Comprehensive Artificial Intelligence And Robotics In Aerospace and Defense Market Growth Outlook 2025-2034: Trends, Forecasts, and Market Size Insights

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#How have key drivers contributed to the rapid growth of the artificial intelligence and robotics in aerospace and defense market?

The increasing defense expenditure is expected to propel the growth of artificial intelligence and robotics in the aerospace and defense market going forward. Defense expenditure, or military expenditure refers to the total amount of financial resources that a government allocates to fund its military forces, defense-related activities, and national security initiatives. Defense expenditure is used in advancing artificial intelligence (AI) and robotics capabilities within the defense and aerospace sectors to enhance military capabilities, improve operational efficiency, and contribute to national security. For instance, in April 2023, according to the Stockholm International Peace Research Institute, a Sweden-based institute and independent resource on global security, world military expenditure increased by 3.7% in real terms in 2022 to reach a record high of $2,240 billion. Further, military expenditure in Europe rose by 13% during the year. US military spending also increased by 8.8% in nominal terms between 2021 and 2022, but real spending increased by 0.7% over that same time due to an 8.1% inflation rate. Therefore, increasing defense expenditure is driving the growth of artificial intelligence and robotics in the aerospace and defense market.

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How has the artificial intelligence and robotics in aerospace and defense market size evolved, and what are the latest forecasts for its expansion?

The artificial intelligence and robotics in aerospace and defense market size has grown rapidly in recent years. It will grow from $24.39 billion in 2024 to $27.02 billion in 2025 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to automation for efficiency, enhanced situational awareness, military modernization programs, global security concerns, cost reduction.

The artificial intelligence and robotics in aerospace and defense market size is expected to see rapid growth in the next few years. It will grow to $40.2 billion in 2029 at a compound annual growth rate (CAGR) of 10.4%. The growth in the forecast period can be attributed to autonomous systems integration, adoption of ai in maintenance, customization and flexibility, swarm intelligence, advanced surveillance and reconnaissance. Major trends in the forecast period include international collaboration, advanced drone technologies, ai in cybersecurity, human-robot collaboration, rapid technological advancements.

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Which major companies dominate the artificial intelligence and robotics in aerospace and defense market?

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 trends will shape the future of the artificial intelligence (ai) video generator market?

Major companies operating in artificial intelligence and robotics in the aerospace and defense markets are focusing on developing advanced defense solutions such as AI-powered robots, to enhance operational efficiency, improve decision-making, and strengthen security capabilities. AI-powered robots refer to autonomous machines equipped with artificial intelligence that can perform complex tasks, make decisions, and adapt to changing environments without human intervention. For instance, in July 2024, Zen Technologies, an India-based manufacturer of defense training systems and counter-drone solutions launched Prahasta, an AI-driven quadruped robot designed for real-time 3D mapping. Prahasta is an automated robot that leverages LiDAR (light detection and ranging) and reinforcement learning to generate real-time 3D terrain maps, enabling advanced mission planning, navigation, and threat assessment. Also introduced were the Hawkeye anti-drone system camera, the Barbarik-URCWS remote-controlled weapon station, and the Sthir Stab 640—a rugged, stabilized sight primarily for use on armored vehicles, infantry combat vehicles (ICVs), and boats.

Which region dominates the artificial intelligence and robotics in aerospace and defense market, and what factors contribute to its leadership?

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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How is the artificial intelligence and robotics in aerospace and defense market segmented, and which segment holds the largest share?

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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What defines the structure and scope of the artificial intelligence and robotics in aerospace and defense market?

Artificial intelligence and robotics in aerospace and defense refer to the integration of AI and robotics technologies into various aspects of the industry, including military operations, commercial aviation, and space exploration. AI is extensively used in the military segment for various applications, such as big data analytics for better decision-making, threat detection, and automated response to network attacks, significantly enhancing defense capabilities.

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