Elevated Defense Expenditure Fuels Surge In Artificial Intelligence And Robotics Growth In Aerospace And Defense Market: A Key Factor Shaping the Future of the Artificial Intelligence And Robotics In Aerospace and Defense Market in 2025

Which drivers are expected to have the greatest impact on the over the artificial intelligence and robotics in aerospace and defense market's growth?
Rising defense spending is anticipated to boost the growth of artificial intelligence and robotics within the aerospace and defense market. Defense spending, essentially the budget a government puts aside for its armed forces, defense-related activities, and national security strategies, is increasingly being employed to advance artificial intelligence (AI) and robotics within defense and aerospace sectors. This is done with the aim of improving military prowess, operational efficiency, and enhancing national security. For example, the Stockholm International Peace Research Institute, a Sweden-based independent global security entity, reported in April 2023 that there was a 3.7% increase in global military spending in real terms in 2022, hitting a record-high of $2,240 billion. In the same year, Europe's military expenditure saw a 13% uptick. Meanwhile, US military expenditure grew by 8.8% from 2021 to 2022 in nominal terms, but the actual spending only grew 0.7% due to an 8.1% inflation rate. Consequently, the surge in defense spending is stimulating the growth of artificial intelligence and robotics within the aerospace and defense market.

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What is the future CAGR of the artificial intelligence and robotics in aerospace and defense market, and how will it impact industry expansion?
The expansion of the artificial intelligence and robotics market in the aerospace and defense sector has been swift in the last few years. The market worth is projected to escalate from $24.39 billion in 2024 to $27.02 billion in 2025, representing a compound annual growth rate (CAGR) of 10.8%. This growth during the historical period is due to factors such as improved automation for efficiency, heightened situational awareness, modernization of the military, global concerns on security, and efforts to reduce costs.

The market size for artificial intelligence and robotics within the aerospace and defense industry is projected to witness swift expansion in the upcoming years. It is forecasted to reach $40.2 billion in 2029, growing at a compound annual growth rate (CAGR) of 10.4%. This expected growth is attributed to factors such as the integration of autonomous systems, the adoption of AI in maintenance, customization and flexibility, swarm intelligence, advanced surveillance and reconnaissance. Noteworthy trends during the forecast period include international collaboration, advancements in drone technology, the role of AI in cybersecurity, collaboration between humans and robots, and swift technological advancements.

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What trends are poised to drive the future success of the artificial intelligence and robotics in aerospace and defense market?
Key players in the defense and aerospace sector who specialize in robotics and artificial intelligence are investing in the creation of advanced defense solutions like artificially intelligent robots. These investments are aimed at improving operational efficiency, decision-making, and boosting security capabilities. Autonomously operating machines, powered by artificial intelligence, are used to handle complex tasks, make critical decisions, and adapt to alterations in their environments without the need for human aid. One such example comes from the India-based Zen Technologies. In July 2024, they introduced Prahasta, an artificially intelligent four-legged robot, to the world. The robot was designed for the purpose of 3D mapping in real-time. It is capable of utilizing LiDAR (light detection and ranging) and reinforcement learning to create real-time 3D maps of various terrains, which greatly assist in planning missions, assessing threats, and navigation. Zen Technologies also presented several other products - the Hawkeye anti-drone system camera, the Sthir Stab 640, which is a resilient, stabilised sight that is mainly fitted to infantry combat vehicles (ICVs), armored vehicles, and boats, and finally the Barbarik-URCWS, a remote-controlled weapon station.

Which key market segments comprise the artificial intelligence and robotics in aerospace and defense market and drive its revenue growth?
The artificial intelligence and robotics in aerospace and defense market covered in this report is segmented -

1) By Type: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision, Intelligent Virtual Agent (IVA) Or Virtual Agents, Other Technologies
3) By Application: Military, Commercial Aviation, Space

Subsegments:
1) By Hardware: Robotics Systems, Sensors And Actuators, Embedded Systems
2) By Software: AI Algorithms For Flight Operations, Simulation And Modeling Software, Autonomous Navigation Software
3) By Services: Consulting And Integration Services, Maintenance And Support Services, Training And Simulation Services

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What regions are at the forefront of artificial intelligence and robotics in aerospace and defense market expansion?
North America was the largest region in the artificial intelligence and robotics in aerospace and defense market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence and robotics in aerospace and defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the leading players fueling growth in the artificial intelligence and robotics in aerospace and defense market?
Major companies operating in the artificial intelligence and robotics in aerospace and defense market report are Microsoft Corporation, Raytheon Technologies Corporation, Boeing Company, Lockheed Martin Corporation, Intel Corporation, Airbus SE, IBM Corporation, ThyssenKrupp, General Dynamics Corporation, Northrop Grumman Corporation, Honeywell International Inc., Nvidia Corporation, BAE Systems, Thales Group, Rolls-Royce, Leidos, Elbit Systems, Israel Aerospace Industries, T-Systems International GmbH, Safran, Indra Sistemas SA, QinetiQ, SITA, Spark Cognition, GE Aviation, Iris Automation Inc.

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What Is Covered In The Artificial Intelligence And Robotics In Aerospace and Defense Global Market Report?

• Market Size Forecast: Examine the artificial intelligence and robotics in aerospace and defense market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence and robotics in aerospace and defense market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence and robotics in aerospace and defense market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence and robotics in aerospace and defense market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence and robotics in aerospace and defense market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence and robotics in aerospace and defense market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence and robotics in aerospace and defense market.
• Competitive Landscape: Review strategic developments in the artificial intelligence and robotics in aerospace and defense market, including expansions, agreements, and new product launches.

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