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AI & Analytics in Military & Defense Market Trends

Report ID: GMI12260
Published Date: Nov 2024
Report Format: PDF

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AI & Analytics in Military & Defense Market Trends

AI-driven training and simulation technologies in defense are experiencing significant growth due to demand for cost-effective and immersive solutions. Advanced virtual and mixed-reality environments enable realistic simulations for complex military scenarios without live exercises. AI personalizes training based on individual performance, while machine learning algorithms provide real-time feedback and adapt to evolving combat tactics. As defense budgets prioritize efficiency and readiness, these AI-powered systems are becoming essential for modernizing military training programs, offering comprehensive and tailored learning experience. For instance, in June 2024, a German consortium unveiled the initial AI infrastructure for the Future Combat Air System (FCAS) program, just nine months after receiving the contract from the German armament procurement agency. The consortium includes Helsing, IBM Deutschland, and Schonhofer Sales and Engineering, a subsidiary of Rohde & Schwarz.

Authors: Suraj Gujar, Partha Paul

Frequently Asked Questions (FAQ) :

The global market size for AI & analytics in military & defense was valued at USD 10.4 billion in 2024 and is expected to reach USD 35.8 billion by 2034, driven by a CAGR of 13.4% from 2025 to 2034.

The information processing segment dominated the global market with a revenue of USD 2.2 billion in 2024, driven by the increasing use of AI-powered real-time data analytics.

The North America market held a 37.7% share in 2024, driven by the integration of AI into autonomous systems such as UAVs, ground robots, and ships.

Major players in the industry include Avathon, BAE Systems, CACI International, Charles River Analytics, IBM, L3Harris Technologies, Leonardo, Lockheed Martin, Northrop Grumman, and Nvidia.