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

  • Published : Feb 2023
  • Report Code : KSI061614370
  • Pages : 138

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.

Increasing funding by the government to enhance and improve the technological applications in defense in recent years, which have benefitted the AI in the 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.

Key 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, the navy is expected to increase the use of AI for several 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 the 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:


Report Metric Details
 Growth Rate  CAGR during the forecast period
 Base Year  2021
 Forecast Period  2023–2028
 Forecast Unit (Value)  USD Billion
 Segments Covered  Application, Platform, Technology, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered IBM Corporation, Booz Allen Hamilton Inc., Qualetics Data Machines Inc., Raytheon Technologies Corporation, Boeing, Lockheed Martin Corporation, Thales Group
 Customization Scope  Free report customization with purchase


Market Segments

  • 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
      • Other
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Taiwan
      • Others


1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline



2.1. Research Data

2.2. Assumptions



3.1. Research Highlights



4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis



5.1. Introduction

5.2. Intelligence and Surveillance

5.3. Cyber Security

5.4. Combat training

5.5. Reconnaissance

5.6.  Others



6.1. Introduction

6.2. Land

6.3. Airborne and Space

6.4. Naval



7.1. Introduction

7.2. Machine Learning

7.3. Computer Vision

7.4. Natural Language Processing

7.5. Others



8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. Germany

8.4.2. France

8.4.3. United Kingdom

8.4.4. Spain

8.4.5. Others

8.5. Middle East And Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Israel

8.5.4. Other

8.6. Asia Pacific

8.6.1. China

8.6.2. Japan

8.6.3. India

8.6.4. South Korea

8.6.5. Indonesia

8.6.6. Taiwan

8.6.7. Others



9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisition, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix



10.1. IBM Corporation 

10.2. Booz Allen Hamilton Inc.

10.3. Qualetics Data Machines Inc.

10.4. Raytheon Technologies Corporation

10.5. Boeing

10.6. Lockheed Martin Corporation

10.7. Thales Group

10.8. BAE Systems Plc

10.9. L3Harris Technologies, Inc

10.10. Northrop Grumman Corporation

IBM Corporation

Booz Allen Hamilton Inc.

Qualetics Data Machines Inc.

Raytheon Technologies Corporation


Lockheed Martin Corporation

Thales Group