How big is the Defence AI Market | Value, Share & Future Outlook 2025

Q: What is the market size of the Defence AI market in 2025 and 2031?

The Defence AI market was valued at approximately USD 7.5 billion in 2025 and is expected to reach around USD 24 billion by 2031.

Q: What is the CAGR of the Defence AI market between 2025 and 2031?

The Defence AI market is expected to grow at a CAGR of 18.2% during the forecast period.

Q: What are the key trends in the Defence AI market?

Key trends include AI integration in unmanned systems, ISR enhancements, cyber defence automation, and AI-based simulation training.

Q: What are the main drivers of the Defence AI market?

The Defence AI market is driven by growing geopolitical threats, modernization of defence infrastructure, demand for autonomous operations, and increased AI R&D funding.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA5868

Publication Date: Jul 2025

What is the Defence AI Market Size?

According to 6Wresearch internal database and industry insights, the Defence AI market was valued at USD 7.5 billion in 2024 and is anticipated to exceed USD 24 billion by 2031, registering a steady at a CAGR of 18.2% during the forecast period.

This market is witnessing rapid growth due to increasing adoption of artificial intelligence in surveillance, threat detection, autonomous weapons systems, and cyber defence. Key drivers include the modernization of military infrastructure, rising geopolitical tensions, and the need for real-time data processing. Moreover, the integration of AI with unmanned systems, command and control (C2) operations, and battlefield decision-making is fuelling industry expansion.

Major Growth Factors of the Defence AI Market

Rising demand for autonomous military systems
Increasing military spending by governments globally
Growing need for real-time threat assessment
Integration of AI in command-and-control systems
Expansion of AI-enabled cyber defence solutions
Rapid adoption of drone and robotic warfare systems
AI-supported battlefield decision-making
Enhanced situational awareness and predictive analytics

Defence AI Market Trends

The Defence AI market is emerging with a strong emphasis on deploying AI for real-time battlefield intelligence, surveillance, and reconnaissance (ISR). Militaries are focusing on integrating AI in autonomous combat drones, robotic logistics, and decision-support platforms. There is also a noticeable trend toward AI-enabled simulation and training systems to prepare forces for complex scenarios. Additionally, collaborative AI-human teaming and multi-domain operations are gaining traction as defence forces aim for enhanced operational agility and responsiveness.

Emerging Developments in the Defence AI Market

The Defence AI market is experiencing notable developments such as the rollout of next-gen AI-powered surveillance systems, autonomous underwater vehicles, and smart missile technology. Nations are actively forming public-private partnerships to accelerate AI innovation in defence. Furthermore, the development of ethical AI guidelines for military applications and secure AI frameworks to prevent adversarial attacks is gaining prominence in defence strategies.