AI in Modern Warfare Market By Type (Weaponized Artificial Intelligence, Defensive Artificial Intelligence, Offensive Artificial Intelligence, Assisting Artificial Intelligence, Autonomous Artificial Intelligence) , By Type of Equipment (Unnamed Aerial Vehicle, Unmanned Ground Vehicle, Combat Systems, Recovery & Maintenance Vehicle, Reconnaissance & Surveillance Vehicle, Medical Evacuation Vehicle) By Application (Tactical Defensive, Military Offensive) : Global Opportunity Analysis and Industry Forecast, 2024-2032
AI in Modern Warfare Market
The AI in modern warfare market was valued at $10.4 billion in 2023 and is projected to reach $109.8 billion by 2032, growing at a CAGR of 29.7% from 2024 to 2032.
The integration of AI into modern warfare is becoming critical for reshaping & improving military tactics. The intelligent algorithm of AI enables decision-making and conflict resolution without human intervention in several scenarios. In modern warfare, AI finds applications in autonomous weapon systems, cyber warfare, predictive analysis, supply chain & logistics management, and counterterrorism.
Increase in investment by governments of several countries to strengthen their military capabilities is a key driver of the AI in modern warfare market. In addition, rise in geopolitical tensions among several nations has upsurged the necessity for AI integration to enhance their defense capabilities. A notable trend anticipated to acquire traction in coming years in the market is the deployment of AI to transform the training landscape of soldiers and army officials. Simulations powered by AI are expected to personalize military training and boost the engagement & overall agility of army personnel by imposing realistic situations.
However, rise in ethical concerns pertaining to the accountability of decision-making abilities of AI deters its adoption, hampering the growth of the market. Moreover, high vulnerability to unauthorized access and cyberattacks poses security challenges, which restrain the market development. On the contrary, as several defense organizations across the globe have implemented AI solutions or have ongoing pilot projects for its adoption, the AI in modern warfare market is anticipated to witness several lucrative opportunities in coming years. According to a survey conducted by the IBM Institute for Business Value—a Cambridge-based business research organization—on 250 technology leaders from several global defense organizations, approximately 73% believe AI is critical for their operation strategies. Therefore, rise in awareness regarding the capabilities of AI is poised to open new avenues for the market.
Segment ReviewThe AI in modern warfare market is segmented into type, type of equipment, application, and region. On the basis of type, the market is divided into weaponized artificial intelligence, defensive artificial intelligence, offensive artificial intelligence, assisting artificial intelligence, and autonomous artificial intelligence. Depending on type of equipment, it is classified into unnamed aerial vehicle, unmanned ground vehicle, combat systems, recovery & maintenance vehicle, reconnaissance & surveillance vehicle, and medical evacuation vehicle. According to application, it is bifurcated into tactical defensive and military offensive. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of type, the autonomous artificial intelligence segment is anticipated to account for a high market share throughout the forecast period.
Depending on type of equipment, the unmanned ground vehicle segment is projected to acquire a high stake in the market by 2032.
According to application, the tactical defensive segment is expected to be the highest shareholder during the forecast period.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global AI in modern warfare market include Microsoft Corporation, Raytheon Technologies Corporation, Boeing Co., Lockheed Martin Corporation, IBM Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A, Textron Inc., and Booz Allen Hamilton Holding Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeWeaponized Artificial Intelligence
Defensive Artificial Intelligence
Offensive Artificial Intelligence
Assisting Artificial Intelligence
Autonomous Artificial Intelligence
By Type Of EquipmentUnnamed Aerial Vehicle
Unmanned Ground Vehicle
Combat Systems
Recovery Maintenance Vehicle
Reconnaissance Surveillance Vehicle
Medical Evacuation Vehicle
By ApplicationTactical Defensive
Military Offensive
By RegionNorth America
U.S.
Canada
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market PlayersMicrosoft Corporation
Raytheon Technologies Corporation
Boeing Co.
Lockheed Martin Corporation
IBM Corporation
General Dynamics Corporation
Northrop Grumman Corporation
BAE Systems plc
Thales Group
L3Harris Technologies Inc.
Leonardo S.p.A
Textron Inc.
Booz Allen Hamilton Holding Corporation