Artificial Intelligence (AI) In Defense Market Size, Share, Opportunities, And Trends By Application (Intelligence And Surveillance, Cyber Security, Combat Training, Reconnaissance, Others), By Platform (Land, Airborne And Space, Naval), By Technology (Machine Learning, Computer Vision, Natural Language Processing, Others) And By Geography - Forecasts From 2024 To 2029

The AI in defense market is estimated to expand at a growth rate of 30.22% CAGR during the projected period to account for US$18.558 billion by 2029, up from US$4.956 billion in 2024.

The military and defense are vast industries where artificial intelligence (AI) plays a significant role. Progress in AI enables new opportunities for developing defense technologies. In addition to the aforementioned increase in the effectiveness of military forces, using AI in military operations is also more likely to result in a victory of war. Globally, many nations employ AI to improve their military operations and increase their forces' productivity.

Defense objectives will hold a significant share as the government continues spending more of its national budget on defense. As such, qualified engineers and researchers working on defense-purpose technologies are being the major market drivers. For deep learning computers, AI allows for creating neural networks and artificial networks using big data. Moreover, AI-powered robots can enhance the precision and efficacy of military judgments made by humans, facilitating machine-human combat of all kinds between manned and unmanned systems.

Additionally, AI cannot move forward without relevant data gathered by different defense ships, aircraft, and vehicles on everyday duty. The military collects the data using war games, digital simulations, and physical defense exercises, which train the AI. In the coming years, increasing defense spending is likely to lead to a wider application of AI for designing defensive programs, which will drive the overall AI in the defense market’s growth.

What are the AI in defense market growth drivers?

• Increasing government funding to enhance and improve technological applications in defense is expected to boost AI in the defense market.

The government's increasing funding of AI advancements in defense is likely to increase the development and adoption of such systems. This investment in research and development, talent acquisition, niche hardware, and infrastructure has been further stimulated by world applications of interest to national security. These applications include surveillance, target identification, semi-autonomous vehicles/drones, eventually driverless cars, and cyber security. Moreover, AI also provides automotive sensors for military surveillance equipment such as satellites and night vision devices, as well as missile targeting systems.

In addition, more funding can bring in the best AI talent working on defense-related projects, speed up innovation, and help build high-performance computing clusters. Improvements in machine learning, natural language processing, and computer vision will be its eventual outcome. For instance, in May 2024, through the European Defence Fund, the European Commission invested €1,031 million in 54 joint European defense research and development projects. It is set to facilitate the development of dozens of technologies spanning multiple critical innovation focus areas such as cyber, land, air, sea, and space-based asset protection, including Chemical, Biological, Radiological, and Nuclear (CBRN) defense.

• The increasing research in Naval operations is anticipated to drive AI in the defense market expansion.

In recent years, AI, which presents the potential to maintain control over ever-increasing areas against increasingly robust adversaries, has been garnering recognition within naval research. The Navy is also working to improve the range of autonomy for unmanned systems with AI. Some use cases for the military could be unmanned aircraft, unmanned surface vessels, and drones. AI can gather all the data observed from several sensors and satellites with the Air Force, among other defense forces. This could also lead to the defense staff being more confident in taking authority in deciding a suitable course of action. In the end, AI can make a drone take off and land and even finish doing it alone.

In addition, as AI is further developed, advancements can be made in submersible boats and other craft to have mine-detecting abilities while on land. Examining the object and identifying it leads to making an appropriate decision that leads to quick action in mine detection. Some have built-in military hardware that can operate autonomously while keeping human lives out of harm's way.

What are the key geographical trends shaping the AI in defense market?

• The Asia Pacific region is anticipated to hold a significant AI in Defense market share.

Asia Pacific countries such as Japan, India, and China are witnessing rising AI markets because of major key players of AI and technical companies. Additionally, countries in the region are heavily investing in new AI and defense technologies. Therefore, the two merged fields have created a product in the form of AI in the defense market and are benefiting hugely from growing initiatives by governments and private enterprises to develop and deploy AI technologies further in defense.

For instance, in July 2022, India’s Defense Minister, Shri Rajnath Singh, launched 75 new AI products developed by the Indian private sector and start-ups and product development companies at the first-ever 'AI in Defence' symposium, a two-day event held in New Delhi. Domains of products include AI Platform Automation, Autonomous/Unmanned/Robotics systems, Block Chain-based Automation, Command, Control, Communication & Computer & Intelligence and Surveillance & Reconnaissance (C4ISRs), Cyber Security, Human Behavioural Analysis, Intelligent Monitoring Systems, among others. These increasing government initiatives to advance AI in defense will contribute to the overall market expansion.

Recent developments in the AI in defense market

• July 2024- The University of Maryland hosted the second annual AI Defense Technical Review to feature research from across the Department of Defense organized by the Office of the Under Secretary of Defense for Research and Engineering. The session “Scalability and Federation of AI” discussed smart decision-making and strategic coordination over all the forces operating with the related forces. Nearly 300 people from the government, industry, and academia registered for the event, and there were presentations from Google, Microsoft AWS, IBM, and CENTCOM.
• June 2024- Airbus Defence and Space and Helsing signed a partnership cooperative agreement at the ILA aerospace trade show held in Berlin. The agreement aims to collaborate on AI technologies for a future Wingman system. This unmanned fighter-type aircraft will operate with current combat jets and receive tasks from a pilot in a command aircraft like the Eurofighter.
• January 2023- HENSOLDT and 21strategies partnered in developing next-generation AI for defense systems, intending to advance the state of AI within defense systems. One of the partnerships receiving a solid base, HENSOLDT, participated in the 21st strategy's financing round. As a sensor solutions provider, HENSOLDT is well positioned in the market, and its information guides its customers' situational awareness and defense capabilities.

Artificial Intelligence (AI) In Defense Market Scope:

 

Report Metric	Details
AI in Defense Market Size in 2024	US$4.956 billion
AI in Defense Market Size in 2029	US$18.558 billion
Growth Rate	CAGR of 30.22%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Application Platform Technology Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in AI in Defense Market	Boeing Lockheed Martin Corporation Thales Grou BAE Systems Plc L3Harris Technologies, Inc.
Customization Scope	Free report customization with purchase

 

The AI in defense market is segmented and analyzed as below:

• By Application
  • Intelligence and Surveillance
  • Cyber Security
  • Combat Training
  • Reconnaissance
  • Others
• By Platform
  • Land
  • Airborne and Space
  • Naval
• By Technology
  • Machine Learning
  • Computer Vision
  • Natural Language Processing
  • Others
• By Geography
  • North America
    • USA
    • Canada              
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Australia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI IN DEFENSE MARKET BY APPLICATION

5.1. Introduction

5.2. Intelligence and Surveillance

5.3. Cyber Security

5.4. Combat Training

5.5. Reconnaissance

5.6. Others

6. AI IN DEFENSE MARKET BY PLATFORM

6.1. Introduction

6.2. Land

6.3. Airborne and Space

6.4. Naval

7. AI IN DEFENSE MARKET BY TECHNOLOGY

7.1. Introduction

7.2. Machine Learning

7.3. Computer Vision

7.4. Natural Language Processing

7.5. Others

8. AI IN DEFENSE MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Application

8.2.2. By Platform

8.2.3. By Technology

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Application

8.3.2. By Platform

8.3.3. By Technology

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Application

8.4.2. By Platform

8.4.3. By Technology

8.4.4. By Country

8.4.4.1. Germany

8.4.4.2. France

8.4.4.3. United Kingdom

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Application

8.5.2. By Platform

8.5.3. By Technology

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Israel

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Application

8.6.2. By Platform

8.6.3. By Technology

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Australia

8.6.4.7. Taiwan

8.6.4.8. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. IBM Corporation

10.2. Booz Allen Hamilton Inc.

10.3. Qualetics Data Machines Inc.

10.4. Raytheon Technologies Corporation

10.5. Boeing

10.6. Lockheed Martin Corporation

10.7. Thales Grou

10.8. BAE Systems Plc

10.9. L3Harris Technologies, Inc.

10.10. Northrop Grumman Corporation

IBM Corporation

Booz Allen Hamilton Inc.

Qualetics Data Machines Inc.

Raytheon Technologies Corporation

Boeing

Lockheed Martin Corporation

Thales Grou

BAE Systems Plc

L3Harris Technologies, Inc.

Northrop Grumman Corporation