PUBLISHER: The Business Research Company | PRODUCT CODE: 2133549
PUBLISHER: The Business Research Company | PRODUCT CODE: 2133549
Artificial intelligence in defense and security refers to the application of intelligent systems and algorithms to enhance military and homeland security capabilities. It supports autonomous operations, real-time threat assessment, and enhanced situational awareness, enabling faster and more precise decision-making.
The key components of artificial intelligence in defense and security are hardware, software, and services. Hardware encompasses the physical elements and devices that support AI systems, including sensors, processors, servers, and communication equipment. The technologies used include machine learning, computer vision, natural language processing, and others, which are applied across training and simulation solutions, including virtual reality (VR) and augmented reality (AR) training modules, adaptive learning technologies, simulation-based training environments, AI-driven decision-making simulations, and multinational training exercises. Its applications include surveillance and monitoring, threat detection and prevention, cybersecurity, autonomous systems, intelligence and analysis, and others.
Tariffs on semiconductor components, sensors, storage devices, and communication hardware have increased production costs across AI-enabled defense and security systems, particularly affecting hardware-intensive segments in North America, Europe, and Asia-Pacific. Supply chain delays caused by tariffs have slowed deployment timelines for surveillance platforms and autonomous security systems. However, tariffs have also encouraged domestic sourcing, stimulated investment in local semiconductor ecosystems, and strengthened regional manufacturing resilience, creating long-term strategic advantages for defense suppliers.
The artificial intelligence in defense and security market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence in defense and security market statistics, including artificial intelligence in defense and security industry global market size, regional shares, competitors with a artificial intelligence in defense and security market share, detailed artificial intelligence in defense and security market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence in defense and security industry. This artificial intelligence in defense and security market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The artificial intelligence in defense and security market size has grown rapidly in recent years. It will grow from $14.22 billion in 2025 to $16.07 billion in 2026 at a compound annual growth rate (CAGR) of 13.0%. The growth in the historic period can be attributed to the implementation of autonomous weapon systems, the use of AI-powered command and control systems, the adoption of predictive maintenance solutions, the deployment of facial and biometric recognition systems, and investments in mission planning support services.
The artificial intelligence in defense and security market size is expected to see rapid growth in the next few years. It will grow to $25.75 billion in 2030 at a compound annual growth rate (CAGR) of 12.5%. The growth during the forecast period can be attributed to the expansion of real-time AI threat analysis, integration of autonomous systems across multiple defense domains, growth in AI-assisted logistics and supply chain optimization, adoption of AI-driven simulation and training platforms, and increasing demand for interoperable AI defense networks. Major trends in the forecast period include rising adoption of AI-powered threat detection systems, growth in predictive maintenance for defense assets, expansion of AI-enabled autonomous security platforms, increasing use of AI-driven intelligence and analysis tools, and integration of simulation-based AI training programs.
The rising defense budgets are expected to drive the growth of the artificial intelligence in defense and security market going forward. Defense budgets refer to the financial resources allocated by governments to support military operations, equipment, personnel, and defense-related activities. Defense budgets are increasing as escalating geopolitical tensions encourage nations to strengthen their military capabilities and safeguard national security. Higher defense budgets contribute to the advancement of artificial intelligence in defense and security by providing financial resources for AI research, development, and deployment in areas such as surveillance, autonomous systems, and threat detection. For instance, in April 2024, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based non-government organization, global military spending reached $2,443 billion in 2023, representing a 6.8% increase in real terms compared with 2022. Therefore, rising defense budgets are expected to drive the growth of the artificial intelligence in the defense and security market.
Key companies operating in the artificial intelligence in defense and security market are concentrating on developing advanced solutions, such as automated AI engines, to improve decision-making speed, operational efficiency, and threat detection capabilities within defense systems. An automated AI engine refers to a self-learning system that independently processes large volumes of data, identifies patterns, and makes real-time decisions or predictions without requiring continuous human intervention. For example, in November 2025, Tidal Cyber Inc., a US-based cybersecurity company, launched NARC (natural attack reading and comprehension) to strengthen threat intelligence by automating the analysis and interpretation of cyberattack data. It automatically converts unstructured cyber threat intelligence into structured, actionable knowledge by extracting adversary procedures and mapping them to the MITRE ATT&CK framework. This automation speeds up threat analysis, minimizes manual effort, and develops a comprehensive, interconnected threat intelligence base. Its purpose is to provide security teams with faster and more precise insights to enhance detection, incident response, and proactive cyber defense.
In April 2024, Shield AI Inc., a US-based aerospace and defense technology company, acquired Sentient Vision Systems Pty Ltd. for an undisclosed amount. Through this acquisition, Shield AI Inc. aims to strengthen its AI-powered autonomous systems by incorporating Sentient Vision Systems' advanced wide-area motion imagery technology, thereby expanding its capabilities and market presence in Australia to support allied defense operations. Sentient Vision Systems Pty Ltd. is an Australia-based computer software company that specializes in artificial intelligence solutions for defense and security applications.
Major companies operating in the artificial intelligence in defense and security market are 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, NVIDIA Corporation, Thales Group, Leonardo S.p.A., Leidos Holdings Inc., Palo Alto Networks Inc., Fortinet Inc., Check Point Software Technologies Ltd., Palantir Technologies Inc., Trellix Corporation, RSA Security LLC, Shield AI Inc., Charle's River Analytics Inc.
North America was the largest region in the artificial intelligence in defense and security market in 2025. The regions covered in the artificial intelligence in defense and security market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the artificial intelligence in defense and security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The artificial intelligence in defense and security market consists of revenues earned by entities by providing services such as predictive maintenance, logistics and supply chain optimization, training and simulation, and mission planning support. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in the defense and security market also includes sales of AI-powered command and control systems, autonomous weapon systems, and facial and biometric recognition systems. Values in this market are 'factory gate' values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence In Defense And Security Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses artificial intelligence in defense and security market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence in defense and security ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The artificial intelligence in defense and security market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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