Artificial Intelligence In Military Market In 2029

Artificial Intelligence In Military Global Market Report 2025

The Business Research Company's Artificial Intelligence in Military Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, December 18, 2025 /EINPresswire.com/ -- "Artificial Intelligence In Military Market to Surpass $24 billion in 2029. In comparison, the Defense market, which is considered as its parent market, is expected to be approximately $682 billion by 2029, with Artificial Intelligence In Military to represent around 3% of the parent market. Within the broader Aerospace & Defense industry, which is expected to be $1,102 billion by 2029, the Artificial Intelligence In Military market is estimated to account for nearly 2% of the total market value.

Which Will Be the Biggest Region in the Artificial Intelligence In Military Market in 2029
North America will be the largest region in the artificial intelligence in military market in 2029, valued at $7,297 million. The market is expected to grow from $3,256 million in 2024 at a compound annual growth rate (CAGR) of 18%. The rapid growth can be attributed to the favorable government initiatives and product launches.

Which Will Be The Largest Country In The Global Artificial Intelligence In Military Market In 2029?
The USA will be the largest country in the artificial intelligence in military market in 2029, valued at $6,489 million. The market is expected to grow from $2,872 million in 2024 at a compound annual growth rate (CAGR) of 18%. The rapid growth can be attributed to the increasing military modernization programs and favorable government initiatives.

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What will be Largest Segment in the Artificial Intelligence In Military Market in 2029?
The artificial intelligence in military market is segmented by offering into hardware, software and services. The software market will be the largest segment of the artificial intelligence in military market segmented by offering, accounting for 41% or $9,864 million of the total in 2029. The software market will be supported by the rising need for advanced data analytics, increasing demand for AI-driven simulation and training, adoption of predictive maintenance solutions, advancements in autonomous systems software, and the growing emphasis on cybersecurity applications and high defense spending.

The artificial intelligence in military market is segmented by technology into machine learning, natural language processing, context aware computing, computer vision and other technologies. The machine learning market will be the largest segment of the artificial intelligence in military market segmented by technology, accounting for 40% or $9,483 million of the total in 2029. The machine learning market will be supported by the increasing need for data-driven decision-making, enhanced threat detection capabilities, advancements in autonomous vehicle operations, improved predictive maintenance, and the growing focus on real-time battlefield intelligence and surveillance.

The artificial intelligence in military market is segmented by platform into platforms such as land, naval, airborne and space. The land market will be the largest segment of the artificial intelligence in military market segmented by platform, accounting for 37% or $8,797 million of the total in 2029. The land market will be supported by the growing demand for autonomous ground vehicles, advancements in AI-powered battlefield management systems, increasing use of AI in surveillance and reconnaissance operations, integration of AI for predictive maintenance of land-based equipment, and the rising focus on enhancing soldier performance and situational awareness.

The artificial intelligence in military market is by installation into new procurement and upgradation. The new procurement market will be the largest segment of the artificial intelligence in military market segmented by installation, accounting for 55% or $13,243 million of the total in 2029. The new procurement market will be supported by rising defense budgets, increasing demand for autonomous weapons systems, growing adoption of AI-driven surveillance and reconnaissance technologies, advancements in machine learning algorithms for combat operations, and the need for real-time decision-making capabilities in complex battlefield scenarios.

The artificial intelligence in military market is segmented by application into information processing, simulation and training, warfare platform, threat monitoring and situational awareness, cyber security and other applications. The information processing market will be the largest segment of the artificial intelligence in military market segmented by application, accounting for 21% or $5,036 million of the total in 2029. The information processing market will be supported by factors such as growing reliance on real-time data analysis for situational awareness, increasing adoption of AI for intelligence gathering and threat detection, rising demand for advanced cybersecurity measures, advancements in big data analytics, and the need to process large volumes of battlefield data efficiently.

What is the expected CAGR for the Artificial Intelligence In Military Market leading up to 2029?
The expected CAGR for the artificial intelligence in military market leading up to 2029 is 20%

What Will Be The Growth Driving Factors In The Global Artificial Intelligence In Military Market In The Forecast Period?
The rapid growth of the global artificial intelligence in military market leading up to 2029 will be driven by the following key factors that are expected to reshape defense operations, strategic planning, and national security frameworks worldwide.

Increasing Defense Budget Allocation- The increasing emphasis on defense budget allocation will become a key driver of growth in the artificial intelligence in military market by 2029. A larger defense budget facilitates increased investment in AI research and development, driving advancements in surveillance, reconnaissance, automation and decision-making. AI technologies, including drones, autonomous systems and predictive analytics, benefit from these resources. AI enhances situational awareness, streamlines repetitive tasks such as logistics and boosts operational efficiency by optimizing threat prediction, resource allocation and readiness. As a result, the increasing defense budget allocation is anticipated to contributing annual growth in the market.

Increasing AI Adoption- The growing focus on AI adoption will emerge as a major factor driving the expansion of the artificial intelligence in military market by 2029. AI-powered autonomous systems like UAVs and ground vehicles are transforming military operations by enhancing efficiency and reducing costs. These systems excel in surveillance, reconnaissance and combat, offering real-time data analysis and insights. AI technologies such as machine learning and data analytics enable rapid information processing, leading to better decision-making, improved situational awareness and more effective resource allocation. Consequently, the accelerating AI adoption is projected to contributing to annual growth in the market.

Strong Economic Growth - The expanding integration of economic growth processes will serve as a key growth catalyst for the artificial intelligence in military market by 2029. Strong economic growth boosts the defense budgets, funding research and development (R&D) and fostering operational efficiency. Economic prosperity ensures more resources are allocated to AI-driven technologies such as drones, cybersecurity and advanced surveillance. It also enhances global competitiveness, encouraging collaboration between governments and private sectors to develop cutting-edge AI solutions. This financial capacity fuels innovation and ensures nations maintain military superiority through AI advancements. Therefore, the economic growth is projected to supporting to annual growth in the market.

Favorable Government Initiatives- The increasing emphasis on government initiatives will become a significant driver contributing to the growth of the artificial intelligence in military market by 2029. Governments allocate significant budgets to defense to bolster national security. The integration of AI systems, such as surveillance, reconnaissance and autonomous weaponry, is becoming crucial in military operations. Investments in AI-driven technologies are expected to enhance efficiency, precision and operational effectiveness. Consequently, the favorable government initiatives is projected to contributing to annual growth in the market.

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What Are The Key Growth Opportunities In The Artificial Intelligence In Military Market in 2029?

The most significant growth opportunities are anticipated in the AI-driven military procurement market, the machine learning based artificial intelligence in military market, the AI in military software market, the land-based artificial intelligence in military market and the AI-enabled threat monitoring and military situational awareness market. Collectively, these segments are projected to contribute over $28 billion in market value by 2029, driven by rising modernization of defense infrastructure, increasing demand for autonomous decision-support systems, and the growing need for real-time threat detection and battlefield intelligence. This surge reflects the accelerating integration of AI technologies across military operations, enabling enhanced accuracy, faster response capabilities, and more efficient resource allocation, ultimately fueling transformative growth within the broader military AI ecosystem.

The AI-driven military procurement market is projected to grow by $8,193 million, the machine learning based artificial intelligence in military market by $5,806 million, the AI in military software market by $5,731 million, the land-based artificial intelligence in military market by $5,284 million and the AI-enabled threat monitoring and military situational awareness market by $3,101 million over the next five years from 2024 to 2029.

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