Artificial Intelligence (AI) in Battlefield Awareness Market Report 2026

The artificial intelligence (AI) in battlefield awareness market size has grown rapidly in recent years. It will grow from $5.32 billion in 2025 to $6.16 billion in 2026 at a compound annual growth rate (CAGR) of 15.9%. The growth in the historic period can be attributed to adoption of AI-enabled surveillance systems, growth in defense modernization budgets, integration with unmanned aerial vehicles, technological improvements in real-time data analytics, increased focus on situational awareness.

The artificial intelligence (AI) in battlefield awareness market size is expected to see rapid growth in the next few years. It will grow to $11 billion in 2030 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period can be attributed to development of predictive threat analysis systems, integration with autonomous vehicles and drones, expansion of ai-based training and simulation services, growth in cloud-based battlefield management solutions, adoption of multi-sensor fusion for comprehensive situational awareness. Major trends in the forecast period include increasing use of multi-modal sensor fusion engines for real-time battlefield awareness, rising deployment of ai-enhanced decision support tools at tactical and operational command levels, expansion of unmanned isr platforms for persistent surveillance and reconnaissance missions, growing demand for real-time threat detection and target recognition solutions in combat zones, adoption of soldier-worn systems and wearable devices for augmented situational awareness.

The increasing geopolitical tensions are expected to propel the growth of artificial intelligence (AI) in the battlefield awareness market going forward. Geopolitical tensions refer to political and military conflicts between nations or regions that create instability and heighten security concerns in international relations. The rise in geopolitical tensions is primarily driven by territorial disputes and strategic competition among primary powers, as nations increasingly assert their influence through military posturing and alliances, leading to accelerated arms buildup and regional instability. Artificial intelligence (AI) in battlefield awareness enhances real-time monitoring and threat detection, enabling faster and more accurate decision-making while allowing nations to respond effectively to conflicts and influence the balance of power during geopolitical tensions. For instance, in July 2024, according to The Armed Conflict Location and Event Data Project (ACLED), a US-based non-profit organization, over 165,273 political violence events were recorded worldwide, marking a 15% increase from July 2023 to June 2024. Therefore, increasing geopolitical tensions are driving the growth of artificial intelligence (AI) in the battlefield awareness market.

Key companies operating in the artificial intelligence (AI) in the battlefield awareness market are focusing on developing innovative products such as real-time threat detection devices to accelerate decision-making and improve strategic defense capabilities. A real-time threat detection device continuously scans the battlefield to instantly identify potential threats or hostile actions and provides immediate alerts for quick, informed decision-making to enhance operational safety and efficiency. For instance, in April 2025, Leonardo DRS Inc., a US-based defense technology company, launched the Artificial Intelligence Processor (AIP). This ruggedized, high-performance AI processor is designed to deliver real-time threat detection, enhanced situational awareness, and advanced mission processing directly to US Army ground vehicles. It is engineered to function in extreme battlefield environments and integrates with AI algorithms and sensor fusion systems, offering soldiers actionable intelligence for improved tactical decision-making. The AIP system is platform-agnostic, compact, and designed to provide a decisive advantage in combat operations by processing vast amounts of battlefield data in real time.

In April 2025, the North Atlantic Treaty Organization, a Belgium-based intergovernmental military alliance, acquired an artificial intelligence-powered military system from Palantir Technologies Inc. for an undisclosed amount. The acquisition aims to modernize warfighting capabilities by equipping commanders and warfighters with advanced AI tools for improved intelligence fusion, battlespace awareness, targeting, and accelerated decision-making, ensuring secure and unified operational capabilities across Allied Command Operations. Palantir Technologies Inc. is a US-based provider of AI-driven platforms for battlefield awareness, including the Maven Smart System.

Major companies operating in the artificial intelligence (AI) in battlefield awareness market are The Boeing Company; RTX Corporation; Lockheed Martin Corporation; General Dynamics Corporation; Northrop Grumman Corporation; Honeywell International Inc.; BAE Systems plc; Thales S.A.; Leonardo S.p.A.; Rheinmetall AG; Elbit Systems Ltd.; Israel Aerospace Industries Ltd.; Indra Sistemas S.A.; QinetiQ Group plc; Kratos Defense & Security Solutions Inc.; Helsing SE; Fortem Technologies Inc.; D-Fend Solutions Ltd.; Percepto Ltd.; Clearview AI Inc.; Maris-Tech Ltd.

North America was the largest region in the artificial intelligence (AI) in the battlefield awareness market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in battlefield awareness market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronic components, sensors, and advanced computing hardware are increasing costs and lead times for AI-enabled battlefield awareness systems, particularly affecting hardware-intensive segments such as unmanned aerial vehicles, ground-based sensors, radar systems, satellites, armored vehicles, and wearable devices. Software and cloud-based decision support solutions are indirectly impacted through higher prices for servers and networking equipment, with on-premises deployments in North America and Europe and manufacturing hubs in Asia-Pacific (notably China, South Korea, and Taiwan) most exposed. Services such as system integration, data analytics, and cybersecurity face project delays as procurement budgets are reallocated to offset hardware cost inflation. At the same time, tariffs are encouraging localization of production, regional supply-chain diversification, and greater investment in indigenous AI and sensor manufacturing capabilities, which can strengthen domestic defense ecosystems over the long term.

The artificial intelligence (AI) in battlefield awareness market research report is one of a series of new reports that provides artificial intelligence (AI) in battlefield awareness market statistics, including artificial intelligence (AI) in battlefield awareness industry global market size, regional shares, competitors with a artificial intelligence (AI) in battlefield awareness market share, detailed artificial intelligence (AI) in battlefield awareness market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in battlefield awareness industry. The artificial intelligence (AI) in battlefield awareness market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Artificial intelligence (AI) in battlefield awareness refers to the application of AI technologies to enhance situational understanding and decision-making during military operations. It processes and analyzes complex data streams in real time to deliver actionable insights, enabling faster, more accurate responses and improving overall operational effectiveness. A key advantage of this technology is its ability to anticipate dynamic threats and adapt to changing battlefield conditions, thereby maintaining a strategic edge.

The primary components of AI in battlefield awareness include software, hardware, and services. Software comprises AI-driven programs and algorithms that collect, process, and interpret battlefield data to support real-time decision-making. Deployment modes include on-premises and cloud-based solutions, operating across multiple platforms such as land, air, naval, and space. Applications encompass surveillance and reconnaissance, target recognition, threat detection, decision support, data fusion, and others. These systems are used by various end-users, including defense organizations, homeland security agencies, intelligence services, and related sectors.

The countries covered in the artificial intelligence (ai) in battlefield awareness market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI) in the battlefield awareness market consists of revenues earned by entities by providing services such as training and simulation services, system integration services, maintenance and support services, consulting services, data analytics services, cybersecurity services, and cloud management services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in the battlefield awareness market also includes sales of sensors, radars, unmanned aerial vehicles, communication systems, surveillance cameras, satellites, armored vehicles, and wearable devices. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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