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Artificial Intelligence (AI) in Aerospace and Defense Global Research Report 2025: Opportunities in Rising Demand for Autonomous Operations, Predictive Maintenance, and Data-driven Decision Systems

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MSFT Mentioned as a major player in the AI aerospace and defense market, indicating its involvement in a growing sector. RTX Listed as a major player in the AI aerospace and defense market, suggesting its participation in a growing industry. LMT Identified as a major player in the AI aerospace and defense market, highlighting its role in a sector with significant growth potential. IBM Included as a major player in the AI aerospace and defense market, indicating its presence in a growing industry. INTC Cited as a major player in the AI aerospace and defense market, suggesting its involvement in a sector experiencing expansion.

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:

Scope Coverage:

Subsegments:

Geographies: Countries such as USA, China, UK, India, Japan, among others across regions like Asia-Pacific, North America, Western Europe, etc.

Companies Featured

For more information about this report visit https://www.researchandmarkets.com/r/jcr73n

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