USD 4.6 billion
Artificial Intelligence in Aviation Market Size, Share, and Growth Analysis
Artificial Intelligence in Aviation Market By Component (Hardware, Software), By Technology (Machine Learning, Natural Language Processing), By Application (Virtual Assistants, Smart Maintenance), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG20N2041 |
Region:
Global |
Published Date: January, 2025
Pages:
176
|Tables:
97
|Figures:
71
Format -
Artificial Intelligence in Aviation Market Insights
Artificial Intelligence in Aviation Market size was valued at USD 4.6 billion in 2023 and is poised to grow from USD 5.57 billion in 2024 to USD 25.77 billion by 2032, growing at a CAGR of 21.1% during the forecast period (2025-2032).
Due to the increased incorporation of big data analytics within the aerospace industry, the global artificial intelligence in aviation market growth is expected to boost considerably across the forecast period. The global market is expanding because of the fast and increasing investments of companies within the aerospace industry using cloud-based technologies and services. The aviation sector and airports are gradually implementing cutting-edge technology, such as artificial intelligence, to enhance services and streamline operations. Growing operating expenses and the need to increase profitability are assisting in the adoption of artificial intelligence in the aviation market. As airlines have become a significant global transportation hub, the increased emphasis on enhancing customer experience is greatly increasing the need for artificial intelligence in the aviation sector.
There has been a significant rise in the use of chatbots that run on artificial intelligence to aid travelers in booking their tickets online. In the future, the application of AI and machine learning technology will lead to enhanced predictive maintenance and air traffic control operations. Observational tasks such as computer vision, natural language processing, and time series analysis are also expected to witness an increase in the application of AI. It is expected that the number of AI applications in the many complex processes of the aviation industry would rise due to the continuous advancements and increasing investments in research activities.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Software
Fastest Growth
Services
Growth Rate
21.1% CAGR
Global Artificial Intelligence in Aviation Market ($ Bn)
Country Share for North America (%)
To get more reports on the above market click here to Buy The Report
Artificial Intelligence in Aviation Market Segments Analysis
Global Artificial Intelligence in Aviation Market is segmented by Component, Technology, Application and region. Based on Component, the market is segmented into Hardware, Software and Services. Based on Technology, the market is segmented into Machine Learning, Natural Language Processing, Context Awareness Computing and Computer Vision. Based on Application, the market is segmented into Virtual Assistants, Smart Maintenance, Manufacturing, Training, Surveillance, Flight Operations, Dynamic Pricing and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Offering
As per the 2024 global artificial intelligence in aviation market forecast, ranges of rapid developments and investments in AI-based software for various aviation applications drove the software category to the forefront of the global market. AI software is vital for expediting flight operations, upgrading surveillance systems, and optimizing operations at airports. Some of this software includes application program interfaces (APIs), for speech recognition, sensor data analysis, language processing, vision, and machine learning algorithms. These technologies help airlines save costs, ensure passenger safety, and improve operational efficiency. The growing adoption of AI solutions by airports and airlines reveals how crucial software is in helping make more intelligent and data-driven decisions, supporting the explosive growth of the segment in the industry.
During the forecast period, the services sector of the artificial intelligence in aviation industry is expected to develop at the fastest rate. The principal reason for this growth is the increased demand for proficient technicians to work with AI systems in an effective manner. Many airline staff do not possess the technical expertise to maintain and operate such sophisticated technology, thereby requiring outside services as AI use increases. From real-time analytics of data to predictive maintenance, specialized services ensure seamless integration and operation of AI technologies. This trend pushes much development in the services industry since it is pointing out how crucial it is for the service providers to support the airports and airlines.
Analysis By Technology
Based on the 2024 global artificial intelligence in aviation market analysis, the growing need for data gathering in the global industry and the rising requirement of big data analytics has led to the dominance of the machine learning segment in the market. Improving its capability of effectively executing intricate and apparently impossible computations with accuracy and efficiency has made machine learning technology invaluable. This has enabled airports and airlines to predict maintenance needs, optimize operations, and improve passenger experiences. Machine learning is a significant part of innovation in the aviation industry, and its supremacy in the market has been solidified by its ability to draw insightful conclusions from large datasets and adjust to changing conditions.
Throughout the projection period, the most opportunistic market sector is expected to be natural language processing (NLP). NLP technology can easily scan text data and convert it into a document such as an agreement, an invoice, or tickets. It can also use deep learning to encode words and sentences. In addition, by using Recurring Defects Management, the NLP can be used to detect potential recurring defects in the aircraft. Several additional features such as revenue management, drone aircraft control systems, flight safety assurance, quantification of customer interactions, and feedback analysis further accelerate the use of NLP in the aviation sector.
Global Artificial Intelligence in Aviation Market By Offering
To get detailed analysis on other segments, Request For Free Sample Report
Artificial Intelligence in Aviation Market Regional Insights
The artificial intelligence in aviation market was dominated by North America. The North American market has grown with the increase in well-established air transport infrastructure in the region along with the increased expenditure in adopting leading edge digital and innovative technologies. Significant expenses in the deployment of AI technology at airports and airplanes will be incurred in this region because of the demand of air travel and increasing number of air passengers. Foreign flights into the US and Canada are also on the rise because of global business. North America was also one of the early regions to use AI-based technology in the aviation industry.
Throughout the projection period, Asia-Pacific is expected to be the most opportunistic market for artificial intelligence in aviation. To cater to the growing tourism sector, countries such as China, India, Thailand, South Korea, Australia, and New Zealand are investing heavily in developing high-end aviation infrastructure. Being a favorite tourist destination globally, Asia Pacific is witnessing a sharp rise in air traveler volume, which calls for enhanced air connectivity and efficient operations. The regional market is expected to grow significantly as AI technologies are increasingly used to optimize airline services, enhance passenger experiences, and increase operational efficiency. This makes it a critical area of potential for industry players.
Global Artificial Intelligence in Aviation Market By Geography
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Artificial Intelligence in Aviation Market Dynamics
Drivers
Growing Need for Operational Effectiveness
- The aviation industry is using AI to enhance operational efficiency by automating complex processes such as flight scheduling, route optimization, and predictive maintenance. AI enables the analysis of data in real time that accelerates decision-making while reducing costs. AI adoption is a strategic move towards maintaining competitiveness in an increasingly competitive aviation market because these technologies aid airlines in effectively managing resources, reducing downtime, and answering industry challenges.
Increase in Air Travel and Passenger Counts
- With increased connectivity and rising affluence, aviation travel is expanding rapidly across the globe. This growth is therefore building airline networks stronger and creating more demand for AI solutions in handling airport operations, air traffic control, and passenger services. The airline industry is further fueled by AI's ability to handle growing levels of traffic and streamline procedures that guarantee smoother operations, better passenger experiences, and less delay.
Restraints
Privacy and Data Security Issues
- Large amounts of sensitive passenger and operational data must be processed by AI systems in the aviation industry, which raises issues about data breaches, illegal access, and privacy compliance. These difficulties may discourage airports and airlines from implementing AI. To allay these worries and promote the use of AI, it is essential to provide strong data encryption, compliance with privacy regulations, and open data usage guidelines.
Regulatory and Ethical Challenges
- Strict laws and moral principles regulate the application of AI in aviation. The adoption may be slowed down by the necessity to comply with international aviation safety standards and data privacy legislation. Ethical issues in crucial functions, such as air traffic control, bring about other challenges in which AI decision-making is involved. These factors need to be taken into consideration in order to guarantee compliance and preserve confidence in AI-powered aviation systems.
Request Free Customization of this report to help us to meet your business objectives.
Artificial Intelligence in Aviation Market Competitive Landscape
There is intense competition in the global artificial intelligence in aviation industry, and large companies are focusing on collaborations, mergers, and innovation to gain more market share. To enhance customer satisfaction and operational effectiveness, companies such as IBM, Airbus, Boeing, and Microsoft are investing heavily in AI technology. Dynamic competition is being driven within this evolving industry by growing startups and niche companies. These companies are finding success while providing specialized AI solutions for aircraft operations, predictive maintenance, and airport management.
Top Players in Artificial Intelligence in Aviation Market
- Honeywell Aerospace (United States)
- Embention Sistemas Inteligentes S.A (Spain)
- SIA Engineering Company (Singapore)
- ST Engineering Aerospace (Singapore)
- CAE Inc. (Canada)
- Dassault Systèmes (France)
- Thales Group (France)
- BAE Systems (United Kingdom)
- Raytheon Technologies (United States)
- Northrop Grumman (United States)
- Lockheed Martin (United States)
- General Electric Aviation (United States)
- Safran (France)
- Leonardo S.p.A. (Italy)
- Rolls-Royce Holdings (United Kingdom)
- Elbit Systems (Israel)
- L3Harris Technologies (United States)
- Kongsberg Gruppen (Norway)
Recent Developments
- Uptake Technologies is the leading provider of AI-powered predictive maintenance solutions for industry. The company was recently acquired by Airbus in March 2023. The company will now be able to benefit from Uptake's technology and knowledge of AI-powered predictive maintenance.
- The first test flight of a fixed-wing all-electric autonomous passenger plane from a company named Aurora Flight Sciences was completed in January 2023. It has an operational range of up to 200 miles, two electric motors, and a total maximum capacity of six passengers.
- Consumer demand response acceptance was developed by Tata Power through a collaborative partnership with Autogrid. A home demand response program was launched in July 2021.
Artificial Intelligence in Aviation Key Market Trends
- AI and IoT integration: By allowing real-time monitoring of aircraft equipment, baggage management, and passenger services, the confluence of AI and IoT is completely transforming the aviation industry. AI analyzes the data captured by IoT sensors to predict maintenance needs, optimize fuel consumption, and enhance efficiency overall. This connection opens the door for a totally integrated aviation ecosystem by enhancing operational accuracy, minimizing disruptions, and promoting the development of automated systems and smart airports.
- Emergence of Chatbots Driven by AI: AI-powered chatbots are transforming airline customer care by handling tasks such as booking tickets, answering flight-related queries, and providing real-time data. These bots work all day, providing travelers with timely responses while easing the pressure on customer service humans. As they enhance customer satisfaction, save on operating costs, and speed up communication through natural language processing and machine learning, chatbots are becoming more of a valuable resource for airlines across the globe.
Artificial Intelligence in Aviation Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global artificial intelligence in aviation market will rise significantly due to improvements in technology, the increasing need for operational efficiency, and the growing use of AI-powered solutions across the range of segments in the aviation industry. AI is revolutionizing the way airports and airlines operate, ranging from improving passenger experiences and flight operations to predicting maintenance. However, to achieve its optimum form, there are factors, such as high setup expenses, data security issues, and a lack of personnel, that need to be sorted out. Provided industries involve themselves in investing their interest in partnerships and innovation along with the changing of rules by making them friendlier toward AI, this technology shall have a huge influence upon future international aviation.
| Report Metric | Details |
|---|---|
| Market size value in Aviation | USD 4.6 billion |
| Market size value in 2032 | USD 25.77 billion |
| Growth Rate | 21.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence in Aviation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence in Aviation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Artificial Intelligence in Aviation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence in Aviation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence in Aviation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence in Aviation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Artificial Intelligence in Aviation Market Report Snapshots
REQUEST FOR SAMPLE
Want to customize this report?
REQUEST FREE CUSTOMIZATION
REQUEST FREE CUSTOMIZATION
USA (+1) 351-333-4748
