Artificial Intelligence And Analytics In Defence Market Trends 2025-2029: Regional Outlook and Sizing Analysis
The Business Research Company
The Business Research Company’s Artificial Intelligence And Analytics In Defence Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 27, 2025 /EINPresswire.com/ -- Artificial Intelligence And Analytics In Defence Market Growth Forecast: What To Expect By 2025?
In recent times, there has been a quick expansion in the market size of artificial intelligence and analytics in defense. The market, which is anticipated to rise from $10.68 billion in 2024 to $12.22 billion in 2025, is projected to experience a compound annual growth rate (CAGR) of 14.4%. The growth witnessed during the historical period is largely due to the growing adoption of autonomous systems, escalating demand for real-time data analytics, an increased emphasis on enhanced situational awareness, the rising requirement for efficient decision-making systems, and the expanding integration of machine learning and neural networks.
The market size for artificial intelligence and analytics in defense is projected to experience significant expansion in the forthcoming years, expecting to reach $20.64 billion in 2029 with a compound annual growth rate (CAGR) of 14.0%. The anticipated growth can be linked to factors such as ongoing defense modernization projects, increased demand for independent and intelligent defense systems, a surge in the use of AI-based data analytics in threat identification, a heightened focus on cybersecurity and informational dominance, and an increase in partnerships between defense organizations and providers of AI technology. Key trends expected during the projection period include progress in autonomous defense systems, advanced data analytics for real-time judgement, development in predictive maintenance solutions, incorporation of multi-source intelligence platforms, and advancements in decision support and mission planning tools.
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What Are Key Factors Driving The Demand In The Global Artificial Intelligence And Analytics In Defence Market?
The rise in utilization of unmanned systems is predicted to fuel the expansion of artificial intelligence and analytics in the defense sector. Unmanned systems are vehicles or machinery that function independently without requiring a human operator on board and can either use onboard sensors and artificial intelligence to function autonomously or be operated remotely. The popularity of these systems is growing as they can function in hazardous or inaccessible scenarios, permitting tasks to be executed securely and effectively without endangering human lives. Embedded in defense, artificial intelligence and analytics enhance unmanned systems by facilitating autonomous decision-making, boosting real-time data processing, and escalating mission effectiveness and precision in intricate or dangerous settings. For example, in June 2025, as reported by the UK government, a UK government department declared a remarkable investment of $460 million (£350 million) to amplify the drone deliveries to Ukraine, increasing the aim from 10,000 in 2024 to 100,000 in 2025. As such, the escalating utilization of unmanned systems is pushing the growth of artificial intelligence and analytics in the defense sector.
Who Are The Leading Players In The Artificial Intelligence And Analytics In Defence Market?
Major players in the Artificial Intelligence And Analytics In Defence Global Market Report 2025 include:
• Google LLC
• Microsoft Corporation
• Siemens AG
• RTX Corporation
• Lockheed Martin Corporation
• International Business Machines Corporation
• Oracle Corporation
• General Dynamics Corporation
• Northrop Grumman Corporation
• SAP SE
What Are The Key Trends Shaping The Artificial Intelligence And Analytics In Defence Industry?
Prime companies in the artificial intelligence and analytics defense markets are prioritizing integration and innovation, including multi-source intelligence, to augment situational comprehension, facilitate instantaneous decision-making, and offer comprehensive, actionable knowledge throughout defense operations. The concept of multi-source intelligence encompasses the gathering, analyzing, and integration of data from varied sources to present a thorough comprehension of situations and to aid decision-making in defense and security. For example, in February 2025, EDGE Group PJSC, a technology corporation based in the UAE, introduced a cutting-edge AI-powered geospatial intelligence platform at IDEX 2025. The platform, designed to boost situational awareness and decision-making, assimilates advanced analytics, real-time data processing, and AI capabilities to offer actionable input and support defense and security operations with high-accuracy intelligence. This fortifies EDGE’s dedication to innovation and technological supremacy in the defense sphere. This introduction aspires to enhance defense aptitudes by offering swifter, more precise intelligence, boosting operational efficiency, and enabling informed, strategic decision-making in complex and dynamic settings.
Analysis Of Major Segments Driving The Artificial Intelligence And Analytics In Defence Market Growth
The artificial intelligence and analytics in defence market covered in this report is segmented –
1) By Offering: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Language Processing, Robotics, Data Analytics
3) By Deployment: Cloud-based, On-premises, Hybrid
4) By Application: Surveillance, Cybersecurity, Combat Operations, Training And Simulation, Logistics And Supply Chain Management
5) By End User: Defense Forces, Government Agencies, Private Contractors
Subsegments:
1) By Hardware: Sensors, Processors, Communication Devices, Storage Devices, Robotics
2) By Software: Command And Control Systems, Simulation And Training Software, Data Analytics Platforms, Cybersecurity Software, Mission Planning Software
3) By Services: Consulting Services, Integration Services, Maintenance And Support, Training And Education, Cloud And Managed Services
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Which Region Is Expected To Lead The Artificial Intelligence And Analytics In Defence Market By 2025?
In the 2024 annual report on Artificial Intelligence and Analytics in Defence, North America dominated as the largest region globally. It is projected, however, that the fastest-growing region in the subsequent year will be Asia-Pacific. Other regions analyzed in the report include Western Europe, Eastern Europe, South America, the Middle East, and Africa.
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