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    US AI in Military Market

    ID: MRFR/A&D/14471-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US AI in Military Market Research Report: By Application (Surveillance, Logistics, Cybersecurity, Robotics, Data Analysis), By Technology (Machine Learning, Natural Language Processing, Computer Vision, Expert Systems, Robotic Process Automation), By End User (Defense Forces, Intelligence Agencies, Military Contractors, Research Organizations, Government) and By Solution Type (Software, Hardware, Services) - Forecast to 2035

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    Table of Contents

    US AI in Military Market Summary

    The United States AI in Military market is projected to grow from 3.5 USD Billion in 2024 to 10.5 USD Billion by 2035.

    Key Market Trends & Highlights

    US AI in Military Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 10.5% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 10.5 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 3.5 USD Billion, reflecting the increasing investment in AI technologies for military applications.
    • Growing adoption of AI technologies due to enhanced operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.5 (USD Billion)
    2035 Market Size 10.5 (USD Billion)
    CAGR (2025-2035) 10.5%

    Major Players

    Raytheon Technologies, Palantir Technologies, Boeing, Lockheed Martin, General Dynamics, Thales Group, Leidos, SAIC, Textron, IBM, Amazon Web Services, Microsoft, Google, Northrop Grumman, Hewlett Packard Enterprise

    US AI in Military Market Trends

    The US AI in Military Market is undergoing significant transformation driven by advancements in technology and the growing recognition of artificial intelligence’s potential to enhance military capabilities. The integration of AI technologies in defense applications, such as predictive maintenance, autonomous systems, and data analysis, is emerging as a critical priority for the US Department of Defense (DoD). The need for improved operational efficiency and increased effectiveness in military operations is propelling investment in AI solutions.

    This focus on modernization is fueled by heightened geopolitical tensions, prompting the US government to explore innovative methodologies to maintain national security and strategic advantage.In recent times, fostering collaboration between the military and private sectors has become increasingly evident, creating an environment ripe for innovation. The DoD is actively seeking partnerships with tech companies to accelerate the development and deployment of AI technologies. This collaboration opens avenues for startups and established firms to contribute to defense initiatives, leading to a diverse range of AI applications within military operations.

    Moreover, the growing interest in ethical considerations regarding the use of AI in warfare presents both challenges and opportunities. Addressing these concerns is vital for the implementation of AI systems, ensuring compliance with legal and moral standards.The emphasis on responsible AI use fosters public trust and supports broader acceptance of AI technologies in military contexts. Overall, the evolving landscape of the US AI in Military Market is characterized by a blend of technological innovation, strategic partnerships, and ethical considerations that drive its growth and shape its future direction.

    US AI in Military Market Drivers

    Market Segment Insights

    AI in Military Market Application Insights

    AI in Military Market Application Insights

    The US AI in Military Market is a growing field that encompasses various applications instrumental to enhancing national defense capabilities. As the demand for advanced military technology continues to rise, the application segment of this market has emerged as a focal point for innovation and investment. Among the numerous applications, Surveillance holds significant importance, as the integration of AI has revolutionized the way military operations conduct reconnaissance and gather intelligence. AI-powered surveillance systems enhance real-time decision-making, allowing military personnel to respond quickly and effectively to emerging threats.

    Logistics plays a crucial role in operational efficiency, with AI streamlining supply chain management and maintenance processes, thereby improving resource allocation and reducing downtime. Cybersecurity in the military context is increasingly paramount, with sophisticated AI algorithms capable of detecting and mitigating cyber threats in real time, helping to secure critical data and infrastructure. Furthermore, Robotics within the military sector is expanding substantially, with advancements in AI-driven unmanned systems improving operational effectiveness in reconnaissance, combat, and logistics support.

    Data Analysis is equally vital, as AI enables the systematic examination of vast amounts of military data, providing actionable insights that enhance strategic planning and operational execution. The interconnectivity of these applications not only drives technological advancements but also presents ongoing challenges such as the need for ethical guidelines and safeguarding against potential vulnerabilities. Overall, the segmentation into these applications highlights the distinct roles that AI will continue to play in shaping the future of military operations in the United States.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    AI in Military Market Technology Insights

    AI in Military Market Technology Insights

    The Technology segment of the US AI in Military Market showcases a robust framework that supports advanced applications critical to national defense and security. Machine Learning stands out for its ability to analyze vast datasets, making it essential for identifying patterns and enhancing predictive capabilities, while Natural Language Processing plays a pivotal role in optimizing communication and intelligence gathering through the analysis of unstructured data.

    Computer Vision contributes significantly to surveillance and reconnaissance operations, enabling real-time image and video analysis for strategic decision making.Expert Systems are valued for their capability to simulate human reasoning, assisting military personnel in various decision-making processes. Robotic Process Automation also emerges as a vital element, streamlining repetitive tasks and allowing human operators to focus on more complex operations. These diversified technologies collectively enhance efficiency and operational effectiveness, providing the US military with the tools needed to maintain tactical superiority and adapt to evolving challenges in defense strategies.

    Furthermore, ongoing investments and policy support from the government reinforce these technologies' importance, driving continued innovation and implementation in military applications.

    AI in Military Market End User Insights

    AI in Military Market End User Insights

    The End User segment of the US AI in Military Market encompasses various critical entities, including Defense Forces, Intelligence Agencies, Military Contractors, Research Organizations, and Government bodies. These organizations play a pivotal role in the development and integration of artificial intelligence technologies to enhance operational efficiency and decision-making processes. Defense Forces increasingly leverage AI for mission planning, surveillance, and autonomous systems, adapting their strategies to stay ahead of potential threats.Intelligence Agencies utilize AI to process vast amounts of data, improving analytical capabilities and risk assessments, thus making intelligence operations more effective.

    Military Contractors focus on innovation and providing advanced AI solutions, driving technological advancements and competitiveness in the defense sector. Research Organizations are integral in exploring new applications of AI, collaborating with military entities to foster advancements in weaponry and defense strategies. Lastly, Government bodies oversee regulatory frameworks and funding initiatives, facilitating the growth and ethical implementation of AI technologies in defense.Collectively, these entities reflect the numerous opportunities and challenges facing the US AI in Military Market, positioning themselves for significant growth and influence in the years ahead.

    AI in Military Market Solution Type Insights

    AI in Military Market Solution Type Insights

    The US AI in Military Market showcases a strong segmentation in the Solution Type, which includes Software, Hardware, and Services, each playing a vital role in enhancing military operations. Software solutions focus on data analytics and decision support systems, empowering military leaders with timely and accurate information. Hardware includes advanced sensors and robotic systems that improve operational effectiveness and battlefield capabilities. Services, which encompass Training and Development alongside Integration services, are significant in ensuring effective AI deployment across various military platforms.The integration of AI technologies within these segments has led to increased efficiency and effectiveness in combat and support operations.

    The influence of rising geopolitical tensions and the need for transformative technology have propelled demand across all categories. Collectively, they drive the market growth, catering to the growing sophistication of military environments. This segmentation reflects the broader trend towards modernization and smart military systems in the evolving defense sector, as the US continues to invest in cutting-edge technology for strategic advantages.The opportunities presented by AI innovations promise to reshape military strategies, making each segment intrinsic to the future of defense operations.

    Get more detailed insights about US AI in Military Market

    Regional Insights

    Key Players and Competitive Insights

    The US AI in Military Market is characterized by a rapidly evolving technological landscape, with numerous players vying for dominance by leveraging advanced artificial intelligence capabilities to gain strategic advantages. This market has witnessed a surge in investment aimed at integrating AI into defense systems, enhancing tactical decision-making, and improving operational effectiveness. The focus has been on automation, data analytics, machine learning, and predictive modeling to facilitate better resource allocation, threat assessment, and mission planning.

    As military needs continue to grow in complexity, companies that stay ahead of technological advancements and showcase innovation in AI applications will experience robust demand and competitive positioning. An increasing emphasis on collaboration between defense contractors and tech firms has also emerged, emphasizing the importance of partnerships in achieving comprehensive AI solutions tailored for military use.Raytheon Technologies stands out in the US AI in Military Market with its broad portfolio of capabilities focusing on defense and aerospace. The company leverages its extensive resources and expertise to develop advanced AI-driven systems that significantly enhance military operations.

    Raytheon Technologies boasts strengths such as its deep integration of AI into existing defense platforms and its ability to provide end-to-end solutions ranging from surveillance to missile defense. Their advancements in machine learning and data analytics have enhanced real-time decision-making and operational efficiency for military clients. The company maintains a strong market presence, supported by substantial investments in research and development, customer partnerships, and a commitment to driving innovation in defense technologies unique to the US.Palantir Technologies has made significant strides within the US AI in Military Market as a leading data analytics firm specializing in AI solutions for defense.

    The company's key products and services focus on data integration, operational intelligence, and situational awareness, providing military operators with powerful tools to analyze vast datasets efficiently. Palantir's software platforms are designed to facilitate collaboration among military personnel while optimizing data-driven decision-making and operational outcomes. Its notable strengths include the flexibility of its platforms to adapt to various military applications and its commitment to ensuring the security and integrity of sensitive information. The company has solidified its market presence through strategic partnerships and collaborations with defense agencies, enhancing its footprint.

    In addition, Palantir has pursued key mergers and acquisitions to bolster its technological capabilities and further penetrate the US defense market, showcasing its ambition to lead in AI-driven transformation for military applications.

    Key Companies in the US AI in Military Market market include

    Industry Developments

    The US AI in Military Market has witnessed significant recent developments, reflecting a strategic push toward integrating advanced technologies in defense operations. For instance, Raytheon Technologies and Northrop Grumman have announced increases in their investments to enhance their AI capabilities, responding to growing defense demands. In October 2023, Lockheed Martin revealed a new AI-driven system aimed at improving combat readiness and decision-making efficiency. Additionally, Boeing's and General Dynamics's collaborations with government agencies are expanding the use of AI for supply chain optimization and logistics in military operations.

    In terms of mergers and acquisitions, October 2023 saw Leidos finalize its acquisition of a smaller AI-focused firm to bolster its capabilities in military data analytics, enhancing its position in the market. The AI in Military sector is experiencing growth, with companies like Palantir Technologies and IBM also reporting substantial increases in contracts, reinforcing the importance of AI in national security strategies. The US Department of Defense continues to prioritize funding for AI integration, signaling a robust focus on maintaining technological superiority. Recent significant developments underscore the urgency for military modernization and adaptation in the face of evolving global threats.

    Market Segmentation

    Outlook

    • Software
    • Hardware
    • Services

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 2.77(USD Billion)
    MARKET SIZE 2024 3.5(USD Billion)
    MARKET SIZE 2035 10.5(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 10.503% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Raytheon Technologies, Palantir Technologies, Boeing, Lockheed Martin, General Dynamics, Thales Group, Leidos, SAIC, Textron, IBM, Amazon Web Services, Microsoft, Google, Northrop Grumman, Hewlett Packard Enterprise
    SEGMENTS COVERED Application, Technology, End User, Solution Type
    KEY MARKET OPPORTUNITIES Autonomous vehicle development, AI-driven surveillance systems, Cybersecurity enhancement solutions, Predictive maintenance technologies, Training simulation tools for personnel
    KEY MARKET DYNAMICS Technological advancements, Increased defense budgets, Rising cybersecurity threats, Enhanced data analytics, Focus on autonomous systems
    COUNTRIES COVERED US

    Market Highlights

    Author
    Garvit Vyas
    Analyst

    Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

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    FAQs

    What is the projected market size of the US AI in Military Market by 2035?

    The US AI in Military Market is expected to reach a market size of 10.5 billion USD by 2035.

    What is the expected compound annual growth rate (CAGR) for the US AI in Military Market during the forecast period?

    The US AI in Military Market is anticipated to have a CAGR of 10.503% from 2025 to 2035.

    What were the market values for Surveillance applications in the US AI in Military Market in 2024 and 2035?

    The Surveillance application is valued at 0.933 billion USD in 2024 and projected to grow to 2.8 billion USD by 2035.

    Which segment of the US AI in Military Market is anticipated to grow the most in terms of market value by 2035?

    The Logistics segment is expected to grow from 0.622 billion USD in 2024 to 1.867 billion USD by 2035.

    Who are the major players in the US AI in Military Market?

    Key players in the US AI in Military Market include Raytheon Technologies, Palantir Technologies, Boeing, and Lockheed Martin.

    How significant is the Cybersecurity application within the US AI in Military Market by 2035?

    The Cybersecurity application is projected to reach 1.633 billion USD in value by 2035.

    What was the market value for Robotics applications in the US AI in Military Market in 2024?

    The Robotics application is valued at 0.7 billion USD in 2024.

    What are the growth drivers for the US AI in Military Market from 2025 to 2035?

    The growth drivers for the US AI in Military Market include advancements in technology and increasing defense budgets.

    How does the current global scenario affect the US AI in Military Market?

    The current global scenario and ongoing conflicts are likely to drive increased investments in AI technologies within the military sector.

    What is the projected market size for Data Analysis applications by 2035?

    The Data Analysis applications in the US AI in Military Market are expected to reach 2.1 billion USD by 2035.

    1. EXECUTIVE SUMMARY
    2. Market Overview
    3. Key Findings
    4. Market Segmentation
    5. Competitive Landscape
    6. Challenges and Opportunities
    7. Future Outlook
    8. MARKET INTRODUCTION
    9. Definition
    10. Scope of the study
    11. Research Objective
    12. Assumption
    13. Limitations
    14. RESEARCH METHODOLOGY
    15. Overview
    16. Data Mining
    17. Secondary Research
    18. Primary Research
    19. Primary Interviews and Information Gathering Process
    20. Breakdown of Primary Respondents
    21. Forecasting Model
    22. Market Size Estimation
    23. Bottom-Up Approach
    24. Top-Down Approach
    25. Data Triangulation
    26. Validation
    27. MARKET DYNAMICS
    28. Overview
    29. Drivers
    30. Restraints
    31. Opportunities
    32. MARKET FACTOR ANALYSIS
    33. Value chain Analysis
    34. Porter's Five Forces Analysis
    35. Bargaining Power of Suppliers
    36. Bargaining Power of Buyers
    37. Threat of New Entrants
    38. Threat of Substitutes
    39. Intensity of Rivalry
    40. COVID-19 Impact Analysis
    41. Market Impact Analysis
    42. Regional Impact
    43. Opportunity and Threat Analysis
    44. US AI in Military Market, BY Application (USD Billion)
    45. Surveillance
    46. Logistics
    47. Cybersecurity
    48. Robotics
    49. Data Analysis
    50. US AI in Military Market, BY Technology (USD Billion)
    51. Machine Learning
    52. Natural Language Processing
    53. Computer Vision
    54. Expert Systems
    55. Robotic Process Automation
    56. US AI in Military Market, BY End User (USD Billion)
    57. Defense Forces
    58. Intelligence Agencies
    59. Military Contractors
    60. Research Organizations
    61. Government
    62. US AI in Military Market, BY Solution Type (USD Billion)
    63. Software
    64. Hardware
    65. Services
    66. Competitive Landscape
    67. Overview
    68. Competitive Analysis
    69. Market share Analysis
    70. Major Growth Strategy in the AI in Military Market
    71. Competitive Benchmarking
    72. Leading Players in Terms of Number of Developments in the AI in Military Market
    73. Key developments and growth strategies
    74. New Product Launch/Service Deployment
    75. Merger & Acquisitions
    76. Joint Ventures
    77. Major Players Financial Matrix
    78. Sales and Operating Income
    79. Major Players R&D Expenditure. 2023
    80. Company Profiles
    81. Raytheon Technologies
    82. Financial Overview
    83. Products Offered
    84. Key Developments
    85. SWOT Analysis
    86. Key Strategies
    87. Palantir Technologies
    88. Financial Overview
    89. Products Offered
    90. Key Developments
    91. SWOT Analysis
    92. Key Strategies
    93. Boeing
    94. Financial Overview
    95. Products Offered
    96. Key Developments
    97. SWOT Analysis
    98. Key Strategies
    99. Lockheed Martin
    100. Financial Overview
    101. Products Offered
    102. Key Developments
    103. SWOT Analysis
    104. Key Strategies
    105. General Dynamics
    106. Financial Overview
    107. Products Offered
    108. Key Developments
    109. SWOT Analysis
    110. Key Strategies
    111. Thales Group
    112. Financial Overview
    113. Products Offered
    114. Key Developments
    115. SWOT Analysis
    116. Key Strategies
    117. Leidos
    118. Financial Overview
    119. Products Offered
    120. Key Developments
    121. SWOT Analysis
    122. Key Strategies
    123. SAIC
    124. Financial Overview
    125. Products Offered
    126. Key Developments
    127. SWOT Analysis
    128. Key Strategies
    129. Textron
    130. Financial Overview
    131. Products Offered
    132. Key Developments
    133. SWOT Analysis
    134. Key Strategies
    135. IBM
    136. Financial Overview
    137. Products Offered
    138. Key Developments
    139. SWOT Analysis
    140. Key Strategies
    141. Amazon Web Services
    142. Financial Overview
    143. Products Offered
    144. Key Developments
    145. SWOT Analysis
    146. Key Strategies
    147. Microsoft
    148. Financial Overview
    149. Products Offered
    150. Key Developments
    151. SWOT Analysis
    152. Key Strategies
    153. Google
    154. Financial Overview
    155. Products Offered
    156. Key Developments
    157. SWOT Analysis
    158. Key Strategies
    159. Northrop Grumman
    160. Financial Overview
    161. Products Offered
    162. Key Developments
    163. SWOT Analysis
    164. Key Strategies
    165. Hewlett Packard Enterprise
    166. Financial Overview
    167. Products Offered
    168. Key Developments
    169. SWOT Analysis
    170. Key Strategies
    171. References
    172. Related Reports
    173. US AI in Military Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035 (USD Billions)
    174. US AI in Military Market SIZE ESTIMATES & FORECAST, BY TECHNOLOGY, 2019-2035 (USD Billions)
    175. US AI in Military Market SIZE ESTIMATES & FORECAST, BY END USER, 2019-2035 (USD Billions)
    176. US AI in Military Market SIZE ESTIMATES & FORECAST, BY SOLUTION TYPE, 2019-2035 (USD Billions)
    177. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    178. ACQUISITION/PARTNERSHIP
    179. MARKET SYNOPSIS
    180. US AI IN MILITARY MARKET ANALYSIS BY APPLICATION
    181. US AI IN MILITARY MARKET ANALYSIS BY TECHNOLOGY
    182. US AI IN MILITARY MARKET ANALYSIS BY END USER
    183. US AI IN MILITARY MARKET ANALYSIS BY SOLUTION TYPE
    184. KEY BUYING CRITERIA OF AI IN MILITARY MARKET
    185. RESEARCH PROCESS OF MRFR
    186. DRO ANALYSIS OF AI IN MILITARY MARKET
    187. DRIVERS IMPACT ANALYSIS: AI IN MILITARY MARKET
    188. RESTRAINTS IMPACT ANALYSIS: AI IN MILITARY MARKET
    189. SUPPLY / VALUE CHAIN: AI IN MILITARY MARKET
    190. AI IN MILITARY MARKET, BY APPLICATION, 2025 (% SHARE)
    191. AI IN MILITARY MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    192. AI IN MILITARY MARKET, BY TECHNOLOGY, 2025 (% SHARE)
    193. AI IN MILITARY MARKET, BY TECHNOLOGY, 2019 TO 2035 (USD Billions)
    194. AI IN MILITARY MARKET, BY END USER, 2025 (% SHARE)
    195. AI IN MILITARY MARKET, BY END USER, 2019 TO 2035 (USD Billions)
    196. AI IN MILITARY MARKET, BY SOLUTION TYPE, 2025 (% SHARE)
    197. AI IN MILITARY MARKET, BY SOLUTION TYPE, 2019 TO 2035 (USD Billions)
    198. BENCHMARKING OF MAJOR COMPETITORS

    US AI in Military Market Segmentation

     

     

     

    • AI in Military Market By Application (USD Billion, 2019-2035)

      • Surveillance
      • Logistics
      • Cybersecurity
      • Robotics
      • Data Analysis

     

    • AI in Military Market By Technology (USD Billion, 2019-2035)

      • Machine Learning
      • Natural Language Processing
      • Computer Vision
      • Expert Systems
      • Robotic Process Automation

     

    • AI in Military Market By End User (USD Billion, 2019-2035)

      • Defense Forces
      • Intelligence Agencies
      • Military Contractors
      • Research Organizations
      • Government

     

    • AI in Military Market By Solution Type (USD Billion, 2019-2035)

      • Software
      • Hardware
      • Services

     

     

     

     

     

     

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