Personal Air Vehicles (PAVs) Market Report 2025

The personal air vehicle (PAV) market size has grown exponentially in recent years. It will grow from $1.61 billion in 2024 to $1.95 billion in 2025 at a compound annual growth rate (CAGR) of 21%. The growth during the historic period was driven by greater experimentation with prototype aerial vehicles, growing awareness of traffic decongestion benefits, the initiation of early government-backed pilot programs, expanding collaborations between aviation and technology firms, and increased media coverage of urban air mobility concepts.

The personal air vehicles (PAVs) market size is expected to see exponential growth in the next few years. It will grow to $4.12 billion in 2029 at a compound annual growth rate (CAGR) of 20.6%. The growth in the forecast period is expected to be driven by rising demand for emission-free urban transportation, increasing adoption of air mobility-as-a-service models, growth in battery-powered air vehicles, expanding government support for air mobility infrastructure, and rising urbanization and traffic congestion. Key trends during this period include advancements in autonomous navigation systems, the development of vertiport infrastructure in cities, innovations in lightweight composite airframe materials, the emergence of hybrid-electric propulsion models, and improvements in real-time air traffic management technologies.

The rising demand for aerial transportation is expected to drive the growth of the personal air vehicle (PAV) market in the coming years. Aerial transport, which involves moving passengers or cargo through the air using aircraft or flying vehicles, is becoming increasingly popular due to urban congestion. Overcrowded roads and traffic delays have heightened the need for faster, above-ground travel alternatives. PAVs support this shift by providing on-demand, point-to-point mobility, reducing travel time and easing ground traffic, thereby improving overall transportation efficiency. For example, Eurostat reported that in 2022, the total number of air passengers in the EU reached 820 million, a 119% increase from 374 million in 2021. This surge in aerial transportation demand is fueling the expansion of the PAV market.

Key players in the PAV market are forming strategic partnerships to scale manufacturing and advance next-generation air mobility solutions. Such partnerships combine resources, expertise, and strengths to foster innovation, efficiency, and long-term competitive advantages. In June 2025, U.S.-based aircraft manufacturer AIR partnered with Germany’s EDAG Group to design and produce the main structure for the AIR ONE eVTOL. The collaboration enables scalable production of both manned and unmanned variants, incorporating a modular aluminum frame with features like folding wings and expanded cabin space to meet personal and commercial needs. The partnership accelerates assembly and commercial rollout, with initial structures already delivered for ongoing production and upcoming customer deliveries.

In February 2024, U.K.-based aerospace company BAE Systems plc acquired Malloy Aeronautics Limited. This acquisition allows BAE Systems to integrate Malloy’s expertise in unmanned aerial systems (UAS) to enhance its advanced air mobility offerings and expand its portfolio of next-generation defense technologies. Malloy Aeronautics specializes in personal air vehicle solutions, strengthening BAE Systems’ position in the emerging PAV market.

Major players in the personal air vehicles (pavs) market are 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 2024. The regions covered in personal air vehicles (PAVs) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the personal air vehicles (PAVs) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the transport sector, particularly in fleet maintenance and logistics operations. Higher duties on imported commercial vehicles, tires, and engine components have increased operational costs for trucking and freight companies, forcing them to raise shipping rates or reduce margins. Airlines and maritime shippers face similar pressures, with tariffs on aircraft parts and shipbuilding materials driving up capital expenditures. Additionally, retaliatory tariffs in key export markets have reduced demand for U.S.-made transportation equipment, further straining revenue streams. The sector must now prioritize fuel efficiency, alternative sourcing, and automation to offset rising expenses while maintaining service reliability.

Personal air vehicles (PAVs) are small airborne transport systems designed for individual or small-group travel, providing on-demand, point-to-point mobility. They aim to transform urban and regional transportation by easing road congestion, enabling low-emission travel, improving transport efficiency, promoting sustainable urban mobility, and supporting the growth of advanced air mobility (AAM) networks.

The primary types of PAVs include electric vertical take-off and landing (eVTOL) aircraft, hybrid-electric aircraft, and hydrogen-powered aircraft. eVTOL aircraft are fully electric, environmentally friendly vehicles that use multiple rotors or fans for vertical lift and transition to forward flight, operating more quietly than conventional helicopters or jets. These aircraft often feature autonomous, semi-autonomous, and manual control options and are distributed through direct sales, distributors, and online platforms. PAVs are applied in urban air mobility, emergency services, recreation, and other sectors, serving end users such as individual consumers, commercial operators, and government agencies.

The personal air vehicles (PAVs) market research report is one of a series of new reports that provides personal air vehicles (PAVs) market statistics, including the personal air vehicles (PAVs) industry global market size, regional shares, competitors with the personal air vehicles (PAVs) market share, detailed personal air vehicles (PAVs) market segments, market trends, opportunities, and any further data you may need to thrive in the personal air vehicles (PAVs) industry. This personal air vehicles (PAVs) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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