Artificial Intelligence (AI) In Defense Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Application (Intelligence And Surveillance, Cyber Security, Combat Training, Reconnaissance, Others), By Platform (Land, Airborne And Space, Naval), By Technology (Machine Learning, Computer Vision, Natural Language Processing, Others) And By Geography - Forecasts From 2023 To 2028

Artificial intelligence (AI) in defense market is expected to grow at a CAGR of 30.5% from a market size of US$2.253 billion in 2021 to reach US$14.519 billion in 2028.

Artificial intelligence (AI) can be given a major role in military operations or conflict and advancements in AI are predicted to open up new opportunities for the development of defense technologies. Along with improving the effectiveness of military forces, utilizing artificial intelligence in military operations can increase the likelihood of winning a war. AI is being incorporated by many countries to improve the effectiveness of their armed forces. An increasing portion of the national budget is for defense objectives and qualified engineers and researchers investigating and developing the technologies that will be deployed for defense purposes will aid market growth.

Deep learning computers use AI, which relies on big data and artificial neural networks. AI-powered robots can also help humans make precise and effective military judgments and combine manned and unmanned systems for various types of machine-human combat. Data is necessary for AI to advance and such information is gathered by the routine employment of various defense ships, aircraft, and vehicles. War games, digital simulations, and physical defense exercises and training can all produce data for AI. AI is being used to develop defensive programs that would provide the team with a competitive advantage.

Increased funding by governments to enhance and improve technological applications in defense has benefitted the AI in defense market.

The Grenoble startup Lynred and nine other companies received an €18 million cash allocation from the EU's European Defense Fund (EDF) in January 2023 to provide supply chains for next-generation infrared sensors within European borders. As part of the large HEROIC (high-performance read-out integrated circuits) partnership, Lynred is in charge of a 10-partner consortium across Europe that will conduct infrared R&D over the following four years. The envisioned integrated circuits are capable of operating and can detect thermal radiation's wavelengths. It can also be applied to the sensors that power military surveillance equipment like satellites, night vision devices, and missile targeting systems.

Market Developments:

• In January 2023, Hensoldt, a manufacturer of sensor systems, and 21strategies, a business that specializes in artificial intelligence, collaborated to develop the next generation of AI for defense systems. Hensoldt participated in the investment round for 21strategies as part of the partnership. The companies plan to focus on novel AI strategies like cognitive AI and make use of Hensoldt's current OSINT capabilities. The two businesses already collaborated on the German Armed Forces Digitization and Technology Research Center's GhostPlay project. This resulted in the creation of a high-performance, synthetic simulation environment referred to as Ghost, where AI-based decision-making processes were developed while interacting with opponents who had varying performance profiles.
• In February 2023, General Atomics, a significant American energy and defense company, announced that it has begun three important initiatives in India in the areas of artificial intelligence, drones, and semiconductors. General Atomics Aeronautical Systems (GA-ASI) has partnered with Bharat Forge in the dynamic industry of aerostructure manufacturing and with 114ai, an Indian artificial intelligence (AI) startup, to create the next wave of AI technology. GA-ASI intends to collaborate with Bharat Forge in the crucial industry of manufacturing aerostructures.

Based on the platform, Naval operations are expected to increase the use of AI for numerous applications.

By platform, the market has been segmented as land, airborne and space, and naval. Naval research is acknowledging the benefits AI may offer to sustain control over increasingly powerful opponents in recent years. The Navy is also attempting to use AI to provide unmanned devices with enhanced thresholds of autonomy. Potential use cases for AI applications for the navy include unmanned aircraft, unmanned surface vessels, and unmanned underwater vessels. In air, Artificial intelligence has the capacity to compile all the data gathered from different sensors and satellites and present findings. Defense personnel may be further empowered to decide on a pertinent course of action as a result. AI can also help a drone take off and land and even complete the operation alone without any human intervention. While on land, as AI technology develops mine detection capabilities can also be added to submersible boats and other craft. Mine detection can be performed more quickly if the object is examined, identified, and the appropriate decision is taken. Artificially intelligent military robots can be able to carry out operations or tasks by themselves, saving human lives in the process.

North America holds a significant share of the AI in defense market.

Based on geography, the AI in defense market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. North America, especially the United States has an extensive AI market due to the presence of key AI and technological firms. Furthermore, the countries in the region also spend lucrative amounts on investment and development of new AI as well as defensive technologies. As such, AI in defense market is the resulting segment that the combined fields have established and has significantly benefitted from the government as well as private firms efforts to innovate AI technologies and employ more of them in the defense sector.

AI In Defense Market Scope:

Market Segmentation:

• By Application
  • Intelligence and Surveillance
  • Cyber Security
  • Combat Training
  • Reconnaissance
  • Others
• By Platform
  • Land
  • Airborne and Space
  • Naval
• By Technology
  • Machine Learning
  • Computer Vision
  • Natural Language Processing
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East And Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Australia
    • Others