Elevated Defense Expenditure Fuels Surge In Artificial Intelligence And Robotics Growth In Aerospace And Defense Market: Pivotal Factor Influencing Artificial Intelligence And Robotics In Aerospace and Defense Market Growth in 2025

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Artificial Intelligence And Robotics In Aerospace and Defense Market Size Growth Forecast: What to Expect by 2025?
The market size for artificial intelligence and robotics in the aerospace and defense sector has expanded at a swift pace lately. It is projected to escalate from $24.39 billion in 2024 to $27.02 billion in 2025, showing a compound annual growth rate (CAGR) of 10.8%. The surge in the historical duration can be credited to enhanced efficiency due to automation, improved situational cognizance, programs for military modernization, global security issues, and cost mitigation.

How Will the Artificial Intelligence And Robotics In Aerospace and Defense Market Size Evolve and Grow by 2029?
The market for artificial intelligence and robotics within the aerospace and defense sectors is projected to experience a significant expansion in the forthcoming years, escalating to $40.2 billion by 2029, with a compound annual growth rate (CAGR) of 10.4%. This predicted growth during the forecast period is due to factors such as the integration of autonomous systems, the implementation of artificial intelligence in maintenance processes, customization and flexibility, swarm intelligence, alongside improved surveillance and reconnaissance. The anticipated trends within this forecast period encompass international collaboration, advancements in drone technologies, the use of artificial intelligence in cybersecurity, cooperation between humans and robots, as well as swift technological progress.

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What Drivers Are Propelling the Growth of Artificial Intelligence And Robotics In Aerospace and Defense Market Forward?
The upsurge in defense spending is anticipated to stimulate the expansion of artificial intelligence and robotics within the aerospace and defense industry. Defense expenditure, also known as military spending, refers to the total financial resources assigned by governments to maintain their military forces, activities related to defense, and campaigns for national security. This expenditure seeks to elevate artificial intelligence (AI) and robotics within defense and aerospace to boost military prowess, enhance operational effectiveness, and aid in homeland security. For instance, in April 2023, records from the Stockholm International Peace Research Institute, an independent entity based in Sweden that provides global security resources, showed that the global military expenditure had escalated by 3.7% in real terms in 2022, reaching an unprecedented high of $2,240 billion. Furthermore, defense spending in Europe reported a 13% increase during the same year. US military expenditure likewise rose by 8.8% in nominal terms between 2021 and 2022. However, due to an inflation rate of 8.1%, real spending only grew by 0.7% across the same period. Consequently, the rise in defense spending is fueling the development of AI and robotics in the aerospace and defense industry.

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Which Emerging Trends Are Transforming the Artificial Intelligence And Robotics In Aerospace and Defense Market in 2025?
Prominent firms in the aerospace and defense industries that specialize in artificial intelligence and robotics are concentrating their efforts on the creation of advanced defense solutions, like AI-driven robots, with the aim of boosting operational efficiency, enhancing decision-making capabilities, as well as fortifying security measures. AI-enabled robots are independent machines outfitted with AI capabilities, able to carry out intricate tasks, make informed decisions, and adapt to fluctuating circumstances without the need for human interference. As an illustration, Zen Technologies, an Indian maker of defense training systems and counter-drone solutions, released Prahasta, an AI-dependant quadruped robot intended for real-time 3D mapping, in July 2024. Built as an automated robot, Prahasta utilizes LiDAR (light detection and ranging) and reinforcement learning to produce real-time 3D representations of the terrain, facilitating sophisticated mission preparation, navigation, and risk evaluation. Other products launched include the Hawkeye anti-drone system camera, the Barbarik-URCWS remote-controlled weapon station, and the Sthir Stab 640 - a sturdy, stabilized sight designed primarily for use on armored vehicles, infantry combat vehicles (ICVs), and boats.

What Are the Key Segments in the Artificial Intelligence And Robotics In Aerospace and Defense Market?
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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Who Are the Key Players Shaping the Artificial Intelligence And Robotics In Aerospace and Defense Market's Competitive Landscape?
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.

What Geographic Markets Are Powering Growth in the Artificial Intelligence And Robotics In Aerospace and Defense Market?
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.

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