AI in Defense Market: Rising Demand and Future Scope till by 2030



The global AI in defense market size was valued at USD 7.5 billion in 2020, which is expected to reach USD 13.6 billion by 2027, registering a CAGR of 12.7% over the forecast period. AI has emerged as the crucial component of modern warfare as it possesses a higher ability to handle data. In the military sector, AI is used for autonomous targeting, surveillance and monitoring, security, cyber defense, cyber warfare, and other important military functions. Due to its high efficiency is widely adopted in fighter aircraft, helicopters, and military fighting vehicles (MFVs). Some of the emerging economies across the globe are incorporating AI in military applications to promote safety and security.

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Factors Affecting the AI in Defense Market Over the Forecast Period:

  • The growth of big data analytics and the rising adoption of cloud services in the defense sector are major factors driving the global AI in the defense market.
  • AI is implemented through various machine learning using computers or laptops to run a specific software useful for training. The machine learning algorithm may assist various systems to be processed simultaneously for data identification for certain features from various data sets.
  • Lack of expertise, unavailability of AI algorithms, and the high cost for setting up an AI are among the few factors that will hamper the market growth over the forecast period. At the same time, AI is improving planning, logistics, and transportation across various sectors, creating a good opportunity for the penetration of AI in the defense sector over the forecast period.

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Impact of COVID-19 on AI in Defense Market:

Due to the COVID-19 pandemic, the global market value for AI in defense is expected to witness a modest downfall due to the impact on the aerospace manufacturing industry, backed by the decrease in the demand for aerospace equipment. The governments were focused and have allocated a huge fund in the healthcare facilities amidst the pandemic; therefore, the huge downfall in the functioning of the defense sector has been seen during the pandemic. Therefore, a considerable downfall in the AI in defense market value can be expected in 2020.

Scope of the Report

The report outlines the global AI in defense market study based on offering, platform, and application.

The AI in defense market has been segmented on the basis of offering –

  • Hardware
  • Software
  • Services

The AI in defense market has been segmented on the basis of the platform –

  • Airborne
    • Fighter Aircraft & Helicopter
    • Transport Aircraft
    • Transport Aircraft
    • Fighter Aircraft & Helicopter
  • Land
    • Unmanned Ground Vehicles (UGVs)
    • Military Fighting Vehicles (MFVs)
    • Others
  • Naval
  • Space

The AI in defense market has been segmented on the basis of application –

  • Cyber Security
  • Military Healthcare
  • Threat Monitoring & Situational Awareness
  • Simulation & Training
  • Logistics & Transportation
  • Others (Warfare Platform)

AI in Defense Market: Regional Outlook

The AI in defense market has been segmented into five geographical regions: North America, Asia Pacific, South America, Europe, and the Middle East and Africa. In 2020, North America held the largest AI in defense market share, followed by Europe and the Asia Pacific. North America is further estimated to dominate the AI in defense market during the forecast period. Moreover, Asia Pacific is expected to project the highest CAGR in the global market over the forecast period.

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AI in Defense Market Key Competitors Include –

The AI in defense market has a presence of a few numbers of market players across the globe. The key AI in defense players operating in the global market include –

  • BAE Systems
  • The Boeing Company
  • Charles River Analytics Inc.
  • General Dynamics Corporation
  • Harris Corporation
  • IBM Corporation
  • Leidos
  • Lockheed Martin Corporation
  • Northrop Grumman Corporation
  • NVIDIA Corporation
  • Raytheon Company
  • SAIC
  • SoarTech
  • SparkCognition
  • Thales Group.

The AI in defense market report thoroughly analyzes macro-economic factors and every segment’s market attractiveness. The report will include an in-depth qualitative and quantitative assessment of the segmental/regional outlook with the market players’ presence in the respective segment and region/country. The information concluded in the report includes the inputs.

AI in Defense Market Report Covers Comprehensive Analysis On:

  • Market Segmentation & Regional Analysis
  • Market Size of 10 years
  • Pricing Analysis
  • Supply & Demand Analysis
  • Product Life Cycle Analysis
  • Porter’s Five Forces & Value Chain Analysis
  • Developed & Emerging Economies Analysis
  • PEST Analysis
  • Market and Forecast Factor Analysis
  • Market Opportunities, Risks, & Trends
  • Conclusion & Recommendation
  • Regulatory Landscape
  • Patent Analysis
  • Competition Landscape
  • 15+ Company Profiles

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AI in Defense Market Regional Analysis Includes:

  • North America (US, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
  • The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

AI in Defense Market: Target Audience

  • IT Technology Service Providers
  • Law Enforcement Agencies
  • Defense Organizations
  • Research Institutes
  • Regulatory Bodies
  • AI Services Providers
  • Cyber Security Companies
  • Electronics Companies
  • Business Development Managers

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