Pilot project launched to accelerate federal adoption
Electric vertical takeoff and landing aircraft manufacturers continue to push for commercialization.
Construction of vertical takeoff and landing infrastructure in major cities
Flying cars, or air taxis, have been attracting attention as a new mode of transportation for the future, potentially escaping heavy traffic congestion in urban areas. Electric vertical take-off and landing (eVTOL) aircraft have been primarily developed in the United States, and while the global eVTOL market is still in its infancy, it is expected to grow rapidly over the next decade. According to market analysis firm Markets and Markets, the global eVTOL aircraft market was valued at $760 million in 2024 and is projected to reach $4.67 billion by 2030. The market is expected to grow at a compound annual growth rate of 35.3% during this period, and then reach $17.34 billion by 2035, with a compound annual growth rate of 27.6%. The eVTOL aircraft market is dominated by North America, Europe, and the Asia-Pacific region, with North America expected to see the largest growth.
While air taxi services are not yet commercially available in the United States, their market potential is highly anticipated, primarily due to the growing demand for faster, more efficient transportation in congested cities and surrounding areas. With urban population growth, existing ground transportation is struggling with congestion and long commutes, and air taxi services are expected to shorten travel times by utilizing vertical air corridors. Furthermore, eVTOLs are electric aircraft with zero emissions, minimizing noise and offering a sustainable and eco-friendly mode of transportation. Furthermore, recent advances in battery and electric propulsion technology have made eVTOL flight feasible. Improved battery energy density and electric motors are enabling the lift, range, and speed required for eVTOL operation. However, despite this market demand and technological advancements, commercialization of these services has not yet been achieved, largely due to regulatory and policy constraints.
The Trump administration has recently shown signs of establishing an institutional foundation to accelerate the commercialization of air taxi services, raising expectations for the launch of commercial services.
Promoting the institutional foundation for accelerating the federal government's introduction of air taxis.
On June 6th of this year, the Trump administration issued an executive order aimed at bolstering US drone dominance. The order aims to accelerate the development of unmanned aerial vehicles (UAVs) and eVTOLs (eVTOLs), accelerate their commercialization, and establish a production network for future air mobility. The order requires the U.S. Department of Transportation to publish rules by February 1st of next year to expand the operation of commercial UAV systems and develop a roadmap for integrating UAVs into the national aviation system. The order also includes establishing an integrated pilot program and selecting demonstration projects to accelerate safe and legal eVTOL operations in the United States. It also stipulates that the information and experience gained from these demonstration projects can be expanded to other advanced aircraft.
As part of this executive order, the Federal Aviation Administration (FAA) announced a new pilot program on September 12th to accelerate the adoption of Advanced Air Mobility (AAM). Known as the Electric Vertical Takeoff and Landing Integration Pilot Program (eIPP), the program will bring together state and local governments and private companies to develop and test regulations for the safe operation of urban air mobility. The program will include at least five pilot projects across a variety of sectors, including short-haul air taxis, long-haul fixed-wing flights, cargo and logistics, emergency management, medical transport, and offshore energy supply. Experience with the program will enable exploration of nationwide expansion, and participating aircraft could potentially be permitted to operate early in select markets even before full FAA certification (Federal Aviation Administration). Interested participants are invited to submit proposals by December 11th, and selected participants will participate in the development of the regulations for a three-year period. Shortly after the FAA announced the pilot program, major eVTOL aircraft manufacturers including Joby Aviation, Beta Technologies, and Archer Aviation quickly expressed interest in participating.
Trends in eVTOL commercialization by major manufacturers
Joby Aviation, a leading eVTOL developer, successfully completed a flight between public airports in California in August. The flight, which began at Marina Airport and ended at Monterey Airport, covered a distance of approximately 18.5 km and lasted 12 minutes, including a five-minute air traffic control loop to maintain airspace separation. During this flight, the company successfully operated alongside other aircraft through a coordinated air traffic control system. This flight marks the first time that an aircraft has interacted with other aircraft within FAA-controlled airspace, marking a significant milestone in the path toward commercialization. Prior to this test, Joby had been preparing for commercial air taxi service operations for several years, having flown over 40,000 miles. Joby emphasized that the success of this test flight demonstrated the technological capabilities required for a real-world service and will serve as a preparatory step for future commercial service. The air taxi used in this demonstration flight was a piloted eVOTL.
Meanwhile, Boeing is pursuing commercial drone taxi flights. Wisk Aerosms, Boeing's air taxi subsidiary, has announced plans to begin commercial drone taxi flights in Houston, Los Angeles, and Miami by 2030. Wisk's model, a four-seat eVOTL designed for autonomous operation without a pilot, is currently conducting consultations and simulations with the FAA and local governments on flight control, traffic management, and safety testing. It is also reported that the company is discussing the possibility of establishing vertical takeoff and landing fields (vertiports) for eVOTLs with aviation authorities in several cities. The company has signed agreements with the University of Miami and the Miami-Dade Aviation Department in Florida to support the establishment of vertiports at Miami International Airport and other regional airports.
There are also active cross-industry collaborations and acquisitions aimed at commercializing air taxis. Last June, helicopter operator Bristow Group expanded its partnership with Vertical Aerospace, a British manufacturer of eVTOLs. Bristow is attempting to enter the air taxi market by purchasing Vertical's latest VX4 vertical takeoff and landing aircraft, a strategy aimed at reducing initial costs and risks by sharing existing infrastructure, including flight operations, maintenance, and insurance. This partnership is expected to allow eVTOL operators to quickly enter the market without requiring their own infrastructure and alleviate some of the operational barriers (Reuters). Similarly, Joby announced plans in September to acquire the passenger business of Blade Air Mobility, a helicopter taxi service provider. The deal, reportedly valued at $125 million, will give Joby access to Blade's infrastructure, routes, and existing customers (The New York Times). Meanwhile, Joby is partnering with Uber to offer helicopter booking functionality through the Uber app starting in 2026. When air taxi service is commercialized in the future, customers will be able to reserve air taxis through Uber just as they currently reserve ground transportation.
Archer Aviation, which recently completed the public flight of its “Midnight” aircraft at the California International Air Show (October 4-5, 2025), announced plans in April of this year to partner with United Airlines to build an air taxi network connecting downtown New York City and its airports. Archer envisions the Midnight, a four-seat aircraft, connecting Manhattan and nearby airports, cutting travel times that typically take one to two hours by car to just five to 15 minutes. United plans to build vertical takeoff and landing pads at airports and helipads in downtown areas, leveraging existing aviation infrastructure. Archer CEO Adam Goldstein told reporters that with existing helicopter infrastructure, regulatory support, and strong demand, New York City could become one of the first markets for air taxis in the United States. Meanwhile, Archer is also pursuing a project to introduce Midnight aircraft to the Osaka area through an agreement with Japan Airlines, a Japanese airline, as well as the US, and is also promoting the construction of a hybrid vertical takeoff and landing pad utilizing a cruise terminal in Abu Dhabi, UAE.
Status of construction of vertical takeoff and landing pads (vertiports) in major U.S. cities
For eVTOL operation, infrastructure such as vertiports and terminals capable of vertical takeoff and landing are essential, in addition to the aircraft itself. Initial vertiports are likely to utilize existing helicopter parking infrastructure. For example, Archer's pilot route, announced by the company, utilizes heliports on hospital rooftops in Manhattan, New York, connecting downtown Manhattan to Newark Airport (EWR). Chicago could also utilize Vertiport Chicago, a large heliport already in the city center. Several companies, including Eve Air Mobility, are pursuing urban air mobility pilot projects aimed at completing a full-scale vertiport by 2026.
Meanwhile, Los Angeles, California, where major eVTOL operators frequently conduct demonstration flights and pilot routes, has selected vertiport sites near Los Angeles International Airport (LAX) and downtown. In particular, the city is implementing the "Skyports Project," which involves converting existing parking facilities into vertiports, with the goal of connecting downtown via eVTOLs by the time of the 2028 Olympics.
Southern states like Florida, Georgia, and Texas are also actively pursuing the establishment of vertiport infrastructure. In Georgia, where Archer is building a production facility and pursuing regional hub development, state-level institutional reform is progressing rapidly. The Georgia legislature is expected to pass legislation in the first half of 2025 to permit and promote vertiport construction, granting the state Department of Transportation authority to regulate eVTOLs. The state is actively establishing a regulatory foundation for eVTOLs. Orlando, Florida, is partnering with Lilium to build a vertiport, and Miami is working with Uber to develop a vertiport. Dallas, Texas, is also partnering with the Dallas-Fort Worth Airport (DFW) and city officials to plan a route connecting the airport to downtown Dallas.
implication
Several challenges remain before air taxi services can truly become commercially viable in the United States. FAA certification and aviation safety regulatory approval are a top priority. Integrating new aircraft types like eVTOLs into existing aviation regulations is challenging. Furthermore, both technical and regulatory challenges, such as flight safety, collision avoidance, weather response, and maintenance and operational standards, must be addressed simultaneously. However, efforts toward commercialization are accelerating at the federal government level, and companies are continuing to prepare for commercial service through aircraft development, cross-industry collaborations, and acquisitions.
Amidst this trend, Korean companies with advanced technologies can explore opportunities in various fields. eVOTL requires a convergence of traditional aviation, automotive, and battery technologies, including lightweight aircraft structures, motors, batteries, thermal management, and battery pack balancing. This presents a supply opportunity for Korean companies in the battery, electric drive, and precision components sectors. Furthermore, power equipment companies can explore potential entry into the market, as demand arises for the design and construction of storage devices for vertiport's high-power charging and energy management. Furthermore, the market can be linked to diverse fields, such as communications solution-related software programs and vertiport design-related construction services. Therefore, it is crucial to pay close attention to changes in relevant markets and develop long-term strategies.
Source: Axios, CBS News, Federal Aviation Administration, Flying Cars Market, Joby Aviation, Markets and Markets, Reuters, SMARTCITIESDIVE, The New York Times, KOTRA Atlanta Trade Center