Global Precision Guided Munition Market Size, Share & Trends Analysis Report, By Product (Tactical Missiles, Guided Rockets, Guided Ammunition), By Technology By Region (North America, Europe, APAC, and Others), and Segment Forecasts, 2024 - 2032
  • Published Date: Jan, 2024
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  • Pages: 200
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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 anticipated that the projected future time period will be driven by improvements in military operations as well as highly complex warfare strategies. The growth of worldwide security protocols in the present time should also boost the application of precision-guided munitions.

Increased demands for high-end military equipment’s among the leading economies in order to keep abreast with the global trends will probably be the drivers of this market. Moreover, the increase in terrorist attacks will also raise fears about national security leading to increased demand for modern precision guided munitions over the forecast period.,

In politics and between major economies, there has been an increasing number of territorial and economic spats which has led to intentional precautions for military and tactical operations. Major economies focus on the acquisition of advanced military gear capable of providing accurate operations. The expected growth in this sector will be largely influenced by the factors during the foreseen period.

It is anticipated that the US market, which is estimated to hit USD 5.61 million by 2030, will experience notable growth in the next few years Therefore, it can be predicted that during the forecast period, there will be increase in the defence expenditures as a result of Iran vs USA conflict, which will further be reflected in the guided war equipment market.

In order to maintain supremacy worldwide, major military forces are making use of innovative weapons. This factor will most, probably, drive demand for precision-guided missiles, rockets and mortars. Besides, we also expect that the adoption of advanced location devices on nuclear weapons will promote market growth. Such demands have led to major countries having in place advanced offensive and defensive mechanisms that are designed to counter such issues. During the forecast period, the guided war munition market is expected to be driven by the increase in security measures used to guard operations.

Various advancements in positioning systems like radar homing, semi-active laser, INS and GPS have also affected the precision-guided munitions market. Additionally, the compatibility of positioning systems with nuclear warheads employed in missiles will speed up their market penetration.

The Precision Guided Munition Trend Analysis

Demand for increased programs for defensive purposes in different dangers against countries.

United States weapon systems are unchallenged and as such offer its defence force’s strategic combat edge in whatever environment that they may be deployed upon. In FY-2020, the asked funding from US DoD is USD 247.3 billion. Out of this, $143.1 billion for the Overseas Contingency Operations (OCO) fund and another $104.3 billion, for the research, development, testing & evaluation (RDT&E) fund. There is an equal amount of USD 247.3billion in the base budget and oco fund. This proposed budget requests balance portfolios to implement military forces objectives that support the strategy for National defence. 83. The request also includes 9 billion dollar for MDAPs, meaning those program expenses exceed the Cost Threshold set by Under Secretary of Defense for Acquisition and Sustainment.

According to the Missile Defence agency, more than 1,200 additional ballistic missiles have been deployed during the last five years. The total number of ballistic missiles in the North Atilantic Treaty Organization, Russia, and China excluding the US exceeds 5,900. Nowadays, hundreds of launchers and missiles at a range towards US deployed forces exist.

As a result, an urgent need for nations to introduce defence programs that will help them defend themselves against various threats has driven the precision guided munition market.

Segmentation Analysis of the Precision Guided Munition Market

Product Insights

The tactical missiles had more than seventy percent of the market’s revenues in the year 2022. These attributes can be attributed to their wide range of motion, which make them very effective in inflicting injuries on victims. These are surface and the air deployable missiles armed with nuclear warheads and tracking devices that can be aimed at the designated target areas and destroyed. These factors are expected to promote the market segment over the forecast period.

The forecasted period has been seen to predict moderate growth for guided rockets due to their economic nature and light weights. Nonetheless, it is anticipated that the limited range or regional functions of such missiles will act as a barrier for their market penetration. Nonetheless, future breakthroughs in the area of rocket guidance systems are projected to increase their penetration of the precision-guided munitions segment during the course of the estimated timeframe.

Loitering munition product should witness a high demand since it tends to hover or loiter over a target before impacting exactly on that location. Additionally, their partly automatic mechanism as well as being nonweighty, these products should provide it a wide acceptance into a certain market segment.

The bomb, bullet, mortar, and artillery munitions segment within a broader category referred to as the guided ammunition will exhibit moderate growth during this period because it has a slower integration process with defense systems than other segments. The potential obstacles in its expansion over a specified period include diminished power of destruction on the target area and short range.

Technology Insights

A substantial portion of 25.8% in 2022 came from the sale of semi-active laser guidance technology used for target’s localization. The high demand for guided weapons mainly emanates from rapid coordination via the target illumination for an air attack. Probable to replace a semi-active laser guidance in military weapons with global positioning system (GPS). The combination of real time target movement data, precise target location location and guided munition should greatly enhance the ability to conduct long range air strikes and warfare in the future with more accurate results than possible today.

There will be significant growth of the precision guided munition market in the infrared-enabled guided munition segment due to its cost efficient nature, coupled with its ability to detect precise locations. Infrared components attached on the military apparatus are widely used in artillery, rockets, and misses due to their small size and heavy light. However, as they are expected to increase in accuracy and precision with other competitions, this will hinder their demand within the projected period.

Radar homing guidance systems are mainly used in guidance of missiles for automated search of targets by the missiles. These systems have basic electronics with radar transceivers that simplify the localization process. This guidance system is used in tactical ballistic missiles world-wide.

Regional Analysis of the Precision Guided Munition Market

As for revenue share the Asia Pacific occupied over 31.4% of the market, in 2022. The industry is anticipated to follow a similar pattern in the forecast period. Some of these major economic powers that purchase tactical warfare include Japan, China, South Korea, India, North Korea, and Pakistan. Enhancing defence abilities as well as increasing tensions between countries will result in opportunity for precision-guided munition industry.

The rising tension in India and Pakistan has resulted to India buying latest missile systems like Prithvi, Agni, Brahmos among others for defence purposes. In addition, newer technologies are expected as well as more cooperation between modern foreign defence agencies for up-to-date kinds of guided weapons. In response to the on-going geopolitical conflict between Iran and the USA, the countries have increased military campaigns which in turn has triggered the need for such commodities. US military have developed high accuracy range long missiles and rocket which are independently able to hit a target at distance.

Major economies like the UK, Germany, France, Italy & Russia; along with prominent manufacturers in Europe are anticipated to catalyze the increase of guided weaponry market. Moreover, it is expected that Russia’s military innovations will increase the production of improved artillery and missiles which might bolster the industry.

Merger and acquisition is considered to be one of the most essential strategies applied by the dominant companies in international precision-guided ammunition markets for maintaining their place, profit, and competitive edge. There are emerging trends about guidance munitions manufacturing technologies in the US, French, as well as German, which will influence the upsurge of the global precision-guided munitions market.

Moreover, other countries including western EU members like France, Saudi Arabia, Germany, and also Israel and South Africa are expected to buy more of them apart from China, South Korea, India, and South Africa. There should be import-export limitations on foreign side during 5 year plan period and also substantial costs incurred for R & D may hinder the market growth in question over the next five years.

Impact On Covid -19

The coronavirus disease has been a major challenge in the defense industry. The industry has not been highly affected by the covid-19 pandemic but it has faced numerous economic challenges afterward. The defense sector has been affected on a global scale since the first day of this outbreak.

In 2020, there was some disruption in private financing, deferred orders and curtailed defence spending which have moderately affected the defence industry. Therefore, some missile defense tests have been deferred due to breakthroughs in the area of precision-guided weapons research and development. Moreover the unsteadiness of precision guided munition supply chain due to covid-19 will mean that many enterprises shall face reduction in productions. Hence, they impacted on market growth.

Top Key Players Covered Precision Guided Munition Market

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

Key Industry Developments in the Precision Guided Munition Market

  • In 2021, the American Department of Defence granted a contract to Boeing to supply the US Navy with JADM ammunition.
  • In 2020, the AFLCMC entered into a USD 239.1 million modification contract with RTX Missiles and Defense division of the Raytheon Technologies for six batches of StromBreakers.
  • In January 2019, the United States Navy placed an USD 2.68 billion order with BAE systems, for the bulk acquisition and indefinite delivery of its APKWS Laser guided munition units.

Report Components Details
Base Year 2023
Forecast Period 2024-2032
Quantitative Units Revenue in US $
Drivers Defense organizations are placing a greater emphasis on precision-guided missiles and rockets.
Segments Covered By Product Outlook, Tactical Missiles, Guided Rockets, Guided Ammunition, Loitering Munition By Technology, Infrared, Semi-Active Lasers, Inertial Navigation System (INS), Global Positioning System (GPS), Radar Homing, Anti-Radiation, Others
Countries Covered U.S. and Canada in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the APAC, Others include Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA), Brazil, Argentina, Mexico, and Rest of South America as part of South America
Market Players Covered Lockheed Martin, Atlas Elektronik, Raytheon, Thales Group, BAE Systems, Northrop Grumman, General Dynamics, Elbit Systems

Table of Contents

  1. Introduction Of Global Precision Guided Munition Market
    1. Overview of the Market
    2. Scope of Report
    3. Assumptions
  2. Executive Summary
  3. Research Methodology
    1. Data Mining
    2. Validation
    3. Primary Interviews
    4. List of Data Sources
  4. Global Precision Guided Munition Market Outlook
    1. Overview
    2. Market Dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
    3. Porters Five Force Model
      1. Bargaining Power of Suppliers
      2. Threat of New Entrants
      3. Threat of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power among Buyers
    4. Value Chain Analysis
  5. Global Precision Guided Munition Market, By Product
    1. Overview
    2. Tactical Missiles
    3. Guided Rockets
    4. Guided Ammunition
  6. Global Precision Guided Munition Market, By Technology
    1. Overview
  7. Global Precision Guided Munition Market ,By Region
    1. North America
      1. U.S.
      2. Canada
    2. Europe
      1. Germany
      2. U.K.
      3. France
      4. Rest of Europe
    3. Asia Pacific
      1. China
      2. Japan
      3. India
      4. South Korea
      5. Singapore
      6. Malaysia
      7. Australia
      8. Thailand
      9. Indonesia
      10. Philippines
      11. Rest of Asia Pacific
    4. Others
      1. Saudi Arabia
      2. U.A.E.
      3. South Africa
      4. Egypt
      5. Israel
      6. Rest of Middle East and Africa (MEA)
      7. Brazil
      8. Argentina
      9. Mexico
      10. Rest of South America
  8. Company Profiles
    1. Lockheed Martin
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    2. Atlas Elektronik
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    3. Raytheon
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    4. Thales Group
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    5. BAE Systems
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    6. Northrop Grumman
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    7. General Dynamics
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    8. Elbit Systems
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News

Global Precision Guided Munition Market Segmentation

Precision Guided Munition by Product: Market Size & Forecast 2024-2032

  • Tactical Missiles
  • Guided Rockets
  • Guided Ammunition
  • Loitering Munition

Precision Guided Munition by Technology: Market Size & Forecast 2024-2032

  • Infrared
  • Semi-Active Lasers
  • Inertial Navigation System (INS)
  • Global Positioning System (GPS)
  • Radar Homing
  • Anti-Radiation
  • Others

Precision Guided Munition by Geography: Market Size & Forecast 2024-2032

  • North America (USA, Canada, Mexico)
  • Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
  • Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
  • South America (Brazil, Argentina, Columbia, Rest of South America)
  • Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

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

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