Press release
Booming Construction Activity Drives Growth of the Artificial Intelligence (AI) In Aerospace And Defense Market by 2025
Artificial Intelligence AI In Aerospace And Defense
Significant recent expansion has been observed in the market encompassing artificial intelligence (AI) within the aerospace and defense sectors, with projections indicating movement from a valuation of $25.69 billion in 2024 to $29.27 billion the following year, reflecting a compound annual growth rate (CAGR) of 14.0%. This upward trajectory during the past period stems from several key factors, including augmented defense spending by prominent global powers, escalating international friction and territorial disputes, the pressing need for enhanced efficiency in making crucial decisions during intricate operations, a substantial rise in both civilian air travel volume and subsequent fleet upgrades, the broadening scope of national security and monitoring activities, alongside growing capital allocations towards updating military capabilities.
What Is the Forecasted Global Size of the Artificial Intelligence (AI) In Aerospace And Defense Market by 2029?
Projected for substantial acceleration, the market encompassing artificial intelligence applications within aerospace and defense is poised for brisk expansion in the coming years, reaching a valuation of $48.76 billion by the year 2029, reflecting a compound annual growth rate of 13.6%. This upward trajectory throughout the projection timeframe is fueled by several key factors, notably the heightened focus on self-governing defense activities, a growing need for maintenance forecasting within aircraft inventories, the wider integration of analytical insights for defense planning, an influx of governmental and private capital directed towards upgrading the aerospace sector, the broadening of homeland security efforts centered on identifying potential dangers sooner, and the consistent push for improvements in both operational effectiveness and safety protocols. Core developments shaping this market as it progresses involve progress in non-manned flight technology, breakthroughs in combining sensor data for better awareness of the environment, novel approaches to collaborative work between humans and machinery along with better decision aids, the creation of smarter tools for upkeep and supply chain management, ongoing study into intelligent simulation environments for defense training, and improvements to algorithms governing responsive flight control and mission strategies.
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Which Major Drivers Are Fueling the Expansion of the Artificial Intelligence (AI) In Aerospace And Defense Market?
Anticipated rises in defense spending are projected to be the main catalyst accelerating the expansion of the artificial intelligence (AI) sector within the aerospace and defense industry in the near future. This surge in military outlays stems mainly from intensifying global friction, prompting countries to bolster their armed forces and dedicate substantial funds toward cutting-edge systems to secure national objectives amidst growing localized and worldwide disputes. Such financial commitments serve to finance the investigation, creation, and implementation of AI solutions that enhance operational effectiveness, precision, and swiftness across aerospace and defense arenas, consequently resulting in augmented security postures, decreased exposure for personnel, and optimized asset management. To illustrate this trend, the Stockholm International Peace Research Institute (SIPRI), an independent international entity situated in Sweden dedicated to studying conflict, weaponry, and security, reported in April 2024 that global military spending climbed for the ninth year running in 2023, culminating at a grand total of $2,443 billion, marking a 6.8% jump from the preceding year's figures. Consequently, amplified defense budgets are definitively fueling the advancement of AI applications within the aerospace and defense marketplace.
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Which Emerging Trends Are Shaping the Future of the Artificial Intelligence (AI) In Aerospace And Defense Market?
Leading entities within the AI in aerospace and defense sector are prioritizing the integration of AI-driven simulation and design instruments, exemplified by embedded AI capabilities, aiming to significantly boost situational understanding, streamline operational performance, and facilitate quicker, more informed choices. Embedded AI represents a sophisticated technological implementation where artificial intelligence routines are built straight into the electronic apparatus and aboard hardware, thereby permitting independent data handling and smart reactions independent of external cloud networks. As an illustration, in the month of June 2024, Safran Electronics and Defense, a defense and aerospace system supplier headquartered in France, introduced the Advanced Cognitive Engine (ACE), which functions as an embedded AI offering engineered to furnish defense assets with features for immediate target identification, flexible assessment of surroundings, and assistance in operational choices. This specific offering serves to elevate mission outcomes, the degree of automation, and human operator effectiveness across various deployments, including ground, airborne, and maritime theaters.
What Are the Major Segment Categories Within the Artificial Intelligence (AI) In Aerospace And Defense Market?
The artificial intelligence (AI) in aerospace and defense market covered in this report is segmented -
1) By Offering: Hardware, Software, Services
2) By Deployment Type: Cloud-Based, On-Premises
3) By Platform: Land, Naval, Airborne, Space
4) By Technology: Machine Learning, Natural Language Processing (NLP), Computer Vision, Context-Aware Computing, Robotics, Big Data Analytics
5) By Application: Predictive Maintenance, Surveillance And Monitoring, Mission Systems, Cybersecurity, Data Analytics, Autonomous Systems, Navigation And Guidance Systems, Other Applications
Subsegments:
1) By Hardware: Processors, Memory Devices, Storage Units, Sensors, Power Systems, Communication Equipment
2) By Software: Data Analytics Platforms, Flight Control Systems, Mission Management Systems, Predictive Maintenance Tools, Threat Detection Software, Simulation And Training Software
3) By Services: System Integration, Consulting Services, Maintenance And Support, Training And Education, Data Management Services, Upgradation And Modernization Services
Who Are the Top Market Leaders Defining Growth and Innovation in the Artificial Intelligence (AI) In Aerospace And Defense Market?
Major companies operating in the artificial intelligence (AI) in aerospace and defense market are Microsoft Corporation; Airbus SE; Raytheon Technologies Corporation; Lockheed Martin Corporation; International Business Machines Corporation; Intel Corporation; General Dynamics Corporation; Northrop Grumman Corporation; Honeywell International Inc.; General Electric Co.; Anduril Industries Inc.; BAE Systems plc; NVIDIA Corporation; Thales Group; Leonardo S.p.A.; Indra Sistemas SA; Palantir Technologies Inc.; Helsing GmbH; Rebellion Defense; Shield AI.
What Are the Top-Performing Regional Markets in the Artificial Intelligence (AI) In Aerospace And Defense Industry?
North America was the largest region in the artificial intelligence (AI) in aerospace and defense market in 2024. The regions covered in the artificial intelligence (AI) in aerospace and defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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