This report describes and explains the artificial intelligence in military market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global artificial intelligence in military market reached a value of nearly $9.67 billion in 2024, having grown at a compound annual growth rate (CAGR) of 16.72% since 2019. The market is expected to grow from $9.67 billion in 2024 to $23.97 billion in 2029 at a rate of 19.91%. The market is then expected to grow at a CAGR of 20.57% from 2029 and reach $61.08 billion in 2034.
Growth in the historic period resulted from the rising unmanned aerial vehicles, rising terrorist activities and increasing military modernization programs. Factors that negatively affected growth in the historic period was data privacy issues.
Going forward, increasing defense budget allocation, increasing AI adoption, strong economic growth and favorable government initiatives will drive the growth. Factor that could hinder the growth of the artificial intelligence in military market in the future include lack of skilled AI professionals.
The global artificial intelligence in military market is fairly concentrated, with large number of players operating in the market. The top ten competitors in the market made up to 28.53% of the total market in 2023. BAE Systems plc was the largest competitor with a 3.54% share of the market, followed by Lockheed Martin Corp. with 3.29%, Northrop Grumman Corp. with 3.21%, Raytheon Technologies Corp. with 3.20%, International Business Machines Corporation with 3.04%, Thales Group with 2.81%, Palantir Technologies Inc. with 2.71%, L3Harris Technologies Inc. with 2.50%, Rafael Advanced Defense Systems Ltd. with 2.33% and Anduril Industries Inc. with 1.91%.
North America was the largest region in the artificial intelligence in military market, accounting for 33.66% or $3.25 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence in military market will be Asia Pacific and Middle East where growth will be at CAGRs of 23.78% and 22.23% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 21.40% and 20.88% respectively.
The artificial intelligence in military market is segmented by offering into hardware, software and services. The software market was the largest segment of the artificial intelligence in military market segmented by offering, accounting for 42.73% or $4.13 billion of the total in 2024. Going forward, the hardware segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by offering, at a CAGR of 24.25% during 2024-2029.
The artificial intelligence in military market is segmented by technology into machine learning, natural language processing, context aware computing, computer vision and other technologies. The machine learning market was the largest segment of the artificial intelligence in military market segmented by technology, accounting for 38.02% or $3.67 billion of the total in 2024. Going forward, the context aware computing segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by technology, at a CAGR of 22.94% during 2024-2029.
The artificial intelligence in military market is segmented by platform into land, naval, airborne and space. The land market was the largest segment of the artificial intelligence in military market segmented by platform, accounting for 36.32% or $3.51 billion of the total in 2024. Going forward, the space segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by platform, at a CAGR of 23.97% during 2024-2029.
The artificial intelligence in military market is segmented by installation into new procurement and upgradation. The new procurement market was the largest segment of the artificial intelligence in military market segmented by installation, accounting for 52.21% or $5.04 billion of the total in 2024. Going forward, the new procurement segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by installation, at a CAGR of 21.27% during 2024-2029.
The artificial intelligence in military market is segmented by application into information processing, simulation and training, warfare platform, threat monitoring and situational awareness, cyber security and other applications. The information processing market was the largest segment of the artificial intelligence in military market segmented by application, accounting for 23.12% or $2.23 billion of the total in 2024. Going forward, the threat monitoring and situational awareness segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by application, at a CAGR of 24.77% during 2024-2029.
The top opportunities in the artificial intelligence in military market segmented by offering will arise in the software segment, which will gain $5.73 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by technology will arise in the machine learning segment, which will gain $5.8 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by application will arise in the threat monitoring and situational awareness segment, which will gain $3.1 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by platform will arise in the land segment, which will gain $5.28 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by installation will arise in the new procurement segment, which will gain $8.19 billion of global annual sales by 2029. The artificial intelligence in military market size will gain the most in the USA at $3.61 billion.
Market-trend-based strategies for the artificial intelligence in military market include focus on developing next-generation electro-optical/infrared (EO/IR) intelligent sensing systems, focus on developing AI platforms and services, focus on adopting strategic partnerships approach to develop and deploy advanced AI solutions and focus on developing innovative projects.
Player-adopted strategies in the artificial intelligence in military market include focus on expanding operational capabilities through new contract agreements, focus on strengthening business operations through new launches, focus on strengthening business capabilities through their product advancements and expansions and focus on expanding new developments to better serve the industry and to strengthen their position.
To take advantage of the opportunities, the analyst recommends the artificial intelligence in military companies to focus on developing advanced EO/IR intelligent sensing systems, focus on developing secure, scalable AI platforms for defense, focus on advancing AI integration for operational superiority, focus on service segment for growth, focus on machine learning for growth in the military AI market, focus on the space market to maximize growth opportunities, focus on upgradation market growth, expand in emerging markets, focus on strategic partnerships to drive innovation, focus on expanding distribution channels for military AI, focus on developing competitive and value-based pricing strategies, focus on targeted promotion strategies for military AI, focus on building partnerships for enhanced promotion and focus on cyber security to drive growth in the artificial intelligence military market.
The global artificial intelligence in military market reached a value of nearly $9.67 billion in 2024, having grown at a compound annual growth rate (CAGR) of 16.72% since 2019. The market is expected to grow from $9.67 billion in 2024 to $23.97 billion in 2029 at a rate of 19.91%. The market is then expected to grow at a CAGR of 20.57% from 2029 and reach $61.08 billion in 2034.
Growth in the historic period resulted from the rising unmanned aerial vehicles, rising terrorist activities and increasing military modernization programs. Factors that negatively affected growth in the historic period was data privacy issues.
Going forward, increasing defense budget allocation, increasing AI adoption, strong economic growth and favorable government initiatives will drive the growth. Factor that could hinder the growth of the artificial intelligence in military market in the future include lack of skilled AI professionals.
The global artificial intelligence in military market is fairly concentrated, with large number of players operating in the market. The top ten competitors in the market made up to 28.53% of the total market in 2023. BAE Systems plc was the largest competitor with a 3.54% share of the market, followed by Lockheed Martin Corp. with 3.29%, Northrop Grumman Corp. with 3.21%, Raytheon Technologies Corp. with 3.20%, International Business Machines Corporation with 3.04%, Thales Group with 2.81%, Palantir Technologies Inc. with 2.71%, L3Harris Technologies Inc. with 2.50%, Rafael Advanced Defense Systems Ltd. with 2.33% and Anduril Industries Inc. with 1.91%.
North America was the largest region in the artificial intelligence in military market, accounting for 33.66% or $3.25 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence in military market will be Asia Pacific and Middle East where growth will be at CAGRs of 23.78% and 22.23% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 21.40% and 20.88% respectively.
The artificial intelligence in military market is segmented by offering into hardware, software and services. The software market was the largest segment of the artificial intelligence in military market segmented by offering, accounting for 42.73% or $4.13 billion of the total in 2024. Going forward, the hardware segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by offering, at a CAGR of 24.25% during 2024-2029.
The artificial intelligence in military market is segmented by technology into machine learning, natural language processing, context aware computing, computer vision and other technologies. The machine learning market was the largest segment of the artificial intelligence in military market segmented by technology, accounting for 38.02% or $3.67 billion of the total in 2024. Going forward, the context aware computing segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by technology, at a CAGR of 22.94% during 2024-2029.
The artificial intelligence in military market is segmented by platform into land, naval, airborne and space. The land market was the largest segment of the artificial intelligence in military market segmented by platform, accounting for 36.32% or $3.51 billion of the total in 2024. Going forward, the space segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by platform, at a CAGR of 23.97% during 2024-2029.
The artificial intelligence in military market is segmented by installation into new procurement and upgradation. The new procurement market was the largest segment of the artificial intelligence in military market segmented by installation, accounting for 52.21% or $5.04 billion of the total in 2024. Going forward, the new procurement segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by installation, at a CAGR of 21.27% during 2024-2029.
The artificial intelligence in military market is segmented by application into information processing, simulation and training, warfare platform, threat monitoring and situational awareness, cyber security and other applications. The information processing market was the largest segment of the artificial intelligence in military market segmented by application, accounting for 23.12% or $2.23 billion of the total in 2024. Going forward, the threat monitoring and situational awareness segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by application, at a CAGR of 24.77% during 2024-2029.
The top opportunities in the artificial intelligence in military market segmented by offering will arise in the software segment, which will gain $5.73 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by technology will arise in the machine learning segment, which will gain $5.8 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by application will arise in the threat monitoring and situational awareness segment, which will gain $3.1 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by platform will arise in the land segment, which will gain $5.28 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by installation will arise in the new procurement segment, which will gain $8.19 billion of global annual sales by 2029. The artificial intelligence in military market size will gain the most in the USA at $3.61 billion.
Market-trend-based strategies for the artificial intelligence in military market include focus on developing next-generation electro-optical/infrared (EO/IR) intelligent sensing systems, focus on developing AI platforms and services, focus on adopting strategic partnerships approach to develop and deploy advanced AI solutions and focus on developing innovative projects.
Player-adopted strategies in the artificial intelligence in military market include focus on expanding operational capabilities through new contract agreements, focus on strengthening business operations through new launches, focus on strengthening business capabilities through their product advancements and expansions and focus on expanding new developments to better serve the industry and to strengthen their position.
To take advantage of the opportunities, the analyst recommends the artificial intelligence in military companies to focus on developing advanced EO/IR intelligent sensing systems, focus on developing secure, scalable AI platforms for defense, focus on advancing AI integration for operational superiority, focus on service segment for growth, focus on machine learning for growth in the military AI market, focus on the space market to maximize growth opportunities, focus on upgradation market growth, expand in emerging markets, focus on strategic partnerships to drive innovation, focus on expanding distribution channels for military AI, focus on developing competitive and value-based pricing strategies, focus on targeted promotion strategies for military AI, focus on building partnerships for enhanced promotion and focus on cyber security to drive growth in the artificial intelligence military market.
Major Market Trends
- Next-Generation Electro-Optical/Infrared (EO/IR) Intelligent Sensing Systems
- AI Platforms and Services Supporting High-Assurance Deployment
- Strategic Partnerships Driving Innovation in Military
- Revolutionizing Military Operations With Innovative Projects
Key Mergers and Acquisitions
- EMCORE Corporation Acquired L3Harris Technologies To Strengthens Inertial Navigation Capabilities
- Safran S.a. Acquired Preligens To Enhance AI Within Defense
- Shield AI Acquired Sentient Vision Systems To Boost ISR Capabilities with AI-Driven Solutions
- Zen Technologies Acquired AiTuring Technologies To Strengthen AI and Robotics Expertise in Defense Solutions
- Saab AB Acquired CrowdAI Inc. To Advance AI/ML Integration in Defense Technologies
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Artificial Intelligence in Military Market - Macro-Economic Scenario
9 Global Market Size and Growth
10 Global Artificial Intelligence in Military Market Segmentation
11 Artificial Intelligence in Military Market, Regional and Country Analysis
12 Asia-Pacific Market
13 Western Europe Market
14 Eastern Europe Market
15 North America Market
16 South America Market
17 Middle East Market
18 Africa Market
19 Competitive Landscape and Company Profiles
22 Key Mergers and Acquisitions
23 Opportunities and Strategies
24 Artificial Intelligence in Military Market, Conclusions and Recommendations
25 Appendix
Executive Summary
Artificial Intelligence In Military Global Market Opportunities And Strategies To 2034 provides the strategists; marketers and senior management with the critical information they need to assess the global artificial intelligence in military market as it emerges from the COVID-19 shut down.Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for artificial intelligence in military? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The artificial intelligence in military market global report answers all these questions and many more.The 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 history and forecasts market growth by geography. It places the market within the context of the wider artificial intelligence in military market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics - Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by offering, by technology, by platform, by installation and by application.
- Key Trends - Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario - The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the artificial intelligence in military market.
- Global Market Size And Growth - Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis - Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation - Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by offering, by technology, by platform, by installation and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth - Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape - Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market
- Competitive Benchmarking - Briefs on the financials comparison between major players in the market.
- Competitive Dashboard - Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions - Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies - Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations - This section includes recommendations for artificial intelligence in military providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix - This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
1) By Offering: Hardware; Software; Services2) By Technology: Machine Learning; Natural Language Processing; Context Aware Computing; Computer Vision; Other Technologies
3) By Platform: Land; Naval; Airborne; Space
4) Installation: New Procurement; Upgradation
5) By Application: Information Processing; Simulation And Training; Warfare Platform; Threat Monitoring And Situational Awareness; Cyber Security; Other Applications
Key Companies Mentioned: BAE Systems plc; Lockheed Martin Corp.; Northrop Grumman Corp.; Raytheon Technologies Corp.; International Business Machines Corporation
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Austria; Italy; Spain; Russia
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; artificial intelligence in military indicators comparison.
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
The major companies featured in this Artificial Intelligence in Military market report include:- BAE Systems plc
- Lockheed Martin Corp.
- Northrop Grumman Corp.
- Raytheon Technologies Corp.
- International Business Machines Corporation
- Thales Group
- Palantir Technologies Inc.
- L3Harris Technologies Inc.
- Rafael Advanced Defense Systems Ltd.
- Anduril Industries Inc.
- SparkCognition Inc.
- Airbus Defence and Space
- Leonardo S.p.A.
- General Dynamics
- Rheinmetall AG
- Orbotix
- Anduril
- LMI (Logistics Management Institute)
- Saab AB
- EMCORE Corporation
- Palantir Technologies
- C3.ai
- CAE Inc.
- Danaide S.A.
- Embraer
- Atech
- Softek
- Grupo de Energía de Bogotá (GEB)
- Milrem Robotics
- G42
- Edge Group
- Elbit Systems
- IAI (Israel Aerospace Industries)
- Saudi Arabian Military Industries (SAMI)
- Advanced Electronics Company (AEC)
- Bahrain Defense Force Technology Development Center
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 306 |
| Published | March 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 9.67 Billion |
| Forecasted Market Value ( USD | $ 61.08 Billion |
| Compound Annual Growth Rate | 20.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 37 |
