Press release
Leading Element Driving Change in the Artificial Intelligence in Military Market in 2025: Increased Spending On Defense Driver
Artificial Intelligence in Military Market
The surge in defense expenditure is fueling the expansion of the artificial intelligence segment in the military market. Artificial intelligence embodies the imitation of human intellect by machines engineered to function like humans and mirror their activities. In an attempt to advance new capabilities and incorporate AI into military equipment, most governments have established distinct departments or institutions. As an example, the Stockholm International Peace Research Institute, based in Sweden, reported in April 2024 that global military expenditure hit around $2.29 trillion in 2022. This surged to $2.44 trillion in 2023, representing 6.8% growth from the previous year. Consequently, the rise in defense expenditure is propelling the expansion of the artificial intelligence sector in the military market.
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What is the future CAGR of the artificial intelligence in military market, and how will it impact industry expansion?
The size of the military artificial intelligence market has seen a swift expansion lately. It's anticipated to rise from $9.67 billion in 2024 to $11.25 billion in 2025, reflecting a compound annual growth rate (CAGR) of 16.4%. The historical period's growth can be traced back to increased budgetary allocations, heightened cybersecurity worries, the escalation in data accessibility, a surge in threats, and economic growth.
Anticipated to surge in the coming years, the market size of artificial intelligence in the military is projected to rise to $19.74 billion by 2029, achieving a compound annual growth rate (CAGR) of 15.1%. This projected growth during the forecast period can be traced back to factors such as escalating geopolitical tensions, advances in research and development, expansion in the military and defense sector, increasing governmental backing, and expanding industrial automation. Key trends for the forecast tenure encompass industry partnerships, collaboration between humans and machines, dual-purpose technologies, cognitive electronic warfare, and swarm technology.
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What are the most significant trends transforming the artificial intelligence in military market today?
The rise in technological innovation is a dominant trend observed in the artificial intelligence in military market. Main market players are focusing on the development of groundbreaking technologies to consolidate their market positions. For instance, Raytheon Technologies, a US-based aerospace and defense firm, allied with another US-based company C3 AI's application platform in July 2022. This collaboration aimed to escalate AI and machine-learning capabilities for the US Army's Tactical Intelligence Targeting Access Node (TITAN) program. TITAN will harness data from high-altitude and space through ground-based and aerial sensors in order to deliver targetable data and situational insights.
Which key market segments comprise the artificial intelligence in military market and drive its revenue growth?
The artificial intelligence in military market covered in this report is segmented -
1) By Offering: Hardware, Software, Service
2) By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision, Intelligent Virtual Agent (IVA) or Virtual Agents, Other Technologies
3) By Platform: Land, Naval, Airborne
4) By Installation: New Procurement, Upgradation
5) By Application: Information Processing, Simulation and Training, Warfare Platform, Threat Monitoring and Situational Awareness, Cyber Security, Other Applications
Subsegments:
1) By Hardware: AI-Powered Sensors, Robotics and Drones, Computing Hardware (GPUs, TPUs), Network Infrastructure
2) By Software: AI Algorithms and Models, Machine Learning Software, Data Analytics Software, Cybersecurity Software
3) By Service: AI Integration Services, Consulting Services, Maintenance and Support Services, Training and Development Services
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What regions are at the forefront of artificial intelligence in military market expansion?
North America was the largest region in the artificial intelligence in military market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in military market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Who are the leading players fueling growth in the artificial intelligence in military market?
Major companies operating in the artificial intelligence in military market include Charles River Analytics Inc., BAE Systems PLC., Northrop Grumman Corporation, RTX Corporation, Lockheed Martin Corporation, Thales Group, Harris Corporation, International Business Machines Corporation, Rafael Advanced Defense Systems, Microsoft Corporation, Oracle Corporation, Amazon Web Services Inc., SAS Institute, Meta Platforms Inc., SAP SE, Salesforce Inc., Baidu Inc., SoarTech, Google LLC, NVIDIA Corporation, Intel Corporation, General Dynamics Corporation, Rolls-Royce Holdings plc, General Electric Aviation, Safran S.A., Israel Aerospace Industries, Triumph Group Inc., Boeing Co., Airbus SE, Leonardo S.p.A., L3Harris Technologies Inc., Elbit Systems Ltd., Rheinmetall AG, Collins Aerospace, Kongsberg Gruppen
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What Is Covered In The Artificial Intelligence in Military Global Market Report?
•Market Size Forecast: Examine the artificial intelligence in military market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the artificial intelligence in military market for a structured understanding.
•Key Players Overview: Analyze major players in the artificial intelligence in military market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence in military market.
•Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence in military market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence in military market.
•Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence in military market.
•Competitive Landscape: Review strategic developments in the artificial intelligence in military market, including expansions, agreements, and new product launches.
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