 2035, reflecting genuine uncertainty over how quickly manufacturers can scale fleets and set viable prices.

FAA's eVTOL Integration Pilot Program is currently gathering safety data across 26 states, an effort intended to accelerate the path from demonstration to formal certification. How quickly that process concludes will likely determine whether the sector's commercial ambitions translate into scheduled operations within the decade.