Artificial Intelligence in Aerospace & Defense

Global Artificial Intelligence in Aerospace & Defense Market to Reach US$44.1 Billion by 2030

The global market for Artificial Intelligence in Aerospace & Defense estimated at US$26.6 Billion in the year 2024, is expected to reach US$44.1 Billion by 2030, growing at a CAGR of 8.8% over the analysis period 2024-2030. Hardware Component, one of the segments analyzed in the report, is expected to record a 7.6% CAGR and reach US$17.2 Billion by the end of the analysis period. Growth in the Software Component segment is estimated at 10.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.0 Billion While China is Forecast to Grow at 8.6% CAGR

The Artificial Intelligence in Aerospace & Defense market in the U.S. is estimated at US$7.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.1 Billion by the year 2030 trailing a CAGR of 8.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 7.9% and 7.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.2% CAGR.

Global Artificial Intelligence in Aerospace & Defense Market - Key Trends & Drivers Summarized

How Is AI Transforming Aerospace and Defense Operations?

Artificial Intelligence (AI) is revolutionizing the aerospace and defense sectors by enhancing operational efficiency, decision-making, and mission success. AI-powered systems are enabling advanced applications such as autonomous drones, predictive maintenance, and real-time data analysis, which are reshaping the way operations are conducted. In aerospace, AI is optimizing air traffic management, improving aircraft performance, and enabling autonomous flight systems that reduce human error and enhance safety.

In defense, AI-driven systems are being deployed for surveillance, threat detection, and operational planning. Autonomous drones and unmanned vehicles equipped with AI algorithms are transforming reconnaissance missions by providing real-time intelligence with minimal human intervention. AI-powered decision support systems analyze vast amounts of data to generate actionable insights, enabling military commanders to make informed decisions faster.

AI is also being integrated into simulation and training programs to enhance the preparedness of pilots, soldiers, and other personnel. By creating realistic scenarios, AI-driven simulations improve training outcomes and reduce costs associated with physical resources. These advancements highlight AI’s pivotal role in transforming the operational landscape of aerospace and defense.

What Drives the Adoption of AI in Aerospace and Defense?

The growing complexity of defense operations and the increasing demand for advanced technological capabilities are key drivers of AI adoption in aerospace and defense. Nations worldwide are prioritizing investments in AI to enhance their military capabilities and maintain a strategic edge. AI-powered systems enable predictive maintenance, ensuring that critical assets such as aircraft and vehicles are operationally ready at all times. This reduces downtime and enhances mission efficiency, making AI indispensable for modern military operations.

The need for enhanced situational awareness is another significant driver. AI systems process data from multiple sources, including satellites, sensors, and reconnaissance missions, to deliver comprehensive insights in real time. This capability is particularly valuable in complex battlefields and dynamic environments where timely information is critical.

Additionally, the rise of asymmetric threats, such as cyberattacks and terrorism, is pushing governments and organizations to adopt AI-driven cybersecurity solutions. These systems detect and neutralize threats proactively, ensuring the security of sensitive data and critical infrastructure. These trends underscore the growing reliance on AI as a transformative force in aerospace and defense operations.

Can AI Improve Operational Efficiency and Mission Success?

AI is playing a crucial role in improving operational efficiency and ensuring mission success in aerospace and defense. Predictive analytics and AI-driven maintenance tools are reducing operational costs by identifying potential equipment failures before they occur. This proactive approach not only enhances asset longevity but also ensures mission readiness, reducing the risk of unexpected breakdowns during critical operations.

Furthermore, AI is streamlining logistics and supply chain management in defense operations. By optimizing resource allocation and transportation routes, AI systems ensure that supplies reach their destinations efficiently, even in challenging environments. This efficiency translates to cost savings and improved operational outcomes.

AI’s ability to enhance decision-making is another significant factor in mission success. From analyzing battlefield data to predicting enemy movements, AI-driven systems provide military personnel with the information they need to execute strategies effectively. In aerospace, autonomous systems powered by AI are enabling precise navigation and operational flexibility, ensuring the success of complex missions. These advancements highlight AI’s transformative impact on operational efficiency and mission execution.

What’s Driving the Growth of the AI in Aerospace & Defense Market?

The growth in the Artificial Intelligence in Aerospace & Defense market is driven by several critical factors, reflecting its increasing importance in modern operations. The rising need for autonomous systems capable of performing high-risk tasks is a significant growth driver. AI-powered drones, unmanned vehicles, and robotic systems are being widely adopted for surveillance, reconnaissance, and combat missions, reducing human risk and improving operational outcomes.

Consumer behavior trends, including the demand for faster and more accurate navigation systems, are pushing the aerospace industry to adopt AI-driven technologies. Additionally, the integration of AI with advanced sensor technologies and data analytics platforms is enabling more efficient air traffic management and flight operations.

Government investments in defense AI initiatives and collaborations with private technology companies are further fueling market growth. Regulatory pressures to improve cybersecurity and enhance data protection in defense systems are driving the adoption of AI-driven cybersecurity solutions. These factors, combined with continuous advancements in AI algorithms and hardware, are propelling the rapid expansion of the AI in Aerospace & Defense market, establishing it as a cornerstone of future technological innovation in the sector.

SCOPE OF STUDY:

The report analyzes the Artificial Intelligence in Aerospace & Defense market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Hardware Component, Software Component, Services Component); Deployment (On-Premise Deployment, Cloud-based Deployment); Platform (Land Platform, Airborne Platform, Naval Platform, Space Platform); End-Use (Commercial End-Use, Government & Law Enforcement End-Use)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 44 Featured) -

• Cadence Design Systems, Inc.
• E-SPIN Group of Companies
• Honeywell International, Inc.
• IBM Corporation
• Indra Sistemas SA
• Infosys Ltd.
• Iris Automation Inc.
• Lockheed Martin Corporation
• Monolith AI
• Northrop Grumman Corporation

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs CBob geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.