New York, Dec. 01, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “AI and Robotics in A&D Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” – https://www.reportlinker.com/p06187413/?utm_source=GNW
However, the defense sector is expected to remain stable, and even grow as most countries have not reduced their defense budget and remain committed to sustaining their military capabilities. Supply-side shocks are perhaps some of the most visible effects of the pandemic’s impact on the defense sector. Firms located in countries badly affected by COVID-19 or those that are dependent on supply chains located in affected countries are the immediate victims of the pandemic. For instance, Italian shipbuilder Fincantieri was forced to suspend its operations till March 2020 due to the pandemic even when it was scheduled to deliver four new corvettes to the Qatari Navy. Thus, the deliveries could be pushed back if the company extends the closure of its facilities – a probable course of action that could have been taken if Italy could not flatten its COVID-19 growth curve. Thus, due to the widespread disruption in the supply chain, some of the defense programs could face minor cost escalations and delays in the short term.
The ever-increasing application of AI-based technologies in the A&D sector and increasing investments being funneled to develop and integrate AI and machine learning (ML) into the end-user sectors are anticipated to drive the market in focus during the forecast period. However, the associated technical and operational challenges that are often observed during the initial stages of development and adoption of a nascent technology are hindering the adoption of AI-based technologies.
Key Market Trends
Military Application Segment to Dominate During the Forecast Period
The plethora of applications of AI within the military segment, such as big data analytics for better decision making, automated logistics through the integration of unmanned ground vehicles (UGV), and unmanned aerial vehicles (UAV), bioinspired robots (swarm AI and deep neural networks), underwater mines location through neural networks, and object location, are expected to promote market growth during the forecast period. The rise in investments towards the development and integration of AI and robotics, coupled with enhanced defense budget allocation toward the R&D and acquisition of AI-based equipment are also anticipated to augment market prospects during the forecast period. For instance, out of 21,000 equipment contracts published by of People’s Liberation Army’s (PLA) China in 2020, approximately 350 records were aligned to AI systems and equipment. In October 2021, NATO announced plans to launch an innovation fund worth USD 1 billion as its initial strategy to stay ahead of …….