Artificial Intelligence in Military Market Outlook (2023 to 2033)

Artificial intelligence in military market is anticipated to have a valuation of USD 8.35 billion in 2023. According to Future Market Insights, between 2023 and 2033, the market is forecast to expand at a 12.8% CAGR and reach a value of USD 27.84 billion.

Every industry is getting comfortable with AI, and the military is not falling behind in this race. The development of specialized AI processors and increased government spending on research and development of military equipment with AI capabilities benefit the global market.

Introduction of Cloud Solutions and Quantum Mechanics Evolve the Artificial Intelligence in Military Sector Prospects

The key states have set up specialist departments or organizations to plan, launch, and incorporate AI capabilities into military hardware. The industry is likely to see amazing opportunities as the military increasingly embraces cloud services. Also, the sector experiences profitable changes owing to the increasing operational performance of autonomous systems.

  • The opportunity to develop artificial intelligence in the military industry is primarily due to the growing usage of AI for predictive maintenance in military systems. With the incorporation of quantum physics into AI, the future potential is beyond expectations.
  • Defense services have expanded along with increasing global problems. The employment of complex AI-enabled weapon systems has increased due to these clashes. Also, cutting-edge innovations have been merged into current systems to increase efficiency.
  • The MoD (Ministry of Defense) released the United Kingdom's Military AI Strategy in June 2022. It included a set of ethical principles to guide the use of AI by the military and defense sectors. This strategy also highlighted the safe, ambitious, and responsible use of AI. As a result, rising defense spending is fueling artificial intelligence's expansion in the military sector.
Attributes Details
Artificial Intelligence in Military Market CAGR (2023 to 2033) 12.8%
Artificial Intelligence in Military Market Size (2023) USD 8.35 billion
Artificial Intelligence in Military Market Size (2033) USD 27.84 billion

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Transformation of the Future is Reflected in Historical Changes (2018 to 2022)

The industry's growth comes from the increasing use of big data in the defense sector. Rising private investment in the research and development of AI-based military technology leads to a growth rate of 1.12x between 2022 and 2023.

Market Value (2018) USD 5.04 billion
Market Value (2022) USD 7.4 billion
Market CAGR (2018 to 2022) 10%

A notable innovation driving the rise in demand for AI in the military is quantum mechanics. In the next few years, it is anticipated that the integration of quantum computing with artificial intelligence offers a fresh market outlook.

The use of AI in cybersecurity is predicted to expand due to both the surging threat of cyberattacks and the increasing usage of AI in these applications.

Key Trends Shaping the Demand for Artificial Intelligence in Military

The military artificial intelligence industry is seeing growth in a key trend called technological advancement. Key participants in the market are concentrating their efforts on creating cutting-edge technologies in order to strengthen their positions.

For instance, in July 2022, the United States-based aerospace and defense company Raytheon Technologies partnered with C3 AI's application platform to provide next-generation machine learning (ML) and artificial intelligence (AI) capabilities. It is for the TITAN (Tactical Intelligence Targeting Access Node) program of the United States Army.

Moreover, to provide targetable data and situational awareness, TITAN collects data from high altitudes and space using terrestrial and aerial sensors.

Milestones Cutting the Key Participants' Earnings from the Industry

Many governments have used AI-controlled systems for automation and inspection, raising concerns that human teaching of robots is necessary to ensure authority and humanitarian security.

Regarding the possibility that government agencies are enhancing ‘Automated Killer Robots’ to win the AI weapons competition, humanitarian organizations like Human Rights Watch are also concerned.

Some say that human oversight of robots is necessary to maintain management and humanitarian protection when national authorities implement AI-controlled systems for automated procedures and surveillance. This has prompted concerns. The aforementioned issues prevent market growth.

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Regional Analysis

Country CAGR (2023 to 2033)
United States 19.4%
United Kingdom 23.8%
China 35%
India 67.2%

Virtual Reality to Create Profitable Vision for the United States Artificial Intelligence in Military Market

Due to increased investment in artificial intelligence technologies by the key countries in North America, its revenue share increased to 35.3% in 2022. To maintain its military hegemony and lower the risk of potential network threats, the United States, which leads this industry, is investing in AI systems.

Systems and software engineering ideas are combined in the disciplines of training and simulation to create models that can help soldiers train on different fighting systems utilized in military operations.

To make infantry safer and more prepared, the United States Army is spending a lot of time and money developing equipment for augmented reality, virtual reality, and mixed reality.

For instance, Fort Hood's Combat Tactical Training Center welcomed 150 soldiers in October 2022 as part of an operational evaluation organized by the United States Army Test and Evaluation Command to get them ready for training on a real battlefield.

The United States Defense Advanced Research Projects Agency (DARP) awarded the Georgia University of Technology a USD 22.7 million contract in October 2022. This is to develop methods for locating, managing, and defeating hackers, as well as supporting the integration of cybersecurity.

In order to enable AI applications like computer vision, natural language processing, network security, and robotics across a wide range of industries, including IT, retail, automotive, and healthcare, the amount of AI chips has expanded.

Why is Europe Showing Tremendous Growth in the Market?

Due to Russia's upgrading of its arsenal, market revenue in Europe is predicted to increase dramatically over the projection period. The development of information management technology was heavily funded by the Russian government in order to facilitate better decision-making during actual warfare.

In Europe, the United Kingdom is rapidly growing. The expansion of the market is being fueled by the United Kingdom government's initiatives to build AI capabilities in the defense industry, such as the Defence Science and Technology Laboratory (DSTL) Strategy Plan 2018 to 2023.

For instance, the Russian Ministry of Defense established a division tasked with creating artificial intelligence-based weaponry in August 2022. The development of models of weapons for the military and specialized equipment using artificial intelligence technology is accelerated by the establishment of a new department.

Asia Pacific Becoming a Hub for AI Technology Advancements

As OEMs and operators invest more money in supply chain AI integration operations, Asia Pacific is predicted to see significant growth in the adoption of AI and machine learning (ML) technologies. The most creative and emerging nations in the development and integration of AI today are South Korea, China, and Japan.

Several businesses in the area perform research on cutting-edge AI uses in the aviation sector. Asia Pacific manufacturing facilities for aircraft and componentry have consistently benefited from the use of AI technologies.

For instance, Pratt & Whitney's Singapore facility's use of adaptive machining and cutting-edge robotic inspection techniques has led to a steady increase in productivity levels in the future years.

Category Analysis

AI Software: Necessary Requirement for the Artificial Intelligence in the Military Sector

In 2022, the software sector had the leading revenue share of 43.1%. The growth of the market is attributable to the importance of AI software in developing IT infrastructure and preventing security breaches.

Artificial intelligence (AI) is expected to advance in the military sector over the next few years as a result of the increasing technological advancements in the field.

There is a rising demand for specialist hardware components like AI processors and memory, as well as the growing use of AI technology for complex processes. Due to this, it is anticipated that the hardware segment is accounting for robust revenue growth over the projection period.

Information Processing: Dominant Segment in the Industry

In 2022, information processing led the market with a share of 14.9%. Due to rising reliance on big data for decision-making, it is projected that the revenue for the information processing sector is likely to increase quickly.

With a CAGR of 15.5% during the projection period, the cybersecurity industry is expected to expand rapidly. The rate of cybercrime has increased globally due to the development of new tools and technologies. Similarly, state-sponsored cyberattacks have grown significantly. Business and governmental organizations are quickly adopting AI-based solutions that can predict, stop, and respond to cyber threats effectively.

Machine Learning: Proves to be a Key Technology with Amazing Revenue Opportunities

In 2022, machine learning is anticipated to have the leading revenue share, at 26.0%. Military systems with machine learning capabilities can effectively handle greater data quantities. Moreover, machine learning improves self-control, self-regulation, and the battle system's ability to act on its own.

Throughout the projection period, revenue from AI in the military sector's computer vision segment is anticipated to increase. To sort through a massive volume of data and notify military intelligence officials of the existence of strategically significant objects or people, computer vision programs are being developed.

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Intense Competition Works in Partnership with Notable Ideas to Provide the Key Participants a Profitable Edge

Advanced AI-based technologies are being developed by businesses for a range of military applications, including unmanned systems, cybersecurity, intelligence, and surveillance systems. To improve their capabilities and obtain a competitive edge in the market, they are also making significant investments in research and development operations.

Year November 2022
Company BAE Systems plc
Developments Inzpire, a provider of defense-managed services, joined up with BAE Systems plc, a global armaments, security, and aerospace corporation with headquarters in London.
Year December 2020
Company Boeing (United States)
Developments
  • Testing of five elite autonomous replacement planes that can help the brain of the aircraft in comprehending, analyzing, and corresponding with various stages during missions is completed by this business.
  • To support the AWACS (Air Force Warning and Control System) mission, the United States Air Force granted Boeing a contract to enhance automatic communication recognition and cognitive agent teaching capabilities.
Year March 2021
Company Sea Machines Robotics
Developments In order to create a cutting-edge pilot-assist method for water jets that use computer autonomous and visual command and control technologies, Sea Machines Robotics and HamiltonJet entered into a contract.

Key Players

  • Charles River Analytics, Inc.
  • International Business Machines Corporation
  • L3Harris Technologies Inc.
  • BAE Systems Plc.
  • Rafael Advanced Defense Systems
  • SparkCognition
  • Raytheon Technologies Corporation
  • Lockheed Martin Corporation
  • Northrop Grumman Corporation
  • Thales Group
Table of Content
  • 1. Executive Summary | Artificial Intelligence in Military Market
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component
    • 5.1. Hardware
    • 5.2. Software
    • 5.3. Services
  • 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
    • 6.1. Warfare Platform
    • 6.2. Cyber Security
    • 6.3. Logistics & Transportation
    • 6.4. Surveillance & Situational Awareness
    • 6.5. Command & Control
    • 6.6. Battlefield Healthcare
    • 6.7. Simulation & Training
    • 6.8. Information Processing
    • 6.9. Threat Detection
    • 6.10. Others
  • 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology
    • 7.1. Machine Learning
    • 7.2. Deep Learning
    • 7.3. Natural Language Processing
    • 7.4. Context-Aware Computing
    • 7.5. Intelligent Virtual Agent
    • 7.6. Others
  • 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Platform
    • 8.1. Land
    • 8.2. Naval
    • 8.3. Airborne
    • 8.4. Space
  • 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Installation
    • 9.1. New Procurement
    • 9.2. Upgradation
  • 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 10.1. North America
    • 10.2. Latin America
    • 10.3. Europe
    • 10.4. South Asia
    • 10.5. East Asia
    • 10.6. Oceania
    • 10.7. MEA
  • 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 16. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 17. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 18. Key Countries Market Analysis
  • 19. Market Structure Analysis
  • 20. Competition Analysis
    • 20.1. BAE Systems Plc.
    • 20.2. Charles River Analytics, Inc.
    • 20.3. International Business Machines Corporation
    • 20.4. L3Harris Technologies Inc.
    • 20.5. Lockheed Martin Corporation
    • 20.6. Northrop Grumman Corporation
    • 20.7. Rafael Advanced Defense Systems
    • 20.8. Raytheon Technologies Corporation
    • 20.9. SparkCognition
    • 20.10. Thales Group
  • 21. Assumptions & Acronyms Used
  • 22. Research Methodology

Key Segments

By Offering:

  • Hardware
  • Software
  • Services

By Application:

  • Warfare Platform
  • Cyber Security
  • Logistics & Transportation
  • Surveillance & Situational Awareness
  • Command & Control
  • Battlefield Healthcare
  • Simulation & Training
  • Information Processing
  • Threat Detection
  • Others

By Technology:

  • Machine Learning
  • Natural Language Processing
  • Deep Learning
  • Computer Vision
  • Context-Aware Computing
  • Intelligent Virtual Agent (Iva) /Virtual Agents
  • Others

By Platform:

  • Land
  • Naval
  • Airborne
  • Space

By Installation:

  • New Procurement
  • Upgradation

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • The Middle East and Africa (MEA)

Frequently Asked Questions

What is the global artificial intelligence in military market size in 2023?

The artificial intelligence in military market is valued at USD 8.35 billion in 2023.

Which is the key Artificial Intelligence in Military market players?

Charles River Analytics, Inc. and International Business Machines are key market players.

What will the Artificial Intelligence in Military market size be in 2033?

The artificial intelligence in military market will reach USD 27.84 billion by 2033.

What are the factors driving the Artificial Intelligence in Military sales?

Technological advancements will drive artificial intelligence in military sales.

Which is the key segment by application in the Artificial Intelligence in Military market?

Information processing is likely to remain preferred through 2033.

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Artificial Intelligence in Military Market

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