Artificial Intelligence in Aviation Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Artificial Intelligence in Aviation Market in 2025 is evaluated at USD 8.25 billion. The global Market size crossed USD 6.07 billion in 2024 and is likely to register a CAGR of around 44.9%, exceeding USD 753.49 billion revenue by 2037. North America is expected to surpass USD 308.93 billion by 2037, attributed to surge in industrialization and advanced technological infrastructure in the region.
This boost is anticipated by the slated demand for big data analytics, especially in the aerospace industry. According to a report, big data benefits are about 69% better in making strategic decisions, and there is about 54% improvement in the control of operational processes.
Artificial Intelligence in Aviation Sector: Growth Drivers and Challenges
Growth Drivers
- Rising adoption of latest technologies - With the lucrative global population along with the boosting economies, there is also a significant demand for the adoption of the latest technologies to ease out the service and make the operations smooth. According to a recently published report, digital airports are growing at a surge with more than a 10% increase in domestic airports and about a 5% increase in international airports.
- Slated investments in aviation - There is an increase in capitalist investments, especially in the aviation industry, which will increase the demand for artificial intelligence in the aviation landscape. According to a report, the Airport, Authority of India is predicted to invest more than USD 3.58 billion in the coming years, mainly for the betterment of infrastructure and facilities at the airport.
- Slated usage of cloud-based technologies - As Airways is not counted as an important medium of automotive & transportation worldwide, this demand for a cloud-based service is for the ease of travelers as well as the users. According to a report, more than 94% of organizations and enterprises have upgraded to cloud computing services. Moreover, there was a drop of about 40% in the costs of infrastructure ownership after cloud technology came into the picture and further spread.
Challenges
- Dependency on an Internet connection - AI systems require real-time data processing coupled with communication, as they completely rely on Internet access, which has to be uninterrupted. In several airspace-constrained or remote regions, connectivity may be intermittent or limited; due to this, the effectiveness of AI applications can be hindered. This dependency can alter several functions, such as weather monitoring, communication, and flight planning with ground control.
- Limited availability of professionals - The implementation and development of AI solutions, especially in the aviation landscape, require specialized expertise in both aviation operations and AI technologies. However, this domain remains relatively specific, which results in the scarcity of several qualified professionals. This could alter the timely optimization and deployment of AI applications in aviation, which leads to delays, suboptimal performance, and increased costs.
Artificial Intelligence in Aviation Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
44.9% |
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Base Year Market Size (2024) |
USD 6.07 billion |
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Forecast Year Market Size (2037) |
USD 753.49 billion |
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Regional Scope |
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Artificial Intelligence in Aviation Segmentation
Offering (Hardware, Software, Services)
Software segment is poised to dominate around 52% artificial intelligence in aviation market share by the end of 2037 driven by the increasing prevalence of investments in AI-based software for its several applications, such as flight operations, surveillance, airport operations, and many more. This AI-based software includes several program interfaces, such as machine learning, vision, language, sensor data, speech, and more.
Additionally, according to a survey, more than 40% of the respondents found that their organization would increase their investments in AI, mainly because of generative AI.
Technology (Machine Learning, Context Awareness Computing, Natural Language Processing, Computer Vision)
The machine learning segment in artificial intelligence in aviation market is estimated to gain a robust revenue share owing to its high capability for performing impossible and complex calculations and the slated demand for big data analytics. Machine learning models can also improve predictive maintenance and crew scheduling.
According to a report, career opportunities would cross 200% in the next 10 years related to machine learning. This technology also allows them to go through historical data and improve their operational efficiency, along with safety enhancements.
Application (Smart Maintenance, Training, Manufacturing, Flight Operations, Virtual Assistants, Dynamic Pricing, Surveillance)
The virtual assistant segment in AI in aviation market is projected to hold the highest influencing segment under the nature of artificial intelligence in aviation industry. The reason behind this impact is the improved performance and efficiency of pilots by eliminating and reducing repetitive tasks such as providing position information, reading wind forecasts, changing radio channels, and many more.
According to a report, more than 76% of companies are predicted to be more productive after using virtual assistance, and more than 60% of professionals can save about 2 or more hours a day using virtual assistance.
Our in-depth analysis of market includes the following segments:
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Offering |
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Technology |
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Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Artificial Intelligence in Aviation Industry - Regional Synopsis
North American Market Statistics
North America industry is poised to dominate majority revenue share of 41% by 2037. The landscape's substantial growth in the region is expected credited to the surge in industrialization, along with advanced technological infrastructure, which has a strong emphasis on innovation.
According to the United Nations Industrial Development Organization, in industrial sectors, there was an increase of about 2.3%, which includes mining, electricity, manufacturing, and many more.
Owing to the presence of air transport infrastructure in the United States, aircraft cabin interiors, and many more that are well-established is slated to act as a growth driver for this landscape. According to the International Air Transport Association, there is an increase of about 28% in annual traffic in 2023 as compared to 2022.
The increase in the number of air travelers in Cananda along with the surge in air travel is credited to be a growing factor for the growth of this industry. According to the International Air Transport Association, Canada is predicted to grow by 51% by 2028.
APAC Market Analysis
The Asia Pacific region will also encounter a huge influence on the AI in aviation market expansion during the forecast period and will account for the second position attributed to the increasing investments in the development of infrastructures in airlines for impacting tourism in this region. According to ASEAN, Southeast Asian airlines will require more than 2000 airliners in the coming 20 years.
Owing to the increasing congestion at Beijing Airport, China, Alibaba Holding Limited has announced an AI-based solution to remove this problem.
There has been an increase in artificial intelligence which will increase the market demand of artificial intelligence in aviation sector in Japan. Japan's government is investing more than USD 3 billion to spread the AI industry and increase research activities in private and institutional enterprises.
Companies Dominating the Artificial Intelligence in Aviation Landscape
- Tata Power
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Airbus
- Amazon
- Lockheed Martin
- Thales
- Intel
- Samsung Electronics
- Nvidia
- Garmin
- IBM
- Microsoft
Most of the companies are continuously collaborating, expanding, making agreements, and joining ventures for the growth of this revenue share and are estimated to be the major key players in this landscape.
Recent Developments
- Tata Power- announced its partnership with the Auto Grid for introducing a residential demand response program, mainly for boosting the acceptability according to the consumer demand response.
- Airbus- announced its acquisition of Uptake Technologies, AI-powered maintenance solutions, especially for industrial sectors. This would help Airbus perfectly use AI-powered predictive maintenance and access Uptake technology.
- Report ID: 6107
- Published Date: May 10, 2025
- Report Format: PDF, PPT
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