Market Size of Artificial Intelligence and Robotics in Aerospace and Defense Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 31.90 Billion |
| Market Size (2029) | USD 45.80 Billion |
| CAGR (2024 - 2029) | 7.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
AI and Robotics in Aerospace and Defense Market Analysis
The Artificial Intelligence and Robotics in Aerospace and Defense Market size is estimated at USD 31.90 billion in 2024, and is expected to reach USD 45.80 billion by 2029, growing at a CAGR of 7.5% during the forecast period (2024-2029).
The global aerospace and defense manufacturing sector is undergoing an unprecedented disruption due to the COVID-19 pandemic. Also, in the commercial airline industry, the revenue of airport operators and airlines decreased in 2020 and 2021 due to the restrictions on domestic and international travel to attenuate the spread of COVID-19. Consequently, the market for artificial intelligence and robotics in aerospace and defense witnessed a slight decline as the revenues of end users declined.
Nevertheless, some of the major airlines and airport authorities have invested in the implementation of artificial intelligence in various passenger processes at airports to enhance their safety and efficiency during the COVID-19 pandemic.
The ever-increasing application of AI-based technologies in the A&D sector and increasing investments being funneled to develop and integrate AI and machine learning (ML) into the end-user sectors are anticipated to drive the market in focus during the forecast period. However, the associated technical and operational challenges that are often observed during the initial stages of development and adoption of a nascent technology are hindering the adoption of AI-based technologies.
AI and Robotics in Aerospace and Defense Industry Segmentation
Artificial intelligence is the simulation of human intelligence processes by machines, especially computer systems. The A&D industry is adopting robotic technologies powered by sophisticated AI-driven technologies to improve overall equipment efficiency (OEE) and first-pass yield in production.
The scope of the study includes the use of artificial intelligence and robotics for various applications in aerospace and defense. Some of the important aspects covered in the study are the use of AI and robotics in the manufacturing of aircraft, operations and fleet management, and other applications by airlines, such as airport operations (like passenger handling, aircraft monitoring, inventory management, and others) and military applications (defense communications systems, unmanned systems and intelligence, surveillance, and reconnaissance applications, among others). The market is segmented by offering into hardware, software, and service and by application into military, commercial aviation, and space. The report also covers the market sizes and forecasts for artificial intelligence and robotics in the aerospace and defense markets across major regions. For each segment, the market sizing and forecasts have been done based on value (USD billion).
| Offering | |
| Hardware | |
| Software | |
| Service |
| Application | |
| Military | |
| Commercial Aviation | |
| Space |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Artificial Intelligence and Robotics in Aerospace and Defense Market Size Summary
The aerospace and defense industry is experiencing a significant transformation driven by the integration of artificial intelligence and robotics. Despite the initial setbacks caused by the COVID-19 pandemic, which led to a temporary decline in market revenues, the sector is poised for robust growth. The increasing application of AI technologies in both commercial and military segments is a key factor propelling this market forward. In the military domain, AI is being leveraged for advanced applications such as big data analytics, automated logistics, and bioinspired robotics, which are expected to enhance decision-making and operational efficiency. The defense sector's commitment to investing in AI and robotics, supported by increased budget allocations and strategic initiatives from organizations like NATO and the Pentagon, underscores the technology's critical role in future military capabilities.
Regionally, Asia-Pacific is anticipated to lead in the adoption of AI and machine learning technologies within the aerospace and defense sector. Countries such as Japan, South Korea, and China are at the forefront of AI development and integration, with significant investments in research and application of these technologies in aviation and defense. The market is characterized by a high degree of fragmentation, with numerous players, including major corporations like Boeing, Lockheed Martin, and Airbus, actively developing AI-based solutions. Strategic partnerships, such as those between IBM and Raytheon Technologies, are fostering innovation in AI, cryptographic, and quantum solutions, aiming to enhance operational safety and efficiency. These collaborations are expected to drive market growth, as they focus on developing advanced systems that improve communication networks and decision-making processes for aerospace and defense applications.
Artificial Intelligence and Robotics in Aerospace and Defense Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.3 Market Restraints
-
1.4 Porter's Five Forces Analysis
-
1.4.1 Bargaining Power of Buyers/Consumers
-
1.4.2 Bargaining Power of Suppliers
-
1.4.3 Threat of New Entrants
-
1.4.4 Threat of Substitute Products
-
1.4.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION (Market Size by Value - USD billion)
-
2.1 Offering
-
2.1.1 Hardware
-
2.1.2 Software
-
2.1.3 Service
-
-
2.2 Application
-
2.2.1 Military
-
2.2.2 Commercial Aviation
-
2.2.3 Space
-
-
2.3 Geography
-
2.3.1 North America
-
2.3.2 Europe
-
2.3.3 Asia-Pacific
-
2.3.4 Rest of the World
-
-
Artificial Intelligence and Robotics in Aerospace and Defense Market Size FAQs
How big is the Artificial Intelligence and Robotics in Aerospace and Defense Market?
The Artificial Intelligence and Robotics in Aerospace and Defense Market size is expected to reach USD 31.90 billion in 2024 and grow at a CAGR of 7.5% to reach USD 45.80 billion by 2029.
What is the current Artificial Intelligence and Robotics in Aerospace and Defense Market size?
In 2024, the Artificial Intelligence and Robotics in Aerospace and Defense Market size is expected to reach USD 31.90 billion.
