Global Precision Guided Munition Market Size, Share & Trends Analysis Report, By Product, By Technology, By Region Forecasts, 2024 - 2032

Global Precision Guided Munition Market Size, Share & Trends Analysis Report, By Product, By Technology, By Region Forecasts, 2024 - 2032

Global Precision Guided Munition Market was valued at US $ 36.8 billion in 2023 and is expected to reach US $ 63.9 billion by 2032 growing at a CAGR of 7.04% during the forecast period 2024 – 2032.

It is expected that the extremely complicated warfare strategies and advancements in military operations will drive the market in the forecast years. The current expansion of global security measures ought to encourage the use of precision-guided weapons as well. The market will likely be driven by rising demand for high-end military equipment among the top economies in order to stay up to date with global trends. Furthermore, throughout the projected period, there will be a rise in demand for contemporary precision guided bombs due to growing concerns about national security prompted by the rise in terrorist attacks.

Innovative weaponry is being used by major military powers to preserve their dominance in the world. The need for mortars, rockets, and precision-guided missiles will most likely be fueled by this aspect. Furthermore, we anticipate that the use of cutting-edge locating systems on nuclear weapons will spur industry expansion. Major nations now have sophisticated offensive and defensive systems in place to deal with these kinds of demands. The increased usage of security measures to oversee activities is anticipated to drive the guided war munition market over the forecast period. The market for precision-guided munition has also been impacted by a number of positioning system innovations, including GPS, semi-active lasers, radar homing, and INS. Furthermore, positioning systems' ability to work with nuclear warheads in missiles will expedite their market adoption.

“Tactical Missiles segment, by product, to be dominating market from 2023 to 2030.”

In 2023, the tactical missile segment accounted for over 70% of market revenue. These characteristics, which give them a great deal of range of motion, are what allow them to injure people so effectively. These are nuclear-armed, trackable missiles that can be launched from both the air and the surface, and they can be targeted and destroyed at specific locations. Over the course of the forecast period, these variables are anticipated to promote the market segment.

“Semi-active laser guidance technology segment, by technology, to be dominating market from 2023 to 2030.”

In 2023, semi-active laser guidance technology sales accounted for a significant 25.8% of total sales. This technology was utilised to localise targets. The need for guided weapons is primarily driven by the need for quick coordination during an air strike via target illumination. Global positioning system (GPS) is likely to replace semi-active laser guidance in military weaponry. Future long-range airstrikes and combat should be far more accurate than they are now thanks to the combination of real-time target movement data, precise target position, and guided munition.

“Asia Pacific to be largest and fastest growing region in Precision Guided Munition market.”

In terms of revenue share, the Asia Pacific region held a market share of more than 31.4% in 2023. Over the projection period, the industry is expected to follow a similar trajectory. These five big economies—Japan, China, South Korea, India, North Korea, and Pakistan—are among those that buy tactical warfare. Growing international tensions and improving defence capabilities will present opportunities for the precision-guided munition business.

India has purchased the newest missile systems, including Prithvi, Agni, and Brahmos, among others, for defence purposes as a result of the growing tension between Pakistan and India. More collaboration between contemporary foreign military organisations and the development of newer technologies are also anticipated in order to provide guided weapons that are state-of-the-art. These commodities have become necessary as a result of Iran and the USA's escalated military campaigns in response to their ongoing geopolitical confrontation. The US military has created long-range, highly accurate rockets and missiles that can each independently strike a distant target.

It is expected that leading European manufacturers and major economies such as the UK, Germany, France, Italy, and Russia will stimulate the growth of the guided weaponry industry. Furthermore, it is anticipated that Russia's military advancements will boost the manufacturing of better artillery and missiles, thereby supporting the sector.

In addition, aside from China, South Korea, India, and South Africa, more purchases are anticipated from other nations, including Western EU members like France, Saudi Arabia, Germany, Israel, and South Africa. Over the course of the five-year plan, there should be restrictions on import and export from overseas, and significant R&D expenses could potentially impede the growth of the relevant market in the following five years.

Precision Guided Munition Competitive Landscape

The competitive landscape of the Precision Guided Munition market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Precision Guided Munition technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Precision Guided Munition market is highly competitive, with numerous companies vying for market share. Prominent companies in the Precision Guided Munition Market include:

Major Players:

Lockheed Martin, Elbit Systems, Atlas Elektronik, General Dynamics, Raytheon, Northrop Grumman, Thales Group, BAE Systems

Recent Developments:

In 2021, Boeing was awarded a contract by the US Department of Defense to provide JADM ammunition to the US Navy.

The RTX Missiles and Defense subsidiary of Raytheon Technologies and the AFLCMC engaged into a USD 239.1 million modification contract in 2020 for six batches of StromBreakers.

The US Navy ordered 2.68 billion USD from BAE Systems in January 2019 for the bulk purchase and ongoing supply of its APKWS laser-guided munition units.

October 24, 2023, in BrisbaneA Memorandum of Understanding was inked by Boeing [NYSE: BA] and Ferra Engineering, an industry partner in Australia, to continue producing Joint Direct Attack Munition Extended Range (JDAM ER) wing kits. The agreement also states that Powered JDAM, a long-range, inexpensive, and mass-producible JDAM variant with a 300 nautical mile range, will have its uses investigated.