In 2026, the answer is "mostly yes," but it depends strictly on the airspace where the aircraft is flying. Under FAA (US) and EASA (EU) regulations, a transponder—specifically an ADS-B Out capable one—is mandatory for almost all controlled airspace. This includes "Class A, B, and C" airspace, areas around major airports (the "Mode C Veil"), and generally anywhere above 10,000 feet. If a pilot is flying a small, vintage "no-electrical-system" plane in rural, uncontrolled "Class G" airspace far from major cities, they might legally fly without one. However, as of 2026, the push for "Total Surveillance" means that almost any plane sharing air with commercial traffic must have a transponder so that Air Traffic Control (ATC) and other planes (via TCAS) can see their position and altitude. Even drones are now required to have "Remote ID," which acts as a miniature transponder for the 2026 digital sky.