Press release
Global Artificial Intelligence And Analytics In Defence Market Landscape Through 2034: Forces Driving the Next Phase of Expansion
What Is the Forecasted Size of the Artificial Intelligence And Analytics In Defence Market by 2025?The defense sector's market for artificial intelligence and analytics has experienced swift expansion lately; this segment is projected to increase its valuation from $10.68 billion in 2024 to $12.22 billion by the following year, reflecting a compound annual growth rate (CAGR) of 14.4%. That historical period's upward trend is traceable to several factors, including the escalating implementation of self-governing systems, a heightened need for immediate data analysis, a greater emphasis on improving awareness of the operational environment, the growing requirement for streamlined systems capable of making decisions, and the continuous incorporation of neural networks and machine learning technologies.
What Market Size Is the Artificial Intelligence And Analytics In Defence Industry Projected to Reach by 2029?
The defense sector's market valuation for artificial intelligence and analytics is projected to experience swift expansion over the forthcoming years, reaching $20.64 billion by 2029, reflecting a consistent compound annual growth rate (CAGR) of 14.0%. This upward trajectory throughout the projection timeframe is fueled by escalating defense modernization initiatives, a heightened need for self-governing and smart defense apparatus, greater implementation of AI-powered data analysis for identifying security threats, a more pronounced emphasis on bolstering cybersecurity and achieving information superiority, and burgeoning partnerships between defense organizations and firms specializing in AI technology. Key developments anticipated during this period encompass progress in autonomous defense mechanisms, sophisticated data analytics enabling immediate decision-making, novel approaches to predictive maintenance systems, the merging of intelligence derived from numerous sources, and inventive tools designed for supporting decisions and strategizing missions.
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What Are the Main Growth Drivers Accelerating the Artificial Intelligence And Analytics In Defence Market Worldwide?
Anticipated expansion in the deployment of autonomous apparatus is set to fuel the advancement of artificial intelligence capabilities and analytical tools within the defense sector henceforth. These unmanned apparatuses encompass machines or vehicles lacking on-board human operators, capable of functioning independently via integrated sensors and AI, or being guided remotely. The heightened adoption stems from their inherent capacity to perform operations within perilous or hard-to-reach settings, thereby allowing tasks to be executed securely and productively without endangering personnel. Artificial intelligence and analytics significantly benefit these autonomous platforms by facilitating independent choices, bolstering the speed of processing incoming information, and refining the precision and effectiveness of missions conducted in challenging or unsafe conditions. As an illustration of this trend, a UK governmental body declared a substantial financial commitment of $460 million (equivalent to 350 million pounds sterling) in June 2025, as detailed in a UK government publication, aimed at dramatically scaling up drone shipments to Ukraine, elevating the objective from ten thousand units in 2024 to one hundred thousand units in 2025, underscoring the direct correlation where greater utilization of these driverless technologies stimulates the expansion of AI and analytics within defense industries.
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What Are the Dominant Trends Defining the Future of the Artificial Intelligence And Analytics In Defence Market?
Dominant entities within the artificial intelligence and analytics sphere dedicated to defense are channeling efforts toward pioneering breakthroughs and seamless incorporation of capabilities such as intelligence derived from multiple origins, with the objective of sharpening present awareness, facilitating instantaneous choices, and delivering thorough, useful intelligences throughout all defense activities. This concept of multi-source intelligence essentially involves gathering, scrutinizing, and unifying data streaming from diverse origins to cultivate a holistic grasp of circumstances necessary for sound judgments in security and defense contexts. A concrete illustration is the introduction by the United Arab Emirates' technology firm, EDGE Group PJSC, in February 2025 during IDEX 2025, of a cutting-edge geospatial intelligence platform driven by AI; this system is engineered to elevate both awareness of the environment and the quality of decisions by fusing sophisticated analytical methods, immediate handling of incoming data, and artificial intelligence tools to furnish practical intelligence supporting defense and security missions with exceptional accuracy, simultaneously underscoring EDGE's dedication to advancing technology and maintaining a leading position in the defense industry. The central purpose of this deployment is to boost defense capacities via the provision of quicker, more precise intelligence feeds, thereby optimizing functional effectiveness and empowering well-founded, strategic choices amidst intricate and rapidly shifting operational theaters.
Which Key Segments Contribute Significantly to the Artificial Intelligence And Analytics In Defence Market Expansion?
The artificial intelligence and analytics in defence market covered in this report is segmented -
1) By Offering: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Language Processing, Robotics, Data Analytics
3) By Deployment: Cloud-based, On-premises, Hybrid
4) By Application: Surveillance, Cybersecurity, Combat Operations, Training And Simulation, Logistics And Supply Chain Management
5) By End User: Defense Forces, Government Agencies, Private Contractors
Subsegments:
1) By Hardware: Sensors, Processors, Communication Devices, Storage Devices, Robotics
2) By Software: Command And Control Systems, Simulation And Training Software, Data Analytics Platforms, Cybersecurity Software, Mission Planning Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support, Training And Education, Cloud And Managed Services
Which Major Firms Are Driving Strategic Developments in the Artificial Intelligence And Analytics In Defence Market?
Major companies operating in the artificial intelligence and analytics in defence market are Google LLC; Microsoft Corporation; Siemens AG; RTX Corporation; Lockheed Martin Corporation; International Business Machines Corporation; Oracle Corporation; General Dynamics Corporation; Northrop Grumman Corporation; SAP SE; BAE Systems PLC; Hewlett Packard Enterprise Company; Thales S.A.; Leidos Holding Inc.; Booz Allen Hamilton Holding Corporation; Rheinmetall Aktiengesellschaft; Palantir Technologies Inc.; Shield AI Inc.; BigBear.ai Holdings Inc.; Charles River Analytics Inc.; HawkEye 360 Inc.; Faculty Science Limited; Avathon Inc.
Which Regions Are Expected to Dominate the Artificial Intelligence And Analytics In Defence Market by 2029?
North America was the largest region in the artificial intelligence and analytics in defence market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence and analytics in defence market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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