Artificial intelligence in Aviation Market size was over USD 6.07 billion in 2024 and is poised to exceed USD 816.65 billion by 2037, witnessing over 45.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of artificial intelligence in aviation is evaluated at USD 8.29 billion.
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.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
45.8% |
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Base Year Market Size (2024) |
USD 6.07 billion |
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Forecast Year Market Size (2036) |
USD 816.65 billion |
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Regional Scope |
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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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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 with a CAGR of about 47% in 2023 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.
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.
Author Credits: Abhishek Verma
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