Personal Air Vehicles (PAVs) Market Report 2026

The personal air vehicles (pavs) market size has grown exponentially in recent years. It will grow from $1.95 billion in 2025 to $2.36 billion in 2026 at a compound annual growth rate (CAGR) of 21%. The growth in the historic period can be attributed to advances in lightweight materials, early electric aircraft prototypes, congestion in urban transport, aviation innovation funding, pilot urban mobility trials.

The personal air vehicles (pavs) market size is expected to see exponential growth in the next few years. It will grow to $4.96 billion in 2030 at a compound annual growth rate (CAGR) of 20.4%. The growth in the forecast period can be attributed to regulatory support for aam, battery energy density improvements, autonomous flight certification, smart city integration, sustainable transport demand. Major trends in the forecast period include development of evtol platforms, growth of urban air mobility services, integration of autonomous flight systems, expansion of hybrid and hydrogen aircraft, demand for on-demand air mobility.

The increasing demand for aerial transportation is expected to drive the growth of the personal air vehicle (PAV) market in the coming years. Aerial transport involves the movement of passengers or cargo through the air using aircraft or flying vehicles. The expansion of aerial transport is being driven by urban congestion, as increasing traffic delays and crowded road networks heighten the need for faster, above-ground mobility solutions. Personal air vehicles (PAVs) facilitate aerial transport by enabling on-demand, point-to-point travel, making them well suited for urban and regional mobility. They help ease ground traffic congestion and reduce travel times, enhancing overall transportation efficiency and convenience. For instance, in December 2024, according to Eurostat, a Luxembourg-based statistical office of the European Union (EU), the total number of air passengers reached 973 million in 2023, representing a 19.3% increase from 816 million in 2022. Therefore, the rising demand for aerial transportation is driving the growth of the personal air vehicles (PAVs) market.

Major companies operating in the personal air vehicles (PAVs) market are focusing on adopting strategic partnerships to expand manufacturing capabilities and enhance next-generation air mobility solutions. Strategic partnerships are alliances between organizations that combine strengths, resources, and expertise to achieve shared objectives, driving long-term value creation, innovation, and competitive advantage rather than short-term gains. For instance, in June 2025, AIR, a US-based aircraft company, partnered with EDAG Group, a Germany-based engineering company, to develop and manufacture the main aircraft structure for its AIR ONE eVTOL production model. The collaboration aims to enable scalable, high-quality manufacturing for both manned and unmanned variants, featuring a modular aluminum frame with innovations such as folding wings and expanded cabin space to serve personal and enterprise needs. This partnership accelerates assembly and commercial ramp-up, with the first structures already delivered for ongoing production and planned customer deliveries.

In February 2024, BAE Systems plc, a UK-based aerospace company, acquired Malloy Aeronautics Limited for an undisclosed amount. With this acquisition, BAE Systems aims to integrate Malloy Aeronautics’ unmanned aerial systems (UAS) expertise to strengthen its advanced air mobility solutions and expand its portfolio in next-generation defense technologies. Malloy Aeronautics Limited is a UK-based aerospace company specializing in personal air vehicle (PAV) solutions.

Major companies operating in the personal air vehicles (pavs) market report include Hyundai Motor Company, The Boeing Company, Airbus SE, EmbraerX Inc., Moog Inc., Bell Textron Inc., Hanwha Systems Co. Ltd., Aston Martin Lagonda Global Holdings plc, Lilium GmbH, Archer Aviation Inc., Volocopter GmbH, Vertical Aerospace Ltd., SkyDrive Inc., Eve Air Mobility Inc., Opener Inc., PAL-V International B.V., EHang Holdings Limited, Pivotal Aero Inc., Joby Aviation Inc., Samson Sky LLC.

North America was the largest region in the personal air vehicles (PAVs) market in 2025. The regions covered in the personal air vehicles (pavs) market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the personal air vehicles (pavs) market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The personal air vehicles (PAVs) market consists of revenues earned by entities by providing services such as urban air mobility solutions, autonomous air transportation, air traffic management, and sustainable personal aviation solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The personal air vehicles (PAVs) market also includes sales of airframes, electric propulsion systems, and autonomous navigation systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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