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Electric Aviation Leaders Approach Market Readiness Amid Funding Decline Future Air Mobility (FAM) or Advanced Air Mobility (AAM) is an umbrella term encompassing various advanced air transportation modes, including Urban Air Mobility (UAM) with eVTOL aircraft, Regional Air Mobility (RAM) with eVTOL, eCTOL, and eSTOL aircraft, as well as surveillance and cargo drones, and supersonic flights.

MAJOR PLAYERS BY FUNDING ($M)

A McKinsey report shows that as of August 2024, funding in the sector had reached $2.3 billion, with nearly 80% directed toward UAM and drones. While this indicates a potential to match 2023's total of $3.9 billion by year-end, it also reflects a continued decline in investments since the peak levels seen in 2021. TOTAL DISCLOSED FUNDING FOR FUTURE AIR MOBILITY HAS DECLINED

This funding decline comes at a particularly challenging time for the industry, as major companies in the sector are nearing market readiness. This critical phase demands substantial financial resources to ensure the safety, reliability, and regulatory compliance. The lack of funding has been especially severe for a few European companies that filed for insolvency in 2024. Three key factors will determine the success or failure of a company: establishing a clear path to certification, achieving full-scale production, and demonstrating strong market demand. Source: AAM Reality Index

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