How Has The Artificial Intelligence In Modern Warfare Market Size Evolved In Recent Years?
The artificial intelligence in modern warfare market has seen considerable growth due to a variety of factors.
•The market size for artificial intelligence in modern warfare has seen a rapid growth in recent years. The forecast suggests an increase from $6.27 billion in 2024 to $8.74 billion in 2025, with a compound annual growth rate (CAGR) of 39.4%.
The increase observed in the historical period can be linked to the modernization endeavors within the military, geopolitical disputes, heightened use of unmanned machinery, changing threat scenarios, and a rising need for self-governing systems in warfare.
What Are The Estimated Market Size And Expected Annual Growth Rates For Global Artificial Intelligence In Modern Warfare Market?
The artificial intelligence in modern warfare market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for the artificial intelligence in modern warfare market's size, with predictions of an exponential rise in the coming years. By 2029, this market will likely expand to $31.27 billion, driven by a compound annual growth rate (CAGR) of 37.5%.
This expected surge during the forecast period is because of the progress in the development of autonomous weapons systems, increasing emphasis on cyber warfare capabilities, heightening investments in defense AI research, the widespread adoption of AI for decision support, and an upsurge in the focus of data analytics in warfare. The forecast period will also see significant trends such as the evolution of explainable AI in military applications, the application of AI for predictive maintenance in defense systems, the integration of AI in military training initiative, the expansion of AI-driven command and control systems, and AI deployment for the optimization of logistics and supply chain in the military.
Which Drivers Are Accelerating Growth In The Artificial Intelligence In Modern Warfare Market?
The escalating menace of cyberattacks is projected to drive the expansion of artificial intelligence in the contemporary warfare market. Cyberattacks involve unauthorized efforts to gain access to computers, computer systems, or networks, with the intention of causing harm. Defensive applications of artificial intelligence in modern warfare is primarily for bolstering cybersecurity, safeguarding against cyber threats, and thereby enhancing the safety and efficacy of AI-powered defense systems. For example, as reported by the Internet Crime Complaint Center in its 2022 statistics, released by the US-based Federal Bureau of Investigation in March 2023, there were 847,376 incidents of various online frauds received as of 2021, leading to a total loss of $6.9 billion. Consequently, the escalating cyberattack menace is fueling the expansion of artificial intelligence in the contemporary warfare market.
What Are The Core Segments Of The Global Artificial Intelligence In Modern Warfare Market?
The artificial intelligence in modern warfare market covered in this report is segmented –
1) By Type: Weaponized Artificial Intelligence, Defensive Artificial Intelligence, Offensive Artificial Intelligence, Assisting Artificial Intelligence, Autonomous Artificial Intelligence
2) By Type Of Equipment: Unmanned Aerial Vehicle, Unmanned Ground Vehicle, Combat Systems, Recovery And Maintenance Vehicle, Reconnaissance And Surveillance Vehicle, Medical Evacuation Vehicle
3) By Application: Tactical Defensive, Military Offensive
Subsegments:
1) By Weaponized Artificial Intelligence: Autonomous Weapons Systems, Smart Munitions, AI-Enhanced Targeting Systems
2) By Defensive Artificial Intelligence: Cybersecurity Systems, Threat Detection And Response Systems, Surveillance And Reconnaissance
3) By Offensive Artificial Intelligence: Autonomous Drones And UAVs, Offensive Cyber Operations, Electronic Warfare Systems
4) By Assisting Artificial Intelligence: Decision Support Systems, Logistics And Supply Chain Optimization, Training And Simulation Systems
5) By Autonomous Artificial Intelligence: Fully Autonomous Combat Vehicles, Robotic Systems For Ground And Air Operations, AI-Driven Naval Vessels
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Which Emerging Trends Are Reshaping The Artificial Intelligence In Modern Warfare Market Size?
Technical innovation is a growing trend in the field of artificial intelligence within modern warfare. Major corporations in this market are leveraging new technologies to maintain their competitive edge. For example, in May 2022, Milrem Robotics, a company based in Estonia that specializes in robotics and autonomous system development, unveiled the THeMIS Observe, an independent ISR (intelligence, surveillance, and reconnaissance) UGV (unmanned ground vehicle). This system incorporates the ROSY (rapid obscuring system), the Z Sparrowhawk camera, the Squire radar, the Metravib defense pearl acoustic shot detection, and a mast. These state-of-the-art systems empower units to carry out multi-sensor identification on a single platform and swiftly respond to emerging targets.
Who Are the Key Players in the Artificial Intelligence In Modern Warfare Market?
Major companies operating in the artificial intelligence in modern warfare market include:
• Microsoft Corporation
• Raytheon Technologies Corporation
• Boeing Co.
• Lockheed Martin Corporation
• International Business Machines Corporation
• General Dynamics Corporation
• Northrop Grumman Corporation
• BAE Systems plc
• Thales Group
• L3Harris Technologies Inc.
• Leonardo S.p.A
• Textron Inc.
• Booz Allen Hamilton Holding Corporation
• Science Applications International Corporation Inc.
• Rheinmetall AG
• CACI International Inc.
• Elbit Systems Ltd.
• Rafael Advanced Defense Systems Limited
• General Atomics Aeronautical Systems Inc.
• Qinetiq Ltd.
• Palantir Technologies Inc.
• Teledyne FLIR LLC
• Shield AI Inc.
• SparkCognition Inc.
• Roboteam Inc.
• Stryke Industries LLC
What are the Regional Insights into the Artificial Intelligence In Modern Warfare Market?
North America was the largest region in the artificial intelligence in the modern warfare market in 2024. The regions covered in the artificial intelligence in modern warfare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
