Military Software (World Market)

Chronicle

2025: The volume of the global military software market reached $100 billion for the year

At the end of 2025, the costs in the global military software market are estimated at $99.76 billion. More than a third of this amount fell on the North American region. Such data are reflected in a Fortune Business Insights study, the results of which were published in mid-January 2026.

Analysts are considering specialized software designed for the needs of the armed forces. Such software is used to control military equipment (including missile guidance tools, radars and electronic warfare systems), communications, reconnaissance, training, data analysis, etc. Software is used in ground vehicles, fighters, ships, submarines, drones, etc. The key features are high security and reliability.

𝓲

Фото: Freepik

One of the market drivers, the authors of the study call the increase in geopolitical tensions. Many countries are increasing defense budgets to develop and implement advanced technologies, including specialized software. There is a growing demand for solutions to protect critical military infrastructure and data from cyber threats. In addition, there is an active update of outdated systems, which is accompanied by the integration of modern digital solutions, especially in the field of communications and unmanned platforms.

The industry is expanded by integration into artificial intelligence and machine learning software platforms. Neural networks are increasingly used to analyze the situation, recognize goals, make decisions and develop combat strategies. Thanks to AI algorithms, unmanned aerial vehicles (UAVs), ground robots and underwater drones are able to independently move and perform tasks in electronic warfare conditions. AI can process huge amounts of data from satellites and radars to identify threats in real time. In addition, neural networks help to optimize the supply and management of resources in the context of hostilities.

The study says that the widespread use of UAVs and robotic systems creates a need for specialized software designed to coordinate the operation of autonomous equipment. Cloud software systems are also developing: they provide the ability to create secure, scalable, and efficient platforms for data processing, AI analytics, and real-time operations management. The cloud can create a common environment for different departments, which improves coordination and interaction. It is in the cloud segment that the highest rates of cost growth are recorded.

Geographically, North America led in 2025 with a share of 35.27% of global spending, or $35.19 billion. The United States accounted for $32.78 billion, Britain - $5.03 billion, Germany - $5.2 billion, China - $8.47 billion, India - $3.76 billion, Japan - $3.36 billion, Israel - $1.38 billion. Major industry players on a global scale are:

• Lockheed Martin;
• Northrop Grumman;
• BAE Systems;
• Thales;
• Leonardo;
• Saab AB;
• Airbus SE;
• Rheinmetall AG;
• Indra Sistemas;
• Elbit Systems;
• Aselsan;
• Edge Group PJSC;
• L3Harris Technologies;
• Israel Aerospace Industries;
• General Dynamics.

In 2026, the volume of the global military software market is expected to reach $105.13 billion. Fortune Business Insights analysts forecast a Compound Percentage CAGR of 6.12% going forward. As a result, by 2034, costs could increase to $169.08 billion.^[1]

Notes