Inertial Navigation System Market Size

Global Inertial Navigation System Market size was valued at USD 10.7 billion in 2023 and is poised to grow from USD 11.33 billion in 2024 to USD 17.92 billion by 2032, growing at a CAGR of 5.9% during the forecast period (2025-2032).

With the rising adoption of unmanned vehicles globally, the demand for small-sized advanced navigation solutions is increasing. This leads to an increase in the development of miniaturized, cost-efficient, and portable components, including micro-gyroscope and micro-accelerometers. These micro-sized components help navigation solutions to offer excellent performance at relatively low cost, size, and weight. Moreover, with MEMS technology, further miniaturization of the sensor-integrated system is possible. Therefore, the production of miniaturized MEMS accelerometers and MEMS gyroscopes is increased to achieve accuracy in many military and commercial applications.For instance, in May 2023, ANELLO Photonics announced the world’s smallest optical gyro-inertial navigation system, ANELLO GNSS INS. Moreover, new investments in military and naval applications boost the navigation system industry. The growing aerospace market and technical developments in avionics are expected to drive the market. Further, the INS provides critical help to these systems while maintaining the highest level of security and providing fully autonomous operating efficiency.

The increasing military spending across multiple regions paves the way for technologies, like drones/unmanned aerial vehicles (UAVs). In addition, the usage of the inertial navigation system in traditional fighter jets is increasing significantly. The factors mentioned above are creating an exponential demand for inertial navigation systems in terms of volumes as well. These solutions that have minimum standardization, based on applications, are highly customizable. However, the manufacturers are often challenged by the long production time, leading to the technology becoming obsolete by the end of the production period.

How Is AI Enhancing Accuracy in Inertial Navigation Systems?

Artificial intelligence (AI) significantly changes the inertial navigation system market by increasing accuracy, reliability and adaptability in different applications. Traditional INS technologies, which depend on gyroscope and accelerometer, often experience operation over time, leading to cumulative errors in the condition. The integration of the AI algorithm addresses these challenges by continuously learning from real-time data, which reduces the errors associated with inertia. For example, advanced filtration techniques, such as Kalman filters improved with ML functions, enable more accurate fusion of sensor data, resulting in improving navigation accuracy. A remarkable example of AI's influence on the market is collaboration between Visuk Aero and Safran Electronics and Defense in June 2023. A large, advanced air mobility company, erased Aero, signed a contract with a contract to deliver the Skynut Inrtial Navigation System for its generation 6 autonomous, all-electrical air. The partnership emphasizes the increasing emphasis on integrating AI-operated navigation solutions into autonomous aviation and increasing both safety and performance.

How Are Startups Enhancing Military and Aerospace Navigation with AI?

Startups in the inertial navigation system market are driving innovation by integrating AI, sensor fusion, and quantum-based technologies to enhance accuracy and reduce drift in navigation solutions. These companies focus on developing compact, cost-effective, and high-performance INS solutions for applications in aerospace, defense, robotics, and autonomous vehicles. By addressing challenges such as GPS-denied navigation and real-time sensor optimization, startups are reshaping the future of precise and reliable navigation across multiple industries.

• Advanced Navigation (Founded: 2018, Australia): Advanced Navigation is an Australia-based startup specializing in AI-driven inertial navigation systems (INS) and positioning technologies. The company focuses on enhancing autonomy and navigation precision across industries such as aerospace, defense, and robotics. Their AI-based navigation algorithms significantly improve the accuracy of inertial sensors, reducing drift and enhancing performance in GPS-denied environments. In February 2024, Advanced Navigation partnered with Airbus to integrate its AI-powered Boreas D90 fiber-optic gyroscope (FOG) INS into next-generation UAVs. This collaboration aims to enhance autonomous flight capabilities by improving real-time sensor fusion and error correction, ensuring high-precision navigation even in challenging conditions.

• Inertial Sense (Founded: 2017, USA): Inertial Sense is a U.S. based startup developing miniature, high-performance inertial measurement units (IMUs) and INS solutions for drones, robotics, and defense applications. The company focuses on cost-effective, AI-enhanced sensor technology that enables high-accuracy motion tracking and positioning without relying on external signals. In April 2024, Inertial Sense announced a collaboration with Lockheed Martin to supply its µINS-G3 system for military-grade autonomous ground vehicles. This AI-enhanced INS solution provides real-time sensor fusion, improving situational awareness and enabling GPS-independent navigation for defense operations.