Military Logistics Artificial intelligence (AI) Market to Reach USD $4.62 Billion by 2029 at 14.1% CAGR

Military Logistics Artificial intelligence (AI) Global Market Report 2025

The Business Research Company's Military Logistics Artificial intelligence (AI) Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

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What Is The Estimated Industry Size Of Military Logistics Artificial intelligence (AI) Market?
The market size for artificial intelligence (AI) in military logistics has seen expansive growth lately. Expected to rise from $2.38 billion in 2024 to $2.73 billion in 2025, it has a compound annual growth rate (CAGR) of 14.4%. The factors driving growth during the historic period include the conversion of defense logistics into digital format, the increased demand for predictive maintenance, government-led measures to upgrade defense logistics infrastructure, a rise in global defense budgets, and the expansion of autonomous delivery systems.

In the coming years, the military logistics artificial intelligence (AI) market is projected to witness a swift increase, surging to $4.63 billion by 2029 with a compound annual growth rate (CAGR) of 14.1%. This surge during the forecast period is anticipated due to several reasons including, an enhanced focus on secure data exchange within logistics systems, increased usage of cognitive supply chain management platforms, a rising demand for accessible real-time supply chain visibility, expanding investment in autonomous terrestrial and aerial logistics vehicles, and continuous digital evolution in defense logistics. The key trends expected throughout the forecast period include the use of AI for predictive maintenance and monitoring of vehicular health, digital twin-based simulation for supply chains and assets, application of edge computing and agentic AI for real-time battlefield logistics, and incorporation of blockchain technology for secure logistics and inventory tracking.

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What Are The Major Factors Driving The Military Logistics Artificial intelligence (AI) Global Market Growth?
Escalating defense budget allocations are anticipated to stimulate the expansion of the military logistics artificial intelligence (AI) market in the future. Defense budgets, essentially financial plans created by governments to subsidize military activities, equipment acquisition, army personnel, and research with a focus on enhancing national security, are on an upward trajectory. This is primarily due to heavy investments by nations in cutting-edge technologies such as AI, cybersecurity, and independent systems to amplify military capacities and retain a tactical advantage. The surge in defense budgets contributes significantly to the creation and implementation of AI-based logistics systems, which enhance operational competency, lay the foundation for predictive repairs, and boost decision-making processes throughout military supply chains. For instance, as per the International Institute for Strategic Studies, a UK-based defense and security-centric think tank, worldwide defense expenditure increased to USD 2.46 trillion in 2024, a significant rise from USD 2.24 trillion in 2023. This signifies a rapid growth rate of 7.4% in 2024 in contrast to 6.5% in 2023 and 3.5% in 2022, thereby underlining the growing investment pumped into defense technologies. Therefore, escalating defense budgets act as a key driving forces behind the growth of the military logistics artificial intelligence (AI) market.

Who Are The Leading Companies In The Military Logistics Artificial intelligence (AI) Market?
Major players in the Military Logistics Artificial intelligence (AI) Global Market Report 2025 include:
• Microsoft Corporation
• Siemens AG
• RTX Corporation
• Lockheed Martin Corporation
• Accenture plc
• International Business Machines Corporation
• Cisco Systems Inc.
• General Electric Company
• Oracle Corporation
• Northrop Grumman Corporation

What Are The Prominent Trends In The Military Logistics Artificial intelligence (AI) Market?
Key players in the military logistics artificial intelligence (AI) sector are prioritizing the creation of sophisticated solutions, like AI-run defense logistics systems. These systems are designed to boost operational effectiveness, predictive upkeep, and decision-making capabilities across supply chains. An AI-enabled defense logistics system is a high-tech digital platform that leverages artificial intelligence, machine learning, and data analytics for improving military logistics operations. For example, in May 2024, Tagup Inc., an American defense technology firm, introduced Manifest, an AI-based platform specifically engineered to transform defense logistics. Manifest uses AI and machine learning to enhance inventory control, mobilization planning, and resource distribution in military operations. It amalgamates disparate logistics data into a comprehensive view, facilitating commanders in making swifter and more precise decisions. The platform forecasts demand and supply needs based on mission necessities, bolsters supply chain robustness by simulating contested scenarios, and positions resources nearer to the battlefield to increase preparedness and minimize wait periods.

What Are The Primary Segments Covered In The Global Military Logistics Artificial intelligence (AI) Market Report?
The military logistics artificial intelligence (AI) market covered in this report is segmented –
1) By Component: Software, Hardware, Services
2) By Deployment Mode: On-Premises, Cloud
3) By Application: Inventory Management, Transportation And Distribution, Fleet Management, Supply Chain Optimization, Maintenance And Repair, Other Applications
4) By End-User: Army, Navy, Air Force, Other End-Users

Subsegments:
1) By Software: Predictive Analytics Systems, Fleet Management Platforms, Inventory Optimization Tools, Data Integration And Analysis Solutions, Simulation And Modeling Software
2) By Hardware: Autonomous Vehicles, Unmanned Aerial Systems, Edge Computing Devices, Sensor And Surveillance Equipment, Communication And Networking Infrastructure
3) By Services: System Integration Services, Maintenance And Support Services, Training And Consulting Services, Cloud Deployment And Management Services, Data Security And Compliance Services

View the full military logistics artificial intelligence (ai) market report:
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Which Region Is Forecasted To Grow The Fastest In The Military Logistics Artificial intelligence (AI) Industry?
In the 2025 Global Market Report for Military Logistics Artificial Intelligence (AI), North America is projected to hold the leading position from 2024. The report encompasses various regions including North America, Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.

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