AI in Modern Warfare Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Type of Equipment, by Application : Global Opportunity Analysis and Industry Forecast, 2024-2032

Key Market Dynamics 

The driving factors for AI in modern warfare market analysis includes rise in technological advancements, and increase in need for enhanced decision-making capabilities. AI algorithms can process vast amounts of data rapidly, providing military commanders with actionable insights for strategic and tactical decisions. This capability is crucial in modern combat environments where real-time intelligence can be the difference between success and failure. In addition, the rise of autonomous systems, such as drones and unmanned vehicles, is significantly drives the market growth. Furthermore, AI technologies are essential for both offensive and defensive cyber operations, enabling the detection and mitigation of cyber threats with unprecedented speed and accuracy. The ability of AI to predict and counter cyber-attacks before they cause significant damage is invaluable in protecting national security infrastructure. 

Moreover, the growing threat of cyber warfare necessitates advanced AI solutions to detect, analyze, and respond to cyber threats swiftly. AI enhances cybersecurity measures by identifying vulnerabilities, predicting potential attacks, and automating defensive responses, thereby safeguarding critical military infrastructure which is expected to drive the AI in modern warfare market growth. 

However, the high costs associated with developing and implementing advanced AI technologies can be prohibitive, particularly for smaller nations with limited defense budgets which may restrict the market growth. In addition, the lack of standardized regulations and frameworks for AI deployment in military creates uncertainties and challenges in ensuring interoperability and compliance with international laws which further hinders the market growth. On the other hand, rise in demand for autonomous systems and drones which offer potential for safer, more precise operations, which provides lucrative opportunity to the market growth.  

Parent Market Overview: AI in Modern Warfare Market  

The AI in military market serves as the parent market for AI in the modern warfare market, which is encompassing the development and deployment of artificial intelligence technologies specifically tailored for military applications. In modern warfare, AI technologies derived from the military sector is important to enhance operational capabilities. 

In addition, the autonomous systems such as drones and unmanned vehicles, initially developed for military reconnaissance and surveillance, are pivotal in modern warfare for the ability to operate autonomously or semi-autonomously. Similarly, AI-powered cybersecurity solutions, originally designed to protect military networks and infrastructure, are now essential in defending against cyber threats during military operations. This is projected to drive the AI in modern warfare market growth. 

Market Segmentation 

AI in modern warfare market size is segmented into by type, type of equipment, application and region. On the basis of type, the market is divided into weaponized artificial intelligence, defensive artificial intelligence, offensive artificial intelligence, assisting artificial intelligence and autonomous artificial intelligence. On the basis of type of equipment, the market is segregated into unnamed aerial vehicle, unmanned ground vehicle, combat systems, recovery and maintenance vehicle, reconnaissance and surveillance vehicle and medical evacuation vehicle. On the basis of application, the market is divided into tactical defensive and military offensive. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

By type, the defensive artificial intelligence segment held the highest market share in 2023, owing to increase in cyber threats and the critical need for robust cybersecurity measures. The governments and organizations prioritized investments in AI-driven defense systems to safeguard infrastructure, military assets, and sensitive data against sophisticated and evolving cyber-attacks. However, the autonomous artificial intelligence segment is projected to remain the fastest growing segment during the forecast period, owing to advancements in machine learning, sensor technology, and the strategic advantage of unmanned systems in enhancing operational efficiency, precision, and situational awareness on the battlefield. 

By type of equipment, the unnamed aerial vehicle segment held the highest market share in 2023, owing to its widespread adoption in various military applications, such as reconnaissance, surveillance, and combat operations. However, the unmanned ground vehicle segment is projected to remain the fastest growing segment throughout the forecast period, owing to advancements in autonomous systems, increased adoption in military operations, and the need for enhanced situational awareness and precision in ground-based missions, thereby drives the segment growth. 

By application, the military offensive segment held the highest market share in 2023, due to strategic investments in autonomous weapon systems, target acquisition technologies, and AI-driven tactical decision-making tools, which drives the segment growth. However, the tactical defensive segment is projected to remain the fastest growing segment throughout the forecast period, owing to escalating cyber threats and the critical need for advanced AI-driven cybersecurity solutions. 

Regional/Country Market Outlook 

North America dominated the AI in modern warfare market share in 2023 owing to AI integration, leveraging advanced technologies for command and control, intelligence, and autonomous systems. In addition, stringent regulatory frameworks and high defense budgets support continuous development and deployment of AI-driven solutions, positioning North America at the forefront of modern warfare technologies.  

In contrast, emerging economies in Asia-Pacific and LAMEA are rapidly driven by increasing investments in AI for defense, aiming to enhance national security and technological readiness. Further, growing technological advancements, and expanding defense budgets across key countries such as China, India, and Japan which further support the market growth in this region.  

• In May 2022, Milrem Robotics, a developer of robotics and autonomous systems in Europe, launched its newly developed autonomous Intelligence, Surveillance, and Reconnaissance (ISR) unmanned ground system, named THeMIS Observe. This system will debut during the fourth iMUGS project demonstration in Belgium. 

• According to the Universal Acceptance Steering Group, the 3rd International Conference on Unmanned Aerial System in Geomatics (UASG-2023) held in Universiti Kebangsaan Malaysia, Kuala Lumpur, Malaysia in November 2023. The use of small Unmanned Aerial Vehicles (UAV) as data acquisition platforms and autonomous or semi-autonomous measurement instruments has become attractive for many emerging applications. Thus, the advancements showcased at the UASG-2023, particularly in using UAVs for data acquisition and autonomous measurements which supports the AI in modern warfare market. 

Industry Trends 

• Shield AI acquired Martin UAV in 2021 and introduced the V-BAT, a vertical take-off and landing (VTOL) aircraft. This VTOL capability makes V-BAT highly adaptable for various mission types and terrains. In 2022, Brazil's defense unit placed an order for a batch of V-BATs, showing international interest in Shield AI's innovative solutions 

• In April 2023, according to the Stockholm International Peace Research Institute, a Sweden-based international institute, world military spending increased by 3.7% in 2022, reaching $2,240 billion in real terms. 

• According to the report of Nishith Desai Associates, the U.S. is projected to spend about $17.5 billion on Unmanned Aerial Vehicles (“UAV”) and other drone-based LAWS between 2017 and 2021. Such investments highlight the pivotal role of AI in shaping the future of warfare, driving advancements in both defensive and offensive capabilities across global military landscapes, which is expected to drive the market growth. 

Competitive Landscape 

The major players operating in the monitoring tools market include Microsoft Corporation, Raytheon Technologies Corporation, Boeing Co., Lockheed Martin Corporation, IBM Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A, Textron Inc. and Booz Allen Hamilton Holding Corporation 

Recent Key Strategies and Developments 

• In March 2023, Boeing and Shield AI signed a memorandum of understanding to explore strategic collaboration in the areas of autonomous capabilities and artificial intelligence on current and future defense programs. This agreement, signed at the Air Force Association Warfare Symposium, and will be managed by Boeing Phantom Works.  

• In May 2024, Roboteam, announced that is receive an initial order from the US Marine Corps for over 130 Micro Tactical Ground Robot (MTGR) systems. This purchase is part of a broader acquisition of robots, which will be valued around $30 million. 

Key Sources Referred 

• Brian Seamus Haney 

• Shield AI 

• Universal Acceptance Steering Group 

• Nishith Desai Associates 

• Stockholm International Peace Research Institute 

Key Benefits for Stakeholders 

• This report provides a quantitative analysis of the AI in modern warfare market segments, current trends, estimations, and dynamics of the market analysis to identify the market opportunities. 

• The market research is offered along with information related to key drivers, restraints, and opportunities. 

• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network. 

• In-depth analysis of the monitoring tools market segmentation assists to determine the prevailing market opportunities. 

• Major countries in each region are mapped according to their revenue contribution to the global AI in modern warfare market forecast. 

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. 

• The report includes the analysis of the regional as well as global AI in modern warfare market trends, key players, market segments, application areas, and AI in modern warfare market size growth strategies.