Artificial Intelligence In Defense And Security Market Global Report 2026

The artificial intelligence in defense and security market size has grown rapidly in recent years. It will grow from $14.22 billion in 2025 to $16.07 billion in 2026 at a compound annual growth rate (CAGR) of 13.0%. The growth in the historic period can be attributed to the implementation of autonomous weapon systems, the use of AI-powered command and control systems, the adoption of predictive maintenance solutions, the deployment of facial and biometric recognition systems, and investments in mission planning support services.

The artificial intelligence in defense and security market size is expected to see rapid growth in the next few years. It will grow to $25.75 billion in 2030 at a compound annual growth rate (CAGR) of 12.5%. The growth during the forecast period can be attributed to the expansion of real-time AI threat analysis, integration of autonomous systems across multiple defense domains, growth in AI-assisted logistics and supply chain optimization, adoption of AI-driven simulation and training platforms, and increasing demand for interoperable AI defense networks. Major trends in the forecast period include rising adoption of AI-powered threat detection systems, growth in predictive maintenance for defense assets, expansion of AI-enabled autonomous security platforms, increasing use of AI-driven intelligence and analysis tools, and integration of simulation-based AI training programs.

The rising defense budgets are expected to drive the growth of the artificial intelligence in defense and security market going forward. Defense budgets refer to the financial resources allocated by governments to support military operations, equipment, personnel, and defense-related activities. Defense budgets are increasing as escalating geopolitical tensions encourage nations to strengthen their military capabilities and safeguard national security. Higher defense budgets contribute to the advancement of artificial intelligence in defense and security by providing financial resources for AI research, development, and deployment in areas such as surveillance, autonomous systems, and threat detection. For instance, in April 2024, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based non-government organization, global military spending reached $2.44 trillion in 2023, representing a 6.8% increase in real terms compared with 2022. Therefore, rising defense budgets are expected to drive the growth of the artificial intelligence in the defense and security market.

Key companies operating in the artificial intelligence in defense and security market are concentrating on developing advanced solutions, such as automated AI engines, to improve decision-making speed, operational efficiency, and threat detection capabilities within defense systems. An automated AI engine refers to a self-learning system that independently processes large volumes of data, identifies patterns, and makes real-time decisions or predictions without requiring continuous human intervention. For example, in November 2025, Tidal Cyber Inc., a US-based cybersecurity company, launched NARC (natural attack reading and comprehension) to strengthen threat intelligence by automating the analysis and interpretation of cyberattack data. It automatically converts unstructured cyber threat intelligence into structured, actionable knowledge by extracting adversary procedures and mapping them to the MITRE ATT&CK framework. This automation speeds up threat analysis, minimizes manual effort, and develops a comprehensive, interconnected threat intelligence base. Its purpose is to provide security teams with faster and more precise insights to enhance detection, incident response, and proactive cyber defense.

In April 2024, Shield AI Inc., a US-based aerospace and defense technology company, acquired Sentient Vision Systems Pty Ltd. for an undisclosed amount. Through this acquisition, Shield AI Inc. aims to strengthen its AI-powered autonomous systems by incorporating Sentient Vision Systems’ advanced wide-area motion imagery technology, thereby expanding its capabilities and market presence in Australia to support allied defense operations. Sentient Vision Systems Pty Ltd. is an Australia-based computer software company that specializes in artificial intelligence solutions for defense and security applications.

Major companies operating in the artificial intelligence in defense and security market are Microsoft Corporation, L3Harris Technologies Inc., RTX Corporation, Lockheed Martin Corporation, IBM Corporation, Cisco Systems Inc., General Dynamics Corporation, Northrop Grumman Corporation, Broadcom Inc., BAE Systems Plc, NVIDIA Corporation, Thales Group, Leonardo S.p.A., Leidos Holdings Inc., Palo Alto Networks Inc., Fortinet Inc., Check Point Software Technologies Ltd., Palantir Technologies Inc., Trellix Corporation, RSA Security LLC, Shield AI Inc., Charle's River Analytics Inc.

North America was the largest region in the artificial intelligence in defense and security market in 2025. The regions covered in the artificial intelligence in defense and security market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial intelligence in defense and security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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