AI in Military Market Poised for Significant Growth by 2030

Dublin, June 27, 2025 — The global market for Artificial Intelligence (AI) in Military is set to grow from $14.3 billion in 2024 to $29 billion by 2030, according to the latest report from ResearchAndMarkets.com. This represents a Compound Annual Growth Rate (CAGR) of 12.5% over the forecast period.

The report provides a comprehensive analysis of market trends, drivers, and forecasts, offering valuable insights for informed business decisions. It includes the latest global tariff developments and their impact on the AI in Military market, making it an essential resource for industry stakeholders.

Key Market Drivers

The growth of AI in the military sector is fueled by several key factors. Technological advancements in machine learning, computer vision, and autonomous navigation have made AI applications more reliable and effective. Rising geopolitical tensions and the nature of modern warfare, which includes cyber and electronic threats, are driving militaries worldwide to adopt AI as a force multiplier.

Real-time data analysis is another significant driver. AI can process and interpret vast amounts of data quickly, allowing commanders to make informed decisions faster than ever before. This is crucial in the fast-paced and high-stakes environment of modern warfare.

Cybersecurity and Autonomous Systems

The increasing frequency and sophistication of cyber threats have led to greater adoption of AI-driven cybersecurity solutions. These solutions can detect, anticipate, and neutralize threats proactively, protecting military infrastructure and sensitive data. The global push for more efficient, automated defense operations is also contributing to AI growth, as militaries seek to maximize resource use, streamline logistics, and improve battlefield response times.

Government investments and collaborations between defense agencies and technology companies are accelerating innovation in military AI applications. This is expanding the sector’s capabilities and reach, offering militaries enhanced efficiency, resilience, and tactical advantage in an evolving security landscape.

Regional Analysis

The U.S. market for AI in Military was valued at $3.9 billion in 2024 and is forecasted to grow at an impressive 11.9% CAGR to reach $4.5 billion by 2030. China, Japan, Canada, Germany, and the Asia-Pacific region are also expected to see significant growth in the AI in Military market.

Key Segments

The Land segment is projected to reach $11 billion by 2030, growing at a CAGR of 10.9%. The Naval segment is set to grow at a 12.1% CAGR over the analysis period. The report also provides detailed insights into the Airborne and Space segments, as well as the components (Software, Hardware, Services) and technologies (Learning & Intelligence, Advanced Computing, AI Systems) driving market growth.

Leading Players

The report features 237 companies, including BAE Systems, Boeing, CACi International, Charles River Analytics, Cray, Darktrace, General Dynamics, Harris Corporation, IBM, Leidos, Lockheed Martin, Northrop Grumman, NVIDIA, Raytheon Company, SAIC, SAS, Securonix, Soartech, SparkCognition, Thales Group, and Xilinx. These companies are at the forefront of innovation in the AI in Military market, driving the sector’s growth and development.

Strategic Insights

The report integrates the latest global trade and economic shifts, providing insights into tariff negotiations, supply chain turbulence, and geographic realignment. It also includes revised global and regional market forecasts, strategic market dynamics, and expert analysis from economists and trade experts. Buyers receive a free update in July 2025, covering finalized tariff impacts, new trade agreement effects, and expanded country-level coverage.

Market Trends and Drivers

• Autonomous Systems**: The rising demand for autonomous systems is a key driver of AI in military applications.
• Surveillance and Reconnaissance**: Enhanced surveillance and reconnaissance capabilities are driving the adoption of AI-powered solutions.
• Cybersecurity**: AI in cybersecurity strengthens defense against emerging threats.
• Machine Learning**: Advances in machine learning improve accuracy in target recognition and threat detection.
• Drone and UAV Technologies**: The growing use of AI in drone and UAV technologies expands the scope of military operations.
• Real-Time Data Analysis**: The need for real-time data analysis fuels the adoption of AI for decision-making support.
• Autonomous Combat Vehicles**: The increasing focus on autonomous combat vehicles drives innovation in AI for military robotics.
• Natural Language Processing**: Advances in natural language processing support AI in intelligence analysis and communications.
• Military Training**: The growing need for cost-effective training expands the use of AI-powered simulations.
• Situational Awareness**: AI in situational awareness enhances battlefield management and coordination.
• Reducing Soldier Risk**: The focus on reducing soldier risk drives demand for AI in remote and autonomous operations.
• Electronic Warfare**: The growing role of AI in electronic warfare expands the scope of defensive and offensive capabilities.
• Digital Twins and Virtual Prototyping**: The increasing use of digital twins and virtual prototyping supports AI in weapon systems development.

Clear Takeaway

The global market for AI in Military is poised for significant growth, driven by technological advancements, evolving security threats, and strategic investments. This report provides essential insights for industry players to navigate and capitalize on this rapidly expanding market.