AI Defense Market to Reach $29.5B, AeroVironment Named Leading Player
AeroVironment is named a leading player in the AI defense market, which reached $9.13B in 2025. That market will hit $29.48B by 2035 at a 12.5% CAGR; the weapons segment is set to climb from $12.3B in 2024 to $36.5B by 2033 at 13.2% CAGR.
1. Market Growth Projections
The global autonomous AI defense market expanded from $9.13 billion in 2025 and is forecast to reach $29.48 billion by 2035 at a compound annual growth rate of 12.5%. A closely related autonomous weapons segment grew from $12.3 billion in 2024 and is expected to hit $36.5 billion by 2033 at a 13.2% CAGR.
2. AeroVironment's Role
AeroVironment is identified among five top firms integrating AI, robotics and machine learning into drones, surveillance systems and combat vehicles. Its positioning aligns with rising government investments in next-generation autonomous platforms that enhance decision speed, situational awareness and mission efficiency.