Advanced air mobility

Can the United States afford to lose the AAM race?

For more than 100 years, the US aerospace and defense (A&D) industry has been at the forefront of innovation. Today, the A&D industry stands on the horizon of a new era of aviation. AAM—the emergence of transformative airborne technology to transport people and goods in new, community-friendly, and cost-effective aircraft in both rural and urban environments—represents the next inflection point in the aerospace industry’s ongoing evolution.

In the US alone, AAM is expected to be the next significant change in mobility and perhaps the global economy, as it could lead to fundamentally new capabilities and applications that were previously not feasible. AAM technologies promise to transform how people and cargo are moved, driving the United States’ economic engine. In the country alone, the AAM market is estimated to reach US$115 billion annually by 2035, employing more than 280,000 high-paying jobs.

This report offers several insights into how the United States could achieve and sustain a leadership position in AAM and provides recommendations on how to fill the current gaps. It also underscores the role of federal, state, and local authorities in facilitating aerospace commerce and securing the national airspace system. It reflects both forward-thinking optimism and the challenges of embracing this new technology.

Disrupting the future of mobility

After years of false starts and pivots, advanced air mobility (AAM) is finally emerging as a viable mode of transportation to carry people and goods in new, community-friendly, and cost-effective ways. 2021 was a milestone year for the AAM market as electric vertical takeoff and landing (eVTOL) aircraft companies witnessed $5.8 billion in investments.

With urbanization and population growth driving congestion in cities, AAM promises to improve productivity and quality of life, increase accessibility for rural and disadvantaged communities, and expand access to goods and services. Trips would take minutes instead of hours: AAM could cut intra-city travel time more than 60% with zero emissions from flight operations and enable 3x faster inter-city travel.

AAM represents a significant shift in mobility, offering fundamentally new capabilities and applications that were previously not feasible. This article examines how, from a consumer perspective, AAM can enhance the transportation ecosystem and effectively compete with the existing modes of transportation.

Operationalizing advanced air mobility

The advanced air mobility (AAM) industry could become mainstream in the 2030s. The industry has received substantial investments, and today, there are more than 200 companies worldwide that are developing electric vertical takeoff and landing (eVTOL) aircraft. This report examines operating business models for companies involved in AAM operations to consider for passenger mobility. It also focuses on the various consumer segments that are likely to evolve and determine where the most significant opportunities lie. 

Blogs

1. 7 trends driving new opportunities in the A&D industry
   by John Coykendall, US & Global Aerospace & Defense leader
2. The future of flight: Five things Canadians need to know
   by Gérald Faustino, Canada Aerospace & Defense leader