Air taxi market seen reaching $25.05 billion by 2035

Market Research Future projects the global air taxi market will expand from $4.82 billion in 2026 to $25.05 billion by 2035, driven by electric vertical takeoff and landing technology. North America held the largest regional share in 2025, while Europe is expected to post the fastest regional growth.

Why it matters: - Air taxis could ease congestion in dense cities by moving short trips off roads and into the air. - The market's projected growth signals rising commercial momentum for electric vertical takeoff and landing aircraft, vertiports and air traffic systems. - The forecast points to a larger shift in urban mobility as cities look for faster and lower-emission transport options.

What happened: - Market Research Future projected the air taxi market will rise from $4.82 billion in 2026 to $25.05 billion by 2035. - The firm said that implies a 20.1% compound annual growth rate from 2026 to 2035. - North America accounted for 48.3% of the market in 2025. - Europe posted the highest regional CAGR in the forecast period. - The report was issued Aug. 31, 2026.

The details: - Air taxis are electric vertical takeoff and landing aircraft used for passenger and cargo transport at lower altitudes in urban and suburban areas. - The market includes multicopter, lift-plus-cruise, tilt-rotor and tilt-wing designs. - Passenger capacity ranges from one seat to more than six seats. - Battery-electric propulsion dominates the market. - Hybrid, turboshaft and hydrogen fuel-cell systems are also covered. - Short-range routes under 50 kilometers hold the largest share within intracity applications. - Optionally piloted air taxis currently contribute the largest share of revenue. - Multicopter air taxis currently dominate the lift-technology segment. - Commercial fleet operators are the largest end-user segment. - Cargo logistics is emerging as a meaningful use case. - Airport connectivity is drawing more attention in major cities. - The report cites traffic congestion, rapid urbanization, battery progress, electric propulsion and autonomous flight systems as core growth drivers. - The report says 68% of the global population is projected to live in cities by 2050. - Regulatory agencies in the U.S., Germany, China and Japan are building airworthiness, safety and airspace frameworks.

Between the lines: - The forecast depends on more than aircraft design. It also hinges on vertiports, charging networks and air traffic management. - North America's lead reflects FAA activity, aerospace incumbents, early adopters and strong investment. - Asia Pacific is positioned for the fastest growth because of urban density and government-backed mobility programs. - Europe is benefiting from net-zero policy pressure and investment in sustainable aviation infrastructure. - The report also highlights familiar risks: regulation, public acceptance, battery limits, charging time and interoperability.

What's next: - The market is expected to move through more certification milestones and route demonstrations in 2026 and 2027. - Joby Aviation is developing 25 vertiports across the U.S. with Metropolis. - Archer Aviation plans initial air taxi trials with multiple U.S. cities under the federal eVTOL Integration Pilot Program. - Eve Air Mobility completed the first flight of its full-scale eVTOL prototype. - The report says more partnerships between aircraft makers, infrastructure providers and mobility operators are likely as commercialization advances.

The bottom line: - Air taxis remain a nascent category, but the combination of policy support, battery gains and urban demand is pushing the market toward commercial scale.