Artificial Intelligence And Analytics In Defence Market Report 2026

Artificial Intelligence And Analytics In Defence Market Overview

• Artificial Intelligence And Analytics In Defence market size has reached to $12.22 billion in 2025 • Expected to grow to $23.49 billion in 2030 at a compound annual growth rate (CAGR) of 13.9% • Growth Driver: Surge In The Use Of Unmanned Systems Fueling The Growth Of The Market Due To Enhanced Operational Safety And Real-Time Data Generation • Market Trend: Technological Advancements To Enhance Defense Operations • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Artificial Intelligence And Analytics In Defence Market?

Artificial intelligence and analytics in defense refer to the use of AI technologies and advanced data analytics to enhance defense operations, decision-making, and situational awareness. It involves leveraging machine learning, predictive analytics, and automation in areas such as surveillance, threat detection, autonomous systems, and mission planning. The main offerings of artificial intelligence and analytics in defense comprise hardware, software, and services. Hardware refers to the physical components, such as sensors, processors, communication devices, and autonomous systems, that enable the deployment and operation of AI-driven defense technologies. The technologies include machine learning, natural language processing, robotics, and data analytics and are deployed on cloud-based, on-premises, and hybrid systems. The key applications include surveillance, cybersecurity, combat operations, training and simulation, and logistics and supply chain management, and serve end users, including defense forces, government agencies, and private contractors.

What Is The Artificial Intelligence And Analytics In Defence Market Growth Forecast?

The artificial intelligence and analytics in defence market size is expected to see rapid growth in the next few years. It will grow to $23.49 billion in 2030 at a compound annual growth rate (CAGR) of 13.9%. The growth in the forecast period can be attributed to expansion of edge computing-enabled ai solutions, integration of real-time mission analytics, adoption of ai-driven threat intelligence services, growth in AI-assisted system integration services, development of high-performance sensor arrays for predictive operations. Major trends in the forecast period include expansion of predictive analytics for mission readiness, increased use of autonomous decision-support tools, growth in ai-driven surveillance and threat identification, adoption of logistics optimization using real-time analytics, integration of multi-domain data for enhanced situational awareness.

Global Artificial Intelligence And Analytics In Defence Market Segmentation

1) By Offering: Hardware, Software, Services 2) By Technology: Machine Learning, Natural Language Processing, Robotics, Data Analytics 3) By Deployment: Cloud-based, On-premises, Hybrid 4) By Application: Surveillance, Cybersecurity, Combat Operations, Training And Simulation, Logistics And Supply Chain Management 5) By End User: Defense Forces, Government Agencies, Private Contractors Subsegments: 1) By Hardware: Sensors, Processors, Communication Devices, Storage Devices, Robotics 2) By Software: Command And Control Systems, Simulation And Training Software, Data Analytics Platforms, Cybersecurity Software, Mission Planning Software 3) By Services: Consulting Services, Integration Services, Maintenance And Support, Training And Education, Cloud And Managed Services

What Is Driver Of The Artificial Intelligence And Analytics In Defence Market?

The increasing use of unmanned systems is expected to propel the growth of artificial intelligence and analytics in the defense market going forward. Unmanned systems refer to vehicles or machines that operate without a human physically on board and can function autonomously using onboard sensors and artificial intelligence or be controlled remotely. The use of unmanned systems is rising because they can operate in dangerous or inaccessible environments, enabling tasks to be completed safely and efficiently without putting human lives at risk. Artificial intelligence and analytics in defense help unmanned systems by enabling autonomous decision-making, enhancing real-time data processing, and improving mission efficiency and accuracy in complex or hazardous environments. For instance, in June 2025, according to a report published by the UK government, a UK-based government department announced a record $460 million (£350 million) investment to boost drone deliveries to Ukraine, increasing the target from 10,000 in 2024 to 100,000 in 2025. Therefore, the increasing use of unmanned systems is driving the growth of artificial intelligence and analytics in the defense market.

Key Players In The Global Artificial Intelligence And Analytics In Defence Market

Major companies operating in the artificial intelligence and analytics in defence market are Google LLC, Microsoft Corporation, Siemens AG, RTX Corporation, Lockheed Martin Corporation, International Business Machines Corporation, Oracle Corporation, General Dynamics Corporation, Northrop Grumman Corporation, SAP SE, BAE Systems PLC, Hewlett Packard Enterprise Company, Thales S.A., Leidos Holding Inc., Booz Allen Hamilton Holding Corporation, Rheinmetall Aktiengesellschaft, Palantir Technologies Inc., Shield AI Inc., BigBear.ai Holdings Inc., Charles River Analytics Inc., HawkEye 360 Inc., Faculty Science Limited, Avathon Inc.

Global Artificial Intelligence And Analytics In Defence Market Trends and Insights

Major companies operating in artificial intelligence and analytics defense markets are focusing on innovation and integration, such as multi-source intelligence, to enhance situational awareness, enable real-time decision-making, and provide comprehensive, actionable insights across defense operations. Multi-source intelligence refers to the process of collecting, analyzing, and integrating information from different sources to provide a comprehensive understanding of situations and support decision-making in defense and security. For instance, in February 2025, EDGE Group PJSC, a UAE-based technology company, launched a next-generation AI-powered geospatial intelligence platform at IDEX 2025 designed to enhance situational awareness and decision-making by integrating advanced analytics, real-time data processing, and AI capabilities to provide actionable insights and support defense and security operations with high-precision intelligence while reinforcing EDGE’s commitment to innovation and technological leadership in the defense sector. This launch aims to strengthen defense capabilities by providing faster, more accurate intelligence, improving operational efficiency, and enabling informed, strategic decision-making in complex and dynamic environments.

What Are Latest Mergers And Acquisitions In The Artificial Intelligence And Analytics In Defence Market? Tidal Security Inc. Acquires Zero-shot Security, Inc. To Enhance AI-Driven Cybersecurity Capabilities

In January 2025, Tidal Security Inc., a US-based cybersecurity company, acquired Zero-Shot Security, Inc. for an undisclosed amount. Through this acquisition, Tidal Security Inc. aims to strengthen its cybersecurity and defense capabilities by integrating Zero-Shot Security Inc.’s advanced artificial intelligence and analytics solutions to provide enhanced threat detection, real-time decision-making, and comprehensive security insights. Zero-Shot Security Inc. is a US-based AI-driven cybersecurity company specializing in predictive threat detection and real-time network protection, contributing to the defense sector through advanced artificial intelligence and analytics solutions that enhance cyber resilience and safeguard critical defense infrastructures.

Regional Insights

North America was the largest region in the artificial intelligence and analytics in defence market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Artificial Intelligence And Analytics In Defence Market?

The artificial intelligence and analytics in the defense market include revenues earned by entities by providing services such as consulting services, system integration services, training and simulation support services, data analytics as a service, threat intelligence services, and logistics optimization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence and analytics in defense also include sales of edge computing devices, high-performance servers, data storage systems, sensor arrays, and radar systems. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Artificial Intelligence And Analytics In Defence Market Report 2026?

The artificial intelligence and analytics in defence market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence and analytics in defence industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.