Press release
Generative Artificial Intelligence In Defense Market Outlook 2025-2034: Key Trends, Growth Drivers, and Market Share
Generative Artificial Intelligence In Defense Global Market Report 2025
The size of the generative artificial intelligence in defense market has witnessed significant expansion in the past few years. It's projected to escalate from $0.71 billion in 2024 to $0.88 billion in 2025, having a compound annual growth rate (CAGR) of 23.7%. The surge during the historical timeline is a result of requirements for self-managed systems, threats in cybersecurity, demand for improved safety, rising defense expenditures, and data proliferation._x000D_
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The market size of generative artificial intelligence in defense is predicted to witness a surge over the coming years, ballooning to $2.05 billion by 2029 with an annual growth rate of 23.5%. This anticipated expansion during the forecast period is driven by factors such as rising defense budgets, the requirement for superior surveillance and reconnaissance, increasing demand for autonomous systems, strategic military planning and simulation needs, and advancements in data analytics capabilities. The forecast period is likely to see major trends like advanced threat detection, AI-enabled simulation and training, automated decision support systems, enhanced data fusion and analysis, as well as improvements in AI-based battlefield management._x000D_
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What Are the Primary Growth Drivers for the Generative Artificial Intelligence In Defense Market?_x000D_
The growth of the generative artificial intelligence in defense market is anticipated to be fuelled by increasing investments in defense innovation. Defense innovation implies the creation and utilization of cutting-edge technologies and strategies to boost military capabilities and national security. This approach is motivated by the desire to strengthen national security, uphold technological dominance, and tackle emerging threats in a progressively intricate global setting. Through investment in generative artificial intelligence, defense agencies are aiming to boost decision-making processes, automate sophisticated tasks, and bolster the productivity and potency of military activities. For instance, according to a report published by the European Defense Agency, an intergovernmental organization based in Belgium, in November 2023, there was a 5.9% increase recorded in defense investment for 2022 in comparison to 2021, amounting to €58 billion ($63 billion). Hence, it can be inferred that the expansion of the generative artificial intelligence in defense market is intertwined with the rise in investments towards defense innovation._x000D_
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Who Are the Dominant Companies Influencing Generative Artificial Intelligence In Defense Market Trends?_x000D_
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._x000D_
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How Is the Generative Artificial Intelligence In Defense Market Evolving?_x000D_
Prominent businesses in the generative artificial intelligence in defense market are strategizing on creating cutting-edge solutions such as generative artificial intelligence chatbots. These serve as platforms allowing service members to build and refine their capabilities in generative AI, thus enriching their comprehension of its uses. The generative artificial intelligence chatbot is an AI-powered tool utilizing sophisticated algorithms to comprehend and yield human-like reactions, thereby aiding users with inquiries, activities, or intel. For instance, in June 2024, the US Department of the Air Force (DAF) and the Air Force Research Laboratory (AFRL) unwrapped the non-classified internet protocol generative pre-training Transformer (NIPRGPT), an AI interface devised to converse in a human-like manner. This chatbot supports Airmen and Guardians with responsibilities like communication, code-writing, and securely investigating new technologies. Its importance is demonstrated in its ability to allow the Department of the Air Force to assess and contrast various AI structures ensuring these tools are trained with Defense Department data and comply with rigorous security standards._x000D_
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What Are the Different Segmentations in the Generative Artificial Intelligence In Defense Market?_x000D_
The generative artificial intelligence in defensemarket covered in this report is segmented -_x000D_
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1) By Components: Software, Services_x000D_
2) By Deployment Mode: Cloud-Based, On-Premises_x000D_
3) By Application: Target Recognition, Decision Support Systems, Autonomous Systems, Cybersecurity, Other Applications_x000D_
4) By End-Users: Government Or Military, Defense Contractors, Research Institutions_x000D_
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Subsegments:_x000D_
1) By Software: AI-Powered Analytics Tools, Simulation And Modeling Software, Cybersecurity Solutions, Autonomous Systems Software, Decision Support Systems, Data Management Platforms_x000D_
2) By Services: Consulting Services, Integration And Implementation Services, Training and Support Services, Maintenance and Upgrades, Custom Development Services, Research And Development (R&D) Services_x000D_
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Which Region Is at the Forefront of the Generative Artificial Intelligence In Defense Market?_x000D_
North America was the largest region in the generative artificial intelligence in defense market in 2024. 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._x000D_
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What Is Covered In The Generative Artificial Intelligence In Defense Global Market Report?_x000D_
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- Market Size Analysis: Analyze the Generative Artificial Intelligence In Defense Market size by key regions, countries, product types, and applications._x000D_
- Market Segmentation Analysis: Identify various subsegments within the Generative Artificial Intelligence In Defense Market for effective categorization._x000D_
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape._x000D_
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market._x000D_
- Market Contribution: Evaluate contributions of different segments to the overall Generative Artificial Intelligence In Defense Market growth._x000D_
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers._x000D_
- Industry Challenges: Analyze challenges and risks affecting the Generative Artificial Intelligence In Defense Market._x000D_
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market._x000D_
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