Artificial Intelligence (AI) in Military

Artificial Intelligence (AI) in Military

Global Artificial Intelligence (AI) in Military Market to Reach US$29.0 Billion by 2030

The global market for Artificial Intelligence (AI) in Military estimated at US$12.7 Billion in the year 2023, is expected to reach US$29.0 Billion by 2030, growing at a CAGR of 12.5% over the analysis period 2023-2030. Land Platform, one of the segments analyzed in the report, is expected to record a 10.9% CAGR and reach US$11.0 Billion by the end of the analysis period. Growth in the Naval Platform segment is estimated at 12.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.4 Billion While China is Forecast to Grow at 11.9% CAGR

The Artificial Intelligence (AI) in Military market in the U.S. is estimated at US$3.4 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.5 Billion by the year 2030 trailing a CAGR of 11.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.7% and 10.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.2% CAGR.

Global Artificial Intelligence (AI) in Military Market - Key Trends and Drivers Summarized

How Is AI Enhancing Surveillance and Intelligence in the Military?

Artificial Intelligence (AI) is profoundly transforming surveillance and intelligence within the military, elevating situational awareness and enabling faster, more informed decision-making on the battlefield. Traditional intelligence-gathering methods have long depended on manual data collection and analysis, which is often limited by human capacity and time constraints. In contrast, AI systems can process massive volumes of data from various sources—satellite imagery, drone footage, radar scans, and intercepted communications—at speeds far beyond human capabilities. For example, advanced machine learning algorithms in geospatial intelligence analyze satellite images in real time, detecting and flagging changes in infrastructure, troop movements, or unusual activity that may signal potential threats. Similarly, AI-driven surveillance drones can autonomously patrol sensitive areas, identifying objects, tracking movement, and even recognizing individuals or vehicles, reducing the need for constant human supervision. Natural language processing (NLP) is another powerful tool, enabling military analysts to sift through vast amounts of intercepted communications and documents quickly, scanning for keywords or phrases that may reveal enemy intentions. By integrating AI into surveillance and intelligence, military operations gain a level of responsiveness, accuracy, and depth of insight previously unattainable, enhancing overall mission success and reducing risks to personnel.

Can AI Strengthen Cybersecurity and Electronic Warfare Capabilities?

In an era where cyber threats and electronic warfare are as consequential as traditional combat, AI is emerging as a vital asset in defending against increasingly complex and adaptive cyber threats. Military networks and infrastructure are frequent targets for cyberattacks, which can disrupt critical operations, compromise sensitive data, and impact national security. AI-driven cybersecurity systems provide the predictive and real-time defense mechanisms necessary to safeguard these assets. Machine learning algorithms, for instance, monitor network activity continuously, identifying suspicious patterns and anomalies that may indicate hacking attempts or malware infiltration. Unlike traditional defenses, which often react after a threat is detected, AI-based systems are proactive, using predictive analytics to detect vulnerabilities and prevent breaches before they occur. Additionally, AI enhances electronic warfare by analyzing and interpreting electromagnetic signals, giving the military an edge in intercepting, disrupting, and even spoofing enemy communications and radar systems. Autonomous AI systems can perform electronic jamming and signal interference with precision, making it more challenging for adversaries to execute their communication and coordination strategies effectively. Through its capabilities in cybersecurity and electronic warfare, AI fortifies military defenses in the digital domain, ensuring that critical systems remain secure and operational, even amidst sophisticated cyber threats.

How Is AI Transforming Autonomous Combat and Logistics in the Military?

AI is revolutionizing autonomous systems in the military, reshaping both combat operations and logistical support in ways that enhance strategic flexibility and reduce risk to personnel. AI-driven autonomous drones and vehicles are now capable of conducting reconnaissance missions in high-risk or hard-to-reach areas, collecting critical intelligence without endangering human operators. For example, autonomous drones equipped with AI can navigate hostile environments, gather real-time data on enemy positions, and even assess the terrain, allowing commanders to make tactical decisions based on accurate, up-to-the-minute information. In combat, AI-enabled systems such as autonomous tanks, unmanned combat vehicles, and robotic soldiers are beginning to execute specific operations with minimal human intervention, which allows for more dynamic and responsive battlefield strategies. Logistics, another essential aspect of military operations, also benefits from AI-driven optimization. Autonomous vehicles and drones can transport supplies to frontlines, even through dangerous zones, ensuring that troops have the necessary resources regardless of terrain or enemy interference. Furthermore, AI-powered predictive analytics can forecast demand for ammunition, medical supplies, and food based on mission requirements, optimizing supply chains and reducing waste. By integrating AI into both combat and logistics, militaries can increase operational efficiency, minimize risk to personnel, and maintain a robust supply chain, even in the most challenging environments.

What Factors Are Fueling the Expansion of AI in the Military Sector?

The growth of AI in the military sector is driven by a combination of technological advancements, evolving security threats, and the strategic need to maintain a competitive advantage in an increasingly complex global landscape. Rising geopolitical tensions and the nature of modern warfare, which includes cyber and electronic threats as well as traditional combat, are prompting militaries worldwide to adopt AI as a force multiplier. Technological progress in areas such as machine learning, computer vision, and autonomous navigation has made AI applications more reliable and effective for military uses, from autonomous systems to real-time data analysis. The need for rapid, accurate decision-making on the battlefield is a significant driver as well, as AI can process and interpret vast amounts of real-time data, allowing commanders to make informed decisions faster than ever before. Additionally, the increasing frequency and sophistication of cyber threats have led to greater adoption of AI-driven cybersecurity solutions that can detect, anticipate, and neutralize threats proactively, which is crucial in protecting military infrastructure and sensitive data. The global push for more efficient, automated defense operations is also contributing to AI growth, as militaries seek to maximize resource use, streamline logistics, and improve battlefield response times. Government investments and collaborations between defense agencies and technology companies are accelerating innovation in military AI applications, expanding the sector’s capabilities and reach. Together, these factors highlight AI’s growing importance in defense, offering militaries enhanced efficiency, resilience, and tactical advantage in an evolving security landscape.

SCOPE OF STUDY:

The report analyzes the Artificial Intelligence (AI) in Military market in terms of US$ Million by the following Component; Platform; Technology, and Geographic Regions/Countries:

Segments:
Platform (Land, Naval, Airborne, Space); Component (Software, Hardware, Services); Technology (Learning & Intelligence, Advanced Computing, AI Systems)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 237 Featured) -

• BAE Systems
• Boeing
• CACi International
• Charles River Analytics
• Cray
• DarKTrace
• General Dynamics
• Harris Corporation
• IBM
• Leidos
• Lockheed Martin
• Northrop Grumman
• NVIDIA
• Raytheon Company
• SAIC
• SAS
• Securonix
• Soartech
• SparkCognition
• Thales Group
• Xilinx

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