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AI and Analytics in Military and Defense Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 to 2034
Market Report I 2024-11-13 I 210 Pages I Global Market Insights
The Global AI And Analytics In Military And Defense Market reached USD 10.4 billion in 2024 and is projected to grow at a CAGR of 13.4% from 2025 to 2034. This expansion is driven by the increasing adoption of AI-driven technologies, transforming modern military operations by enhancing efficiency, decision-making, and operational capabilities.
Autonomous systems, such as unmanned vehicles and naval platforms, are becoming central to defense strategies. These systems, powered by advanced AI algorithms, perform tasks ranging from surveillance and reconnaissance to precision operations, significantly reducing human involvement in high-risk scenarios. Their ability to operate independently or collaboratively offers advantages in endurance, adaptability, and mission execution. As militaries worldwide prioritize intelligence gathering, logistics, and battlefield support, the development and integration of AI into autonomous platforms remain a critical focus.
The market is segmented by offering hardware, software, and services. Among these, the software segment is anticipated to grow at a CAGR of 14% during 2025-2034. AI and analytics software enhance military capabilities through predictive maintenance, real-time situational awareness, and optimized decision-making. These platforms process vast amounts of data, delivering actionable insights that improve efficiency in operations such as threat detection, intelligence analysis, and cybersecurity. Additionally, advancements in autonomous systems rely heavily on AI-powered software to support unmanned vehicles, drones, and robotic technologies for mission-critical tasks.
In terms of application, the market covers various areas, including warfare platforms, logistics, surveillance, command systems, simulation, threat detection, and information processing. The information processing segment led the market with USD 2.2 billion in revenue in 2024. Innovations like edge computing are revolutionizing data analysis by decentralizing processing to the point of origin, such as sensors or unmanned platforms. This technology enables real-time decision-making, addressing the need for immediate responses during combat scenarios where delays can be detrimental.
Regionally, North America dominated the market in 2024, accounting for a 37.7% share. The integration of AI into military systems, including unmanned aerial and ground vehicles, is a major driver in the region. These technologies enhance autonomy, allowing systems to make rapid decisions and adapt to complex operational environments. Such advancements are particularly valuable in intelligence, surveillance, and reconnaissance, ensuring efficient data collection over expansive areas while minimizing human intervention.
This growing reliance on AI and analytics in defense highlights the sector's pivotal role in shaping modern warfare and operational strategies, underscoring its importance in the global military landscape.
Report Content
Chapter 1 Methodology & Scope
1.1 Market scope & definitions
1.2 Base estimates & calculations
1.3 Forecast calculations
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
Chapter 2 Executive Summary
2.1 Industry synopsis, 2021-2034
Chapter 3 Industry Insights
3.1 Industry ecosystem analysis
3.1.1 Factor affecting the value chain
3.1.2 Profit margin analysis
3.1.3 Disruptions
3.1.4 Future outlook
3.1.5 Manufacturers
3.1.6 Distributors
3.2 Supplier landscape
3.3 Profit margin analysis
3.4 Key news & initiatives
3.5 Regulatory landscape
3.6 Impact forces
3.6.1 Growth drivers
3.6.1.1 Advancements in tactical unmanned aircraft systems (UAS)
3.6.1.2 Increasing use of AI-powered real-time data analytics
3.6.1.3 Rising integration of AI-driven autonomous systems
3.6.1.4 Adoption of AI-enhanced training and simulation technologies
3.6.1.5 Advancements in predictive maintenance and logistics
3.6.2 Industry pitfalls & challenges
3.6.2.1 Data security and privacy concerns
3.6.2.2 Integration and interoperability with legacy systems
3.7 Growth potential analysis
3.8 Porter's analysis
3.9 PESTEL analysis
Chapter 4 Competitive Landscape, 2024
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
Chapter 5 Market Estimates & Forecast, By Offering, 2021-2034 (USD Million)
5.1 Key trends
5.2 Hardware
5.3 Software
5.3.1 Cloud
5.3.2 On-premise
5.4 Services
5.4.1 Deployment & integration
5.4.2 Upgrades & maintenance
5.4.3 Software support
5.4.4 Others
Chapter 6 Market Estimates & Forecast, By Installation Type, 2021-2034 (USD Million)
6.1 Key trends
6.2 New Installation
6.3 Upgradation
Chapter 7 Market Estimates & Forecast, By Technology, 2021-2034 (USD Million)
7.1 Key trends
7.2 Machine learning
7.3 Natural language processing
7.4 Context-aware computing
7.5 Computer vision
7.6 Intelligent virtual agent (Iva) /virtual agents
7.7 Others
Chapter 8 Market Estimates & Forecast, By Application, 2021-2034 (USD Million)
8.1 Key trends
8.2 Warfare platforms
8.3 Cybersecurity
8.4 Logistics & transportation
8.5 Surveillance & situational awareness
8.6 Command & control
8.7 Battlefield healthcare
8.8 Simulation & training
8.9 Threat detection
8.10 Information processing
8.11 Others
Chapter 9 Market Estimates & Forecast, By Platform, 2021-2034 (USD Million)
9.1 Key trends
9.2 Airborne
9.2.1 Fighter aircraft
9.2.2 Special mission aircraft
9.2.3 Helicopters
9.2.4 Unmanned aerial vehicles (UAV)
9.3 Land
9.3.1 Military fighting vehicles (MFV)
9.3.2 Unmanned ground vehicles (UGV)
9.3.3 Weapons systems
9.3.4 Headquarter & command centers
9.4 Naval
9.4.1 Ships
9.4.2 Submarines
9.4.3 Unmanned marine vehicles (UMVs)
9.5 Space
9.5.1 CubeSats
9.5.2 Satellites
Chapter 10 Market Estimates & Forecast, By Region, 2021-2034 (USD Million)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Russia
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 South Korea
10.4.5 Australia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.6 MEA
10.6.1 South Africa
10.6.2 Saudi Arabia
10.6.3 UAE
Chapter 11 Company Profiles
11.1 Avathon
11.2 BAE Systems
11.3 CACI International
11.4 Charles River Analytics
11.5 IBM
11.6 L3Harris Technologies
11.7 Leonardo
11.8 Lockheed Martin
11.9 Northrop Grumman
11.10 Nvidia
11.11 Rafael Advanced Defense Systems
11.12 Raytheon Technologies
11.13 Saab
11.14 Safran
11.15 Shield AI
11.16 Thales
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