Status : Published Published On : Mar, 2024 Report Code : VRAD12024 Industry : Aerospace and Defense Available Format : Page : 195
2025
2030

Artificial Intelligence (AI) in Military Market – Analysis and Forecast (2025-2030)

Industry Insight By Offering (Software, Hardware and Services), By Application (Warfare Platform, Cyber-Security, Logistics and Transportation and Surveillance and Situational Awareness), By Platform (Airborne, Land and Space), By Technology (Machine Learning and Natural Learning Processing) and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East And Africa)

Industry Overview

Global Artificial Intelligence (AI) in Military Market is projected to grow from USD 9.1 billion in 2023 to USD 39.7 billion by 2030 with a CAGR of 32.8% during the forecast period 2025 to 2030.

Artificial Intelligence (AI) in Military Market

AI-integrated military systems can effectively process high data volumes and aid in generating insightful conclusions from the information obtained. In cases of challenging battle settings, enhanced Artificial Intelligence technology aids in improving the precision of target recognition. Artificial intelligence in military refers to the integration of the latest and emerging technology with the military equipment to increase its strength and efficiency. AI equipped military systems are capable of handling large quantities of data efficiently. In addition, these systems have improved self-control and self-regulation due to its enhanced computing and decision-making abilities. Autonomous weapon platforms are using computer vision technology to identify and track objects. Artificial intelligence can help in the extraction of useful information from equipment’s such as radars and automatic identification systems. Thus, the use of AI-driven systems in the military sector is anticipated to increase due to its various advantages and applications.

Market Segmentation

Insight by Offering

On the basis of offerings, the AI in Military Market is classified into software, hardware and services. The software segment is anticipated to develop significantly during the forecast period, strengthening the IT framework to prevent incidences of a security breach. The demand for cyber security solutions using AI is expected to increase in the near future, as data privacy policies and regulatory compliances have become stringent.

Insight by Application

Based on application, the AI in Military Market is segmented into warfare platform, cyber-security, logistics & transportation and surveillance & situational awareness. Cyber security segment shall dominate the market with a remarkable momentum during the forecast period. The global cybercrime rate has increased due to the emergence of new tools and technologies. Corporations and governments are rapidly adopting AI-based technologies that can predict, prevent and respond to cyber-attacks.

Insight by Platform

The AI in military market is segregated into airborne, land and space based on platform. The space segment is expected to hold the largest share of the global artificial intelligence (AI) in military market during the forecast period. The integration of AI technologies in space-based systems, such as satellites, space probes, and other space assets, is part of the space segment. In space missions, AI improves data processing, analytics, and communication capabilities.

Insight by Technology

On the basis of its uses the AI in military market is bifurcated into machine learning and natural learning processing. Among these, the machine learning segment is expected to hold the largest share of the global artificial intelligence (AI) in military market during the forecast period. These AI solutions have enormous potential in the defense sector and are expected to emerge in critical areas such as decision-support systems, cyber defense, risk management, virus detection, and pattern recognition.

Global Artificial Intelligence (AI) in Military Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  9.1 Billion

Revenue Forecast in 2030

U.S.D.  39.7 Billion

Growth Rate

32.8%

Segments Covered in the Report

By offerings, By application, By platform and By technology

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Latin America, Middle East And Africa

Industry Dynamics

Growth Drivers

Many governments have established special departments that are dedicated to planning, initiating, and integrating AI resources into the existing equipment as well as developing new competencies.  The rising demand for autonomous military systems is the key factor supporting the growth of the artificial intelligence in military market. In addition, increase government spending in the defense sector has led to larger acceptance of artificial intelligence in military. The rise in conflicts between the countries improve the defense services resulting into the growth of the AI systems market. Hence, increased defense spending is driving the growth of artificial intelligence in the military market.

Restraints

Lack of standards and protocols for the use of AI systems is the major constraints in this market Currently only a few countries use AI in military ground there are very few protocols and standards for their use. Various governments adopt AI-controlled systems for inspection and automation, asserting that human instruction on robots is essential for ensuring authority security which is the main concern for the growth of the AI in military market. Also, lack of trained people to handle the artificial intelligence integrated equipment hampers the market growth. Current situation of cyber attacks constraints the government of various countries to suspect the AI-enabled systems of the allotted companies about the Security and data privacy of the secret missions.

Geographic Overview

  • North America

  • Europe

  • Asia Pacific (APAC)

  • Latin America

  • Middle East and Africa

North America artificial intelligence in military market is anticipated to grow through 2030, credited to increased investments in AI technology. This can be attributed to the increasing government spending on AI systems. The adoption of Artificial Intelligence in Military will be aided by the presence of important producers, exporters, and users of AI systems as well as the rising AI spending to encompass advanced capabilities.

Competitive Analysis

Charles River Analytics, Inc. have done advancements in AI which are improving medical training and care to help save endangered species and protect the country. Company ids the rleader in the field of explainability to make AI systems trustworthy and accountable. To maximize the potential benefits of AI, Charles River focus on creating AI-human collaborative systems.

L3Harris Technologies, Inc. is an American technology company, information technology, defence contractor and information tehchnology services provider that produces command and control systems and products, tactical radios, avionics, wireless equipment and electronic systems and both terrestrial and spaceborne antennas for use in the government, defense and commercial sectors.

Key Players Covered in the Report

Some of the prominent players in the artificial intelligence in military market include BAE Systems Plc., Charles River Analytics, Inc., L3Harris Technologies Inc., IBM Corporation, Lockheed Martin Corporation, SparkCognition, Northrop Grumman Corporation, Rafael Advanced Défense Systems, Raytheon Technologies Corporation and Thales Group.

Recent developments by Key Players

Defence technology company, L3Harris Technologies has been awarded contracts to overhaul the fire control systems of rocket launch vehicles. This development combines cost-efficiency and enhanced functionality to ensure a robust and streamlined approach to rocket launch vehicle operations, and the contracts signify a step towards enhancing military readiness on the frontlines.

BAE Systems has bought an UK technology specialist developing innovative, “heavy-lift” drones capable of delivering supplies or evacuating troops. Investor interest in drones and other unmanned aircraft systems in the wake of the war in Ukraine with the increased purchase.  With the help of technologies such as sensors, robotics and artificial intelligence highlighting the disruption to defence procurement by innovative. Such cutting-edge technologies are allowing companies to develop lower-cost defence systems that reduce the risk to human life.

The global Artificial Intelligence (AI) in Military Market report offers a comprehensive market segmentation analysis along with the estimation for the forecast period 2025–2030.

Segments Covered in the Report

  • By Offering
    • Software
    • Hardware
    • Services
  • By Application
    • Warfare platform
    • Cyber-security
    • Logistics and Transportation
    • Surveillance and Situational Awareness
  • By Platform
    • Airborne
    • Land
    • Space
  • By Technology
    • Machine Learning
    • Natural Learning Processing
  • Region Covered in the Report

    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • Germany
      • U.K.
      • France
      • Italy
      • Spain
      • Russia
      • Rest of Europe
    • Asia-Pacific (APAC)
      • China
      • Japan
      • South Korea
      • India
      • Australia
      • Rest of APAC
    • Latin America
      • Brazil
      • Argentina
      • Rest of Latin America
    • Middle East and Africa
      • Turkey
      • UAE
      • Saudi Arabia
      • South Africa
      • Rest of MEA

Artificial Intelligence (AI) in Military Market Size

Source: VynZ Research

Artificial Intelligence (AI) in Military Market Analysis

Source: VynZ Research

Frequently Asked Questions

North America is anticipated to lead in the AI in Military Market due to ongoing developments and investments in the defense sector.
Factors driving the market growth include the rise in autonomous military systems, increased government spending in defense, and growing conflicts between countries.
The market is classified into software, hardware, and services. The software segment is expected to witness significant growth, especially in strengthening IT frameworks for security purposes.
AI-integrated military systems can effectively process high data volumes, improve target recognition precision, enhance computing and decision-making abilities, and provide improved self-control and self-regulation.
The Global AI in Military Market is projected to grow from USD 9.1 billion in 2023 to USD 39.7 billion by 2030 with a CAGR of 32.8% during the forecast period 2025 to 2030.

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  •  Research and Analysis
  •  Final Deliverabvle

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Key Takeaways