Artificial Intelligence and Robotics in Aerospace and Defense Market Report 2026

The artificial intelligence and robotics in aerospace and defense market size has grown rapidly in recent years. It will grow from $26.9 billion in 2025 to $29.73 billion in 2026 at a compound annual growth rate (CAGR) of 10.5%. The growth in the historic period can be attributed to rise of autonomous drones and robotics in defense, adoption of ai for threat detection and cybersecurity, increasing investment in defense r&d, integration of advanced sensors in aerospace platforms, use of predictive analytics for maintenance and operations.

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 $44.09 billion in 2030 at a compound annual growth rate (CAGR) of 10.4%. The growth in the forecast period can be attributed to deployment of ai-driven autonomous systems, growth of robotics-assisted defense operations, integration of quantum computing for defense intelligence, adoption of ai for space exploration missions, expansion of ai-based cybersecurity solutions. Major trends in the forecast period include integration of ai-powered predictive maintenance in aerospace systems, adoption of robotics for autonomous military operations, growing use of ai-driven simulation and modeling for defense training, increased deployment of sensor fusion technologies for aerospace surveillance, expansion of ai-assisted decision support for space mission planning.

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 financial resources allocated by a government to support its military forces, defense operations, and national security programs. Defense spending is rising due to escalating geopolitical tensions, prompting nations to strengthen their military capabilities for security and threat deterrence. This rising expenditure is being directed toward advancing artificial intelligence (AI) and robotics within the defense and aerospace sectors to enhance military performance, increase operational efficiency, and support national security objectives. For instance, in April 2024, according to a report published by the Stockholm International Peace Research Institute (SIPRI), a Sweden-based international research institute, global military spending reached $2.443 trillion in 2023, representing a 6.8% real-term increase compared to 2022. Therefore, increasing defense expenditure is driving the growth of artificial intelligence and robotics in the aerospace and defense market.

Leading companies in artificial intelligence (AI) and robotics within the aerospace and defense sectors are increasingly developing sophisticated defense solutions, such as AI-powered robots, to boost operational efficiency, enhance decision-making, and strengthen security capabilities. AI-powered robots are autonomous systems that utilize AI to perform complex tasks, make decisions, and adapt to dynamic environments independently of human control. For example, in July 2024, Zen Technologies, an Indian manufacturer specializing in defense training and counter-drone systems, launched Prahasta, an AI-driven quadruped robot designed for real-time 3D mapping. Prahasta employs LiDAR (Light Detection and Ranging) and reinforcement learning to produce live 3D terrain maps, aiding in mission planning, navigation, and threat assessment. Zen Technologies also introduced additional advanced defense systems, including the Hawkeye anti-drone system camera, the Barbarik-URCWS (remote-controlled weapon station), and the Sthir Stab 640 - a rugged, stabilized sight optimized for use on armored vehicles, infantry combat vehicles (ICVs), and boats. These innovations reflect the growing emphasis on integrating AI-driven technologies to enhance defense capabilities in challenging environments.

In December 2023, LIG Nex1, a South Korea-based aerospace and defense company, successfully acquired Ghost Robotics for $239 million. This strategic acquisition grants LIG Nex1 a controlling 60% stake in Ghost Robotics, a renowned developer of cutting-edge unmanned quadruped vehicles designed for military and aerospace applications. The remaining 40% ownership will be retained by a private equity corporation, the company's partner. Ghost Robotics, based in the United States, specializes in AI and robotics solutions for military and aerospace purposes.

Major companies operating in the artificial intelligence and robotics in aerospace and defense market 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.

North America was the largest region in the artificial intelligence and robotics in aerospace and defense market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are affecting the artificial intelligence and robotics in aerospace and defense market by increasing the cost of critical hardware such as sensors, LiDAR systems, embedded processors, and robotics components, particularly impacting North America, Europe, and Asia-Pacific regions where imports are significant. Software licensing and AI-driven services are also indirectly affected by rising infrastructure costs. While tariffs elevate production and operational expenses, they simultaneously incentivize domestic development of robotics systems, AI algorithms, and secure aerospace technologies, encouraging innovation and regional supply chain diversification.

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

Artificial intelligence and robotics integration in aerospace and defense involve the amalgamation of AI and robotics technologies across diverse facets of the industry, encompassing military operations, commercial aviation, and space exploration. Within the military segment, AI is extensively applied for purposes such as big data analytics, facilitating informed decision-making, threat detection, and automating responses to network attacks, thereby significantly enhancing defense capabilities.

The primary categories of artificial intelligence and robotics in aerospace and defense comprise hardware, software, and services. Hardware denotes the tangible components of a computer or electronic device, encompassing both internal and external devices and equipment that facilitate essential functions such as input, processing, storage, and output. Various technologies, including machine learning, natural language processing, context-aware computing, computer vision, and intelligent virtual agents (IVA), are employed across applications in the military, commercial aviation, and space sectors.

The countries covered in the artificial intelligence and robotics in aerospace and defense market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence and robotics in aerospace and defense market consists of revenues earned by entities by providing AI-powered cybersecurity solutions, cryptographic and quantum solutions, and AI-driven decision support. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence and robotics in aerospace and defense market includes sales of cameras, LiDAR sensors, processors, acoustic and radar sensors, and other advanced sensors. 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.

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.

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