AI in Military Market - Forecasts from 2025 to 2030

The AI in the military market is set to witness robust growth at a CAGR of 13.44% during the forecast period, reaching US$28.633 billion in 2030 from US$15.243 billion in 2025.

The artificial intelligence (AI) in military market is experiencing increased attention as AI enhances productivity, reduces human input, and improves efficiency in the military. AI is being utilized to enable independent operation of robots and drones on battlefields, outperforming traditional weapons. This is expected to raise the demand for AI in the military sector. However, AI also poses a threat through its potential use in cyber warfare.

Growth Drivers:

• Demand for Advanced Military Technologies AI enhances target observation and battlefield protection, while also defending core military systems against cyber threats. AI-enhanced data processing also helps military forces improve target selection.
• Government Funding and Initiatives Governments are increasing investments in military advancement to counter growing threats. For example, the Pentagon's Rapid Capability Cell (RCC) and Frontier AI pilots programs help the Defense Department adopt new AI technology.

Geographical Outlook:

• North America Government and private sector support is boosting tech development in defense research projects. The US military had $820.3 billion in funding in 2023, comprising 13.3% of the federal budget, and requested $842 billion for 2024.
• South America South American countries are increasing defense funding to develop new military equipment for border protection.
• Europe European countries are focusing on cybersecurity and advanced vehicle control due to rising cyber threats and the use of military robots.
• Middle East and Africa There is a growing demand for AI-based intelligence systems to combat terrorism and modernize military tools.
• Asia-Pacific Political conflicts are driving increased defense spending in countries like Japan, China, and India, which, along with rapid AI development, is boosting military systems development. The artificial intelligence in the military market in Asia Pacific is expected to grow with the fastest CAGR from 2025 to 2030. China is investing in AI for military applications, and Japan's Ministry of Defense has adopted its first AI policy to improve efficiency and effectiveness in defense operations

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

AI in Military Market is analyzed into the following segments:

By Component Type

• Hardware
• Software
• Services

By Technology

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

By Application

• Warfare Platforms
• Cybersecurity
• Logistics & Transportation
• Surveillance & Reconnaissance
• Command & Control
• Battlefield Healthcare
• Simulation & Training
• Gathering Intelligence
• Others

By Platform

• Land-based Force
• Naval Force
• Air Force
• Space Force

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Australia
• Others