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Aerospace Artificial Intelligence Market Insights 2025-2034: Growth Forecast and Strategic Priorities
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Aerospace Artificial Intelligence Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In the recent past, there has been a significant expansion in the size of the aerospace artificial intelligence market. The market is predicted to expand from a size of $0.92 billion in 2024 to $1.31 billion in 2025, registering a compound annual growth rate (CAGR) of 41.9%. The unprecedented growth witnessed during the historic period is likely due to the enhanced fuel efficiency achieved through the application of artificial intelligence (AI), along with ongoing progress and amplified investments. Other contributing factors include the use of AI for various tasks, the surge in demand for unmanned aerial vehicles, and an increased emphasis on improving air traffic management.
Aerospace Artificial Intelligence Market Size Forecast: What's the Projected Valuation by 2029?
Growth is projected to skyrocket in the aerospace artificial intelligence market in the upcoming years. These estimations foresee the market swelling to a staggering $4.49 billion in 2029 with a compound annual growth rate (CAGR) of 36.2%. The expansion in the prediction period is set to be driven by the rise in autonomous systems demand, the urgency for predictive maintenance, the boost in AI utilization in the development and production of aircraft, the surging calls for AI in aircraft evaluation and testing, and the increasing need for ai-driven supply chain management solutions. The forecast period will witness key trends like the use of AI in urban air mobility, the integration of 5g and AI, the application of blockchain in AI security, AI's role in sustainability, the resilience of AI systems, and the exploitation of AI in the probe of space resources.
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What Are the Drivers Transforming the Aerospace Artificial Intelligence Market?
The unprecedented increase in air travel needs is projected to accelerate the expansion of the aerospace artificial intelligence market in the imminent future. Air travel comprises the transition from one spot to another using flying devices such as aircraft, helicopters, hot air balloons, or any other form of self-sustaining vehicle. Aerospace artificial intelligence is integrated into air travel to enhance flight management, maintenance prognosis, and autonomous systems in the aviation sector, thereby escalating safety, effectiveness, and passenger satisfaction. For example, per the data of the United States Bureau of Transportation Statistics, a national transportation entity based in the US, in March 2023, there was a handling of 194 million additional travellers in 2022 compared to 2021 by US airlines, marking a 30% rise on a yearly basis. Moreover, in 2022, the count of passengers transported by US airlines was 853 million (unadjusted), showing an escalation from 658 million in 2021 and 388 million the previous year in 2020. The burgeoning demand for air travel is thus stimulating the growth of the aerospace artificial intelligence market.
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What Long-Term Trends Will Define the Future of the Aerospace Artificial Intelligence Market?
Top companies involved in the aerospace artificial intelligence market are orienting towards strategic alliance to offer clients more trustworthy services. Such alliance is a joint venture of two or more parties intended for accomplishing specific targets, which are otherwise difficult to achieve individually. For example, in June 2023, Pratt & Whitney, an American business producing AI-centered solutions for airplanes, joined forces with Awiros, an Indian AI startup company. They launched Percept, an AI-driven tool for aircraft engine analysis that operates on the Awiros Video Intelligence Operating System. With its cloud-based user interface, individuals can take images and recordings of aircraft engines using their handheld gadgets and in turn, be updated in actual time about their status. This leads to a speedy and economical turnaround of leased engine assets. As an alternative to having an inspector conduct an engine check and affirm it piece by piece, Percept streamlines the inspection and saves over 90% of time.
Which Segments in the Aerospace Artificial Intelligence Market Offer the Most Profit Potential?
The aerospace artificial intelligence market covered in this report is segmented -
1) By Offering: Software, Hardware, Services
2) By Technology: Machine Learning, Natural Language Processing, Computer Vision, Context Awareness Computing
3) By Application: Customer Service, Smart Maintenance, Manufacturing, Training, Flight Operations, Other Applications
Subsegments:
1) By Software: Predictive Maintenance Software, Flight Planning And Optimization Software, Autonomous Systems Software
2) By Hardware: AI-Enabled Sensors, Processing Units, Robotics And Automation Systems
3) By Services: Consulting Services, Integration And Implementation Services, Maintenance And Support Services
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Which Firms Dominate the Aerospace Artificial Intelligence Market by Market Share and Revenue in 2025?
Major companies operating in the aerospace artificial intelligence market report are Microsoft Corporation, Raytheon Technologies Corp., The Boeing Company, Lockheed Martin Corp., General Electric Company, Airbus S.A.S., International Business Machines Corporation (IBM), Intel Corporation, Northrop Grumman Corp., NVIDIA Corp., BAE Systems plc, Infosys Ltd., Thales Groups, L3Harris Technologies, Inc., Textron Systems, Dassault Systèmes SA, Embraer SA, Indra Sistemas SA, Kongsberg Gruppen, Honeywell Aerospace, Curtiss-Wright Corporation, Meggitt PLC, SITA, Kratos Defense & Security Solutions, AeroVironment, PAL Aerospace, Shield AI, Spark Cognition, Iris Automation Inc.
Which Regions Offer the Highest Growth Potential in the Aerospace Artificial Intelligence Market?
North America was the largest region in the aerospace artificial intelligence market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aerospace artificial intelligence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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