The AI in the military market is set to witness robust growth at a CAGR of 13.44% during the forecast period, reaching US$28.633 billion in 2030 from US$15.243 billion in 2025.
The artificial intelligence (AI) in military market is experiencing increased attention as AI enhances productivity, reduces human input, and improves efficiency in the military. AI is being utilized to enable independent operation of robots and drones on battlefields, outperforming traditional weapons. This is expected to raise the demand for AI in the military sector. However, AI also poses a threat through its potential use in cyber warfare.
The artificial intelligence (AI) in military market is experiencing increased attention as AI enhances productivity, reduces human input, and improves efficiency in the military. AI is being utilized to enable independent operation of robots and drones on battlefields, outperforming traditional weapons. This is expected to raise the demand for AI in the military sector. However, AI also poses a threat through its potential use in cyber warfare.
Growth Drivers:
- Demand for Advanced Military Technologies AI enhances target observation and battlefield protection, while also defending core military systems against cyber threats. AI-enhanced data processing also helps military forces improve target selection.
- Government Funding and Initiatives Governments are increasing investments in military advancement to counter growing threats. For example, the Pentagon's Rapid Capability Cell (RCC) and Frontier AI pilots programs help the Defense Department adopt new AI technology.
Geographical Outlook:
- North America Government and private sector support is boosting tech development in defense research projects. The US military had $820.3 billion in funding in 2023, comprising 13.3% of the federal budget, and requested $842 billion for 2024.
- South America South American countries are increasing defense funding to develop new military equipment for border protection.
- Europe European countries are focusing on cybersecurity and advanced vehicle control due to rising cyber threats and the use of military robots.
- Middle East and Africa There is a growing demand for AI-based intelligence systems to combat terrorism and modernize military tools.
- Asia-Pacific Political conflicts are driving increased defense spending in countries like Japan, China, and India, which, along with rapid AI development, is boosting military systems development. The artificial intelligence in the military market in Asia Pacific is expected to grow with the fastest CAGR from 2025 to 2030. China is investing in AI for military applications, and Japan's Ministry of Defense has adopted its first AI policy to improve efficiency and effectiveness in defense operations
Reasons for buying this report::
- Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub- segments.
- Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
- Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
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What can businesses use this report for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence.Report Coverage:
- Historical data & forecasts from 2022 to 2030
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
AI in Military Market is analyzed into the following segments:
By Component Type
- Hardware
- Software
- Services
By Technology
- Machine Learning
- Deep learning
- Computer Vision
- Natural Language Processing
- Robotics
- Others
By Application
- Warfare Platforms
- Cybersecurity
- Logistics & Transportation
- Surveillance & Reconnaissance
- Command & Control
- Battlefield Healthcare
- Simulation & Training
- Gathering Intelligence
- Others
By Platform
- Land-based Force
- Naval Force
- Air Force
- Space Force
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- United Kingdom
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Taiwan
- Australia
- Others
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. AI IN THE MILITARY MARKET BY COMPONENT TYPE
6. AI IN THE MILITARY MARKET BY TECHNOLOGY
7. AI IN THE MILITARY MARKET BY APPLICATION
8. AI IN THE MILITARY MARKET BY PLATFORM
9. AI IN THE MILITARY MARKET BY GEOGRAPHY
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
11. COMPANY PROFILES
Companies Mentioned
- Anduril Industries
- C3.ai
- General Dynamics Information Technology
- IBM
- L3Harris Technologies
- Microsoft
- Palantir Technologies
- QinetiQ
- Rafael Advanced Defense Systems
- Lockheed Martin Corporation
- Northrop Grumman Corporation
- BAE Systems plc
- Thales Group
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 143 |
| Published | February 2025 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 15.24 Billion |
| Forecasted Market Value ( USD | $ 28.63 Billion |
| Compound Annual Growth Rate | 13.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 13 |
