Aerospace Artificial Intelligence Market Report 2026

The aerospace artificial intelligence market size has grown exponentially in recent years. It will grow from $1.3 billion in 2025 to $1.77 billion in 2026 at a compound annual growth rate (CAGR) of 36.4%. The growth in the historic period can be attributed to adoption of AI in aircraft maintenance, implementation of factory automation systems, use of AI for fuel monitoring and efficiency, integration of cognitive cockpit systems, early deployment of AI in aircraft design and manufacturing.

The aerospace artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $5.98 billion in 2030 at a compound annual growth rate (CAGR) of 35.6%. The growth in the forecast period can be attributed to growth in predictive maintenance solutions, expansion of autonomous systems development, adoption of AI for real-time flight operations optimization, increasing use of AI-driven cybersecurity devices, development of advanced training and simulation services. Major trends in the forecast period include increasing adoption of ai-based predictive maintenance, growing use of intelligent flight operation optimization tools, rising deployment of ai-driven autonomous cockpit systems, expansion of ai applications in aviation training and simulation, advancements in ai-powered aerospace cybersecurity solutions.

The growing demand for air travel is expected to propel the growth of the aerospace artificial intelligence market in the coming years. Air travel is the process of moving from one location to another utilizing flying objects such as aircraft, helicopters, air balloons, or any other kind of vehicle capable of continuous flight. Air travel integrates aerospace artificial intelligence to improve flight management, maintenance prediction, and autonomous systems in the aviation industry, therefore increasing safety, efficiency, and passenger experience. For instance, in November 2024, according to Eurostat, a Luxembourg-based statistical office of the European Union (EU), in 2023, air travel in the EU rose significantly, with 973 million passengers, marking a 19.3% increase compared to 2022. Therefore, the growing demand for air travel is driving the growth of the aerospace artificial intelligence market. Therefore, the growing demand for air travel is driving the aerospace artificial intelligence market.

Key players in the aerospace artificial intelligence market are strategically focusing on collaborative initiatives to deliver reliable services to their customers. Strategic collaborations, formed between two or more entities, serve as a means to achieve specific goals that might be challenging or unattainable individually. For example, in June 2023, Pratt & Whitney, a US-based company specializing in AI-based solutions for airplanes, entered into a collaboration with Awiros, an India-based artificial intelligence startup. The partnership resulted in the launch of Percept, an AI-based aircraft engine analysis tool operating on the Awiros Video Intelligence Operating System (OS). Percept's cloud-based interface enables users to capture images and videos of aircraft engines using their mobile devices while receiving real-time updates on their condition. This innovative tool facilitates a faster and more cost-effective turnover of rented engine assets, automating the inspection process and saving over 90% of the time compared to traditional methods.

In August 2023, IFS AB, a leading provider of AI-powered enterprise cloud software based in Sweden, finalized the acquisition of Falkonry AI for an undisclosed sum. This strategic move reflects IFS's commitment to leveraging advanced AI technologies across the aerospace sector. By integrating Falkonry's self-learning anomaly detection solution with IFS's existing enterprise simulation and AI-driven scheduling and optimization capabilities, the company aims to deliver comprehensive, end-to-end intelligent insights to its customers. Falkonry AI, a US-based provider renowned for its AI software tailored for the aerospace industry, was identified as a valuable addition to IFS's portfolio to further enhance its capabilities in this domain.

Major companies operating in the aerospace artificial intelligence market are Microsoft Corporation, Raytheon Technologies Corp., The Boeing Company, Lockheed Martin Corp., General Electric Company, Airbus S.A.S., International Business Machines Corporation (IBM), Intel Corporation, Northrop Grumman Corp., NVIDIA Corp., BAE Systems plc, Infosys Ltd., Thales Groups, L3Harris Technologies, Inc., Textron Systems, Dassault Systèmes SA, Embraer SA, Indra Sistemas SA, Kongsberg Gruppen, Honeywell Aerospace, Curtiss-Wright Corporation, Meggitt PLC, SITA, Kratos Defense & Security Solutions, AeroVironment, PAL Aerospace, Shield AI, Spark Cognition, Iris Automation Inc.

North America was the largest region in the aerospace artificial intelligence market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aerospace artificial intelligence 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 impacting the aerospace artificial intelligence market by increasing the cost of imported AI-enabled sensors, processing units, and specialized robotics used in aircraft manufacturing and maintenance. The most affected segments include hardware components and software-integrated flight optimization tools, with North America and Europe facing higher production costs due to import restrictions. However, tariffs are also encouraging domestic development of AI systems, promoting local manufacturing and innovation while reducing dependency on foreign suppliers.

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

Aerospace artificial intelligence (AI) refers to the application of artificial intelligence technology in managing complexity, enhancing production processes, and addressing disruptions within the aerospace industry. This technology plays a crucial role in various aspects of aerospace operations, including aircraft maintenance, factory automation, fuel monitoring and efficiency, as well as aircraft design and manufacturing.

The primary components of aerospace artificial intelligence include software, hardware, and services. Software encompasses a collection of commands, information, and applications utilized to operate machines and perform specific functions, ranging from aircraft maintenance and product design to safety and security management. Aerospace artificial intelligence technologies are further categorized into machine learning, natural language processing, computer vision, and context-aware computing. These technologies find applications in various areas such as customer service, smart maintenance, manufacturing, training, flight operations, and more.

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

The aerospace artificial intelligence market consists of revenues earned by entities by providing services such as autonomous systems development, cognitive cockpit development, predictive maintenance, training, and simulation services. The market value includes the value of related goods sold by the service provider or included within the service offering. The aerospace artificial intelligence market also includes sales of flight operations optimization devices, cybersecurity devices, and communication systems. 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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