Artificial Intelligence (AI) in Modern Warfare Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

the Artificial Intelligence in Modern Warfare Market is Segmented by Type of Equipment (Unnamed 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, and Middle East and Africa). the Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Artificial Intelligence (AI) in Modern Warfare Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

AI In Modern Warfare Market Size

AI In Modern Warfare Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 15.00 Billion
Market Size (2030) USD 58.89 Billion
CAGR (2025 - 2030) 31.46 %
Fastest Growing Market North America
Largest Market North America
Market Concentration Low

Major Players

AI In Modern Warfare Market 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 15.00 billion in 2025, and is expected to reach USD 58.89 billion by 2030, at a CAGR of 31.46% during the forecast period (2025-2030).

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 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

  1. The Boeing Company

  2. General Dynamics Corporation

  3. Alphabet Inc. (Google Inc.)

  4. IBM Corporation

  5. Intel Corporation

  6. *Disclaimer: Major Players sorted in no particular order
AI In Modern Warfare Market Concentration
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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
  • 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

  • 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
  • 5.2 Market Restraints
    • 5.2.1 Ethical Issues associated with Deployment of AI-based Systems in Military and Defense

6. MARKET SEGMENTATION

  • 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
  • 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

  • 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

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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
Europe Germany
United Kingdom
France
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Rest of Asia-Pacific
Rest of the World (Latin America, Middle East Africa)
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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 15.00 billion in 2025 and grow at a CAGR of 31.46% to reach USD 58.89 billion by 2030.

What is the current AI In Modern Warfare Market size?

In 2025, the AI In Modern Warfare Market size is expected to reach USD 15.00 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 (2025-2030).

Which region has the biggest share in AI In Modern Warfare Market?

In 2025, 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 2024?

In 2024, the AI In Modern Warfare Market size was estimated at USD 10.28 billion. The report covers the AI In Modern Warfare Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the AI In Modern Warfare Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

AI in Modern Warfare Industry Report

Statistics for the 2025 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 for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.