Artificial Intelligence In Modern Warfare Market Report 2026

Artificial Intelligence In Modern Warfare Market Overview

• Artificial Intelligence In Modern Warfare market size has reached to $8.69 billion in 2025 • Expected to grow to $42.26 billion in 2030 at a compound annual growth rate (CAGR) of 37.2% • Growth Driver: Propelling Modern Warfare With The Surge Of Artificial Intelligence Fueled By Growing Military Expenditure • Market Trend: Unleashing The Power Of Artificial Intelligence And Computer Vision In Modern Warfare • North America was the largest region in 2025.

What Is Covered Under Artificial Intelligence In Modern Warfare Market?

Artificial intelligence (AI) in modern warfare refers to developing and deploying various technologies that leverage artificial intelligence to improve accuracy and safety in military operations, enabling autonomous decision-making, improved intelligence collection, and improved surveillance, targeting, logistics, and cybersecurity capabilities. It entails creating and using artificial intelligence (AI)-driven machines and systems to support human military troops and improve overall effectiveness and efficiency on the battlefield. The main types of artificial intelligence in the modern warfare market include weaponized artificial intelligence, defensive artificial intelligence, offensive artificial intelligence, assisting artificial intelligence, and autonomous artificial intelligence. Weaponized AI refers to using artificial intelligence to develop or improve military capabilities, frequently for autonomous or semi-autonomous systems that can engage in fatal combat. The various types of equipment include unmanned aerial vehicles, unmanned ground vehicles, combat systems, recovery and maintenance vehicles, reconnaissance and surveillance vehicles, and medical evacuation vehicles used in applications such as tactical defensive and military offensive.

What Is The Artificial Intelligence In Modern Warfare Market Growth Forecast?

The artificial intelligence in modern warfare market size is expected to see exponential growth in the next few years. It will grow to $42.26 billion in 2030 at a compound annual growth rate (CAGR) of 37.2%. The growth in the forecast period can be attributed to growth of autonomous weapon systems, increased defense spending, adoption of AI for strategic planning, expansion of cyber warfare capabilities, focus on unmanned systems. Major trends in the forecast period include autonomous combat systems, ai-driven surveillance and reconnaissance, intelligent defense cybersecurity, decision support systems for military operations, ai-enabled logistics and supply chains.

Global Artificial Intelligence In Modern Warfare Market Segmentation

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

What Is The Driver Of The Artificial Intelligence In Modern Warfare Market?

The rising military expenditure is expected to propel the growth of artificial intelligence in the modern warfare market going forward. Military expenditure refers to the financial resources allocated by a country or a government for its military forces and related activities. Rising military expenditure fosters the development and integration of advanced AI technologies to enhance military capabilities and effectiveness. For instance, in April 2025, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based international institute, world military expenditure rose by 9.4 % in real terms in 2024, reaching US $2,718 billion, the highest global total ever recorded. Therefore, the rising military expenditure is driving the growth of artificial intelligence in the modern warfare market.

Key Players In The Global Artificial Intelligence In Modern Warfare Market

Major companies operating in the artificial intelligence in modern warfare market are 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

Global Artificial Intelligence In Modern Warfare Market Trends and Insights

Major companies operating in artificial intelligence in the modern warfare market are focused on introducing next-generation solutions, such as advanced artificial intelligence (AI) and computer vision capabilities, to provide reliable services to customers. Artificial intelligence (AI) and computer vision capabilities are the integration of AI and computer vision technologies to enable machines to process and analyse visual information and make intelligent decisions based on that information. For instance, in March 2023, Red Cat Holdings Inc., a US-based aircraft company, and Athena AI, a UK-based multi-channel communication platform, launched the Teal 2 military drone. The Teal 2 military drone is a small, unmanned aircraft system (sUAS). It is designed for military applications, particularly short-range reconnaissance missions, and is optimised for nighttime operations. It provides a multi-vehicle command and control feature, providing a 360-degree view of a target. It is equipped with a dual-axis electro-optic (EO) and infrared (IR) gimbal system. The addition of Teal 2's nighttime computer vision capability provides users with valuable data during nighttime operations.

What Are Latest Mergers And Acquisitions In The Artificial Intelligence In Modern Warfare Market?

In September 2024, BAE Systems plc, a UK-based aerospace company, acquired Kirintec Limited for an undisclosed amount. With this acquisition, BAE Systems plc aims to enhance its capabilities in electronic warfare, countermeasures, and defence technology by integrating Kirintec Limited's specialised expertise in electronic countermeasures, explosive ordnance disposal, and intelligence solutions, thereby strengthening its position in modern warfare solutions. Kirintec Limited is a UK-based company that specialises in advanced artificial intelligence technology solutions for defence and security applications.

Regional Insights

North America was the largest region in the artificial intelligence in the modern warfare market in 2025. 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 In Modern Warfare Market?

The artificial intelligence in the modern warfare market consists of revenues earned by entities by providing services such as data analysis, predictive maintenance, cybersecurity solutions, and logistics and supply chain management. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in the modern warfare market also includes sales of AI-enabled targeting systems, autonomous drones, autonomous weapons, sensor networks, edge computing devices, and cybersecurity hardware. 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 In Modern Warfare Market Report 2026?

The artificial intelligence in modern warfare 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 in modern warfare 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.