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Artificial Intelligence in Military Research Report 2026: $28.67 Bn Market Opportunities, Trends, Competitive Analysis, Strategies, Forecasts, 2020-2025, 2025-2030F, 2035F

globenewswire.com
DRS Leonardo DRS is highlighted for leveraging sensor fusion and its Artificial Intelligence Processor (AIP) for military applications, indicating positive development and integration in the growing AI in military market. NOC Northrop Grumman is mentioned as a key player in the AI in military market, suggesting its involvement and potential benefit from market growth, but without specific details on its AI initiatives.

Dublin, Jan. 29, 2026 (GLOBE NEWSWIRE) -- The "Artificial Intelligence in Military Market Report 2026" has been added to ResearchAndMarkets.com's offering.

The artificial intelligence (AI) in military market is experiencing substantial growth, poised to expand from $11.53 billion in 2025 to $13.78 billion in 2026, with a CAGR of 19.5%. This growth trajectory is largely driven by the early adoption of autonomous surveillance drones, facial recognition, language translation tools, and AI-enabled command and control systems. The rising use of robotic mine detectors and unmanned ground systems for troop protection further enhances this trend. Additionally, military data generation necessitates advanced AI analytics, prompting increased deployment.

Looking ahead, the market is expected to grow exponentially, reaching $28.67 billion in 2030 at a CAGR of 20.1%. Key contributors to this growth include expanded investments in autonomous weapon systems, edge AI integration in battlefield sensors, demand for AI-driven cybersecurity tools, and the modernization of military platforms. The forecast also highlights the increasing use of AI-enabled training systems to bolster operational readiness. Emerging trends include the deployment of AI-based battlefield decision-support systems, adoption of surveillance platforms, and the rise of AI-driven simulation environments.

Global conflicts are a significant factor propelling market expansion. The escalation of geopolitical tensions and civil unrest drives nations to enhance their military capabilities using AI technologies for faster decision-making and autonomous operations. ACLED reported a doubling of global conflicts over five years, with conflict-related deaths escalating 30% from 2023 to 2024.

Key players in the market, like Leonardo DRS, are leveraging sensor fusion to improve situational awareness and decision-making. Leonardo DRS's Artificial Intelligence Processor (AIP) exemplifies these efforts, providing advanced mission processing capabilities for military vehicles even in extreme environments. This processor is designed to work seamlessly with current and future U.S. Army applications, emphasizing a compact and high-speed computing solution.

Another significant market move was SightLine Applications LLC's acquisition of Athena Artificial Intelligence Pty Ltd in March 2025. This strategic acquisition aims to enhance SightLine's decision-making capabilities by integrating Athena's AI-enabled computer vision and decision support systems.

Several major players like Charles River Analytics, BAE Systems, Northrop Grumman, and others are pivotal in this sector. North America was the largest regional market in 2025, with Asia-Pacific anticipated to be the fastest-growing region during the forecast period.

The market dynamics are influenced by global trade relations and tariffs, particularly affecting the cost of importing advanced chips and sensors. Such challenges, however, have also spurred domestic manufacturing and technological localization in defense sectors.

The comprehensive research report on the AI in the military market provides thorough insights into market size, competitor analysis, and trends, offering a detailed perspective on current and future industry scenarios. Overall, AI plays a crucial role in the military, enhancing decision-making and operational efficiency across various applications, including autonomous vehicles, threat detection, and mission planning.

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Companies Featured

For more information about this report visit https://www.researchandmarkets.com/r/kyee59

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