AI and Robotics in Aerospace and Defense Market Size

The global AI and robotics in aerospace and defense market was valued at USD 32.5 billion in 2024 and is estimated to grow at a CAGR of 7.7% from 2025 to 2034.

Artificial intelligence (AI) advancements have significantly enhanced the autonomy of aerospace systems, particularly unmanned aerial vehicles (UAVs) and autonomous aircraft. AI technologies, including machine learning, computer vision, and sensor fusion, enable aerospace systems to operate with increased precision, reliability, and decision-making capabilities without human intervention. For instance, Anthropic AI has announced a partnership with Palantir and Amazon Web Services (AWS) to provide its Claude AI models to U.S. intelligence and defense agencies. The collaboration will leverage Palantir's data analytics tools to process large datasets, enabling faster insights and pattern recognition for government operations.

The defense sector is witnessing a significant increase in investments for developing advanced military robotics and defense technologies. For instance, The U.S. Army is testing a "robot dog" in the Middle East, equipped with an AI-driven gun turret. The system is designed as a counter-drone measure, helping military personnel to defend against aerial threats with autonomous, precision-based responses. This growth is driven by rising geopolitical tensions, a shift toward automation in warfare, and the need for enhanced military capabilities.

Robotics integrated with AI and machine learning technologies are being deployed in various defense applications, including autonomous ground vehicles, drones, and robotic systems for reconnaissance, surveillance, and combat. These systems offer considerable advantages in precision, speed, and operational flexibility, while reducing human casualties and improving mission effectiveness. Governments and defense contractors are allocating substantial funding to develop next-generation robotic systems, positioning this market for rapid expansion in both defense and aerospace industries.