The global AI in defense market size was US$ 7.9 billion in 2021. The global AI in the defense market is forecast to grow to US$ 15.1 billion by 2030, registering a compound annual growth rate (CAGR) of 11.9% during the forecast period from 2022 to 2030.
Factors Influencing the Market
The global AI in defense market is being driven by the expansion of big data analytics and the increased adoption of cloud services in the defense sector.
The increasing deployment of machine learning is forecast to benefit the overall AI in defense market.
The increasing defense budget in various countries and favorable government initiatives will boost the growth of the overall AI in defense industry.
The shortage of skilled workers may limit the growth of the AI in defense market. On the contrary, increasing number of innovations in the industry will boost the market growth in the coming years.
Many governments have created particular departments or agencies to test new AI capabilities and implement them into current technology. The National Science and Technology Council in the United States, the Strategic Council for AI Technologies in Japan, and the AI Council in the United Kingdom are examples of such organizations. Thus, it will fuel the growth of AI in defense market during the forecast period.
COVID-19 Impact Analysis
The global market value for AI in defense is predicted to decline slightly as a result of the COVID-19 pandemic. Due to the COVID-19 pandemic, the focus from defense industry slightly shifted. Governments were concentrated and dedicated a large sum of money to healthcare institutions due to this health emergency. Thus, the global AI in defense market witnessed a significant downfall due to the pandemic.
Regional Analysis
North America is forecast to hold the largest share in the global AI in defense market. Meanwhile, Europe and Asia-Pacific are forecast to hold the second and the third-largest share in the market. The growth of North America is attributed to the rising focus of governments towards strengthening the defense segment. In addition, the increasing penetration of AI across all verticals will offer ample growth opportunities for the market.
Competitors in the Market
Market Segmentation
The global AI in defense market segmentation focuses on Offering, Platform, Application, and Region.
The AI in defense market has been segmented on the basis of offering –
The AI in defense market has been segmented on the basis of the platform –
The AI in defense market has been segmented on the basis of application –
The AI in defense market has been segmented on the basis of region-