AI In Modern Warfare Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11.41 Billion |
| Market Size (2029) | USD 44.80 Billion |
| CAGR (2024 - 2029) | 31.46 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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AI In Modern Warfare Market Analysis
The AI In Modern Warfare Market size is estimated at USD 11.41 billion in 2024, and is expected to reach USD 44.80 billion by 2029, growing at a CAGR of 31.46% during the forecast period (2024-2029).
China is betting on AI to enhance its defense capabilities and is expected to become the world leader in this field by 2030.
- The increasing demand for weapons of mass destruction is driving the market's growth. The growth in the testing of nuclear weapons by countries like North Korea is also contributing to the growth of these weapons. These weapons are radiological, biological, or chemical in nature; therefore, they are harmful.
- The emergence of extremist organizations worldwide, such as ISIS, has led to an increased emphasis on the use of technology in the fields of counterterrorism and defense activities. Through continued experiments and studies, automated vehicles have been identified to act as force multipliers.
- A major trend in artificial intelligence that is becoming popular in the military sector is technological improvement. Major companies in the market are focusing on developing cutting-edge technologies to bolster their positions. For example, the US Army's Tactical Intelligence Targeting Access Node (TITAN) program will receive next-generation machine learning (ML) and artificial intelligence (AI) capabilities in July 2022 thanks to a collaboration between US aerospace and defense corporation Raytheon Technologies and C3 AI's software application. TITAN will use aerial and terrestrial sensors to ingest information from high altitudes and space to deliver targetable information and spatial awareness.
- Although AI is a growing element in the military strategies of many countries, the European Union and China have been engaging in discussions about AI ethics. Many leading human rights organizations argue that the use of weapons, such as armed drones, will lead to an increase in civilian deaths and unlawful killings. Others are concerned that unregulated AI will lead to an international arms race.
- The COVID-19 outbreak had a significant negative impact on the global economy. The government's lockdown caused a number of industries to shut down. Nevertheless, the use of artificial intelligence in combat was able to grow in these unheard-of circumstances. As government investment expanded to upgrade defense systems, both the demand and supply for military weaponry grew.
- Although artificial intelligence in combat was successful commercially, a scarcity of raw materials supplied by suppliers due to disruptions in the supply chain caused a halt in total output. However, once the government relaxes the tight limitation, the market is grew and is expected to grow over the forecast period.
AI In Modern Warfare Market Trends
Unmanned Aerial Vehicles Expected to Dominate the Market
- Due to the wide variety of operations they can perform in the current scenario, unmanned aerial vehicles (UAVs) have made significant strides since their inception. Engineers have been chosen to use UAVs to gather visual and thermal data over large areas with much more accuracy than before.
- With the right data analytics, the military uses this information for many things, such as security and control, aerial reconnaissance, access to chemical, biological, and nuclear conditions, and planning the necessary steps.
- Several businesses launched UAVs with AI integration, which will boost market development. For example, Drone Express, an advanced last-mile logistics startup, teamed with Microsoft to introduce a new edition of their DE-2020 drone in December 2022 that will use AI for in-flight navigation. This innovative cooperation will outfit drone delivery with Microsoft Azure to host AI applications and train machine learning models using Azure Machine Learning. Drones equipped with AI can securely make live, in-flight choices to deliver items in an urban area. The first aircraft equipped with this technology will go into production at the end of 2022, providing clients with safer and speedier last-mile delivery alternatives.
- Also, in December 2022, USD 60 million more was invested in Shield AI, a San Diego company that makes "pilots" for military planes and drones that are controlled by artificial intelligence.
- Through aerial photography technologies, modern computing is capable of real-time drone mapping with live maps. As a result, prominent corporations are focusing on combining artificial intelligence and machine learning to evaluate massive amounts of data in the form of billions of aerial photographs acquired on a daily basis by drones. Many businesses are developing software solutions to automate site investigation using item recognition and measurement systems. This improvement is expected to aid emergency services, disaster response, and humanitarian efforts. As a result, the new breakthrough will accelerate the expansion of the unmanned aerial vehicle segment.
North America is Expected to Hold Significant Market Share
- Artificial intelligence is becoming increasingly important in military operations. As a result, the US and other nations are already developing a number of AI applications for diverse military purposes.
- On December 15, 2022, the Senate approved the James M. Inhofe National Defense Authorization Act (NDAA) for Financial Year 2023 after the House did the week before. The NDAA is an annual statute passed by Congress that specifies the budgets, expenditures, and policies of the United States Department of Defense (DOD). Many sections directly related to artificial intelligence (AI) for both non-DOD and DOD government agencies are included in the 2023 edition.
- Drone technology has progressed due to significant developments by the United States Army and increasing investment by prominent key firms in the region. As one of the world's top makers of military UAVs, the United States is likely to speed up growth in the region.
- For example, the President's Budget, which was unveiled on March 28th, calls for USD 1.7 trillion in required spending and USD 127.3 billion in discretionary spending for Budget Year 2023. Of that USD 1.7 trillion, the U.S. Department of Defense (DOD) will get USD 773 billion, a 4% rise over the appropriations for FY 2022.
- Additionally, at two significant back-to-back military drills in January 2023, the Air Force Research Laboratory (AFRL) of the United States and the Defense Science and Technology Laboratory (DSTL) of the United Kingdom jointly exhibited cutting-edge AI technology. This four-year collaboration agreement intends to hasten joint U.K.-U.S. technological advancement and share AI skills, ranging from fundamental research to cooperative experimentation, eventually enhancing the combined all-domain control and command capabilities of both countries.
AI In Modern Warfare Industry Overview
The market is growing slowly due to increasing military requirements from intelligence, surveillance, and reconnaissance to offense/defense balances and even nuclear weapons systems themselves. Companies like Boeing, General Dynamics Corporation, and IBM Corporation are using advances in artificial intelligence (AI), deep learning, and robotics to create new military capabilities that will change military strategies.
In January 2023, data-centric solutions for the globally networked battlespace were expedited by Booz Allen. To link friends and partners, provide mission-critical data at the pace of battle, and safeguard sensitive data with enhanced encryption, commanders demand a zero-trust-hardened platform. Its data-centered technology has helped with the Mission Partner Environment (MPE), which is a key part of the Joint All-Domain Command and Control (JADC2) strategy. The goal of this strategy is to make sure that the US military and its coalition partners around the world are all doing the same things at the same time.
In November 2022, the US Department of Defense gave Accrete a five-year, multimillion-dollar production operational technology license agreement deal for Argus, the company's AI program for detecting threats.
AI In Modern Warfare Market Leaders
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The Boeing Company
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General Dynamics Corporation
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Alphabet Inc. (Google Inc.)
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IBM Corporation
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Intel Corporation
*Disclaimer: Major Players sorted in no particular order
AI In Modern Warfare Market News
- January 2023: The Crane Division (NSWC Crane), the Naval Surface Warfare Center, and Indiana University (IU) worked on machine learning (ML) and artificial intelligence (AI) analytical research. This continuing research collaboration began in late 2019 and was made possible by the Naval Engineering Education Consortium (NEEC) and Naval Sea Systems Command (NAVSEA). This project involved over twenty IU undergraduate, PhD, and graduate students.
- April 2022: The United States Army awarded about USD 19 million to 23 small enterprises to create machine learning and artificial intelligence technologies that would result in fully educated Army decision-making and automated operations and increase the pace and scale of military intervention.
- October 2022: The US Army Research Laboratory's agreement with Palantir Technologies to provide advanced machine learning (ML) and artificial intelligence (AI) services to the US Department of Defense was extended. Under the new contract, Palantir was expected to run a one-year program to help the Department of Defense, including the joint staff, the armed services, and the special forces, use, test, and deploy AI and ML capabilities.
AI in Modern Warfare Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of COVID-19 Impact on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growth in Weapons of Mass Destruction Boost the Opportunity for Artificial Intelligence in Modern Warfare
- 5.1.2 Increased Government Spending
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5.2 Market Restraints
- 5.2.1 Ethical Issues associated with Deployment of AI-based Systems in Military and Defense
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Unmanned Aerial Vehicle
- 6.1.2 Unmanned Ground Vehicle
- 6.1.3 Combat Systems
- 6.1.4 Recovery and Maintenance Vehicle
- 6.1.5 Reconnaissance and Surveillance Vehicle
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6.2 By Geography
- 6.2.1 North America
- 6.2.1.1 United States
- 6.2.1.2 Canada
- 6.2.2 Europe
- 6.2.2.1 Germany
- 6.2.2.2 United Kingdom
- 6.2.2.3 France
- 6.2.2.4 Rest of Europe
- 6.2.3 Asia-Pacific
- 6.2.3.1 China
- 6.2.3.2 Japan
- 6.2.3.3 India
- 6.2.3.4 South Korea
- 6.2.3.5 Rest of Asia-Pacific
- 6.2.4 Rest of the World (Latin America, Middle East Africa)
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 The Boeing Company
- 7.1.2 General Dynamics Corporation
- 7.1.3 Alphabet Inc. (Google Inc.)
- 7.1.4 IBM Corporation
- 7.1.5 Intel Corporation
- 7.1.6 Endeavor Robotics
- 7.1.7 JSC Kalashnikov Concern
- 7.1.8 Lockheed Martin Corporation
- 7.1.9 Northrop Grumman Corporation
- 7.1.10 FLIR Unmanned Aerial Systems
- 7.1.11 Dassault Aviation
- 7.1.12 Raytheon Company
- 7.1.13 Roboteam Ltd
- 7.1.14 SparkCognition Inc.
- 7.1.15 Stryke Industries LLC
- 7.1.16 Textron Inc.
- *List Not Exhaustive
8. INVESTMENT OUTLOOK
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
AI In Modern Warfare Industry Segmentation
Artificial intelligence (AI) is a vast subject of computer science that develops intelligent machines capable of doing tasks that need human intelligence. Although AI is a diverse field with several techniques, machine learning and deep learning breakthroughs drive a paradigm shift in almost every business sector. A rivalry or arms race among two or more nations to have superior artificial intelligence for its armed forces is referred to as a military AI in modern warfare. AI technologies have the potential to ease military decisions, reduce human losses, and improve units' fighting capabilities.
Artificial Intelligence in the modern warfare market is segmented into equipment type (unmanned aerial vehicle, unmanned ground vehicle, combat systems, recovery and maintenance vehicle, reconnaissance and surveillance vehicle, medical evacuation vehicle) and geography (North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Unmanned Aerial Vehicle | |
| Unmanned Ground Vehicle | ||
| Combat Systems | ||
| Recovery and Maintenance Vehicle | ||
| Reconnaissance and Surveillance Vehicle | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| By Geography | Rest of the World (Latin America, Middle East Africa) |
AI in Modern Warfare Market Research FAQs
How big is the AI In Modern Warfare Market?
The AI In Modern Warfare Market size is expected to reach USD 11.41 billion in 2024 and grow at a CAGR of 31.46% to reach USD 44.80 billion by 2029.
What is the current AI In Modern Warfare Market size?
In 2024, the AI In Modern Warfare Market size is expected to reach USD 11.41 billion.
Who are the key players in AI In Modern Warfare Market?
The Boeing Company, General Dynamics Corporation, Alphabet Inc. (Google Inc.), IBM Corporation and Intel Corporation are the major companies operating in the AI In Modern Warfare Market.
Which is the fastest growing region in AI In Modern Warfare Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in AI In Modern Warfare Market?
In 2024, the North America accounts for the largest market share in AI In Modern Warfare Market.
What years does this AI In Modern Warfare Market cover, and what was the market size in 2023?
In 2023, the AI In Modern Warfare Market size was estimated at USD 8.68 billion. The report covers the AI In Modern Warfare Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI In Modern Warfare Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
AI in Modern Warfare Industry Report
Statistics for the 2024 AI In Modern Warfare market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. AI In Modern Warfare analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
