Artificial Intelligence In Defense And Security Market Size, Share, Competitive Landscape and Trend Analysis Report
The Business Research Company
The Business Research Company’s Artificial Intelligence In Defense And Security Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 27, 2025 /EINPresswire.com/ -- How Large Will The Artificial Intelligence In Defense And Security Market Be By 2025?
The size of the artificial intelligence market in defense and security has seen a swift expansion in the recent years. It is expected to escalate from $12.53 billion in 2024 to $14.15 billion in 2025, marking a compound annual growth rate (CAGR) of 12.9%. The historic period's expansion can be linked to factors such as higher usage of unmanned systems, an amplified reliance on AI for national defense and security operations, an increased necessity for real-time threat detection, escalating defense budgets, and the expanding development of autonomous weaponry.
The market size for artificial intelligence in defense and security is anticipated to experience a surge in the upcoming years, reaching $22.75 billion in 2029 with a compound annual growth rate (CAGR) of 12.6%. The projected growth in the forthcoming period is a result of the mounting demand for AI-driven surveillance, the development of military robotics, an increasing need for prospective threat analysis, a surge in cybersecurity investments, and a rise in requests for cloud-based applications. Noteworthy advancements in the forecast timeline will be refinements in AI technologies and algorithms, the incorporation of multi-domain actions and network-focused warfare, autonomous and unmanned defense system development, technological advancements in C4ISR and battlefield management, as well as progress in sensor networks and data analytics.
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What Are The Major Driving Forces Influencing The Artificial Intelligence In Defense And Security Market Landscape?
The growth of the artificial intelligence in defense and security market is anticipated to be driven by escalating defense budgets. The definition of defense budgets encompasses the financial resources set aside by a government for defense-related operations, personnel, facilities, and activities. Rising geopolitical unrest necessitates countries to reinforce their military prowess and safeguard their national security, leading to an elevation in defense budgets. The augmentation in defense budgets contributes to the progress of artificial intelligence in defense and security, as it allocates capital for AI research, development, and application in spheres including surveillance, autonomous systems, and threat identification. For instance, data from the Stockholm International Peace Research Institute (SIPRI) in April 2024 shows that the global military expenditure in 2023 was $2,443 billion, a 6.8% increase from 2022. Consequently, the growth of the artificial intelligence in the defense and security market is projected to be accelerated by increasing defense budgets.
Who Are The Top Players In The Artificial Intelligence In Defense And Security Market?
Major players in the Artificial Intelligence In Defense And Security Global Market Report 2025 include:
• 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
What Are The Main Trends, Positively Impacting The Growth Of Artificial Intelligence In Defense And Security Market?
Leading organizations in the market for artificial intelligence in defense and security are zeroing in on the creation of sophisticated solutions, including automated AI engines, to bolster decision-making speed, operational effectiveness, and the capacity to identify threats in defense systems. An automated AI engine is a system capable of self-learning, which can independently process considerable amounts of data, recognize patterns, and make immediate decisions or forecasts without continuous human input. For example, Tidal Cyber Inc., a cybersecurity firm based in the United States, introduced a NARC (natural attack reading and comprehension) in November 2025 with the aim of enhancing threat intelligence through the automation of cyberattack data analysis and comprehension. This tool auto-converts unstructured cyber threat information into structured, actionable insights by identifying adversaries' actions and aligning them with the MITRE ATT&CK framework. This automation quickens threat analysis, minimizes manual work, and cultivates a comprehensive, interlinked threat intelligence repository. This is engineered to equip security teams with rapid, precise insights for improving detection, incident management, and active cyber defense.
Market Share And Forecast By Segment In The Global Artificial Intelligence In Defense And Security Market
The artificial intelligence in defense and security market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Technology: Machine Learning, Computer Vision, Natural Language Processing, Other Technologies
3) By Training And Simulation Solutions: Virtual Reality (Vr) And Augmented Reality (Ar) Training Modules, Adaptive Learning Technologies, Simulation-Based Training Environments, AI-Driven Decision Making Simulations, Multinational Training Exercises
4) By Application: Surveillance And Monitoring, Threat Detection And Prevention, Cybersecurity, Autonomous Systems, Intelligence And Analysis, Other Applications
Subsegments:
1) By Hardware: Processors And Chips, Sensors And Cameras, Data Storage Devices
2) By Software: Data Analytics Tools, Machine Learning Algorithms, Computer Vision Software
3) By Services: System Integration And Deployment, Training And Simulation Services, Consulting And Advisory Services
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Artificial Intelligence In Defense And Security Market Regional Insights
For the year identified, North America led in terms of size in the Artificial Intelligence in Defense and Security Global Market Report 2025, with a projected growth status. The report encompasses coverage of regions such as Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East and Africa.
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