The global AI in defense market is growing significantly, at a CAGR during the forecast period (2019-2025). AI can be utilized in the development of autonomous and intelligent weapon systems, such as unmanned aerial, underwater and surface vehicles, as well as cruise missiles and military robotics. AI can be utilized for efficient processing of sensor information and raw intelligence. This incorporates automation of multi-sensor data fusion and intelligent sensing to leverage situational awareness. In addition, the adoption of cloud based services is further expected to propel the market growth during the forecast period.  The major companies, such as Northrop Grumman Corp. and Lockheed Martin Corp. are continuously investing in AI technologies for a range of military applications. For instance, in June 2018, Lockheed Martin Corp. declared to increase its venture capital fund by nearly double times, accounting for $200 million and provide investments to a range of SMEs that are engaged in the areas of advanced manufacturing for the defense sector.

There are various pivotal factors that are driving the global AI in defense market, which includes growing defense industry and continuous integration of advanced technologies in defense sector. The countries are supporting the defense expenditure with huge budget sanctions which as a result is propelling the purchasing and acquisition power of military organizations under the defense protocols. According to the SIPRI, the total expenditure of the US was around $649 billion, China was $250 billion, Saudi Arabia was $67.5 billion, Russia was $61.3 billion, India was $66.5 billion, and France was $63.8 billion in 2018. The private funding in the defense industry is accelerating the integration of advanced technology in defense such as AI, machine learning, and IoT. 

Segmental Outlook  

The AI in defense market is classified on the basis of offering, platform, and application. Based on offering, the market is segregated into hardware, software, and services. Based on the platform, the market is segmented into air, naval, land, and space. Based on application, the market is segmented into cyber security, logistics & transportation, simulation & training, military healthcare, threat monitoring, and others.

Global AI in Defense Market Share by Platform, 2018 (%)

Land platform contributes a significant share in the AI in defense market 

The land-based AI segment is estimated to occupy the major share in the market. Land-based AI systems are used to integrate and connect with the airborne and naval systems that offer new opportunities to leverage tactical capabilities. The communication allows interrelating networks of several soldier systems that enables to facilitate the transmission of data and images through wired and wireless communication systems and battle management system. All key companies, such as BAE Systems PLC and General Dynamics Mission Systems, Inc. are highly focused on the communication part of C4ISR programs, primarily for land applications.

Regional Outlook 

The global AI in defense market is classified on the basis of geography, which includes North America, Europe, Asia-Pacific, and Rest of the World. North America is estimated to have considerable market share in the global AI in defense market. The major countries which are contributing in the North American market growth include the US and Canada. Along with the presence of major market players, the region marks the huge defense expenditure which as a result, is supporting the market growth. The US and Canada is rapidly emerging towards the modernization of the defense technology, which as a result account for the increase in the investment for AI in the region. Particularly, the US with a highly matured and technologically advanced military service is further focusing on the deployment of modern network services in the military and defense industry.

Global AI in Defense Market Growth, by Region 2019-2025

Asia-Pacific is expected to propel with a considerable growth rate in the global market

Asia-Pacific is expected to project a considerable growth in the global AI in defense market. This is attributed to the increase in military expenditure in the emerging economies of the region such as China, India, and South Korea. According to SIPRI, China spent around $250 billion in 2018 as compared to around $227 billion in 2017. Further, India and South Korea spent $66.5 billion and $43 billion in 2018 as compared to around $64 billion and $39 billion in 2017, respectively. These economies are significantly focusing on the disposition of advanced system and services for its military sector, which includes the up gradation of sensor and intelligence warfare systems. 

Market Players Outlook

The key players in the AI in defense market are contributing significantly by providing advanced technology-based products and through expanding their geographical presence across the globe. The key players operating in the global AI in defense market include BAE Systems PLC, L3Harris Technologies, Inc., Northrop Grumman Corp., Rockwell Collins Inc., and IBM Corp. Along with these key market players, several other companies that are contributing a considerable share in the market include Charles River Analytics, Inc., General Dynamics Corp., Thales Group, Spark Cognition, Inc., SAIC, Raytheon Co., and Booz Allen Hamilton Inc. These market players adopt various strategies such as product launch, partnerships, collaborations, merger, and acquisitions to sustain a strong position in the market. For instance, in February 2020, L3Harris Technologies, Inc. received a multimillion-dollar contract for the software development integrated with AI for the purpose of identification of objects in large data sets.

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global AI in defense market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.