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Key Influencer in the Generative Artificial Intelligence In Defense Market 2025: Defense Innovation Investments Are Driving Growth In Generative Artificial Intelligence For Defense Driver
Generative Artificial Intelligence In Defense Market Share
Growth in the generative artificial intelligence in defense market is expected to be fuelled by increased investments in defense innovation. Defense innovation concerns the creation and application of advanced technologies and strategies to escalate military capabilities and ensure national security. The impetus for defense innovation comes from the obligation to bolster national security, uphold technological predominance, and counter emerging threats in an intricate global landscape. Through investments in generative artificial intelligence, the aim is to augment critical decision-making, automate complex tasks, and bolster the efficiency and effectiveness of military operations. For instance, a report from the European Defense Agency based in Belgium revealed a 5.9% increase in defense investment for 2022 compared to 2021, amounting to €58 billion ($63 billion) in November 2023. Thus, the generative artificial intelligence in defense market is seeing growth driven by increased investments in defense innovation.
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How will the growth rate of the generative artificial intelligence in defense market shape industry trends by 2034?
There has been a tremendous surge in the market size of generative artificial intelligence in defense in the last few years. It's projected to expand from $0.71 billion in 2024 to $0.88 billion in 2025, representing a compound annual growth rate (CAGR) of 23.7%. The rise in the previous period can be explained by the demand for autonomous systems, cybersecurity threats, the requirement for superior security, increasing military budgets, and a burst in data generation.
The market size for generative artificial intelligence in defense is predicted to experience substantial expansion in the coming years. It is forecasted to achieve a worth of $2.05 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 23.5%. The projected growth in the forecast period could be due to factors such as the rise in defense budgets, the necessity for improved surveillance and reconnaissance, the need for autonomous systems, advancements in strategic military preparation and simulation, and progress in data analysis capabilities. Key trends to watch in the forecast period contain advanced threat recognition, AI-driven simulation and training, automated decision support systems, enhanced data fusion and analysis, and AI-improved battlefield management.
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What trends are poised to drive the future success of the generative artificial intelligence in defense market?
Leading businesses in the realm of generative AI in defense are striving towards the creation of innovative solutions like generative AI chatbots. These chatbots provide a medium for service personnel to delve into generative AI and enhance their skills, thereby improving their grasp of its uses. A generative AI chatbot utilises cutting-edge algorithms to comprehend and reproduce human-like responses, aiding users with inquiries, activities or information. For instance, in June 2024, the Air Force Research Laboratory (AFRL) and the United States Department of the Air Force (DAF), both based in the U.S., unveiled the non-classified internet protocol generative pre-training Transformer (NIPRGPT). The NIPRGPT, an AI chatbot capable of human-like interaction, offers assistance to Airmen and Guardians in areas such as communication, coding and secure exploration of new technologies. Its vitality stems from allowing the Department of the Air Force to experiment with and contrast diverse AI models, while making certain that these tools are trained on Defense Department data, maintaining strict security protocols.
Which primary segments of the generative artificial intelligence in defense market are driving growth and industry transformations?
The generative artificial intelligence in defensemarket covered in this report is segmented -
1) By Components: Software, Services
2) By Deployment Mode: Cloud-Based, On-Premises
3) By Application: Target Recognition, Decision Support Systems, Autonomous Systems, Cybersecurity, Other Applications
4) By End-Users: Government Or Military, Defense Contractors, Research Institutions
Subsegments:
1) By Software: AI-Powered Analytics Tools, Simulation And Modeling Software, Cybersecurity Solutions, Autonomous Systems Software, Decision Support Systems, Data Management Platforms
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
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Which geographical regions are pioneering growth in the generative artificial intelligence in defense market?
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.
Who are the influential players reshaping the generative artificial intelligence in defense market landscape?
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.
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What Is Covered In The Generative Artificial Intelligence In Defense Global Market Report?
•Market Size Forecast: Examine the generative artificial intelligence in defense market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the generative artificial intelligence in defense market for a structured understanding.
•Key Players Overview: Analyze major players in the generative artificial intelligence in defense market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the generative artificial intelligence in defense market.
•Segment Contributions: Evaluate how different segments drive overall growth in the generative artificial intelligence in defense market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the generative artificial intelligence in defense market.
•Industry Challenges: Identify potential risks and obstacles affecting the generative artificial intelligence in defense market.
•Competitive Landscape: Review strategic developments in the generative artificial intelligence in defense market, including expansions, agreements, and new product launches.
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