In terms of revenue, the Global Artificial Intelligence in Military Market is expected to reach USD 13.71 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 12.70% from 2022 to 2028. The growth of Artificial Intelligence in Military sector is mainly attributed to the growth in the development of Artificial Intelligence integrated systems and the increasing adoption of cloud-based high-performance computers and applications. Additionally, the increase in government initiatives and funding for the defense sector in major countries to advance AI capabilities, and the development of specialized AI chips in the market are projected to fuel the growth of Artificial Intelligence in Military Market in the coming years.
Key Highlights from the Report
The Space sub-segment is projected to grow at a considerable Compound Annual Growth Rate (CAGR). Space artificial intelligence contains different satellite sub-systems that make the backbone of different communication systems. Moreover, the amalgamation of AI with space platforms empowers effective communication amid spacecraft and ground stations which is expected to drive the growth of Artificial Intelligence in Military Market in the coming years.
The software sub-segment holds a substantial market share in 2021. The growth of this segment is attributed to the significance of AI software in establishing the IT framework to avoid the occurrence of security breaks. The technological advancement in artificial intelligence has resulted in the development of innovative AI software and linked software development tools which are predicted to drive AI in the military sector in the years to come.
Asia Pacific is the fastest regional segment. The growth in this region can be mainly attributed to the presence of prominent defense manufacturers in the market. Moreover, the rapid military transformations and increasing demand for AI from emerging economies like India and China. The advancements in AI-based weapons in China have contributed to the growth of the market in this region. Moreover, North America is anticipated to grow considerably during the forecast period.
Some of the key players in Artificial Intelligence in Military include - BAE Systems Plc. (UK), Northrop Grumman Corporation (US), Raytheon Technologies Corporation (US), Lockheed Martin Corporation (US), Thales Group (US), L3Harris Technologies Inc. (US), Rafael Advanced Defense Systems (Israel), IBM (US).
Artificial Intelligence in Military Market is experiencing growth due to the increasing adoption of Artificial Intelligence in AI-powered cybersecurity and growth in the threat of cyber-attacks is expected to increase the demand for the Artificial Intelligence in Military sector during the forecast period. Furthermore, the integration of quantum computing in Artificial Intelligence and the rise in the acceptance of AI in predictive maintenance in military platforms are projected to provide substantial opportunities for the growth of the Artificial Intelligence in Military Market in upcoming years.
An increase in government funding for the defense sector in major countries to advance AI capabilities and the development of specialized AI chips in the market are projected to fuel the growth of Artificial Intelligence in Military Market in the coming years. Moreover, increasing adoption of cloud-based high-performance computers and applications, and the development of Artificial Intelligence integrated systems are expected to drive the growth of the Artificial Intelligence in Military Market in coming years.
North America is the largest market. The growth of the region is mainly attributed to increasing investments in artificial intelligence technologies by countries such as Canada and US in the region. Moreover, majorly US is gradually investing in AI systems to maintain combat superiority and overcome the danger of possible threats to computer networks, and the US is planning to increase its spending on AI in the military to acquire a competitive advantage over other countries.