Global Artificial Intelligence in Military Market Forecasted to Reach $19.41 Billion in Value by 2029

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How Is the Artificial Intelligence in Military Market Size Expected to Evolve From 2025 to 2029?
The artificial intelligence in military market size has grown rapidly in recent years. It will grow from $9.67 billion in 2024 to $11.19 billion in 2025 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to rise in budget allocations, rise in cybersecurity concerns, increasing data availability, rise in threats, economic growth.

The artificial intelligence in military market size is expected to see rapid growth in the next few years. It will grow to $19.41 billion in 2029 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to geopolitical tensions, rise in research and development, growing military and defense sector, rising government support, rising industrial automation. Major trends in the forecast period include industry partnerships, human-machine teaming, dual-use technologies, cognitive electronic warfare, swarm technology.

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What Are the Leading Drivers Behind the Growth of the Artificial Intelligence in Military Market?
Increased spending on defense is driving the growth of artificial intelligence in military market going forward. Artificial intelligence refers to the simulation of human intelligence in machines that are programmed to work like humans and spoof their actions. Most governments have set up specialized departments or organizations with the specific purpose of developing new capabilities as well as planning, launching, and integrating AI capabilities into military equipment. For instance, in April 2024, according to the Stockholm International Peace Research Institute, a Sweden-based international institute, global military spending reached approximately $2.29 trillion in 2022. This amount increased to $2.44 trillion in 2023, reflecting a 6.8% year-over-year growth. Therefore, increased t spending on defense is driving the growth of artificial intelligence in military market.

What Are the Emerging Segments Driving Growth in the Artificial Intelligence in Military Market?
The artificial intelligence in military market covered in this report is segmented –

1) By Offering: Hardware, Software, Service
2) By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision, Intelligent Virtual Agent (IVA) or Virtual Agents, Other Technologies
3) By Platform: Land, Naval, Airborne
4) By Installation: New Procurement, Upgradation
5) By Application: Information Processing, Simulation and Training, Warfare Platform, Threat Monitoring and Situational Awareness, Cyber Security, Other Applications

Subsegments:
1) By Hardware: AI-Powered Sensors, Robotics and Drones, Computing Hardware (GPUs, TPUs), Network Infrastructure
2) By Software: AI Algorithms and Models, Machine Learning Software, Data Analytics Software, Cybersecurity Software
3) By Service: AI Integration Services, Consulting Services, Maintenance and Support Services, Training and Development Services

What Are the Current Trends Influencing the Artificial Intelligence in Military Market?
Technological advancement is a key trend gaining popularity in artificial intelligence in military market. Major players operating in the artificial intelligence in military market are concentrating their efforts on creating innovative technologies to strengthen their position. For instance, in July 2022, Raytheon Technologies, a US-based aerospace, and defense company partnered with a US-based company, C3 AI’s application platform to deliver next-generation artificial intelligence (AI) and machine learning (ML) capabilities for the Tactical Intelligence Targeting Access Node (TITAN) program of US Army. TITAN will ingest data from high-altitude and space using terrestrial and aerial sensors to provide targetable data and situational awareness.

Who Are the Principal Market Leaders in the Artificial Intelligence in Military Market?
Major companies operating in the artificial intelligence in military market include Charles River Analytics Inc., BAE Systems PLC., Northrop Grumman Corporation, RTX Corporation, Lockheed Martin Corporation, Thales Group, Harris Corporation, International Business Machines Corporation, Rafael Advanced Defense Systems, Microsoft Corporation, Oracle Corporation, Amazon Web Services Inc., SAS Institute, Meta Platforms Inc., SAP SE, Salesforce Inc., Baidu Inc., SoarTech, Google LLC, NVIDIA Corporation, Intel Corporation, General Dynamics Corporation, Rolls-Royce Holdings plc, General Electric Aviation, Safran S.A., Israel Aerospace Industries, Triumph Group Inc., Boeing Co., Airbus SE, Leonardo S.p.A., L3Harris Technologies Inc., Elbit Systems Ltd., Rheinmetall AG, Collins Aerospace, Kongsberg Gruppen

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Artificial Intelligence in Military Market Size Report 2025

Which Regions Are Expected to Record the Strongest CAGR in the Artificial Intelligence in Military Market?
North America was the largest region in the artificial intelligence in military market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in military market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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