Artificial Intelligence (AI) in Military Market Size Worth $ 21.56 Billion By 2032 | CAGR: 11.8%

The global artificial intelligence (AI) in military market size is expected to reach USD 21.56 billion by 2032, according to a new study by Polaris Market Research. The report “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” gives a detailed insight into current market dynamics and provides analysis on future market growth.  

North America dominated the global market in 2023. The military in the region works with AI companies and digital entrepreneurs to take advantage of new ideas and cutting-edge methods. Through these partnerships, an innovative ecosystem is fostered, and military organizations are able to benefit from the agility and inventiveness of startup ecosystems. Governments devote large amounts of their defense budgets to AI-related projects. Artificial Intelligence plays a major role in military cybersecurity by continuously monitoring network traffic, spotting strange patterns, and taking independent action in response to possible cyber threats.

The utilization of AI in autonomous vehicles extends beyond basic navigation. Machine learning algorithms enable these vehicles to adapt to dynamic environments, learn from mission experiences, and autonomously adjust strategies. AI-powered drones, equipped with computer vision, enhance target identification capabilities and facilitate complex mission execution with minimal human intervention. AI's role in military cybersecurity extends to behavior analysis, anomaly detection, and threat mitigation.

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Militaries across the world are adopting artificial intelligence solutions to enhance defense capabilities. The U.S. military used artificial intelligence to guide miniature surveillance drones on missions for its special operations forces and to support Ukraine in its conflict with Russia. It monitors military fitness, forecasts when a repair is needed for Air Force aircraft, and assists in keeping track of adversaries in space. The Indian Army has deployed AI surveillance systems throughout its borders with China and Pakistan. 140 AI-based surveillance systems, including sensors, high-resolution cameras, radar feed, and unmanned aerial vehicle (UAV) feed, have been deployed by the army, according to officials. These are then gathered and utilized by AI with the goal of classifying targets and identifying border intrusions. Additionally, the army has started using cutting-edge military simulators to train its initial class of recruits. Along with increasing their collaborative cyber training, the U.S. and India have decided to hold the first Defense Artificial Intelligence Dialogue.

Artificial Intelligence (AI) in Military Market Report Highlights

• The software segment accounted for a significant market share owing to applications in cybersecurity, logistics, training, and strategic decision-making.
• The machine learning segment accounted for a significant revenue share of the market in 2023 owing to its role in enhancing defense capabilities and offering precision, adaptability, and operational efficiency.
• The cyber security segment is expected to experience significant growth during the forecast period due to a greater focus on threat detection, incident response, and forensics.
• In 2023, North America accounted for the largest market revenue share due to defense budget allocation, cyber warfare and AI security, and strategic alliances.
• The market is highly competitive owing to the existence of market players with a global presence, including BAE Systems plc, General Dynamics Corporation, Honeywell International Inc., IBM Corporation, L3Harris Technologies, Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, and Saab AB among others.

Polaris Market Research has segmented the artificial intelligence (AI) in military market report based on offering, technology, application, and region:

Artificial Intelligence (AI) in Military, Offering Outlook (Revenue - USD Billion, 2019 - 2032)

• Hardware
• Software
• Services

Artificial Intelligence (AI) in Military, Technology Outlook (Revenue - USD Billion, 2019 - 2032)

• Computer Vision
• Machine Learning
• Deep Learning
• Natural Language Processing
• Others

Artificial Intelligence (AI) in Military, Application Outlook (Revenue - USD Billion, 2019 - 2032)

• Warfare
• Logistics & Transportation
• Cyber Security
• Command & Control
• Simulation & Training
• Others

Artificial Intelligence (AI) in Military, Regional Outlook (Revenue - USD Billion, 2019 - 2032)

• 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

Artificial Intelligence (AI) in Military Market Report Scope