Strategic Intelligence: Artificial Intelligence in Aerospace, Defense, and Security
Description
Strategic Intelligence: Artificial Intelligence in Aerospace, Defense, and Security
Summary
At GlobalData, we track all themes impacting all companies across all sectors. Understanding the themes set out in this report will help you outperform your peers in 2025. The graphic below depicts our 2025 theme map. It highlights the big themes driving profits across industries and is the result of a series of interviews with senior industry executives and investors, reflecting an up-to-date view of the issues that keep them awake at night. Our 2025 theme map covers not only disruptive technology themes but also ESG, macroeconomic, and regulatory themes.
In the world of Aerospace, defense and security, our industry-specific themes focus on particular defense-related technologies, as well as trending segments of the market with the largest up-front investments in expanding production, R&D and product development. Naturally, geopolitics remains a central theme for aerospace and defense, as the core primary driver of investment and growth in this space.
Geopolitical pressures are increasing global RDT&E budgets
Emerging prospective conflicts and political pressures are forcing the West, especially Europe, to re-arm at a dramatic pace. The West has long focused on high-tech, “boutique” armaments that are integrated with several forms of technology. As research, development, test, and evaluation (RDT&E) budgets increase across the board, investment in artificial intelligence (AI), will only increase. GlobalData estimates the total AI market will be worth $642 billion by 2029, up from $131 billion in 2024 at a compound annual growth rate (CAGR) of 37%.
Contractors already use AI to maintain the ADS value chain
Operation and maintenance (O&M) costs are a serious expenditure for militaries, accounting for 35% of the US Department of Defense’s (DoD) 2025 budget. AI can predict when assets will need maintenance, allowing for work to be done proactively, reducing downtime, and improving the cost-effectiveness of each asset. Aerospace, defense, and security (ADS) players are using AI to perform quality assurance, optimize assembly lines and supply chains, and inspect equipment.
Current frontline applications of AI revolve around C4ISR
AI is primarily used as a tool to enhance decision-making and automation on the battlefield, enhancing command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) for armed forces. AI’s effect on high-intensity warfare (HIW), as of current, remains limited. Given the cat-and-mouse game of warfare, where one’s technological edge can quickly become obsolete, AI platforms need more time and investment to adjust to countermeasures.
Autonomous uncrewed platforms are moving from infancy
That being said, autonomous uncrewed platforms are developing at a rapid pace. Uncrewed ground vehicles (UGVs), maritime vehicles (UMVs), and aerial vehicles (UAVs) are all being fitted with AI platforms by aerospace and defense primes. Swarm technologies, manned-unmanned teaming
(MUM-T), and decentralized drone autonomy technology are evolving in tandem with increased military RDT&E budgets, bringing mass automated, uncrewed drone combat ever closer to fruition.
Mass AI adoption in defense faces significant challenges
Militaries developing increasingly advanced algorithms are presented with specific challenge/s. Policymakers are having difficulty tackling the ethical concerns surrounding lethal autonomous weapons (LAWs) and their capacities to identify and eliminate perceived hostile entities. Legacy system AI integration, and the subsequent cybersecurity challenges posed by such integration, will be a struggle for even the best-equipped militaries.
Key Highlights
Summary
At GlobalData, we track all themes impacting all companies across all sectors. Understanding the themes set out in this report will help you outperform your peers in 2025. The graphic below depicts our 2025 theme map. It highlights the big themes driving profits across industries and is the result of a series of interviews with senior industry executives and investors, reflecting an up-to-date view of the issues that keep them awake at night. Our 2025 theme map covers not only disruptive technology themes but also ESG, macroeconomic, and regulatory themes.
In the world of Aerospace, defense and security, our industry-specific themes focus on particular defense-related technologies, as well as trending segments of the market with the largest up-front investments in expanding production, R&D and product development. Naturally, geopolitics remains a central theme for aerospace and defense, as the core primary driver of investment and growth in this space.
Geopolitical pressures are increasing global RDT&E budgets
Emerging prospective conflicts and political pressures are forcing the West, especially Europe, to re-arm at a dramatic pace. The West has long focused on high-tech, “boutique” armaments that are integrated with several forms of technology. As research, development, test, and evaluation (RDT&E) budgets increase across the board, investment in artificial intelligence (AI), will only increase. GlobalData estimates the total AI market will be worth $642 billion by 2029, up from $131 billion in 2024 at a compound annual growth rate (CAGR) of 37%.
Contractors already use AI to maintain the ADS value chain
Operation and maintenance (O&M) costs are a serious expenditure for militaries, accounting for 35% of the US Department of Defense’s (DoD) 2025 budget. AI can predict when assets will need maintenance, allowing for work to be done proactively, reducing downtime, and improving the cost-effectiveness of each asset. Aerospace, defense, and security (ADS) players are using AI to perform quality assurance, optimize assembly lines and supply chains, and inspect equipment.
Current frontline applications of AI revolve around C4ISR
AI is primarily used as a tool to enhance decision-making and automation on the battlefield, enhancing command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) for armed forces. AI’s effect on high-intensity warfare (HIW), as of current, remains limited. Given the cat-and-mouse game of warfare, where one’s technological edge can quickly become obsolete, AI platforms need more time and investment to adjust to countermeasures.
Autonomous uncrewed platforms are moving from infancy
That being said, autonomous uncrewed platforms are developing at a rapid pace. Uncrewed ground vehicles (UGVs), maritime vehicles (UMVs), and aerial vehicles (UAVs) are all being fitted with AI platforms by aerospace and defense primes. Swarm technologies, manned-unmanned teaming
(MUM-T), and decentralized drone autonomy technology are evolving in tandem with increased military RDT&E budgets, bringing mass automated, uncrewed drone combat ever closer to fruition.
Mass AI adoption in defense faces significant challenges
Militaries developing increasingly advanced algorithms are presented with specific challenge/s. Policymakers are having difficulty tackling the ethical concerns surrounding lethal autonomous weapons (LAWs) and their capacities to identify and eliminate perceived hostile entities. Legacy system AI integration, and the subsequent cybersecurity challenges posed by such integration, will be a struggle for even the best-equipped militaries.
Key Highlights
- Overview of themes: automation, visualization, connectivity, collaboration, and interpretation in the defense sector. Key technologies mentioned include Artificial intelligence (advanced AI, machine learning, deep learning, agentic AI, generative AI, large language models), computer vision and image recognition, AI chips/accelerators (GPUs, FPGAs, ASICs), digital twins and simulation/synthetic reality, IoT and sensor networks (HUMS, edge sensors), robotics and autonomous systems (UAVs/UAS, UGVs, UMVs/UUVs/USVs, swarms, loyal wingman, MUM‑T), autonomous navigation, motion and control systems (MATRIX, autonomy stacks, agentic pilots), C4ISR systems and sensor fusion (SAR, ISR analytics, multi‑sensor fusion), cybersecurity and AI‑enabled defenses (intrusion detection, adversary emulation), counter‑UAS and directed‑energy systems (C‑sUAS, high‑power microwave), AR/MR/XR and mixed‑reality warfighter systems (HUDs, helmet systems), predictive maintenance and MRO tools (predictive analytics, CBM+, digital twins), supply‑chain and logistics AI (predictive logistics, ERP, procurement automation), conversational platforms and NLP (LLMs, conversational AI), quantum computing and post‑quantum/quantum‑resistant cryptography, biometric systems and access control (AI‑driven biometrics, ANPR), generative design and AI‑assisted engineering tools, edge computing, MLOps and on‑device AI (low SWaP processing, edge SAR).
- The report details the key technoliges comprising GlobalData's Artificial Intelligence framework, and their effect on the aerospace, defense, and security sector. Motrion, creation, human-ai interaction, and decision-making compise GlobalData's AI framework
- Determine potential investment companies based on trend analysis and market projections.
- Gaining an understanding of the market challenges and opportunities surrounding trending defense themes in 2025.
- Understanding how spending on these themes will fit into the overall defense market.
Table of Contents
52 Pages
- Executive Summary
- Players
- Value Chain
- Advanced AI capabilities
- The Impact of AI on Aerospace, Defense, and Security
- Industry applications
- How AI helps tackle the challenge of rising costs for defense contractors
- How AI helps tackle the challenge of efficient procurement
- How AI helps tackle the challenge of cybersecurity
- How AI helps tackle the challenge of security
- Support and service applications
- How AI helps tackle the challenge of logistics
- How AI helps tackle the challenge of the data deluge
- How AI helps tackle the challenge of maintenance, repair, and overhaul (MRO)
- How AI helps tackle the challenge of training and education
- Frontline applications
- How AI helps tackle the challenge of manned-unmanned teaming (MUM-T)
- How AI helps tackle the challenge of operational environment conditions
- How AI could help tackle the challenge of future conflict
- Challenges Presented by AI Adoption
- This section discusses the challenges posed by widespread AI adoption across the ADS value chain.
- Ethics and safeguards
- Cybersecurity and legacy system integration
- Overreliance
- Accelerated arms race
- Case Studies
- US Defense Logistics Agency (DLA) establishes AI center of excellence (CoE)
- Lockheed Martin unveils fully autonomous helicopter
- Helsing launches swarming underwater surveillance drones
- Anduril launches AI mixed-reality warfighter system
- Lockheed Martin unveils maritime surveillance technology
- Aechelon launches AI-enabled digital twin of Earth
- Veryon launches AI-powered aviation intelligence platform
- DARPA’s ACE program hits milestone
- Companies
- Leading AI adopters in aerospace, defense, and security
- Specialist AI vendors in aerospace, defense, and security
- Sector Scorecard
- Defense sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- Report Authors
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Leading AI adopters in aerospace, defense, and security
- Table 2: Specialist AI vendors in aerospace, defense, and security
- Table 3: Glossary
- Table 4: GlobalData reports
- Table 5: Report Authors:
- List of Figures
- Figure 1: Key players in AI
- Figure 2: The AI value chain
- Figure 3: There are five categories of advanced AI capabilities
- Figure 4: ADS players should invest in all aspects of the AI value chain
- Figure 5: Sirosky’s U-Hawks are cockpit-less
- Figure 6: EagleEye can switch between different image feeds
- Figure 7: Who does what in the defense space?
- Figure 8: Thematic screen
- Figure 9: Valuation screen
- Figure 10: Risk screen
- Figure 11: Our approach to identifying the companies most likely to succeed in a sector over the next five years
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