Dublin, Jan. 06, 2026 (GLOBE NEWSWIRE) — The “Artificial Intelligence (AI) in Aerospace and Defense Global Market Report 2025” has been added to ResearchAndMarkets.com’s offering.
The artificial intelligence (AI) in aerospace and defense market is witnessing significant growth, expanding from $25.69 billion in 2024 to $29.27 billion in 2025, marking a compound annual growth rate (CAGR) of 14%.
This upward trend is driven by increased defense budgets, geopolitical tensions, growing demand for efficient decision-making during complex missions, rising commercial air traffic, and investments in military modernization programs. By 2029, the market is projected to reach $48.76 billion with a CAGR of 13.6%. Key factors fueling this expansion include the focus on autonomous defense, predictive maintenance, and data-driven decision systems, alongside advancements in autonomous systems and smart logistics tools.
Higher global defense expenditures primarily due to escalating geopolitical tensions are accelerating the adoption of AI technologies in aerospace and defense. These advancements enhance efficiency and accuracy, reduce human risk, and optimize resources. Evidence of this trend can be seen in the 2023 report by the Stockholm International Peace Research Institute (SIPRI), which noted a 6.8% increase in global military spending, reaching $2.44 trillion.
Key AI integration strategies adopted by companies in the sector include developing embedded AI solutions. For instance, in June 2024, Safran Electronics and Defense launched the Advanced Cognitive Engine (ACE), an embedded AI solution enhancing real-time target detection and decision-support capabilities. Similarly, Safran S.A. acquired Preligens for $254 million, gaining access to an advanced AI analytics platform to bolster AI-driven surveillance and reconnaissance capabilities.
Major players in the AI aerospace and defense market include Microsoft Corporation, Airbus SE, Raytheon Technologies Corporation, Lockheed Martin Corporation, IBM, Intel Corporation, and more. North America emerged as the largest region in this market in 2024, with other significant regions including Asia-Pacific, Western and Eastern Europe, and others.
Current trade tensions and rising tariffs, particularly from the U.S. in 2025, are impacting this sector, leading to increased costs for key materials and disrupting production schedules. The industry is responding by stockpiling materials, pursuing import waivers, and diversifying supply chains.
The market encompasses hardware, software, and services, including machine learning, NLP, computer vision, and big data analytics, deployed across various platforms like land, naval, airborne, and space systems. Key applications include predictive maintenance, surveillance, mission systems, cybersecurity, and autonomous navigation.
The AI in aerospace and defense market research report provides comprehensive statistics, including global market size, regional shares, and detailed segments, offering a broad view of current and future industry scenarios. This report is essential for understanding market dynamics and strategic opportunities within the AI landscape.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $29.27 Billion |
| Forecasted Market Value (USD) by 2029 | $48.76 Billion |
| Compound Annual Growth Rate | 13.6% |
| Regions Covered | Global |
Scope Coverage:
- Offerings: Hardware, Software, Services
- Deployment Type: Cloud-Based, On-Premises
- Platforms: Land, Naval, Airborne, Space
- Technologies: Machine Learning, NLP, Computer Vision, Context-Aware Computing, Robotics, Big Data Analytics
- Applications: Predictive Maintenance, Surveillance, Mission Systems, Cybersecurity, Data Analytics, Autonomous Systems, Navigation
- Key Companies:Microsoft, Airbus, Raytheon Technologies, Lockheed Martin, IBM, Intel, General Dynamics
Subsegments:
- Hardware: Processors, Memory Devices, Storage Units, Sensors, etc.
- Software: Data Analytics Platforms, Flight Control Systems, Mission Management Systems, etc.
- Services: System Integration, Consulting, Maintenance, Training, Data Management, etc.
Geographies: Countries such as USA, China, UK, India, Japan, among others across regions like Asia-Pacific, North America, Western Europe, etc.
Companies Featured
- 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.
For more information about this report visit https://www.researchandmarkets.com/r/jcr73n
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- Artificial Intelligence (AI) in Aerospace and Defense Market
