Generative Artificial Intelligence in Defense Market Report 2024

This Generative Artificial Intelligence In Defense market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The generative artificial intelligence in defense market size has grown exponentially in recent years. It will grow from $0.58 billion in 2023 to $0.71 billion in 2024 at a compound annual growth rate (CAGR) of 23.4%. The growth during the historic period can be attributed to several factors, the rising demand for autonomous systems, increasing cybersecurity threats, the need for enhanced security measures, higher military spending, and the rapid expansion of data.

The generative artificial intelligence in defense market size is expected to see exponential growth in the next few years. It will grow to $1.66 billion in 2028 at a compound annual growth rate (CAGR) of 23.6%. The anticipated growth during the forecast period can be attributed to several factors, rising defense budgets, the need for improved surveillance and reconnaissance, growing demand for autonomous systems, advancements in strategic military planning and simulation, and enhancements in data analytics capabilities. Major trends expected to shape this period include advanced threat detection, AI-driven simulation and training, automated decision support systems, sophisticated data fusion and analysis, and AI-enhanced battlefield management.

The growth of generative artificial intelligence in the defense sector is anticipated to accelerate due to increased investments in defense innovation. Defense innovation involves developing and implementing advanced technologies and strategies to boost military capabilities and national security. This innovation is driven by the need to strengthen national security, maintain technological dominance, and address emerging threats in a complex global environment. Investments in generative artificial intelligence within defense aim to improve decision-making, automate complex tasks, and enhance the efficiency and effectiveness of military operations. For example, in November 2023, the European Defense Agency, a Belgium-based intergovernmental organization, reported a 5.9% increase in defense investment for 2022 compared to 2021, reaching €58 billion ($63 billion). Consequently, these rising investments in defense innovation are fueling the growth of the generative artificial intelligence market in defense.

Leading companies in the generative artificial intelligence defense market are focusing on creating innovative solutions, such as generative AI chatbots, to offer platforms where service members can explore and develop skills related to generative AI. A generative AI chatbot is a tool powered by advanced algorithms that understands and generates human-like responses to assist users with various queries, tasks, or information. For instance, in June 2024, the United States Department of the Air Force (DAF) and the Air Force Research Laboratory (AFRL) introduced the non-classified internet protocol generative pre-training Transformer (NIPRGPT). This AI chatbot is designed to interact like a human and supports Airmen and Guardians with tasks including communications, coding, and exploring new technologies securely. It also allows the Department of the Air Force to test and compare different AI models while ensuring that the tools are trained with Defense Department data and comply with strict security protocols.

In June 2024, Thales S.A., a France-based company specializing in aerospace and defense electrical systems and generative AI, teamed up with the French Alternative Energies and Atomic Energy Commission (CEA). This partnership aims to develop sovereign AI solutions to improve decision-making processes within military and critical infrastructure settings. By incorporating generative AI, the collaboration seeks to enhance communication between operators and complex systems, thus accelerating the OODA (Observe, Orient, Decide, Act) command loops crucial for military operations. The CEA is a France-based research organization focusing on energy, defense and security, information technologies, and health technology.

Major companies operating in the generative artificial intelligence in defense market are Microsoft Corporation, Amazon Web Services (AWS), RTX Corporation, Lockheed Martin Corporation, International Business Machines Corporation (IBM), Cisco Systems, Oracle Corporation, General Dynamics Information Technology Inc., Northrop Grumman Corporation, Fujitsu Limited, Hewlett Packard Enterprise (HPE), Google Cloud, BAE System plc., Thales Group, L3 Technologies, Leidos Holdings Inc., Huntington Ingalls Industries, Science Applications International Corporation (SAIC), Palantir Technologies, AeroVironment, C3.ai Inc.

North America was the largest region in the generative artificial intelligence in defense market in 2023. The regions covered in the generative artificial intelligence in defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the generative artificial intelligence in defense market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence in defense involves AI systems that autonomously generate new data, simulations, or solutions to improve military decision-making and threat analysis. This technology is used to simulate combat scenarios, develop advanced defense systems, create synthetic intelligence for adversarial training, and optimize mission planning and logistics.

The primary components of generative artificial intelligence in defense are software and services. Software includes the specialized programs and algorithms that enable AI-driven capabilities, such as automating decision-making, enhancing target recognition, and bolstering cybersecurity measures. These systems can be deployed through cloud-based or on-premises solutions and are used in various applications, including target recognition, decision support systems, autonomous systems, and cybersecurity. The end-users of these technologies include government and military organizations, defense contractors, and research institutions.

The generative artificial intelligence in defense market research report is one of a series of new reports that provides generative artificial intelligence in defense market statistics, including generative artificial intelligence in defense industry global market size, regional shares, competitors with a generative artificial intelligence in defense market share, detailed generative artificial intelligence in defense market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence in defense industry. This generative artificial intelligence in defense market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The generative artificial intelligence in defense market includes revenues earned by entities by providing services such as predictive analytics, automated content creation, and simulation and modeling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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