Military AI: A $29.48 billion market by 2035 with annual growth of 12.5%, study finds
Growth Projection for the Defense-AI Sector
According to the sector analysis released on Wednesday, March 11, 2026, by MNU for VisionWave, an American defense technology company listed on the NASDAQ, the global AI market in defense was valued at approximately $9.13 billion in 2025 and could reach $29.48 billion by 2035, reflecting a compound annual growth rate (CAGR) of about 12.5% over the forecast period.
The study identifies key growth factors as increased investments in AI-driven surveillance, predictive analytics, and automated command systems, which enhance operational efficiency and threat detection capabilities. North America currently dominates the market due to significant defense spending and ongoing investments in advanced AI technologies by government agencies and defense contractors.
Related Segment of Autonomous Weapon Systems
A closely related segment—the autonomous military weapons and defense systems market—would show a similar growth trajectory. According to the study, this market was valued at $12.3 billion in 2024 and is expected to reach $36.5 billion by 2033, representing a CAGR of approximately 13.2%. Increasing geopolitical tensions, rapid advancements in machine learning and sensor technologies, and the growing use of unmanned platforms in air, land, and maritime domains are identified as potential accelerators.
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