Aerospace Artificial Intelligence Global Market Report 2024

The aerospace artificial intelligence market size has grown exponentially in recent years. It will grow from $0.65 billion in 2023 to $0.92 billion in 2024 at a compound annual growth rate (CAGR) of 42.1%. The growth observed in the historical period can be attributed to several factors, including the increase in fuel efficiency through the use of artificial intelligence (AI), ongoing developments and increased investments in AI technologies, the utilization of AI for various tasks, a rising demand for unmanned aerial vehicles (UAVs), and an increasing focus on improving air traffic management.

The aerospace artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $3.32 billion in 2028 at a compound annual growth rate (CAGR) of 37.9%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing demand for autonomous systems, a growing need for predictive maintenance solutions, the rising adoption of AI in aircraft design and manufacturing processes, the increasing use of AI for aircraft inspection and testing purposes, and the growing demand for AI-powered solutions in supply chain management. Noteworthy trends expected in the forecast period encompass the integration of AI in urban air mobility initiatives, the integration of 5G technology with AI applications, the utilization of blockchain for AI security measures, the implementation of AI-driven sustainability efforts, the development of resilient AI systems, and the utilization of AI in space resource exploration endeavors.

The surging demand for air travel is poised to drive the growth of the aerospace artificial intelligence market in the coming years. Air travel, involving the movement from one location to another through flying objects such as aircraft, helicopters, and air balloons, relies extensively on aerospace artificial intelligence for enhanced flight management, predictive maintenance, and the integration of autonomous systems within the aviation industry. This utilization of AI contributes to heightened safety, improved efficiency, and an enhanced passenger experience. Notably, data from the United States Bureau of Transportation Statistics, a national transportation authority, indicated a substantial increase in air travel demand, with US airlines handling 194 million additional passengers in 2022 compared to the previous year, marking a 30% annual growth. Furthermore, the total number of travelers transported by US airlines in 2022 reached 853 million, reflecting a notable increase from 658 million in 2021 and 388 million in 2020. Thus, the escalating demand for air travel stands as a key driver propelling 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 report 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 2023. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aerospace artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 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.

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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