Artificial Intelligence (AI) in Military Market Size Analysis Report, 2024-2032
Artificial Intelligence (AI) in Military Market Size Analysis Report, 2024-2032

Artificial Intelligence (AI) in Military Market Share, Size, Trends, Industry Analysis Report, By Offering (Hardware, Software, Services); By Technology; By Application; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Feb-2024
  • Pages: 119
  • Format: PDF
  • Report ID: PM4375
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global artificial intelligence (AI) in military market was valued at USD 7.95 billion in 2023 and is expected to grow at a CAGR of 11.8% during the forecast period.

Artificial Intelligence in military market enables adaptive decision-making in demanding and dynamic operational environments, facilitating the development of autonomous military systems and robots. This includes drones, unmanned ground vehicles, and self-sufficient surveillance systems. By deriving practical insights from large datasets, artificial intelligence-driven analytics enables military leaders to make well-informed decisions. This data-centric approach improves the procedures of making tactical and strategic decisions. AI uses data analysis to forecast equipment repair requirements, saving downtime and guaranteeing military assets are operationally ready.

The global race for technological superiority motivates the integration of AI into military capabilities. This includes advancements in AI technologies to maintain a competitive edge on the international stage. Market players are introducing new solutions to cater to the growing market demand.

Artificial Intelligence (AI) in Military Market Size

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  • For instance, in June 2023, Pratt & Whitney introduced Percept, an innovative AI-driven Aircraft Engine Analysis Tool. Operating on the Awiros Video Intelligence Operating System (OS), Percept utilizes computer vision technology. The cloud-based interface permits users to capture images and videos of aircraft engines via mobile devices, receiving instantaneous information on parts availability. This streamlined process enhances efficiency, facilitating swift and cost-effective turnaround for leased engine assets.

 Leveraging AI's analytical capabilities, military strategists can predict geopolitical trends, optimize resource allocation, and conduct thorough scenario analyses. This aids in effective strategic planning and risk management. AI-driven logistics optimization involves predicting supply chain requirements, minimizing operational costs, and improving the efficiency of military logistics. This results in enhanced responsiveness and adaptability.

Artificial Intelligence (AI) in Military

Industry Dynamics

Growth Drivers

Cyber Warfare Capabilities and Counterterrorism Operations

Cyber warfare capabilities significantly drive the surge in artificial intelligence adoption within the military market. AI enhances military cyber capabilities by leveraging advanced algorithms to detect, counter, and respond to evolving cyber threats. It empowers proactive defense measures, identifying vulnerabilities and ensuring secure communication channels. AI-driven cybersecurity solutions enable rapid threat analysis, providing military forces with the agility to thwart sophisticated attacks. The intersection of AI and cyber warfare not only fortifies digital defenses but also amplifies the military's ability to navigate the intricacies of modern warfare, where information dominance is paramount for strategic advantage.

Counterterrorism operations propel the integration of the Artificial Intelligence (AI) in Military Market. AI plays a pivotal role in enhancing counterterrorism efforts by analyzing vast datasets to discern patterns, identify potential threats, and predict illicit activities. Machine learning algorithms facilitate swift anomaly detection and actionable intelligence, aiding intelligence agencies in preemptive and responsive actions against terrorist networks. The adaptive nature of AI ensures continuous learning, evolving strategies, and improving the effectiveness of counterterrorism initiatives. In the dynamic landscape of modern warfare, AI empowers military forces to stay ahead of evolving threats, contributing to more proactive and successful counterterrorism operations.

Report Segmentation

The market is primarily segmented based on offering, technology, application, and region.

By Offering

By Technology

By Application

By Region

  • Hardware
  • Software
  • Services
  • Computer Vision
  • Machine Learning
  • Deep Learning
  • Natural Language Processing
  • Others
  • Warfare
  • Logistics & Transportation
  • Cyber Security
  • Command & Control
  • Simulation & Training
  • Others


  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Offering Analysis

The software segment accounted for a significant share in 2023

The software segment accounted for a significant market revenue share. Advanced command and control systems leverage AI-driven software for intricate operational control. Cybersecurity benefits from adaptive threat detection, securing networks against evolving threats. Autonomous vehicles and drones rely on software-powered AI algorithms for dynamic mission execution. Predictive analytics inform strategic planning, while surveillance software enhances threat identification. Realistic simulations and adaptive training environments are facilitated by software, optimizing personnel preparedness. Logistics and supply chain management benefit from software applications, ensuring efficient resource allocation. The software also ensures ethical AI use, compliance, and continuous upgrades, underscoring its pivotal role in advancing military capabilities.

By Technology Analysis

The machine learning segment accounted for a significant share in 2023

The machine learning segment accounted for a significant market share in 2023. Machine learning revolutionizes military AI applications with precision and adaptability. ML's diverse applications include threat detection and classification, forecasting security breaches, and anomaly detection for swift response. In image and object recognition, ML-driven computer vision aids surveillance. Natural Language Processing (NLP) enhances unstructured data analysis, while ML enables autonomy in vehicles and drones. From optimizing mission planning and supply chains to predictive maintenance, ML transforms logistics. In personnel management, ML streamlines recruitment and adaptive learning for training. Cybersecurity benefits from ML's adaptive defenses, while simulations prepare personnel for diverse scenarios. ML-driven pattern recognition aids intelligence, and robotic process automation (RPA) optimizes routine tasks.

By Application Analysis

The cyber security segment is expected to experience significant growth during the forecast period

The cyber security segment is expected to experience significant growth during the market forecast period. Artificial intelligence significantly elevates military cybersecurity by employing advanced techniques. Through real-time threat detection, AI algorithms analyze extensive datasets, adapting to emerging vectors. Behavioral analysis monitors network activities for anomalies, while adaptive responses dynamically counter threats. Predictive analytics anticipates potential risks, bolstering proactive defense. AI-driven vulnerability management identifies and addresses system weaknesses, fortifying cybersecurity postures. Automated incident response and forensics expedite investigations. User and Entity Behavior Analytics (UEBA) detect insider threats. Natural Language Processing (NLP) enriches threat analyses, and continuous learning ensures adaptability against evolving adversaries. AI also excels in zero-day threat protection, automating routine tasks, and deploying deception technologies for added defense layers.

Artificial Intelligence (AI) in Military Seg

Regional Analysis 

North America accounted for the largest revenue share in 2023

North America accounted for the largest revenue share of the market in 2023. Predictive analytics using machine learning algorithms is a key component of AI optimization in command and control systems. This helps commanders to make better decisions, dynamically deploy resources, and foresee possible threats. AI helps with real-time data fusion, which makes it possible for various military missions to have complete situational awareness. Leading American defense contractors and IT companies are leading the way in integrating AI into the military. Organizations like Raytheon Technologies, IBM, Northrop Grumman, Lockheed Martin, and Northrop Grumman engage in AI R&D to stay ahead of the curve and improve defense capabilities. The advancement of AI technology suited for military applications is the main goal of ongoing research and development projects. The incorporation of machine learning algorithms for adaptive decision-making and natural language processing for improved human-computer interaction are instances of these developments.

Asia Pacific is expected to experience significant growth during the market forecast period. Technological progress involves Quantum Computing, Swarm Robotics, and Explainable AI. Strategic alliances and government initiatives drive AI integration in defense, emphasizing national strategies and skill development. Military modernization programs focus on acquiring and retrofitting AI technologies. Dual-use applications benefit both civilian and defense sectors. Robust investments foster research, innovation hubs, and public-private collaboration. Ethical considerations and regulatory frameworks guide responsible AI use. Education integrates AI into military academies, ensuring continuous learning for personnel.

Artificial Intelligence (AI) in Military Reg

Key Market Players & Competitive Insight

The market faces fierce rivalry, with companies leveraging cutting-edge technology, top-notch product offerings, and a robust brand reputation to propel revenue expansion. Key players employ diverse tactics, including dedicated research and development, strategic mergers and acquisitions, and continuous technological advancements. These strategic maneuvers are aimed at broadening their product ranges and sustaining a competitive advantage. The market dynamic is shaped by constant innovation and a commitment to delivering high-quality solutions, underscoring the importance of strategic initiatives in ensuring sustained competitiveness.

Some of the major players operating in the global market include:

  • BAE Systems plc
  • Cubic Corporation
  • Elbit Systems Ltd.
  • General Atomics Aeronautical Systems
  • General Dynamics Corporation
  • Honeywell International Inc.
  • IBM Corporation
  • L3Harris Technologies
  • Lockheed Martin Corporation
  • Northrop Grumman Corporation
  • Palantir Technologies
  • Raytheon Technologies Corporation
  • Saab AB
  • SparkCognition
  • Thales Group

Recent Developments

  • In March 2023, Boeing and Shield AI entered into a memorandum of understanding to investigate potential collaboration for autonomous capabilities and artificial intelligence across existing and forthcoming defense programs. Shield AI is the creator of Hivemind, an artificial intelligence system that has successfully piloted various aircraft. This AI pilot possesses the capability to empower swarms of drones and aircraft to function autonomously, even in the absence of GPS, communication systems, or a human pilot in the cockpit.
  • In October 2022, Lockheed Martin and Red Hat, Inc. unveiled a partnership aimed at promoting artificial intelligence innovation. By embracing the recently introduced Red Hat Device Edge, Lockheed Martin aims to bolster U.S. national security initiatives. The collaboration focuses on the application and standardization of AI technologies in environments with geographical constraints, contributing to enhanced capabilities in critical operational areas.

Artificial Intelligence (AI) in Military Market Report Scope

Report Attributes


Market size value in 2024

USD 8.86 billion

Revenue forecast in 2032

USD 21.56 billion


11.8% from 2024 - 2032

Base year


Historical data

2019 - 2022

Forecast period

2024 - 2032

Quantitative units

Revenue in USD million/billion and CAGR from 2024 to 2032

Segments covered

By Offering, By Technology, By Application, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa


Report customization as per your requirements with respect to countries, region and segmentation.


The global artificial intelligence (AI) in military market size is expected to reach USD 21.56 billion by 2032

BAE Systems plc, General Dynamics Corporation, Honeywell International Inc., IBM Corporation, L3Harris Technologies, Lockheed Martin Corporation, Northrop Grumman Corporation are the top market players in the market.

North America region contribute notably towards the global Artificial Intelligence (AI) in Military Market.

The global artificial intelligence (AI) in military market is expected to grow at a CAGR of 11.8% during the forecast period.

The Artificial Intelligence (AI) in Military Market report covering key segments are offering, technology, application, and region.