Global Artificial Intelligence In Military Market Size By Type (Learning and Intelligence, Advanced Computing), By Application (Information Processing, Cyber Security), By Region, And Segment Forecast...

Report Id: 39456 | Published Date: Apr 2025 | No. of Pages: | Base Year for Estimate: Apr 2025 | Format:


The Global Artificial Intelligence (AI) in Military Market was valued at USD 15.5 billion in 2023 and is expected to reach USD 35.2 billion by 2031, growing at a CAGR of 10.8% during the forecast period of 2023 to 2031. The increasing adoption of AI technologies in defense systems, autonomous weapons, surveillance, and cybersecurity is driving market growth. AI enhances decision-making, minimizes human error, and enables predictive analytics, making it an essential tool for modern warfare and defense strategies.

Drivers:

Rising Adoption of AI in Defense Systems:

AI is increasingly being integrated into defense platforms, including drones, surveillance systems, and battlefield analysis tools, improving efficiency and response times.

Increased Investment in Autonomous Military Systems:

Governments worldwide are investing heavily in AI-driven autonomous vehicles, drones, and unmanned systems to strengthen national security and reduce human risks.

Growing Need for Advanced Cybersecurity Solutions:

With rising cyber threats, AI-based cybersecurity systems are being deployed to predict, detect, and respond to cyberattacks effectively.

Restraints:

High Costs of AI Implementation:

Developing and deploying AI-powered defense systems require significant investments, posing challenges for smaller economies.

Ethical and Legal Concerns:

The use of AI in lethal autonomous weapons raises significant ethical and legal concerns, leading to resistance from international communities.

Opportunity:

Integration of AI with IoT and Big Data Analytics:

The integration of AI with IoT and big data analytics presents opportunities for advanced predictive analytics, improving situational awareness and strategic planning.

Expansion into Emerging Economies:

Developing nations are showing increasing interest in AI-driven military solutions, providing opportunities for market players to expand their presence.

Market by System Type Insights:

The AI-based Surveillance and Reconnaissance Systems segment dominated the market in 2023. These systems provide enhanced situational awareness, real-time data processing, and object detection capabilities, making them critical in modern defense operations.

Market by End-use Insights:

The Airborne Platforms segment emerged as the largest revenue contributor in 2023, driven by the increasing adoption of AI-powered drones, surveillance aircraft, and reconnaissance systems in modern air warfare.

Market by Regional Insights:

North America held the largest market share in 2023, attributed to high defense budgets, significant investments in AI research, and the presence of key players in the region.

Asia-Pacific is anticipated to grow at the fastest rate during the forecast period, driven by increasing defense budgets in countries like China, India, and Japan and rising geopolitical tensions.

Competitive Scenario:

Key players in the Global AI in Military Market include:

Lockheed Martin Corporation

Northrop Grumman Corporation

BAE Systems

Thales Group

Raytheon Technologies Corporation

General Dynamics Corporation

These companies are actively focusing on partnerships, technological advancements, and the development of AI-powered military systems to strengthen their market positions.

Scope of Work – Global Artificial Intelligence in Military Market

Report Metric

Details

Market Size (2023)

USD 15.5 Billion

Projected Market Size (2031)

USD 35.2 Billion

CAGR (2023-2031)

10.8%

Key Segments Covered

System Type, End-use, Region

Leading Segment by System Type

AI-based Surveillance and Reconnaissance Systems

Leading Segment by End-use

Airborne Platforms

Key Regions Covered

North America, Europe, Asia-Pacific, Latin America, MEA

Key Companies

Lockheed Martin, Northrop Grumman, BAE Systems, Thales Group, Raytheon Technologies, General Dynamics

Market Drivers

Adoption of AI in defense systems, Investments in autonomous military systems

Market Restraints

High costs, Ethical concerns

Market Opportunities

Integration with IoT and big data, Emerging market expansion

Key Market Developments:

2023: Lockheed Martin Corporation launched an advanced AI-powered drone system for real-time battlefield analysis.

2024: Northrop Grumman partnered with a leading defense agency to integrate AI in autonomous reconnaissance platforms.

2025: Raytheon Technologies unveiled a new AI-driven cybersecurity platform for defense networks.

FAQs:

What is the current market size of the Global AI in Military Market?

The market size was USD 15.5 billion in 2023.

What is the major growth driver of the Global AI in Military Market?

Rising adoption of AI in defense systems and autonomous military platforms.

Which is the largest region during the forecast period in the Global AI in Military Market?

North America is projected to dominate the market.

Which segment accounted for the largest market share in the Global AI in Military Market?

AI-based Surveillance and Reconnaissance Systems led the market.

Who are the key market players in the Global AI in Military Market?

Lockheed Martin, Northrop Grumman, BAE Systems, Thales Group, Raytheon Technologies, and General Dynamics.

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