Press release
Artificial Intelligence In Modern Warfare Market Poised for 38 % Growth, Set to Hit $31.27 Billion by 2029
Artificial Intelligence In Modern Warfare Global Market Report 2025
The escalating danger posed by cyberattacks is projected to fuel the expansion of artificial intelligence in the contemporary warfare market. A cyberattack includes any unauthorized attempts to access a computer, computing system, or network to inflict damage. Artificial intelligence in today's warfare is mainly geared towards defense to bolster cybersecurity and guard against online threats, thereby ensuring the safety and efficacy of AI-driven defense mechanisms. For instance, the Internet Crime Complaint Center Releases 2022 Statistics, a report released by the US-based intergovernmental organization, Federal Bureau of Investigation, in March 2023, recorded 847,376 complaints in 2021 about a range of online frauds, culminating in a staggering loss of $6.9 billion. Consequently, the escalating threat of cyber intrusions is propelling the growth of the artificial intelligence in contemporary warfare market.
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What Is the projected market size and growth rate for the artificial intelligence in modern warfare market?
The market size of artificial intelligence in modern warfare has seen a notable spike in growth lately. It is set to see an expansion from $6.27 billion in 2024 to $8.74 billion in 2025, increasing at a compound annual growth rate (CAGR) of 39.4%. This impressive growth during the historic period is due to factors such as military modernization initiatives, escalating geopolitical conflicts, augmented application of unmanned systems, changing threat scenarios, and surging demand for autonomous systems in warfare.
The market size of artificial intelligence in contemporary warfare is projected to experience soaring growth in the upcoming years, reaching $31.27 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 37.5%. This development during the forecast period can be ascribed to the evolution of self-regulating weapons systems, a concentrated approach towards cyber warfare abilities, a surge in defense AI research investments, implementation of AI for decision-making assistance, and an enhanced emphasis on data analytics in warfare. Key trends for this forecast period comprise the expansion of intelligible AI in military applications, utilization of AI for preventative maintenance in defense systems, incorporation of AI in military education programs, the expansion of AI-driven command and control systems, and deployment of AI for optimizing military logistics and supply chains.
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What new trends are reshaping the artificial intelligence in modern warfare market and its opportunities?
The emergence of technological innovations is a major trend gaining traction in the artificial intelligence in modern warfare market. Large corporations in the field of artificial intelligence in modern warfare are leveraging novel technologies to maintain their market standing. For instance, Milrem Robotics, a leading robotics and autonomous systems developer and systems integrator based in Estonia, introduced the THeMIS Observe, an autonomous ISR (intelligence, surveillance, and reconnaissance) UGV (unmanned ground vehicle) in May 2022. The innovative system includes the ROSY (rapid obscuring system), the Z Sparrowhawk camera, the Squire radar, the Metravib defense pearl acoustic shot detection, and a mast. These state-of-the-art systems permit units to conduct multi-sensor identification on a single platform and respond swiftly to emerging targets.
What major market segments define the scope and growth of the artificial intelligence in modern warfare market?
The artificial intelligence in modern warfare market covered in this report is segmented -
1) By Type: Weaponized Artificial Intelligence, Defensive Artificial Intelligence, Offensive Artificial Intelligence, Assisting Artificial Intelligence, Autonomous Artificial Intelligence
2) By Type Of Equipment: Unmanned Aerial Vehicle, Unmanned Ground Vehicle, Combat Systems, Recovery And Maintenance Vehicle, Reconnaissance And Surveillance Vehicle, Medical Evacuation Vehicle
3) By Application: Tactical Defensive, Military Offensive
Subsegments:
1) By Weaponized Artificial Intelligence: Autonomous Weapons Systems, Smart Munitions, AI-Enhanced Targeting Systems
2) By Defensive Artificial Intelligence: Cybersecurity Systems, Threat Detection And Response Systems, Surveillance And Reconnaissance
3) By Offensive Artificial Intelligence: Autonomous Drones And UAVs, Offensive Cyber Operations, Electronic Warfare Systems
4) By Assisting Artificial Intelligence: Decision Support Systems, Logistics And Supply Chain Optimization, Training And Simulation Systems
5) By Autonomous Artificial Intelligence: Fully Autonomous Combat Vehicles, Robotic Systems For Ground And Air Operations, AI-Driven Naval Vessels
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Which region dominates the artificial intelligence in modern warfare market?
North America was the largest region in the artificial intelligence in the modern warfare market in 2024. The regions covered in the artificial intelligence in modern warfare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Which key market leaders are driving the artificial intelligence in modern warfare industry growth?
Major companies operating in the artificial intelligence in modern warfare market include Microsoft Corporation, Raytheon Technologies Corporation, Boeing Co., Lockheed Martin Corporation, International Business Machines Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A, Textron Inc., Booz Allen Hamilton Holding Corporation, Science Applications International Corporation Inc., Rheinmetall AG, CACI International Inc., Elbit Systems Ltd., Rafael Advanced Defense Systems Limited, General Atomics Aeronautical Systems Inc., Qinetiq Ltd., Palantir Technologies Inc., Teledyne FLIR LLC, Shield AI Inc., SparkCognition Inc., Roboteam Inc., Stryke Industries LLC
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What Is Covered In The Artificial Intelligence In Modern Warfare Global Market Report?
• Market Size Forecast: Examine the artificial intelligence in modern warfare market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence in modern warfare market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence in modern warfare market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence in modern warfare market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence in modern warfare market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence in modern warfare market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence in modern warfare market.
• Competitive Landscape: Review strategic developments in the artificial intelligence in modern warfare market, including expansions, agreements, and new product launches.
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