Dublin, Jan. 07, 2026 (GLOBE NEWSWIRE) — The “Artificial Intelligence in Defense and Security Global Market Report 2025” has been added to ResearchAndMarkets.com’s offering.
The artificial intelligence (AI) in defense and security market is experiencing rapid growth, projected to expand from $12.53 billion in 2024 to $14.15 billion in 2025 at a CAGR of 12.9%, and further reaching $22.75 billion by 2029 at a 12.6% CAGR. This growth is fueled by increased adoption of AI in defense operations, reliance on AI for real-time threat detection, expansion of defense budgets, and developments in autonomous weapon systems.
Key drivers during the forecast period include the rising demand for AI-powered surveillance, military robotics enhancements, predictive threat analysis, and heightened investments in cybersecurity and cloud-based applications. Notable trends include advancements in AI technologies, integration of multi-domain operations, and improvements in sensor networks and data analytics.
Increased defense budgets are a significant growth catalyst for the AI in defense market. With geopolitical tensions escalating, nations are enhancing military capabilities, supported by expansions in defense financial allocations. This surge in budgets in 2023 saw military spending rise by 6.8% to $2.44 trillion, as reported by the Stockholm International Peace Research Institute (SIPRI). Such financial backing facilitates AI research and deployment in areas like surveillance, autonomous systems, and threat detection.
Prominent companies in this sector are advancing AI technologies to enhance operational efficiencies. In November 2025, Tidal Cyber Inc. introduced NARC, an automated AI engine enhancing threat intelligence by analyzing cyberattack data. Similarly, Shield AI Inc. acquired Sentient Vision Systems Pty Ltd. to bolster its AI-driven autonomous systems, strengthening its presence in Australia via advanced imaging technologies.
Leading firms in the industry include Microsoft Corporation, L3Harris Technologies Inc., Lockheed Martin Corporation, IBM Corporation, Cisco Systems Inc., General Dynamics Corporation, Northrop Grumman Corporation, among others. North America dominated the market in 2024, with significant coverage also in regions such as Asia-Pacific, Western Europe, Eastern Europe, South America, and the Middle East and Africa.
The market faces challenges due to global trade tensions and tariff changes, notably affecting the aerospace and defense sectors by increasing costs and delaying component shipments. The industry is navigating these challenges by diversifying supply chains and seeking waivers for defense-related imports.
This comprehensive market research report offers insights into global market size, regional shares, and market trends, providing a detailed analysis of the current and future state of the AI in defense and security sector. The report also details the integration of AI in defense technologies, encompassing hardware, software, and services applications such as surveillance, threat detection, cybersecurity, autonomous systems, and intelligence analysis.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $14.15 Billion |
| Forecasted Market Value (USD) by 2029 | $22.75 Billion |
| Compound Annual Growth Rate | 12.6% |
| Regions Covered | Global |
Companies Featured
- Microsoft Corporation
- L3Harris Technologies Inc.
- RTX Corporation
- Lockheed Martin Corporation
- IBM Corporation
- Cisco Systems Inc.
- General Dynamics Corporation
- Northrop Grumman Corporation
- Broadcom Inc.
- BAE Systems Plc
- NVIDIA Corporation
- Thales Group
- Leonardo S.p.A.
- Leidos Holdings Inc.
- Palo Alto Networks Inc.
- Juniper Networks Inc.
- Fortinet Inc.
- Check Point Software Technologies Ltd.
- Palantir Technologies Inc.
- Trellix Corporation
- RSA Security LLC
- Shield AI Inc.
- Charle’s River Analytics Inc.
For more information about this report visit https://www.researchandmarkets.com/r/v5j7mp
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- Artificial Intelligence in Defense and Security Market
