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What Is The Estimated Industry Size Of Artificial Intelligence (AI) In Defense Logistics Market?
In the past few years, the market for artificial intelligence (AI) in defense logistics has seen a rapid expansion. The market, projected to be worth $1.94 billion in 2024, is predicted to climb to $2.30 billion in 2025, with a compound annual growth rate (CAGR) of 18.6%. The robust growth during the earlier periods can be traced back to factors such as heightened defense budgets, a rise in the adoption of automated systems, the early adoption of predictive maintenance, the increasingly urgent requirement for effective inventory management, and the development of defense supply chains.

In the upcoming years, the defense logistics market for artificial intelligence (AI) is anticipated to expand rapidly, eventually reaching $4.50 billion by 2029 at a compound annual growth rate (CAGR) of 18.2%. The predicted growth within this period is largely due to swift digital transformation initiatives, incorporating AI into autonomous vehicles, progression in AI-enabled drones, a growing demand for instant logistics optimization, and the creation of AI-based robotic logistics systems. Noteworthy trends within the forecast period include improvements in predictive analytics, the use of AI for risk management tools, the automation of logistics operations such as dynamic ordering and mobilization planning, AI integration in the condition monitoring of equipment, and the evolution of comprehensive AI ecosystems.

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What Are The Major Factors Driving The Artificial Intelligence (AI) In Defense Logistics Global Market Growth?
The swift rise in digital transformation is anticipated to boost the artificial intelligence (AI) expansion in the defense logistics market. Digital transformation encapsulates the incorporation of digital technologies into every sphere of business functions, fundamentally transforming the mode of operation and value delivery in organizations. The escalating adoption of digital transformation mainly stems from the requirement for operational competency in a progressively interconnected world. Corporations strive to refine processes, curtail expenses and maintain competitiveness via technologically advanced capabilities. AI-integrated systems facilitate defense logistics operations to fine-tune supply chain management, predict machinery maintenance necessities, and enhance resource dispersal through real-time data scrutiny and automated decision-making. For instance, in November 2023, data from the Central Digital and Data Office, a UK government entity tasked with digital transformation across all UK government departments, revealed that the entire Government Digital and Data profession size experienced a growth from April 2022 to April 2023, displaying an increase of 19%. Consequently, the accelerated digital transformation is fueling the growth of artificial intelligence (AI) in the defense logistics market.

Who Are The Leading Companies In The Artificial Intelligence (AI) In Defense Logistics Market?
Major players in the Artificial Intelligence (AI) In Defense Logistics Global Market Report 2025 include:
. Microsoft Corporation
. The Boeing Company
. RTX Corporation
. Lockheed Martin Corporation
. International Business Machines Corporation (IBM)
. Northrop Grumman Corporation
. SAP SE
. BAE Systems plc
. Safran S.A.
. Thales Group

What Are The Prominent Trends In The Artificial Intelligence (AI) In Defense Logistics Market?
Leading enterprises in the defense logistics sector of artificial intelligence (AI) are prioritizing the creation of enhanced solutions such as AI-oriented supply chain management for guaranteed punctual delivery of essential military supplies. This AI-inspired supply chain management employs artificial intelligence to recognize, assess, and mitigate possible interferences in military supply chains. Simultaneously, it assures uninterrupted, efficient functioning and empowers anticipatory decision-making by projecting risks and refining logistics instantaneously. For example, in March 2025, the Defense Logistics Agency (DLA), an American Department of Defense agency providing combat logistic support, introduced an AI application for supervising supply chain risks as it transitions towards predictive supply chain procedures, with the intention of detecting unreliable providers, forecasting bottlenecks, and enhancing procurement. This AI-backed system employs numerous risk evaluation models to establish counterfeit, non-abiding, or overpriced commodities, allowing persecution of suppliers that threaten the supply chain and ensuring mission preparedness.

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

Subsegments:
1) By Software: Enterprise Resource Planning (ERP) Software, Warehouse Management System (WMS) Software, Transportation Management System (TMS) Software, Predictive Analytics Software, Fleet Management Software
2) By Hardware: Autonomous Vehicles, Sensor Networks, Robotics Systems, Artificial Intelligence (AI)-Enabled Drones, Data Processing Hardware
3) By Services: System Integration Services, Maintenance And Support Services, Training And Consulting Services, Deployment And Implementation Services, Cybersecurity Services

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Which Region Is Forecasted To Grow The Fastest In The Artificial Intelligence (AI) In Defense Logistics Industry?
In the Artificial Intelligence (AI) In Defense Logistics Global Market Report for 2025, North America was identified as the leading region in 2024. It's predicted that the area experiencing the quickest growth will be Asia-Pacific. The regions addressed in this report include North America, Asia-Pacific, Western Europe, Eastern Europe, South America, the Middle East, and Africa.

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