Artificial Intelligence (AI) In Aerospace And Defense Market Report 2026

Artificial Intelligence (AI) In Aerospace And Defense Market Overview

• Artificial Intelligence (AI) In Aerospace And Defense market size has reached to $29.27 billion in 2025 • Expected to grow to $55.3 billion in 2030 at a compound annual growth rate (CAGR) of 13.5% • Growth Driver: Increasing Defense Expenditures Fueling The Growth Of The Market Amid Escalating Geopolitical Tensions • Market Trend: Integration Of Embedded Artificial Intelligence (AI) To Improve Situational Awareness And Mission Efficiency • North America was the largest region in 2025.

What Is Covered Under Artificial Intelligence (AI) In Aerospace And Defense Market?

Artificial intelligence (AI) in aerospace and defense refers to the application of advanced machine learning algorithms, data analytics, and automation technologies to enhance the efficiency, safety, and effectiveness of aerospace and defense operations. It involves using AI systems to perform tasks that traditionally require human intelligence, such as decision-making, threat detection, predictive maintenance, navigation, mission planning, and autonomous control. The main offerings of artificial intelligence (AI) in the aerospace and defense market comprise hardware, software, and services. Hardware refers to the physical components and computing infrastructure that support AI-enabled systems, including processors, sensors, embedded systems, and edge devices designed to handle complex data processing and real-time analytics in mission-critical environments. The various deployment types include cloud-based and on-premises solutions, and are implemented across multiple platforms, including land, naval, airborne, and space systems. The key technologies encompass machine learning, natural language processing (NLP), computer vision, context-aware computing, robotics, and big data analytics and are applied in predictive maintenance, surveillance and monitoring, mission systems, cybersecurity, data analytics, autonomous systems, navigation and guidance systems, and others.

What Is The Artificial Intelligence (AI) In Aerospace And Defense Market Growth Forecast?

The artificial intelligence (AI) in aerospace and defense market size is expected to see rapid growth in the next few years. It will grow to $55.3 billion in 2030 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to expansion of AI-driven autonomous mission planning and execution, adoption of ai-enabled real-time decision support systems, increased integration of ai with multi-domain defense operations, growth in managed ai services and modernization programs, rising demand for ai-powered situational awareness and control systems. Major trends in the forecast period include expansion of autonomous combat and support systems, growth in ai-driven threat detection and target recognition, increasing use of predictive maintenance for fleet optimization, rise of ai-enhanced mission planning and decision support, adoption of intelligent navigation and guidance systems.

Global Artificial Intelligence (AI) In Aerospace And Defense Market Segmentation

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

What Is Driver Of The Artificial Intelligence (AI) In Aerospace And Defense Market?

The increasing defense expenditures are expected to propel the growth of artificial intelligence (AI) in aerospace and defense market going forward. Defense expenditure is surging primarily due to escalating geopolitical tensions, as nations strengthen their military capabilities and invest heavily in advanced technologies to safeguard national interests amid rising regional and global conflicts. Defense expenditures help by funding research, development, and deployment of AI technologies that improve efficiency, accuracy, and speed in aerospace and defense operations, leading to stronger security, reduced human risk, and smarter resource use. For instance, in April 2024, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based independent international research organization focusing on conflict, armaments, and security, world military expenditure increased for the ninth consecutive year in 2023, reaching a total of $2,443 billion, representing a 6.8% increase from 2022. Therefore, the increasing defense expenditures are driving the growth of artificial intelligence (AI) in aerospace and defense industry.

Key Players In The Global 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.

Global Artificial Intelligence (AI) In Aerospace And Defense Market Trends and Insights

Major companies operating in the artificial intelligence (AI) in aerospace and defense market are focusing on incorporating AI-powered design tools and simulations, such as embedded AI, to enhance situational awareness, operational efficiency, and real-time decision-making. Embedded AI is an advanced technology that integrates artificial intelligence algorithms directly into onboard hardware and electronic systems, enabling autonomous data processing and intelligent response without cloud dependency. For instance, in June 2024, Safran Electronics and Defense, a France-based aerospace and defense systems provider, launched the Advanced Cognitive Engine (ACE), an embedded AI solution designed to support defense platforms with real-time target detection, adaptive environmental analysis, and decision support capabilities. The solution improves mission effectiveness, automation, and operator performance across land, air, and naval applications.

What Are Latest Mergers And Acquisitions In The Artificial Intelligence (AI) In Aerospace And Defense Market? Safran Acquires Preligens To Strengthen Artificial Intelligence Capabilities In Aerospace And Defense

In September 2024, Safran S.A., a France-based provider of high-technology systems and equipment for aviation, defense, and space industries, acquired Preligens for $254 million (€220 million). This acquisition provides Safran with access to Preligens’ advanced AI analytics platform, which can process high-resolution imagery, full-motion video, and acoustic signals. The move enhances Safran’s AI-driven surveillance, reconnaissance, and decision-support capabilities while accelerating its digital transformation and improving operational efficiency in the aerospace and defense sectors. Preligens S.A.S. is a France-based provider of AI solutions for aerospace, defense, and government use.

Regional Insights

North America was the largest region in the artificial intelligence (AI) in aerospace and defense market in 2025. The regions covered in the artificial intelligence (AI) in aerospace and defense market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) in aerospace and defense market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Artificial Intelligence (AI) In Aerospace And Defense Market?

The artificial intelligence (AI) in aerospace and defense market consists of revenues earned by entities by providing services such as system integration, training and simulation, consulting, managed services, technical support, and modernization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in aerospace and defense market also includes sales of autonomous drones, intelligent sensors, avionics modules, radar detectors, navigation controllers, and surveillance cameras. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Artificial Intelligence (AI) In Aerospace And Defense Market Report 2026?

The artificial intelligence (ai) in aerospace and defense market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (ai) in aerospace and defense industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.