Global Artificial Intelligence in Military Market By Component (Software, Hardware, and Services), By Platform (Space, Land, Naval, and Airborne), By Technologies (Machine Learning, Natural Language Processing, Computer Vision, Context-Aware Computing, Other Technologies), By Installation (New Procurement, Upgradation), By Application (Information Processing, Warfare Platform, Logistics Platform, Battlefield Healthcare, Threat Detection, Cyber Security, Logistics and Transportation, Other Application), By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Jan. 2024
- Report ID: 58732
- Number of Pages: 255
- Format:
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Report Overview
In 2023, the Global Artificial Intelligence in Military Market was valued at USD 8.9 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 12.4%. It is predicted to be valued at USD 24.7 Billion by 2032.
Artificial Intelligence (AI) is exerting a significant impact on the military landscape, reshaping multiple dimensions of defense and warfare. The integration of AI technologies into military systems and operations is elevating capabilities and refining decision-making processes. Military applications of AI encompass autonomous weapons systems, intelligent surveillance and reconnaissance, predictive analytics, cybersecurity, and command and control systems.
Note: Actual Numbers Might Vary In The Final Report
AI enables military forces to gather, process, and analyze vast amounts of data in real-time, enhancing situational awareness and enabling faster and more informed decision-making. AI-powered autonomous systems can perform tasks with greater speed, precision, and efficiency than human operators, reducing the risk to personnel and enabling operations in challenging environments. Machine learning algorithms and predictive analytics help military planners anticipate threats, optimize resource allocation, and enhance mission success rates.
For instance,
- As of April 2023, a report from the Stockholm International Peace Research Institute (SIPRI) indicated that the United States, Russia, China, India, and Saudi Arabia collectively constituted 63% of global defense expenditure in the year 2022.
- In June 2022, the Ministry of Defense (MoD) unveiled the United Kingdom’s Defense AI Strategy. The strategy emphasizes the secure, ambitious, and responsible application of Artificial Intelligence (AI) and introduces a set of ethical guidelines to regulate the use of AI in the military and defense sectors.
- In October 2022, as a component of an operational assessment organized by the U.S. Army Test and Evaluation Command, the Combat Tactical Training Center at Fort Hood hosted 150 soldiers. The purpose was to ready them for authentic battlefield training, ensuring they are well-prepared for operational scenarios.
Key Takeaway
- Market Growth: The Global Artificial Intelligence in Military Market is expected to reach a substantial value of USD 24.7 billion by 2032, with an impressive Compound Annual Growth Rate (CAGR) of 12.4% from 2023 to 2032.
- Role of AI in Military: Artificial intelligence is playing a vital role in modern warfare by efficiently handling massive data generated from military operations. It’s used in various military applications, including information processing, threat detection, cybersecurity, battlefield healthcare, logistics, and transportation.
- Government Investments: Governments worldwide, such as the United States and European countries, are heavily investing in research and development related to advanced AI technologies for military operations.
- Software Dominance: Among the components, software leads the market, covering a major share. This is due to continuous advancements in AI-based software, enabling intelligent responses and data processing.
- Space Platform: In terms of platforms, the space platform is dominating the market segment. AI is widely used in space operations for navigation, space exploration, AI assistant robots, and satellite data processing.
- Machine Learning: Machine learning is the dominant technology in the AI in military market. It efficiently handles large volumes of data and enhances the self-regulation and control of warfare systems.
- New Procurement: New procurement installations are preferred over upgrades due to increasing government investments in new technology development.
- Information Processing: Information processing is a major application segment of AI in the military. It’s crucial for analyzing data and making informed decisions in military operations.
- Market Leaders: Top key players in the AI in military market include International Business Machines Corporation, Rafael Advanced Defense Systems, SparkCognition, Raytheon Technologies Corporation, Thales Group, and others.
- Market Trends: Integration of quantum computing with AI in military systems is expected to create significant opportunities for more efficient and advanced military solutions.
- Regional Leadership: North America leads the global AI in military market, with the United States and Canada investing heavily in research and development for military-related solutions. The Asia Pacific region is expected to be the fastest-growing market.
Component Analysis
Software Segment Leads the Market with Major Share in Account.
Based on components, the global artificial intelligence in military market is classified into software, hardware, and services. Among these components, the software leads the segment by covering the major revenue share in the market.
The growth of the software component is attributed to the increasing technological advancements and developments in AI-based software for its use in various applications. The software helps to compute the data from the hardware and provide an intelligent response to the user with the help of artificial intelligence. This is driving the growth of the software segment.
Platform Analysis
Space Platform Leads the Segment over Others in Competition.
The global artificial intelligence in military market is classified into land, space, naval, and airborne on the basis of the platform. From these platforms, the space dominates the platform segment with a major share of the account. The wide applications of artificial intelligence in the space platform are driving the growth of the space in the platform segment of the global artificial intelligence in military market.
The AI is used in space operations of the military for various purposes like intelligent navigation systems, space exploration, AI assistant robots, and satellite data processing. These applications of the AI in space platform are driving the growth of the space in the platform segment of the global artificial intelligence in military market.
Note: Actual Numbers Might Vary In The Final Report
Technologies Analysis
Machine Learning Dominates the Technologies Segment of Global Artificial Intelligence in Military Market.
Based on technology, this market is classified into machine learning, natural language processing, computer vision, context-aware computing, and other technologies. Out of these technologies, machine learning accounts for the largest share in the technology segment of global artificial intelligence in military market.
This growth of machine learning is due to the ability of the machine learning integrated military systems to efficiently handle the large volume of data and also enhances the self-regulation, self-actuation, and self-control of the warfare system. This is boosting the growth of machine learning in the technologies segment of global artificial intelligence in military market size.
Installation Analysis
New Procurement Dominates over the Upgradation in the Installation Segment of the Global Artificial Intelligence in Military Market
The global artificial intelligence in military market is divided into new procurement and upgradation on the basis of installation. The new procurement dominates over the upgradation segment owing to its benefits over the upgradation. The increasing government investments in the development of new technology are driving the growth of new procurement in the installation segment of the global artificial intelligence in military market.
Application Analysis
Information Processing Leads the Application Segment in the Global Artificial Intelligence in Military Market.
Based on application, the global artificial intelligence in military market is classified into Information Processing, Warfare Platform, Logistics Platform, Battlefield Healthcare, Cyber Security, Logistics and Transportation, and other applications. Among these applications, information processing covers the major share in the application segment of the global artificial intelligence in military market.
The growth of information processing is owing to the rising need for tools to analyze the data for decision-making in the military sector. Artificial intelligence helps the military to reach the conclusion of data analytics and make firm decisions from it. This is driving the growth of information processing in the global artificial intelligence in military market.
However, cyber security is expected to grow at a faster CAGR in the application segment of the global artificial intelligence in military market size due to rising cyberattacks and data breaches in the military systems.
Key Market Segments
Component
- Hardware
- Software
- Services
Platform
- Land
- Space
- Naval
- Airborne
Technologies
- Machine Learning
- Natural Language Processing
- Computer Vision
- Context-Aware Computing
- Other Technologies
Installation
- New Procurement
- Upgradation
Application
- Information Processing
- Warfare Platform
- Logistics Platform
- Battlefield Healthcare
- Threat Detection
- Cyber Security
- Logistics and Transportation
- Other Application
Driving Factors
Increased Military Budget and Efficient AI Applications are Driving the Growth of Global Artificial Intelligence in Military Market
The benefits of artificial intelligence in the military sector and the increasing government budgets on the defense and military sectors are driving the growth of global artificial intelligence in the military market.
The governments of many countries have established various departments and agencies to develop, integrate, and operate artificial intelligence in their systems. With massive spending and high budgets for the military sector, the key companies in the global artificial intelligence in military market are using high-level tools to develop advanced solutions for the military, like artificial intelligence integrated systems.
Also, artificial intelligence provides an extra layer of security to military applications like protecting confidential information, identifying threats, providing efficient solutions in needed situations, and many other applications. These advantages of artificial intelligence in the military sector are attracting many governments to adopt artificial intelligence in their military systems.
All these factors are driving the growth of global artificial intelligence in military market. With increasing investments in technologies, the global artificial intelligence in military market is also anticipated to grow significantly over the forecast period.
Restraining Factors
The Increasing Concerns over Humanitarian Protection from Human Rights Organizations and the High Cost of Integration are Restricting the Growth of the Market
The governments of many countries have adopted artificial intelligence and integrated it into their systems for automation and surveillance. However, many critics are raising concerns that human control is necessary over AI operations to ensure the control of humans over machines.
Human rights organizations have also raised concerns over this AI application in the military. Therefore to control the AI integration in the military, human rights have demanded transparency from the military sector to control the developments of advanced technologies like fully automated weapons and robots. This has restricted the governments from developing advanced weapons for the military. This is hindering the growth of global artificial intelligence in military market.
Also, the integration of artificial intelligence in military operations costs much high than many countries can afford. Therefore, only developed countries are able to adopt artificial intelligence in their systems. These all factors are restricting the growth of global artificial intelligence in military market.
Opportunities
Integration of Quantum Computing and AI in Military Systems is Expected to Create Many Opportunities in the Global Artificial Intelligence in Military Market.
The major companies in the artificial intelligence market are heavily investing in the research and development of advanced and automated solutions for the defense and military sector. The companies are offering the integration of quantum computing with artificial intelligence. This is expected to supercharge the military systems, which now depend on the classic computing features.
The integration of quantum computing and AI in the military systems will provide fully automated solutions to the military and defense sectors, and that too in a more efficient way. This integration of quantum computing and AI in the military and defense systems is anticipated to create many lucrative opportunities over the forecast period.
Trending Factors
The Trend of Integrating AI in Military Systems for Various Applications is expected to Boost Market Growth During the Forecast Period.
The increasing use of artificial intelligence-supported cybersecurity is expected to raise the demand for artificial intelligence in the defense and military sector. Many companies are offering AI-powered chips for the processing of artificial intelligence applications like information processing, threat detection, logistics and transportation, and many other applications.
Artificial intelligence minimizes the workload of military systems and provides more efficient and creative solutions to the military. Therefore, this trend of artificial intelligence is expected to boost the growth of global artificial intelligence in military market in the upcoming period.
Regional Analysis
North America Region Leads the Global Artificial Intelligence Market by Covering Major Revenue Share.
The North America region dominates the global artificial intelligence market by accounting for a major revenue share of 34.6%. This exponential growth of the North America region is due to the presence of major countries like the United States and Canada that invest heavily in the research and development of military-related solutions.
The U.S is home to many major companies offering artificial intelligence integrated systems to militaries across the world. Therefore, the North America region is leading the global artificial intelligence in military market.
However, the Asia Pacific region is expected to be the fastest-growing region in the global artificial intelligence in military market during the forecast period. The major countries in the Asia Pacific region, like China, Japan, and South Korea, have risen as most technology-developing countries within the region.
Many companies in these countries are offering the AI-based solutions to the militaries. With the presence of developing countries, the Asia Pacific region is expected to grow significantly during the forecast period.
Note: Actual Numbers Might Vary In The Final Report
Key Regions and Countries Covered in this Report
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
The major companies in the global artificial intelligence in military market are adopting various strategies like collaboration, mergers, partnerships, and acquisitions to expand their market share across various regions and strengthen their position in the market.
Market Key Players
- International Business Machines Corporation
- Rafael Advanced Defense Systems
- SparkCognition
- Raytheon Technologies Corporation
- Thales Group
- ShieldAI
- BAE Systems Plc.
- Lockheed Martin Corporation
- Charles River Analytics Inc.
- Northrop Grumman Corporation
- Other Key Players
Recent Developments
- In April 2023, Raytheon Technologies Corporation introduced RAIVEN, a cutting-edge AI-assisted Electro-Optical/Infrared (EO/IR) system. This innovative solution enhances the capability of military pilots by enabling quicker and more accurate identification of potential threats.
- In March 2023, the United States Army selected Northrop Grumman Corporation, in collaboration with Shield AI, for the Future Tactical Unmanned Aircraft System (FTUAS) competition, Increment 2. This competition is geared towards providing advanced capabilities to the RQ-7B Shadow tactical unmanned aerial system (UAS).
Report Scope
Report Features Description Market Value (2022) US$ 7.9 Bn Forecast Revenue (2032) US$ 24.7 Bn CAGR (2023-2032) 12.4% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Software, Hardware, and Services; By Platform – Space, Land, Naval, and Airborne; By Technologies – Machine Learning, Natural Language Processing, Computer Vision, Context-Aware Computing, and Other Technologies; By Installation – New Procurement and Upgradation; By Application – Information Processing, Warfare Platform, Logistics Platform, Battlefield Healthcare, Threat Detection, Cyber Security, Logistics and Transportation, and Other Applications. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape International Business Machines Corporation, Rafael Advanced Defense Systems, SparkCognition, Raytheon Technologies Corporation, Thales Group, ShieldAI, BAE Systems Plc., Lockheed Martin Corporation, Charles River Analytics Inc., Northrop Grumman Corporation, and other key players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What was the value of the Global Artificial Intelligence in Military Market?The Global Artificial Intelligence in Military Market was valued at US$ 7.9 Billion in 2022. It is predicted to be valued at US$ 24.7 Billion by 2032.
How does artificial intelligence contribute to modern warfare?Artificial intelligence plays a crucial role in the integration with modern warfare by effectively operating the massive data generated from military operations.
In which applications of the military is artificial intelligence used?Artificial intelligence is used in various applications of the military, including information processing, threat detection, cyber security, battlefield healthcare, logistics and transportation, and more.
What are the drivers for the growth of the Global Artificial Intelligence in Military Market?The increased military budget and the efficient applications of artificial intelligence are driving the growth of the market.
What are the key segments in the Global Artificial Intelligence in Military Market?The key segments in the market include Component (Hardware, Software, Services), Platform (Land, Space, Naval, Airborne), Technologies, Installation, and Application.
Which region leads the Global Artificial Intelligence Market in the military sector?The North America region leads the market, covering a major revenue share of 34.6%.
What trend is expected to boost Artificial Intelligence in Military Market growth in the forecast period?The trend of integrating AI in military systems for various applications, such as cybersecurity, is expected to boost market growth.
Which companies are key players in the Artificial Intelligence in Military Market?Key players in the market include International Business Machines Corporation, Rafael Advanced Defense Systems, SparkCognition, Raytheon Technologies Corporation, Thales Group, ShieldAI, BAE Systems Plc., Lockheed Martin Corporation, Charles River Analytics Inc., Northrop Grumman Corporation.
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