|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
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Artificial Intelligence (AI) and Analytics in the Defense market is expected to grow with a CAGR of over 13% during the forecast period (2022-2027).
The global defense sector has witnessed a mild impact of the COVID-19 pandemic. The global military expenditure reached approximately USD 2 trillion in 2020. With exponentially increasing military intelligence capabilities, it has become imperative to use AI and Analytics in the global defense sector to monitor various parameters of a vehicle or personnel. At the same time, the high defense spending by various military powerhouses of the world has led to a significant investment into this sector of the global defense agencies, leading to a relatively low impact on the market during the pandemic.
Artificial intelligence and analytics in the defense sector is the major aspect of strengthening military forces. Major countries highly investing in next-generation technologies to transform their defense capabilities. AI-enabled military devices efficiently handle large amounts of data. Also, AI technology has improved self-control, self-regulation, and self-actuation due to its enhanced computation and decision-making skills. AI in defense provides numerous advantages such as strategic decision-making, target recognition, combat simulation, threat monitoring, and cybersecurity.
The latest trend in the defense sector is replacing conventional defense equipment with smart robots and intelligent machines. The future war systems will be dominated by unmanned systems and automatic weapons that provide enhanced operational efficiency and accuracy during warfare situations. Thus, growing investment in research and development and rising adoption of next-generation technologies in defense will drive market growth during the forecast period.
Scope of the Report
AI and analytics in defense are the introduction of advanced technologies in the military for improved performance and operational efficiency. Defense forces across the globe highly adopting AI-enabled military weapons. Some of the major technologies are artificial intelligence, big data analytics, the internet of things (IoT), robotics, and others that completely transformed the defense sector.
AI and Analytics in Defense market is segmented based on 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 others. By platform, the market is segmented into army, navy, and airforce. The market sizing and forecasts have been provided in value (USD Billion) for all the above segments across various geographies.
|Big Data Analytics|
Key Market Trends
Software Segment Will Showcase Remarkable Growth During the Forecast Period
The software segment in the AI and analytics market is anticipated to show significant growth during the forecast period. The growth is attributed to the increasing defense spending and the development of advanced AI software and related software development kits. AI software installed in computer systems performs various complex operations. It collects data from hardware systems and processes in AI systems to generate an intelligent response. The AI software includes machine learning, virtual assistant, and speech and voice recognition.
For instance, in July 2022, Palantir Technologies Inc. announced that the company will work with the United States Army Research Laboratory to implement data and artificial intelligence (AI)/machine learning (ML) capabilities for end users across combatant commands (COCOMs). The contract was valued at USD 99.9 million for two years. Thus, rising investment from the global defense forces for developing advanced AI software drives the market's growth.
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North America Is Projected to Dominate the Market During the Forecast Period
North America held the largest market share in 2022 and continue its domination during the forecast period. The growth is due to the highest defense expenditure from the United States. Increasing spending on research and development of advanced defense equipment and growing procurement of AI-enabled devices for defense operations from the United States Department of Defense drive the growth of the market across the region.
In the fiscal year 2022, the United States Department of Defense (DoD) planning to invest USD 874 million in artificial intelligence (AI)-related technologies to boost deterrence against potential adversaries like China. DoD also focuses on enhancing efficiencies in command and control, computing, and logistics. In the United States 2022 research and development budget, the Army requested USD 15 million for AI and machine learning applied research, USD 10.2 million for AI and machine learning basic research, and USD 909,000 for AI and machine learning advanced technologies.
For instance, in April 2022, the United States Army signed a contract worth USD 19 million with 23 small businesses to develop machine learning and artificial intelligence solutions that will lead to more informed decision-making in the army, support autonomous operations, and increase the speed and scale of military action. Thus, growing spending from the United States government for enhancing AI capabilities in defense drive the growth of the market.
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The AI and analytics market is moderately consolidated in nature with few players holding significant shares in the market. Some of the prominent players in the market are Northrop Grumman, Thales Group, BAE Systems, Raytheon Technologies Corporation, Lockheed Martin Corporation, and IBM. The introduction of advanced technologies and the development of AI-enabled defense equipment drive market growth.
In October 2022, the Lockheed Martin Corporation enter a partnership with Red Hat, an American technology firm to enable small military platforms to handle increased artificial intelligence (AI) workloads. Through this partnership, Lockheed Martin Corporation will utilize the Red Hat Device Edge in integrating advanced software on small platforms such as the Stalker unmanned aerial system. Furthermore, in October 2021, IBM signed a contract with Raytheon Technologies to jointly develop advanced artificial intelligence, quantum, and cryptographic solutions for the defense, aerospace, and intelligence industries. Thus, the introduction of advanced technologies and growing partnerships of OEMs to develop next-generation AI-enabled solutions for defense forces will boost market growth during the forecast period.
Lockheed Martin Corporation
In July 2022, the Indian Ministry of Defense launched 75 newly developed artificial intelligence (AI) products and technologies during the first-ever ‘AI in Defense symposium and exhibition in New Delhi. These include autonomous systems, AI platform automation, command, control, communication, computer (C4), blockchain-based automation, intelligence, surveillance & reconnaissance (ISR), intelligent monitoring systems, cyber security, and others.
In September 2022, the United States Air Force signed a contract worth USD 1.25 million with ZeroEyes for the procurement of an AI gun detection solution for the service’s unmanned aerial vehicles (UAVs) at the Dover Air Force Base, Delaware. ZeroEyes’ technology will enable drones to detect handheld weapons for base protection.
Table of Contents
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 Porters 5 Force 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
5.2.1 Artificial Intelligence
5.2.2 Big Data Analytics
5.4.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.4.3 Asia Pacific
126.96.36.199 South Korea
188.8.131.52 Rest of Asia Pacific
5.4.4 Latin America
184.108.40.206 Rest of Latin America
5.4.5 Middle East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share**
6.2 Company Profiles*
6.2.1 BAE Systems
6.2.2 Raytheon Technologies Inc
6.2.3 Thales Group
6.2.4 Lockheed Martin Corportaion
6.2.5 Northrop Grumman
6.2.6 IBM Corporation
6.2.7 Shield AI
6.2.9 SparkCognition, Inc.
6.2.10 General Dynamics Corporation
6.2.11 Charles River Analytics, Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Frequently Asked Questions
What is the study period of this market?
The Global Artificial Intelligence and Analytics in Defense Market market is studied from 2018 - 2027.
What is the growth rate of Global Artificial Intelligence and Analytics in Defense Market?
The Global Artificial Intelligence and Analytics in Defense Market is growing at a CAGR of >13% over the next 5 years.
Which region has highest growth rate in Global Artificial Intelligence and Analytics in Defense Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Artificial Intelligence and Analytics in Defense Market?
North America holds highest share in 2021.
Who are the key players in Global Artificial Intelligence and Analytics in Defense Market?
Northrop Grumman, Thales Group, Lockheed Martin Corporation, BAE Systems are the major companies operating in Global Artificial Intelligence and Analytics in Defense Market.