Designed to make market research more actionable and strategically valuable, The Business Research Company’s 2026 market reports feature market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights.
Artificial Intelligence And Analytics In Defence Market Forecast 2026–2030: Size, Value And Compound Annual Growth Rate
The artificial intelligence and analytics in defence market size has seen rapid expansion over recent years. The market is anticipated to increase from $12.22 billion in 2025 to $13.95 billion in 2026, achieving a compound annual growth rate (CAGR) of 14.2%. This historical growth can be attributed to the uptake of predictive analytics for threat detection, the incorporation of machine learning into surveillance operations, the rollout of autonomous defense systems, capital invested in data analytics infrastructure, and the application of AI for logistics optimization.
The artificial intelligence and analytics in defence market is projected to undergo significant expansion in the upcoming years, with its size expected to reach $23.49 billion in 2030, growing at a compound annual growth rate (CAGR) of 13.9%. This anticipated growth is driven by factors such as the proliferation of edge computing-enabled AI solutions, the incorporation of real-time mission analytics, the increased use of AI-driven threat intelligence services, the rise in AI-assisted system integration services, and the development of advanced sensor arrays for predictive operations. Major trends throughout the forecast period include the expansion of predictive analytics for enhancing mission readiness, the growing adoption of autonomous decision-support tools, an increase in AI-driven surveillance and threat identification, the implementation of logistics optimization utilizing real-time analytics, and the integration of multi-domain data to improve situational awareness.
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Artificial Intelligence And Analytics In Defence Market Growth Engine: The Factor Boosting Demand Globally
The expanding deployment of unmanned systems is anticipated to drive the growth of artificial intelligence and analytics within the defense market moving forward. Unmanned systems are defined as vehicles or machinery that function without a human operator physically present, capable of autonomous operation through onboard sensors and artificial intelligence, or subject to remote control. Their increasing adoption stems from their ability to perform in hazardous or hard-to-reach locations, thereby allowing tasks to be accomplished securely and effectively without jeopardizing human lives. In the defense sector, artificial intelligence and analytics support unmanned systems by facilitating independent decision-making, improving real-time data analysis, and boosting mission effectiveness and precision in challenging or dangerous settings. As an illustration, a UK government report from June 2025 detailed a UK-based government department’s declaration of a landmark $460 million (£350 million) investment aimed at enhancing drone deliveries to Ukraine, raising the objective from 10,000 units in 2024 to 100,000 units by 2025. Consequently, the expanding deployment of unmanned systems is propelling the expansion of artificial intelligence and analytics in the defense market.
Which Categories And Subcategories Shape The Artificial Intelligence And Analytics In Defence Market?
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
Artificial Intelligence And Analytics In Defence Market Trend Insights: Strategic Focus Areas Of Leading Companies
Leading companies active in artificial intelligence and analytics defense markets are concentrating on innovation and integration, specifically multi-source intelligence, to heighten situational understanding, facilitate real-time decision-making, and deliver extensive, actionable insights across various defense operations. Multi-source intelligence describes the process of gathering, analyzing, and consolidating information from diverse origins to offer a comprehensive grasp of situations and assist decision-making within defense and security domains. For example, in February 2025, EDGE Group PJSC, a UAE-based technology firm, introduced an advanced AI-powered geospatial intelligence platform at IDEX 2025. This platform is engineered to improve situational awareness and decision-making through the incorporation of sophisticated analytics, real-time data processing, and AI capabilities, thereby providing actionable insights and supporting defense and security operations with high-precision intelligence, while also affirming EDGE’s dedication to innovation and technological leadership in the defense sector. This initiative seeks to reinforce defense capabilities by supplying faster, more accurate intelligence, enhancing operational efficiency, and enabling informed, strategic decision-making in intricate and evolving settings.
Leading Organizations In The Artificial Intelligence And Analytics In Defence Market
Major companies operating in the artificial intelligence and analytics in defence market are 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, BAE Systems PLC, Hewlett Packard Enterprise Company, Thales S.A., Leidos Holding Inc., Booz Allen Hamilton Holding Corporation, Rheinmetall Aktiengesellschaft, Palantir Technologies Inc., Shield AI Inc., BigBear.ai Holdings Inc., Charles River Analytics Inc., HawkEye 360 Inc., Faculty Science Limited, Avathon Inc.
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Artificial Intelligence And Analytics In Defence Market Regional Spotlight: Top Geography And Report Coverage
North America was the largest region in the artificial intelligence and analytics in defence market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence and analytics in defence market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
