Artificial Intelligence in Defense Market Research 2021-2031
The artificial intelligence in defense market size is projected to reach US$ 16.17 billion by 2031 from US$ 6.37 billion in 2023. The market is expected to register a CAGR of 12.4% during 2023–2031. Significant developments in AI, talent acquisition, and patent filings are likely to remain a key trend in the market.
Artificial Intelligence in Defense Market Analysis
Over the past few years, artificial intelligence in the defense market has witnessed huge growth owing to factors such as the growing adoption of AI in unmanned aerial vehicles and increasing investments in AI technology. Huge applications of AI in the defense sector provide lucrative growth opportunities for artificial intelligence in the defense market.
Artificial Intelligence in Defense Market Overview
Artificial intelligence in defense refers to the integration of advanced technologies with defense equipment to increase its efficiency and applications. In several developed countries, the defense sector receives investments from the government. For instance, according to SIPRI, the US military expenditure increased to US$ 876.9 billion in 2022 from US$ 806.2 billion in 2021. These investments are used in the research and development of new technologies and for developing advanced equipment that can be used during battles or wars. Artificial intelligence equipped with defense systems is capable of handling large volumes of data efficiently. In addition, these systems have improved self-regulation and self-control due to their enhanced computing and decision-making capabilities. Further, autonomous weapon platforms use computer vision technology to identify and track objects. Artificial intelligence can help in the extraction of useful information from the equipment, including radars and automatic identification systems. Therefore, upgrading defense weapons, tools, and equipment with the latest technologies is driving artificial intelligence in defense market growth.
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Artificial Intelligence in Defense Market: Strategic Insights
Market Size Value in US$ 6.91 billion in 2022 Market Size Value by US$ 13.15 billion by 2028 Growth rate CAGR of 11.7% from 2023 to 2028 Forecast Period 2023-2028 Base Year 2022
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Artificial Intelligence in Defense Market: Strategic Insights
| Market Size Value in | US$ 6.91 billion in 2022 |
| Market Size Value by | US$ 13.15 billion by 2028 |
| Growth rate | CAGR of 11.7% from 2023 to 2028 |
| Forecast Period | 2023-2028 |
| Base Year | 2022 |
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Artificial Intelligence in Defense Market Drivers and Opportunities
Growing Adoption of AI in Unmanned Aerial Vehicles to Favor Market
Unmanned aerial vehicles (UAVs) have undergone a revolutionary transformation with the adoption of artificial intelligence (AI). Unmanned aerial vehicles (UAVs) integrated with AI allows them to process vast amounts of data in real time, make decisions, and adapt to changing environments without direct human operator intervention. AI-powered UAVs are equipped with sensors and computer vision capabilities for object detection and autonomous navigation. AI in UAVs has opened up new horizons in applications such as surveillance, search and rescue missions, and defense operations. Thus, the growing adoption of AI in unmanned aerial vehicles will drive market growth.
Huge Applications of AI in The Defence Sector
Artificial intelligence (AI) is transforming the defense industry by driving innovations in safety, efficiency, and decision-making. AI-based technology in the defense sector is widely used for many applications such as training, logistics, surveillance, UAV, cybersecurity, advanced military weaponry like LAWS, autonomous combat vehicles & robots. Thus, defense companies are increasingly leveraging artificial intelligence technology to innovate and enhance their operations.
Artificial Intelligence in Defense Market Report Segmentation Analysis
Key segments that contributed to the derivation of the artificial intelligence in defense market analysis are components, technology, platforms, and applications.
- Based on the component, the artificial intelligence in the defense market is divided into hardware, software, and services. The software segment will hold a significant market share in 2023.
- By technology, the market is segmented into advanced computing, AI systems, learning and intelligence. The AI systems segment is further subsegmented into TETRA, DMR, P25, and others. The digital segment is expected to hold a significant market share in 2023.
- In terms of platform, the market is segmented into land, air, and naval. The air segment is expected to hold a significant market share in 2023.
- In terms of application, the market is segmented into cyber security, battlefield healthcare, logistics & transportation, warfare platforms, and others. The warfare platform segment is expected to hold a significant market share in 2023.
Artificial Intelligence in Defense Market Share Analysis by Geography
The geographic scope of the artificial intelligence in defense market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The North America Artificial Intelligence In Defense Market is segmented into the US, Canada, and Mexico. Ongoing advancements in artificial intelligence (AI) are presenting both exciting prospects and new hurdles for national security agencies. AI, which often coincides with the Fourth Industrial Revolution, has been driving scientific and technical innovations in North America. Military authorities in the US and Canada believe that technology has the potential to significantly alter the way military operations are carried out. For instance, the Pentagon's Defense Advanced Research Projects Agency (DARPA) has been exploring artificial intelligence (AI) to manage drones carrying military weapons and equipment to counter-strike enemies, as drone missions in the US that involve lethal force need human monitoring and supervision.
Artificial Intelligence in Defense Market Report Scope
Artificial Intelligence in Defense Market News and Recent Developments
The artificial intelligence in the defense market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the artificial intelligence in the defense market are listed below:
- Airbus Defence and Space and Helsing, Europe’s leading defense AI and software company, signed a framework cooperation agreement at the ILA aerospace trade show in Berlin. According to the agreement, the companies will work together on artificial intelligence (AI) technologies which will be used in a future Wingman system. (Source: Airbus Defence, Press Release, June 2024)
- Lockheed Martin Skunk Works partnered with the University of Iowa's Operator Performance Laboratory (OPL) to demonstrate the use of artificial intelligence (AI) in air-to-air intercept scenarios. (Source: Lockheed Martin, Press Release, June 2024)
Artificial Intelligence in Defense Market Report Coverage and Deliverables
The “Artificial Intelligence in Defense Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Artificial intelligence in defense market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Artificial intelligence in defense market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Artificial intelligence in defense market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the artificial intelligence in the defense market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Technology, Platform, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The artificial intelligence in defense market size is projected to reach US$ 16.17 billion by 2031.
North America is expected to dominate artificial intelligence in the defense market with the highest market share in 2023.
The leading players operating in the artificial intelligence in defense market are BAE Systems plc.; IBM Corporation; Leidos; Lockheed Martin Corporation; Raytheon Technologies Corporation; Charles River Analytics, Inc.; General Dynamics Information Technology, Inc. (General Dynamics Corporation); Shield AI; SparkCognition, Inc.; and Thales Group
Significant developments in AI, talent acquisition, and patent filings are anticipated to play a significant role in the global artificial intelligence in defense market in the coming years.
The growing adoption of AI in unmanned aerial vehicles and increasing investments in AI technology are the major factors driving artificial intelligence in the defense market.
The global artificial intelligence in defense market is expected to grow at a CAGR of 12.4% during the forecast period 2024 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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