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Leading Companies Consolidating Their Presence in the Artificial Intelligence and Analytics in Defence Market
Artificial Intelligence And Analytics In Defence
Projected Market Value and Growth Rate for Artificial Intelligence and Analytics in Defence
The market size for artificial intelligence and analytics in defense is expected to reach $23.49 billion by 2030, expanding at a compound annual growth rate (CAGR) of 13.9%. This rapid growth is primarily driven by the advancement of edge computing-powered AI solutions, the integration of real-time mission analytics, and the rising adoption of AI-based threat intelligence services. Additional factors contributing to this expansion include increased AI-assisted system integration services and the development of sophisticated sensor arrays designed to support predictive operations.
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Key Drivers Behind Market Expansion in AI and Analytics for Defence
The growing incorporation of predictive analytics tools is enabling armed forces to enhance mission readiness, thereby boosting the market's demand. Autonomous decision-support systems are also gaining traction, offering real-time guidance that improves operational effectiveness.
Moreover, AI-driven surveillance and threat identification technologies are becoming essential for modern defense frameworks. Alongside these, the use of real-time analytics for logistics optimization and the integration of multi-domain data to elevate situational awareness are further propelling market growth.
Top Industry Players Leading the Artificial Intelligence and Analytics Defence Market
Prominent companies shaping the landscape of AI and analytics in defense include Google LLC, Microsoft Corporation, Siemens AG, RTX Corporation, Lockheed Martin Corporation, IBM, 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, and Avathon Inc.
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Noteworthy Acquisition Enhances Cybersecurity Capabilities
In January 2025, Tidal Security Inc., a cybersecurity firm based in the United States, acquired Zero-Shot Security, Inc. Although the financial details remain undisclosed, this acquisition is aimed at strengthening Tidal Security's defense offerings by integrating advanced AI and analytics technologies from Zero-Shot Security. Specializing in predictive threat detection and real-time network defense, Zero-Shot Security contributes significantly to cyber resilience in defense infrastructures by delivering sophisticated AI-driven cybersecurity solutions.
Emerging Innovations and Technological Trends in Defence AI and Analytics
Leaders in this sector are increasingly focusing on multi-source intelligence to improve situational awareness and facilitate prompt, informed decisions across diverse defense operations. Multi-source intelligence involves gathering and analyzing data from various origins to create a comprehensive operational picture, supporting strategic choices in security and defense.
For example, in February 2025, EDGE Group PJSC, a technology company from the UAE, unveiled a next-generation AI-powered geospatial intelligence platform at IDEX 2025. This solution integrates real-time data processing, advanced analytics, and AI functions to provide actionable insights that enhance defense and security operations, emphasizing the company's dedication to innovation and technological leadership. The platform aims to deliver faster, more accurate intelligence, optimize operational workflows, and support strategic decision-making in complex scenarios.
Key Segments Shaping the Artificial Intelligence and Analytics in Defence Market
This market is analyzed across several critical segments:
1) Offering: Hardware, Software, and Services
2) Technology: Machine Learning, Natural Language Processing, Robotics, Data Analytics
3) Deployment: Cloud-based, On-premises, Hybrid
4) Application: Surveillance, Cybersecurity, Combat Operations, Training and Simulation, Logistics and Supply Chain Management
5) End User: Defense Forces, Government Agencies, Private Contractors
Further breakdown includes:
- Hardware: Sensors, Processors, Communication Devices, Storage Devices, Robotics
- Software: Command and Control Systems, Simulation and Training Software, Data Analytics Platforms, Cybersecurity Software, Mission Planning Software
- Services: Consulting, Integration, Maintenance and Support, Training and Education, Cloud and Managed Services
Together, these segments provide a comprehensive understanding of the dynamics propelling growth in the artificial intelligence and analytics defense market.
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