Dublin, May 09, 2025 (GLOBE NEWSWIRE) -- The "Artificial Intelligence in Military Market Opportunities and Strategies to 2034" report has been added to ResearchAndMarkets.com's offering.
This report describes and explains the artificial intelligence in military market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global artificial intelligence in military market reached a value of nearly $9.67 billion in 2024, having grown at a compound annual growth rate (CAGR) of 16.72% since 2019. The market is expected to grow from $9.67 billion in 2024 to $23.97 billion in 2029 at a rate of 19.91%. The market is then expected to grow at a CAGR of 20.57% from 2029 and reach $61.08 billion in 2034.
Growth in the historic period resulted from the rising unmanned aerial vehicles, rising terrorist activities and increasing military modernization programs. Factors that negatively affected growth in the historic period was data privacy issues. Going forward, increasing defense budget allocation, increasing AI adoption, strong economic growth and favorable government initiatives will drive the growth. Factor that could hinder the growth of the artificial intelligence in military market in the future include lack of skilled AI professionals.
The global artificial intelligence in military market is fairly concentrated, with large number of players operating in the market. The top ten competitors in the market made up to 28.53% of the total market in 2023. BAE Systems plc was the largest competitor with a 3.54% share of the market, followed by Lockheed Martin Corp. with 3.29%, Northrop Grumman Corp. with 3.21%, Raytheon Technologies Corp. with 3.20%, International Business Machines Corporation with 3.04%, Thales Group with 2.81%, Palantir Technologies Inc. with 2.71%, L3Harris Technologies Inc. with 2.50%, Rafael Advanced Defense Systems Ltd. with 2.33% and Anduril Industries Inc. with 1.91%.
The artificial intelligence in military market is segmented by offering into hardware, software and services. The software market was the largest segment of the artificial intelligence in military market segmented by offering, accounting for 42.73% or $4.13 billion of the total in 2024. Going forward, the hardware segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by offering, at a CAGR of 24.25% during 2024-2029.
The artificial intelligence in military market is segmented by technology into machine learning, natural language processing, context aware computing, computer vision and other technologies. The machine learning market was the largest segment of the artificial intelligence in military market segmented by technology, accounting for 38.02% or $3.67 billion of the total in 2024. Going forward, the context aware computing segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by technology, at a CAGR of 22.94% during 2024-2029.
The artificial intelligence in military market is segmented by platform into land, naval, airborne and space. The land market was the largest segment of the artificial intelligence in military market segmented by platform, accounting for 36.32% or $3.51 billion of the total in 2024. Going forward, the space segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by platform, at a CAGR of 23.97% during 2024-2029.
The artificial intelligence in military market is segmented by installation into new procurement and upgradation. The new procurement market was the largest segment of the artificial intelligence in military market segmented by installation, accounting for 52.21% or $5.04 billion of the total in 2024. Going forward, the new procurement segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by installation, at a CAGR of 21.27% during 2024-2029.
The artificial intelligence in military market is segmented by application into information processing, simulation and training, warfare platform, threat monitoring and situational awareness, cyber security and other applications. The information processing market was the largest segment of the artificial intelligence in military market segmented by application, accounting for 23.12% or $2.23 billion of the total in 2024. Going forward, the threat monitoring and situational awareness segment is expected to be the fastest growing segment in the artificial intelligence in military market segmented by application, at a CAGR of 24.77% during 2024-2029.
The top opportunities in the artificial intelligence in military market segmented by offering will arise in the software segment, which will gain $5.73 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by technology will arise in the machine learning segment, which will gain $5.8 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by application will arise in the threat monitoring and situational awareness segment, which will gain $3.1 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by platform will arise in the land segment, which will gain $5.28 billion of global annual sales by 2029. The top opportunities in the artificial intelligence in military market segmented by installation will arise in the new procurement segment, which will gain $8.19 billion of global annual sales by 2029. The artificial intelligence in military market size will gain the most in the USA at $3.61 billion.
Market-trend-based strategies for the artificial intelligence in military market include focus on developing next-generation electro-optical/infrared (EO/IR) intelligent sensing systems, focus on developing AI platforms and services, focus on adopting strategic partnerships approach to develop and deploy advanced AI solutions and focus on developing innovative projects.
Player-adopted strategies in the artificial intelligence in military market include focus on expanding operational capabilities through new contract agreements, focus on strengthening business operations through new launches, focus on strengthening business capabilities through their product advancements and expansions and focus on expanding new developments to better serve the industry and to strengthen their position.
To take advantage of the opportunities, the analyst recommends the artificial intelligence in military companies to focus on developing advanced EO/IR intelligent sensing systems, focus on developing secure, scalable AI platforms for defense, focus on advancing AI integration for operational superiority, focus on service segment for growth, focus on machine learning for growth in the military AI market, focus on the space market to maximize growth opportunities, focus on upgradation market growth, expand in emerging markets, focus on strategic partnerships to drive innovation, focus on expanding distribution channels for military AI, focus on developing competitive and value-based pricing strategies, focus on targeted promotion strategies for military AI, focus on building partnerships for enhanced promotion and focus on cyber security to drive growth in the artificial intelligence military market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 306 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value (USD) in 2024 | $9.67 Billion |
| Forecasted Market Value (USD) by 2034 | $61.08 Billion |
| Compound Annual Growth Rate | 20.2% |
| Regions Covered | Global |
Major Market Trends
- Next-Generation Electro-Optical/Infrared (EO/IR) Intelligent Sensing Systems
- AI Platforms and Services Supporting High-Assurance Deployment
- Strategic Partnerships Driving Innovation in Military
- Revolutionizing Military Operations With Innovative Projects
Key Mergers and Acquisitions
- EMCORE Corporation Acquired L3Harris Technologies To Strengthens Inertial Navigation Capabilities
- Safran S.a. Acquired Preligens To Enhance AI Within Defense
- Shield AI Acquired Sentient Vision Systems To Boost ISR Capabilities with AI-Driven Solutions
- Zen Technologies Acquired AiTuring Technologies To Strengthen AI and Robotics Expertise in Defense Solutions
- Saab AB Acquired CrowdAI Inc. To Advance AI/ML Integration in Defense Technologies
Companies Featured
- BAE Systems plc
- Lockheed Martin Corp.
- Northrop Grumman Corp.
- Raytheon Technologies Corp.
- International Business Machines Corporation
- Thales Group
- Palantir Technologies Inc.
- L3Harris Technologies Inc.
- Rafael Advanced Defense Systems Ltd.
- Anduril Industries Inc.
- SparkCognition Inc.
- Airbus Defence and Space
- Leonardo S.p.A.
- General Dynamics
- Rheinmetall AG
- Orbotix
- Anduril
- LMI (Logistics Management Institute)
- Saab AB
- EMCORE Corporation
- Palantir Technologies
- C3.ai
- CAE Inc.
- Danaide S.A.
- Embraer
- Atech
- Softek
- Grupo de Energia de Bogota (GEB)
- Milrem Robotics
- G42
- Edge Group
- Elbit Systems
- IAI (Israel Aerospace Industries)
- Saudi Arabian Military Industries (SAMI)
- Advanced Electronics Company (AEC)
- Bahrain Defense Force Technology Development Center
For more information about this report visit https://www.researchandmarkets.com/r/at32uu
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