AI in Defense & Aerospace Market Size, Share, & Forecast by Application (Autonomous Systems, Predictive Maintenance, Intelligence Analysis), Deployment Type, Technology, Platform, and End-User - Global Forecast (2026-2036)

AI in Defense & Aerospace Market by Application (Autonomous Systems, Predictive Maintenance, Intelligence Analysis), Deployment Type, Technology, Platform, and End-User - Global Forecast (2026-2036)

According to the research report titled, 'AI in Defense & Aerospace Market by Application (Autonomous Systems, Predictive Maintenance, Intelligence Analysis), Deployment Type, Technology, Platform, and End-User - Global Forecast (2026-2036),' the global AI in defense & aerospace market is expected to reach USD 42.8 billion by 2036 from USD 4.2 billion in 2026, at a CAGR of 26.4% from 2026 to 2036. The report provides an in-depth analysis of the global AI in defense & aerospace market across five major regions, emphasizing the current market trends, market sizes, recent developments, and forecasts till 2036. Following extensive secondary and primary research and an in-depth analysis of the market scenario, the report conducts the impact analysis of the key industry drivers, restraints, opportunities, and challenges. The growth of this market is driven by the increasing adoption of autonomous systems, the rising demand for predictive maintenance, and the growing need for advanced intelligence analysis.

The key players operating in the AI in defense & aerospace market are Lockheed Martin (U.S.), Northrop Grumman (U.S.), Raytheon Technologies (U.S.), Boeing (U.S.), BAE Systems (U.K.), Palantir Technologies (U.S.), Anduril Industries (U.S.), Shield AI (U.S.), General Dynamics (U.S.), L3Harris Technologies (U.S.), Thales Group (France), Leonardo S.p.A. (Italy), CACI International (U.S.), Booz Allen Hamilton (U.S.), and others.

The AI in defense & aerospace market is segmented by application (autonomous systems, predictive maintenance, intelligence analysis), deployment type (cloud, on-premise), technology (machine learning, deep learning, natural language processing, computer vision), platform (hardware, software), end-user (defense, aerospace), and geography. The study also evaluates industry competitors and analyzes the market at the country level.

Application Segment Analysis

Based on application, the autonomous systems segment is estimated to hold the largest share of the market in 2026, driven by widespread deployment of military drones, development of autonomous combat vehicles, swarm technology demonstrations, and strategic focus on unmanned capabilities reducing human casualties.

Deployment Type Segment Analysis

Based on deployment type, the cloud-based segment is expected to witness the highest growth during the forecast period, driven by secure military cloud infrastructure development, need for distributed AI training and updates, multi-domain integration requirements, and classified cloud computing initiatives.

Geographic Analysis

An in-depth geographic analysis of the industry provides detailed qualitative and quantitative insights into the five major regions (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa) and the coverage of major countries in each region. North America is estimated to account for the largest share of the global AI in defense & aerospace market, driven by massive defense budgets, presence of leading AI defense contractors including Lockheed Martin, Northrop Grumman, and Palantir, extensive military AI research programs, and early adoption of autonomous systems across all military branches. Asia-Pacific is projected to register the highest CAGR during the forecast period, fueled by rapidly increasing defense budgets in China, India, and Japan, military modernization initiatives, development of domestic AI defense capabilities, and government investments in autonomous weapons systems.

Key Questions Answered in the Report

• What is the current revenue generated by the AI in defense & aerospace market globally?
• At what rate is the global AI in defense & aerospace demand projected to grow for the next 7-10 years?
• What are the historical market sizes and growth rates of the global AI in defense & aerospace market?
• What are the major factors impacting the growth of this market at the regional and country levels? What are the major opportunities for existing players and new entrants in the market?
• Which segments in terms of application, deployment type, and technology are expected to create major traction for the manufacturers in this market?
• What are the key geographical trends in this market? Which regions/countries are expected to offer significant growth opportunities for the companies operating in the global AI in defense & aerospace market?
• Who are the major players in the global AI in defense & aerospace market? What are their specific product offerings in this market?
• What are the recent strategic developments in the global AI in defense & aerospace market? What are the impacts of these strategic developments on the market?

Scope of the Report

• AI in Defense & Aerospace Market Assessment -- by Application
• Autonomous Systems
• Predictive Maintenance
• Intelligence Analysis
• AI in Defense & Aerospace Market Assessment -- by Deployment Type
• Cloud
• On-premise
• AI in Defense & Aerospace Market Assessment -- by Technology
• Machine Learning
• Deep Learning
• Natural Language Processing
• Computer Vision
• AI in Defense & Aerospace Market Assessment -- by Platform
• Hardware
• Software
• AI in Defense & Aerospace Market Assessment -- by End-User
• Defense
• Aerospace
• AI in Defense & Aerospace Market Assessment -- by Geography
• North America
• U.S.
• Canada
• Europe
• Germany
• U.K.
• France
• Italy
• Spain
• Rest of Europe
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Rest of Asia-Pacific
• Latin America
• Middle East & Africa