Future of the Artificial Intelligence in Military Market: Trends, Innovations, and Key Forecasts Through 2034

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Artificial Intelligence in Military Market Size Growth Forecast: What to Expect by 2025?
The market size for artificial intelligence in the military sector has experienced swift expansion in the past few years. It is projected to escalate from a value of $9.67 billion in 2024 to $11.25 billion in 2025, growing at a compound annual growth rate (CAGR) of 16.4%. The historical growth of this sector is credited to increased budget allocations, escalating concerns for cybersecurity, increased data accessibility, rising threats, and economic growth.

How Will the Artificial Intelligence in Military Market Size Evolve and Grow by 2029?
In the coming years, the market size for artificial intelligence in the military is anticipated to witness a significant surge. The projected growth indicates an increase to $19.74 billion by 2029, at a compound annual growth rate (CAGR) of 15.1%. The surge in the predicted period is associated with factors such as geopolitical conflicts, heightened research and development activities, expansion in the military and defense sectors, increased government backing, and growing industrial automation. Key trends expected in the same period encompass forging of industry alliances, integration of man-machine teams, dual-purpose technologies, cognitive electronic warfare, and swarm technology.

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What Drivers Are Propelling the Growth of Artificial Intelligence in Military Market Forward?
The heightened expenditure on defense is propelling the expansion of the artificial intelligence sector within the military market. Artificial intelligence mirrors human intelligence in programmed machines, entrusting them to operate like humans and mimic their actions. Numerous governments have established dedicated departments or organizations solely designed to innovate new capabilities. They also focus on planning, initializing, and incorporating AI features into military hardware. For instance, as per the Stockholm International Peace Research Institute - a renowned international institution based in Sweden, there was approximately $2.29 trillion global military expenditure in 2022. This value escalated to $2.44 trillion in 2023, indicating a 6.8% growth from one year to the next. Consequently, the elevated defense spending is serving as a catalyst for the growth of the artificial intelligence sector in the military market.

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Which Emerging Trends Are Transforming the Artificial Intelligence in Military Market in 2025?
Technological progress is becoming a prevalent trend in the artificial intelligence military domain. To solidify their market position, main actors in the artificial intelligence in military sector are focusing their efforts on technological innovation. For example, in July 2022, a significant partnership was formed between the US-based aerospace and defense company Raytheon Technologies and the American company C3 AI to enhance the next wave of artificial intelligence (AI) and machine learning (ML) for the Tactical Intelligence Targeting Access Node (TITAN) program of the US Army. The TITAN program will employ ground and aerial sensors for data collection from high-altitude and space to deliver targetable data and improve situational awareness.

What Are the Key Segments in the Artificial Intelligence in Military Market?
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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Who Are the Key Players Shaping the Artificial Intelligence in Military Market's Competitive Landscape?
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

What Geographic Markets Are Powering Growth in the Artificial Intelligence in Military Market?
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.

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