Flying Taxi Market Size, Growth, Global Trends, Forecast to 2034

Flying Taxi Industry Perspective:

The global flying taxi market size was worth around USD 3.85 billion in 2024 and is predicted to grow to around USD 17.59 billion by 2034 with a compound annual growth rate (CAGR) of roughly 16.40% between 2025 and 2034.

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Key Insights:

• As per the analysis shared by our research analyst, the global flying taxi market is estimated to grow annually at a CAGR of around 16.40% over the forecast period (2025-2034)
• In terms of revenue, the global flying taxi market size was valued at around USD 3.85 billion in 2024 and is projected to reach USD 17.59 billion, by 2034.
• The market is projected to grow at a significant rate due to the growing traffic rate in urban areas across the globe.
• Based on the propulsion type, the electric segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the aircraft type, the multicopter segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Flying Taxi Market: Overview

A flying taxi, also known as an urban air mobility (UAM) vehicle, is a modern passenger taxi that works like a helicopter. UAMs are small aircrafts designed to fly on demand over short distances carrying people from one location to another. Flying taxis are considered a future solution to the growing traffic problems on roads across highly populated and urban areas. The current solutions available in the market are generally categorized in the electric vertical takeoff and landing (eVTOL) aircraft segment since they take off and land vertically mimicking the flying technique of helicopters. However, the industry is currently at a nascent stage of development and faces several regulatory hurdles worldwide.

During the forecast period, the industry for flying taxis is expected to generate more investments as the need for innovative transportation solutions grows worldwide. In addition to this, electric flying taxis are expected to generate more investments since they are environmentally friendly and do not pose a significant threat to the ecosystem unlike conventional modes of transportation such as fuel-powered vehicles.

Flying Taxi Market: Growth Drivers

Growing traffic rate in urban areas across the globe to promote market growth rate

The global flying taxi market is expected to be driven by the rising rate of traffic across the globe. Urban areas especially financial, political, or economic capitals of a country. For instance, according to official estimates, the average traffic time in New York City, which is the financial capital of the US, is more than 30 minutes covering 10 kilometers. The city has registered the slowest-moving traffic in the US. Similar statistics are registered in other critical regions such as Mumbai city in India and London in the United Kingdom. Longer traffic jams can have severe financial and social impacts on the economy. Studies indicate that long traffic jams are often associated with poor productivity among daily commutes along with exposure to mental health issues.

Furthermore, excessive traffic also affects the ecosystem due to large volumes of greenhouse gas emissions. These factors along with other reasons have resulted in an increased demand for effective alternatives to regular modes of transportation. Flying taxis are airborne vehicles and hence capable of overcoming the hurdles associated with traffic on roads.

Increasing support from regional government toward the industry will facilitate higher revenue

A growing number of regional governments worldwide are showing increasing support for the idea of operational air taxis. Several advantages associated with flying taxis are driving support from official bodies and governments. For instance, in February 2025, the Indian government announced that it would begin trials for air taxi services in Delhi, the country’s capital along with other cities such as Pune and Mumbai. The trials are expected to begin by 2026 influenced by the growing production of aircraft parts domestically. Local production of parts required for flying taxis will help market players curb additional expenditure and focus more on the quality of the services.

On the other hand, Middle Eastern countries such as Abu Dhabi and Dubai among others are drawing air corridors and regulatory guidelines for the integration of flying taxis in the region’s transportation industry. According to current trends, Dubai and Abu Dhabi will register commercialization of air taxis by 2026 or 2027. The rising partnership between government bodies and UAM technology developers will encourage higher growth in the global flying taxi market during the forecast period.

Flying Taxi Market: Restraints

Lack of effective and comprehensive regulatory guidelines to act as a growth limitation

The global flying taxi industry is expected to be restricted due to the lack of comprehensive and effective regulatory guidelines worldwide. While countries are slowly working toward integrating flying taxis into the regional transportation infrastructure, the regulations are currently in the development stage. The lack of well-established integration strategies concerning flying taxis poses a significant threat to the global expansion of market players.

Flying Taxi Market: Opportunities

Increasing strategic partnerships in the industry and launching new solutions to create growth opportunities

The global flying taxi market is anticipated to generate growth opportunities due to the rising rate of strategic partnerships in the industry. Additionally, the increasing launch of new flying taxis with more efficient performances will further fuel expansion opportunities for the industry players. In January 2025, Sarla Aviation, one of India’s leading electric vehicle take-off and landing (eVTOL) startups, showcased its prototype air taxi at the January Bharat Mobility Global Expo.

According to the research findings, the taxi is equipped to carry 6 passengers on 20–30 km trips at a speed of 250 kmph. In October 2024, Bengaluru Airport in India announced its partnership with Sarla Aviation for the launch of electric flying taxi services. In April 2025, China announced the official approval of the country’s first segment of pilotless flying taxis for commercial purposes. The country has approved Hefei Hey Airlines and EHang Holdings to operate flying taxis in the country for urban sightseeing tours and other commercial purposes. China plans to expand its low-altitude tourism sector leveraging the offerings of flying taxis.

In May 2025, California-based Joby Aviation, Inc., a leading player in the air taxi for commercial use segment, announced a new feat by successfully flying two of its aircrafts together for the first time. With this, the company has achieved a new breakthrough in its flying texting program.

Flying Taxi Market: Challenges

High cost of development and security risks to challenge market growth trends

The global flying taxi industry is expected to be challenged by the high cost of development associated with air taxis. The average expenses associated with the production of a 2-seater air taxi at the prototype stage can range between USD 15 to USD 30 million. The cost further increases when developing commercial-scale flying taxis.

On the other hand, UAMs also pose a security threat. For instance, flying taxis are vulnerable to cyber-attacks. They can also lead to airspace intrusion and post risk of collision with buildings or other aircrafts in the aerial space. The lack of sufficient ancillary infrastructure may further inhibit the industry’s expansion trends in the future.

Flying Taxi Market: Report Scope

Flying Taxi Market: Segmentation

The global flying taxi market is segmented based on propulsion type, aircraft type, and region.

Based on the propulsion type, the global market segments are turboshaft, parallel hybrid, turboelectric, and electric. In 2024, the highest revenue was listed in the electric segment due to the growing use of powerful electric batteries for assisting taxis fly in the air. Furthermore, increasing focus on sustainability in the transportation sector worldwide will aid higher segmental expansion in the coming years. Electric flying taxis are considered ideal for limited passenger groups flying at a range of 10 to 100 kilometers.

Based on the aircraft type, the global market divisions are quadcopter, multicopter, and others. In 2024, the highest growth was listed in the multicopter design segment. The increasing segmental revenue is a result of several advantages associated with multicopter designs such as enhanced safety and better VTOL efficiency. Multicopter flying taxis have several rotors helping the device deliver superior performance. The average number of rotors in multicopters can range between 4 to 18 depending on the model and overall features.

Flying Taxi Market: Regional Analysis

North America to dominate the industry during the forecast period

The global flying taxi market is expected to be led by North America during the projection period. The US will lead the regional market driven by an increasing number of prominent players in the country. The US region is influenced by the presence of companies such as Joby Aviation, Wisk Aero, Overair, and several others. In April 2025, Archer Aviation announced a partnership with United Airlines (UA). The companies are expected to work on developing a new electric air taxi network in New York City.

The network will connect Manhattan to areas such as LaGuardia (LGA), John F. Kennedy (JFK), and Newark Liberty (EWR) in 5-15 minutes. The proposed solutions will leverage existing helipods and vertipods for operational purposes. Europe is a prominent market and is expected to emerge as the second-highest revenue generator during the forecast period. The growing rate of traffic in major European cities will encourage the use of flying taxis.

Moreover, Europe is working toward accepting new solutions that contribute to its sustainability visions such as reduced carbon emissions from the transportation sector. In February 2025, Benidorm in Spain witnessed the first simultaneous flying of drones and air taxis in Europe in an urban setting. Growing tourism in Europe may further encourage the adoption of flying taxis to enhance the tourist experience in the region.

Flying Taxi Market: Competitive Analysis

The global flying taxi market is led by players like:

• Wisk Aero
• Joby Aviation
• Volocopter
• Vertical Aerospace
• Boeing (via Wisk and other projects)
• Autoflight
• SkyDrive
• Archer Aviation
• Embraer (Eve Air Mobility)
• Lilium
• Hyundai (Supernal)
• EHang
• Airbus (CityAirbus)
• Xpeng AeroHT
• Beta Technologies

The global flying taxi market is segmented as follows:

By Propulsion Type

• Turboshaft
• Parallel Hybrid
• Turboelectric
• Electric

By Aircraft Type

• Quadcopter
• Multicopter
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa