The global artificial intelligence in defense market is expected to grow from US$ 6,404.73 million in 2021 to US$ 13,153.31 million by 2028; it is estimated to grow at a CAGR of 10.8% during 2021-2028.
As global tensions have persisted over the last few years, various affected nations plan and take measures to improve and recapitalize the defense status. Threats are continually evolving, i.e., from the conventional land-based to hybrid warfare threats. To address security threats and tackle terrorism, governments of several nations have already started to increase their defense budgets. According to Forbes data of April 2021, global military spending grew to nearly US$ 2 trillion in 2020, a 2.6% increase in real terms in 2019. The growth in spending came in a year where global GDP contracted 4.4% due to the COVID-19 pandemic, with just five countries accounting for 62% of total expenditure. With US$ 778 billion, the US was the world's top spender once again by a considerable difference, and it accounted for 39% of total global military expenditure.
Further, the increasing geopolitical tensions and trade wars among major countries are driving high investments in the defense sector contributing to the growth of artificial intelligence in defense market. A significant portion of the investment is dedicated to the procurement of AI in defense research. For instance, China is investing at least US$ 7 billion through 2030, including US$ 2 billion for a research park in Beijing. The Chinese government foresees a US$ 150 billion artificial intelligence industry by 2030 and has the most comprehensive national plan to become a technology leader. According to the AIndra Labs, new Chinese companies received 48% of all funds for artificial intelligence investments in July 2019. Further, Russia spends about US$ 12.5 million annually on AI, where many of Russia's artificial intelligence demonstrations are military in nature, such as AI-assisted combat aircraft and automatic artillery. Therefore, the increasing government spending for incorporating AI in the defense sector drives the artificial intelligence in defense market.
The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has affected economies and countless industries in various countries. The lockdown imposition has resulted in the lesser production of commodities, goods, and services.
Even though the COVID-19 pandemic caused a large-scale impact on economies across the globe in 2020, leading to many challenges, the artificial intelligence in defense market has continued to expand. This can be seen from both the demand as well the supply sides, as leading manufacturers such as IBM Corporation, Lockheed Martin Corporation, Raytheon Technologies Corporation, BAE Systems plc., and Northrop Grumman continue to invest heavily in developing artificial intelligence capabilities, and governments continue to invest significantly in securing these advanced systems. Governments have realized the potential of improved capabilities that these artificial intelligence systems could offer in terms of defense arsenal. However, despite the development of artificial intelligence technology, the supply chain disruptions of the artificial intelligence systems during the COVID-19 pandemic had a minor hit in the market growth. This resulted from the shortage of raw materials due to disruptions in the supply chain. The hardware systems such as artificial intelligence systems have had a slightly negative impact. However, the demand for artificial intelligence services provided to various defense organizations across the globe was high. Moreover, the government spending in the defense sector was significantly higher. Therefore, the overall impact of the pandemic on the artificial intelligence in defense market was positive.
In 2021, with the relaxation of lockdown measures and the beginning of vaccination drives, the supply-chain industry resumed working smoothly with timely delivery of raw materials of the artificial intelligence systems. Moreover, governments across the globe continue to invest significantly in securing advanced systems for the defense sector. Therefore, the artificial intelligence in defense market will grow significantly.
Based on component, the artificial intelligence in defense market is segmented into hardware, software, and services. In 2020, the software segment led the artificial intelligence in defense market, accounting for the largest share in the market. Based on technology, the market is segmented into advanced computing, AI systems, and learning and intelligence. In 2020, the advanced computing segment accounted for the largest artificial intelligence in defense market share. Based on platform, the artificial intelligence in defense market is segmented into land, air, and naval. In 2020, the land segment accounted for the largest artificial intelligence in defense market share. Based on application, the market is segmented into cyber security, battlefield healthcare, logistics and transportation, warfare platform, and others. In 2020, the warfare platform segment accounted for the largest artificial intelligence in defense market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for the significant share in the global artificial intelligence in defense market.
The overall artificial intelligence in defense market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the artificial intelligence in defense market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the artificial intelligence in defense market.
BAE Systems plc; IBM Corporation; Leidos; Lockheed Martin Corporation; Raytheon Technologies Corporation; Charles River Analytics, Inc.; General Dynamics Information Technology, Inc. (General Dynamics Corporation); Shield AI; SparkCognition, Inc.; and Thales Group are among the key companies operating in the artificial intelligence in defense market.
Reasons to Buy
As global tensions have persisted over the last few years, various affected nations plan and take measures to improve and recapitalize the defense status. Threats are continually evolving, i.e., from the conventional land-based to hybrid warfare threats. To address security threats and tackle terrorism, governments of several nations have already started to increase their defense budgets. According to Forbes data of April 2021, global military spending grew to nearly US$ 2 trillion in 2020, a 2.6% increase in real terms in 2019. The growth in spending came in a year where global GDP contracted 4.4% due to the COVID-19 pandemic, with just five countries accounting for 62% of total expenditure. With US$ 778 billion, the US was the world's top spender once again by a considerable difference, and it accounted for 39% of total global military expenditure.
Further, the increasing geopolitical tensions and trade wars among major countries are driving high investments in the defense sector contributing to the growth of artificial intelligence in defense market. A significant portion of the investment is dedicated to the procurement of AI in defense research. For instance, China is investing at least US$ 7 billion through 2030, including US$ 2 billion for a research park in Beijing. The Chinese government foresees a US$ 150 billion artificial intelligence industry by 2030 and has the most comprehensive national plan to become a technology leader. According to the AIndra Labs, new Chinese companies received 48% of all funds for artificial intelligence investments in July 2019. Further, Russia spends about US$ 12.5 million annually on AI, where many of Russia's artificial intelligence demonstrations are military in nature, such as AI-assisted combat aircraft and automatic artillery. Therefore, the increasing government spending for incorporating AI in the defense sector drives the artificial intelligence in defense market.
Impact of COVID-19 Pandemic on Artificial Intelligence in Defense Market
The COVID-19 pandemic has shaken several industries. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has affected economies and countless industries in various countries. The lockdown imposition has resulted in the lesser production of commodities, goods, and services.
Even though the COVID-19 pandemic caused a large-scale impact on economies across the globe in 2020, leading to many challenges, the artificial intelligence in defense market has continued to expand. This can be seen from both the demand as well the supply sides, as leading manufacturers such as IBM Corporation, Lockheed Martin Corporation, Raytheon Technologies Corporation, BAE Systems plc., and Northrop Grumman continue to invest heavily in developing artificial intelligence capabilities, and governments continue to invest significantly in securing these advanced systems. Governments have realized the potential of improved capabilities that these artificial intelligence systems could offer in terms of defense arsenal. However, despite the development of artificial intelligence technology, the supply chain disruptions of the artificial intelligence systems during the COVID-19 pandemic had a minor hit in the market growth. This resulted from the shortage of raw materials due to disruptions in the supply chain. The hardware systems such as artificial intelligence systems have had a slightly negative impact. However, the demand for artificial intelligence services provided to various defense organizations across the globe was high. Moreover, the government spending in the defense sector was significantly higher. Therefore, the overall impact of the pandemic on the artificial intelligence in defense market was positive.
In 2021, with the relaxation of lockdown measures and the beginning of vaccination drives, the supply-chain industry resumed working smoothly with timely delivery of raw materials of the artificial intelligence systems. Moreover, governments across the globe continue to invest significantly in securing advanced systems for the defense sector. Therefore, the artificial intelligence in defense market will grow significantly.
Based on component, the artificial intelligence in defense market is segmented into hardware, software, and services. In 2020, the software segment led the artificial intelligence in defense market, accounting for the largest share in the market. Based on technology, the market is segmented into advanced computing, AI systems, and learning and intelligence. In 2020, the advanced computing segment accounted for the largest artificial intelligence in defense market share. Based on platform, the artificial intelligence in defense market is segmented into land, air, and naval. In 2020, the land segment accounted for the largest artificial intelligence in defense market share. Based on application, the market is segmented into cyber security, battlefield healthcare, logistics and transportation, warfare platform, and others. In 2020, the warfare platform segment accounted for the largest artificial intelligence in defense market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for the significant share in the global artificial intelligence in defense market.
The overall artificial intelligence in defense market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the artificial intelligence in defense market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the artificial intelligence in defense market.
BAE Systems plc; IBM Corporation; Leidos; Lockheed Martin Corporation; Raytheon Technologies Corporation; Charles River Analytics, Inc.; General Dynamics Information Technology, Inc. (General Dynamics Corporation); Shield AI; SparkCognition, Inc.; and Thales Group are among the key companies operating in the artificial intelligence in defense market.
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global artificial intelligence in defense market.
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the global artificial intelligence in defense market, thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
Frequently Asked Questions about the Global Artificial Intelligence in Defense Market
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| Report Attribute | Details |
|---|---|
| No. of Pages | 189 |
| Published | December 2021 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 6404.73 million |
| Forecasted Market Value ( USD | $ 13153.31 million |
| Compound Annual Growth Rate | 10.8% |
| Regions Covered | Global |
Table of Contents
1. Introduction
3. Research Methodology
4. Artificial Intelligence in Defense Market Landscape
5. Artificial Intelligence in Defense Market - Key Market Dynamics
6. Artificial Intelligence in Defense Market - Global Market Analysis
7. Artificial Intelligence in Defense Market - By Components
8. Artificial Intelligence in Defense Market - By Technology
9. Artificial Intelligence in Defense Market - By Platform
10. Artificial Intelligence in Defense Market - By Application
11. Artificial Intelligence in Defense Market - Geographic Analysis
12. Artificial Intelligence in Defense Market - COVID-19 Impact Analysis
13. Industry Landscape
14. Company Profiles
15. Appendix
List of Tables
List of Figures
Companies Mentioned
A selection of companies mentioned in this report includes:
- BAE Systems plc
- IBM Corporation
- Leidos
- Lockheed Martin Corporation
- Raytheon Technologies Corporation
- Charles River Analytics, Inc.
- General Dynamics Information Technology, Inc. (General Dynamics Corporation)
- Shield AI
- SparkCognition, Inc.
- Thales Group
