Artificial Intelligence and Analytics in Defense Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Artificial Intelligence and Analytics in Defense Market Report is Segmented by Offering (Hardware, Software, and Services), Technology (Artificial Intelligence, Big Data Analytics, and Other Technologies), Platform (Army, Navy, and Airforce), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

Artificial Intelligence and Analytics in Defense Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

AI and Analytics in Defense Market Size

Artificial Intelligence and Analytics in Defense Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 10.22 Billion
Market Size (2030) USD 18.39 Billion
CAGR (2025 - 2030) 12.46 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

Artificial Intelligence and Analytics in Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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AI and Analytics in Defense Market Analysis

The Global Artificial Intelligence And Analytics In Defense Market size is estimated at USD 10.22 billion in 2025, and is expected to reach USD 18.39 billion by 2030, at a CAGR of 12.46% during the forecast period (2025-2030).

With military intelligence capabilities growing exponentially, the global defense sector has increasingly turned to AI and analytics to monitor vehicle and personnel parameters. Simultaneously, the substantial defense spending by major international powers has funneled significant investments into this sector, insulating it from severe market impacts.

AI and analytics stand as pivotal pillars in fortifying military forces. Leading nations are channeling investments into cutting-edge technologies to bolster their defense. AI-equipped military tools adeptly manage vast data streams, enhancing self-control and decision-making. The technology's applications in defense span from strategic decision-making and target recognition to combat simulation, threat monitoring, and cybersecurity.

However, the market is also facing some challenges despite this growth. Issues like a shortage of skilled professionals, hefty initial investments, and rising concerns over data privacy are poised to hinder the market's expansion, even as its potential for growth remains robust.

AI and Analytics in Defense Industry Overview

The AI and analytics in defense market exhibit a semi-consolidated structure, with a handful of key players commanding substantial market shares. Some prominent market players are Northrop Grumman Corporation, THALES, BAE Systems PLC, RTX Corporation, and Lockheed Martin Corporation. Companies are bolstering their market presence through strategic partnerships and M&A activities. These initiatives help consolidate resources and expand market reach, giving them a competitive edge.

A prime example is Lockheed Martin Corporation's collaboration with Red Hat in October 2022. This partnership with the American tech firm Red Hat focuses on enhancing the AI capabilities of small military platforms. Lockheed Martin plans to leverage Red Hat's Device Edge to integrate cutting-edge software, like the Stalker unmanned aerial system. Such moves, coupled with a focus on introducing advanced technologies and nurturing OEM partnerships, are set to propel the market's growth in the coming years.

AI and Analytics in Defense Market Leaders

  1. Lockheed Martin Corporation

  2. Northrop Grumman Corporation

  3. THALES

  4. BAE Systems plc

  5. RTX Corporation

  6. *Disclaimer: Major Players sorted in no particular order
AI and Analytics in Defense Market Concentration
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AI and Analytics in Defense Market News

  • June 2024: Helsing, IBM Deutschland, and Schonhofer Sales and Engineering, a consortium of German firms, unveiled the inaugural AI infrastructure for the Future Combat Air System (FCAS) program. The FCAS, a collaborative effort between France, Germany, and Spain, marks a significant stride in European next-generation aircraft development.
  • January 2024: Japan and the United States inked a deal to kickstart collaborative research in artificial intelligence. The primary goal is to harness this technology for drones, which would complement Japan's upcoming fighter jet.

AI and Analytics in Defense Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Porter's Five Forces Analysis
    • 4.4.1 Threat of New Entrants
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Bargaining Power of Suppliers
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 By Offering
    • 5.1.1 Hardware
    • 5.1.2 Software
    • 5.1.3 Services
  • 5.2 By Technology
    • 5.2.1 Artificial Intelligence
    • 5.2.2 Big Data Analytics
    • 5.2.3 Other Technologies (Internet of Military Things (IoMT), Cybersecurity, and Immersive Technologies)
  • 5.3 By Platform
    • 5.3.1 Army
    • 5.3.2 Navy
    • 5.3.3 Airforce
  • 5.4 By Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 United Kingdom
    • 5.4.2.3 France
    • 5.4.2.4 Russia
    • 5.4.2.5 Rest of Europe
    • 5.4.3 Asia-Pacific
    • 5.4.3.1 India
    • 5.4.3.2 China
    • 5.4.3.3 Japan
    • 5.4.3.4 South Korea
    • 5.4.3.5 Rest of Asia-Pacific
    • 5.4.4 Latin America
    • 5.4.4.1 Brazil
    • 5.4.4.2 Rest of Latin America
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 United Arab Emirates
    • 5.4.5.2 Saudi Arabia
    • 5.4.5.3 Egypt
    • 5.4.5.4 Rest of Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 BAE Systems PLC
    • 6.2.2 RTX Corporation
    • 6.2.3 THALES
    • 6.2.4 Lockheed Martin Corporation
    • 6.2.5 Northrop Grumman Corporation
    • 6.2.6 IBM
    • 6.2.7 Shield AI
    • 6.2.8 Leidos Holding Inc.
    • 6.2.9 SparkCognition Inc.
    • 6.2.10 General Dynamics Corporation
    • 6.2.11 Charles River Analytics Inc.
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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AI and Analytics in Defense Industry Segmentation

AI and analytics are revolutionizing the defense sector, enhancing performance and operational efficiency. Military forces worldwide are increasingly embracing AI-powered weaponry. Key technologies driving this transformation include the Internet of Things (IoT), artificial intelligence, robotics, and big data analytics.

AI and analytics in the defense market are segmented by offering, technology, platform, and geography. By offering, the market is classified into hardware, software, and services. By technology, the market is segmented into artificial intelligence, big data analytics, and other technologies. Other technologies include the Internet of Military Things (IoMT), cybersecurity, and immersive technologies. By platform, the market is segmented into army, navy, and airforce. The report also covers the market sizes and forecasts for AI and analytics in the defense market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

By Offering Hardware
Software
Services
By Technology Artificial Intelligence
Big Data Analytics
Other Technologies (Internet of Military Things (IoMT), Cybersecurity, and Immersive Technologies)
By Platform Army
Navy
Airforce
By Geography North America United States
Canada
Europe Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific India
China
Japan
South Korea
Rest of Asia-Pacific
Latin America Brazil
Rest of Latin America
Middle East and Africa United Arab Emirates
Saudi Arabia
Egypt
Rest of Middle East and Africa
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AI and Analytics in Defense Market Research FAQs

How big is the Global Artificial Intelligence And Analytics In Defense Market?

The Global Artificial Intelligence And Analytics In Defense Market size is expected to reach USD 10.22 billion in 2025 and grow at a CAGR of 12.46% to reach USD 18.39 billion by 2030.

What is the current Global Artificial Intelligence And Analytics In Defense Market size?

In 2025, the Global Artificial Intelligence And Analytics In Defense Market size is expected to reach USD 10.22 billion.

Who are the key players in Global Artificial Intelligence And Analytics In Defense Market?

Lockheed Martin Corporation, Northrop Grumman Corporation, THALES, BAE Systems plc and RTX Corporation are the major companies operating in the Global Artificial Intelligence And Analytics In Defense Market.

Which is the fastest growing region in Global Artificial Intelligence And Analytics In Defense Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Global Artificial Intelligence And Analytics In Defense Market?

In 2025, the North America accounts for the largest market share in Global Artificial Intelligence And Analytics In Defense Market.

What years does this Global Artificial Intelligence And Analytics In Defense Market cover, and what was the market size in 2024?

In 2024, the Global Artificial Intelligence And Analytics In Defense Market size was estimated at USD 8.95 billion. The report covers the Global Artificial Intelligence And Analytics In Defense Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Global Artificial Intelligence And Analytics In Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Defense AI Analytics Industry Report

Statistics for the 2025 Global Artificial Intelligence And Analytics In Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Artificial Intelligence And Analytics In Defense analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.