Updated date - Feb 5, 2020

The Artificial Intelligence in Military market is projected to grow from USD 5.42 billion in 2016 to USD 8.70 billion by 2022, at a CAGR of 14.75 % during the forecast period from 2017 to 2022. This report covers the forecast of the Artificial Intelligence in Military market and its dynamics over the next five years, while also recognizing the application gaps and recent developments in the Artificial Intelligence in Military market, along with the identification of high potential countries. Advanced analytics, Big Data analytics, Artificial Neural Network are the major factor that is expected to drive the Artificial Intelligence in Military market in the coming years.

Technological advances in the field of AI have resulted in the development of advanced AI software and related software development kits.

Based on offering, the military artificial intelligence market has been segmented into hardware, software, and services. Based on offering, the military artificial intelligence market has been segmented into hardware, software, and services. The growth of the software segment can be attributed to the significance of AI software in strengthening the IT framework to prevent incidents of security breach. As data privacy policies and regulatory compliances have become strict, the demand for cybersecurity solutions using AI is expected to increase in the near future. The increasing adoption of connected devices and rising BYOD trend in organizations have contributed to the increasing use of cybersecurity solutions to mitigate potential risks.

Increasing demand for combat, transport, close air support, and reconnaissance and evacuation is projected to grow at the high growth for airborne segment

By platform, the Artificial Intelligence in Military market has been segmented into Land, Airborne, Space and Naval. Airborne is project to grow at a highest rate in the market during the forecast period. Further, Airborne is segmented into fighter aircraft & helicopter, transport & cargo aircraft, UAVs, and others. Airborne platforms have evolved as multi-mission machines capable of conducting a variety of missions. These platforms can be used in command & control, air defense, bomber, air dominance, close air support, reconnaissance, and other roles. The integration of AI with airborne platforms enhances Intelligence, Surveillance, and Reconnaissance (ISR) capabilities and helps air forces to exploit and analyze data they collect. Airborne platforms have evolved as multi-mission machines capable of conducting a variety of missions. These platforms can be used in command & control, air defense, bomber, air dominance, close air support, reconnaissance, and other roles. The integration of AI with airborne platforms enhances Intelligence, Surveillance, and Reconnaissance (ISR) capabilities and helps air forces to exploit and analyze data they collect.

Rising in culling and aggregation of information is estimated to lead the demand for information process segment

By application, the Artificial Intelligence in Military market has been segmented into Information Processing, Warfare Platform, Warfare Platform, Warfare Platform, Simulation & Training, Simulation & Training, Logistics & Transportation Target Recognition, Target Recognition, and others. Information process is project to lead the Artificial Intelligence in military market during the forecast period. AI is used for the processing of a huge cache of data that provides valuable information. It helps in the culling and aggregation of information, which assist military personnel to recognize patterns and derive correlations in data sets. AI acquires and sums supersets of information from various sources. The processed information is used for further investigation with machine learning or deep learning tools.

Market Dynamics: Artificial Intelligence in Military market

Drivers: Rising demand for information processing leading to the growth of big data analytics

Big Data and AI are becoming a crucial part of military organizations, owing to the exponential availability of data from sources, such as C4ISR. Militaries worldwide have increased their spending on information processing and analytics. AI-integrated systems assist in the processing of data and help in the identification of patterns in data sets to make timely predictions. AI can only be as smart as the data ingested, which is one reason why militaries are spending on information processing and analytics. The convergence of AI and Big Data has transformed the existing methods of intelligence exploitation and data analytics. System integrators such as Northrop Grumman, Raytheon, Deloitte, Leidos, and Booz Allen Hamilton have received contracts from the US Department of Defense (DoD) for data architecture & modeling. Companies such as Northrop Grumman, Raytheon, and Leidos are key players involved in the development of Big Data technologies. These companies are well-positioned to drive the Third Offset Strategy by integrating Big Data technologies with decision-making operating concepts. Thus, the growth of Big Data analytics is a key factor projected to drive the integration of AI with warfare systems.

Opportunities: Increasing adoption of AI to improve planning, logistics, and transportation

AI is helping militaries function efficiently and consistently across the full spectrum of joint capability areas. The adoption of AI in the military logistics & transportation sector has increased significantly, as AI helps in the effective management of the defense supply chain. AI-enabled real-time dashboards can reveal the location of tanks and munitions, thereby enhancing situational awareness. AI systems assist in the handling of day-to-day logistics and training of military personnel to perform challenging and high-value tasks. These systems use analytics and powerful calculation tools to determine the best possible transportation route, thereby reducing transportation costs.

The implementation of AI systems with machine-learning capabilities helps military forces align soldier talent to mission requirements and optimize team composition for specific missions, based on the expertise and personality as well as past unit performance of soldiers

Challenges: Unreliability of AI algorithms

AI is implemented through machine learning using a computer to run specific software that can be trained. Machine learning algorithms can help systems process data to identify certain features from the data set. However, the internal workings of these algorithms remain unclear and inaccessible, and the answers provided by them are not contextualized. Since one of the important goals of current research is to improve AI-to-human communication, the possibility that an AI system can create its own unique language that humans are unable to comprehend could be a setback. This is restricting the use of AI in fully autonomous warfare platforms.

Restraints: Absence of standards and protocols for the use of AI in military application

The development, management, and successful implementation of AI systems require certain protocols. Presently, as few countries are utilizing AI in the military arena, there are no standards and protocols for the use of AI for military applications.

As the use of AI systems for defense is still in the development phase, companies are facing issues related to information access, experimentation with military platforms, and lack of regulations governing the development and testing of AI systems. In addition, lack of training procedures and a shortage of skilled manpower are other issues faced by companies involved in the development of AI solutions for the military sector. Thus, the absence of standards and protocols for the use of AI in military applications is acting as a key restraint to the growth of the military artificial intelligence market.

�North America is the largest market for Artificial Intelligence in Military in 2017�

North America is expected to be a major contributor to the growth of the military artificial intelligence market during the forecast period. The US is a key country considered for market analysis in the North American region. The north America in estimated to lead the military artificial intelligence market size. This growth can be attributed to the need for automated warfare systems, the involvement of the US Army in asymmetric warfare, and rise in military modernization programs, which enabled major defense manufacturers in this country to develop technologically advanced Artificial Intelligence (AI) systems.

Prominent companies operating in the military artificial intelligence market in the US include Lockheed Martin, Raytheon, Northrop Grumman, and General Dynamics. These companies have signed various contracts with the US government. For instance, in 2014, Lockheed Martin received a contract worth USD 13.4 million from the US Defense Advanced Research Projects Agency (DARPA) for counter-adaptive- Electronic Warfare (EW) artificial intelligence

Scope of the report

Report Metric Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2025 Forecast units Value (USD) Segments covered Platform, Application, Offering and technology Geographies covered North America, Asia Pacific, Europe, AND Middle East Companies covered Lockheed Martin (US), Raytheon (US), IBM (US), BAE Systems (UK), Thales Group (France), NVIDIA (US), Leidos (US), SAIC (US), Northrop Grumman (US), SparkCognition (US), Harris Corporation (US), General Dynamics (US), and Charles River Analytics (US).

Target Audience for this Report

AI Technology Providers

Universities and Research Organizations

System Integrators

AI Solution Providers

AI Platform Providers

Cloud Service Providers

AI System Providers

Investors and Venture Capitalists

This research report categorizes the Artificial Intelligence in Military market based on Platform, Application, offering and technology, and region.

Based on platform, the Artificial Intelligence in Military market has been segmented as follows:

Land Military Fighting Vehicles Unmanned Ground Vehicles Air Defense Systems Command & Control Systems Others

Naval Naval Ships Submarines Unmanned Maritime Vehicles Others

Airborne Fighter Aircraft & Helicopter Transport & Cargo Aircraft Unmanned Aerial Vehicles Others

Space Space Launch Vehicles Satellites Others



Based on Application, the Artificial Intelligence in Military market has been segmented as follows:

Warfare Platform

Cyber Security

Logistics & Transportation

Target Recognition

Battlefield Healthcare

Simulation & Training

Planning & Allocation

Threat Monitoring & Situational Awareness

Information Processing

Others

Based on Offering, the Artificial Intelligence in Military market has been segmented as follows:

Software AI Solutions AI Platforms

Hardware Processor Memory Network

Services Deployment & Integration Upgrade & Maintenance Software Support Others



Based on Technology, the Artificial Intelligence in Military market has been segmented as follows:

Learning & Intelligence Modeling & Simulation Data Mining Natural Language Processing Deep Learning Machine Learning

Advanced Computing Quantum Computing Neuromorphic Engineering Supercomputing

AI Systems Computer Vision Virtual Reality Virtual Agents



Based on region, the Artificial Intelligence in Military market has been segmented as follows:

North America

Europe

Asia Pacific

Middle East

Key Players

Lockheed Martin (US), Raytheon (US), IBM (US), BAE Systems (UK), Thales Group (France), NVIDIA (US), Leidos (US), SAIC (US), Northrop Grumman (US), SparkCognition (US), Harris Corporation (US), General Dynamics (US), and Charles River Analytics (US).are expected to lead the Artificial Intelligence in Military market during the forecast period.

Lockheed Martin one of the leading players in Artificial Intelligence in military market. The company develops and applies artificial intelligence in knowledge-based systems, distributed and real-time systems, autonomous/collaborative systems, and neural networks. The company has developed software algorithms and techniques that enable Electronic Warfare (EW) systems of the US Army to automatically intercept new radio frequency threats. Presently, Lockheed Martin is collaborating with Raytheon to test software algorithms in a tactical EW system under realistic conditions in the field. Lockheed Martin has also been working on the DARPA BLADE program, since its inception in 2010. Lockheed Martin offers unmanned and autonomous systems for surveillance and defense purposes. The company is involved in integrating AI into these systems to further improve their performance and reduce human intervention. In May 2016, Lockheed Martin collaborated with the Massachusetts Institute of Technology (MIT) to propel R&D activities in the field of autonomy and robotics. This collaboration was led by the company�s Department of Aeronautics and Astronautics and MIT�s Computer Science and Artificial Intelligence Laboratory. Such development strategies enabled the company to strengthen its foothold in the military artificial intelligence market.

Recent Developments

In November 2017, The Defense Advanced Research Projects Agency (DARPA) awarded a contract worth USD 12.8 million to BAE Systems to develop an innovative space evaluation and analysis testbed to support the development, integration, evaluation, and analysis of advanced space enterprise Command and Control (C2) tools and capability technologies.

In October 2017, NVIDIA launched the NVIDIA GPU Cloud (NGC) container registry for AI developers worldwide. NGC helps developers gain access to a comprehensive, easy-to-use, and fully optimized deep learning software stack.

In December 2017, Lockheed Martin entered into an agreement with NEC Corporation (Japan) to use System Invariant Analysis Technology (SIAT), an artificial intelligence software developed by NEC, to analyze data collected by sensors in space.

In October 2017 Thales Group established a new Center of Research and Technology in Artificial Intelligence eXpertise (cortAIx) in collaboration with the Montr�al Institute for Learning Algorithms (MILA), Institute of Data Valorization, and the Vector Institute of Toronto. This unit will be located in Montreal, Canada, and will become one of the world�s leading Artificial Intelligence (AI) ecosystems.

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the Artificial Intelligence in Military market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

What are the disruptive technology in the market?

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