July 19, 2024

Growing Urbanization And Advancement In Smart Technology Is Anticipated To Open Up The New Avenue For Precision Guided Munition Market

The Precision Guided Munition Market is estimated to be valued at Us$ 35.85 Bn or Mn in 2023 and is expected to exhibit a CAGR Of 7.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Precision guided munitions are guided weapons intended to precisely achieve targets without inflicting unnecessary collateral damage during military operations. Modern precision-guided munitions employ various methods including laser guidance, GPS, inertial guidance system and radar homing to accurately track and hit targets. These smart munitions are effective in urban warfare scenarios and counterinsurgency operations by militaries. They are used across air-to-surface, surface-to-surface and surface-to-air applications. Key players in this market offer a variety of precision guided bombs, missiles, rockets and other ammunitions.

Market Dynamics:

The precision guided munition market is primarily driven by increasing defense spending of major economies to modernize their armed forces. Military forces are rapidly adopting smart munitions with advanced guidance technologies to minimize casualties and enhance operational effectiveness. For instance, the US defense budget for fiscal year 2023 allocates USD96 billion for procurement and USD 26 billion for research and development, reflecting increased spending focus on next-gen weapons. Additionally, growing territorial disputes and rising threats of cross-border conflicts are forcing nations to strengthen their military arsenal with precision guided munitions. This is escalating demand in the global market.

Segment Analysis

The precision guided munition market is dominated by the airborne segment. This segment accounted for over 40% share of the overall market in 2023 owing to increasing usage of airborne weapons like missiles, bombs and rockets for various military operations globally. Advantages like ability to strike targets from long distances with precision and minimal collateral damage have increased the preference for airborne precision guided munitions.

PEST Analysis

Political: Stable geopolitical environment and increasing defense budgets in major economies have boosted procurement of precision guided munitions globally. However, tensions between countries could impact arms trade.

Economic: Growing economy has allowed many countries to spend more on military modernization. Precision guided munitions offer cost savings over unguided munitions due to better target engagement.

Social: Rising threat perception from terrorist groups and non-state actors have increased emphasis on precision strikes with minimum collateral damage for reducing civilian casualties.

Technological: Continued development of technologies like INS/GPS, semi-active lasers, radar and electro-optical/infrared seekers have improved accuracy of precision guided munitions manifolds. Adoption of new materials is also allowing for miniaturization.

Key Takeaways

The Global Precision Guided Munition Market Demand is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing defense modernization programs and rising geo-political tensions globally. The market size for 2023 is estimated to be US$ 35.85 Bn.

North America dominated the market with around 35% share in 2023 owing to large defense budgets and ongoing upgrades of weapon systems by US and Canada. However, Asia Pacific is expected to emerge as the fastest growing regional market exhibiting a CAGR of over 8% during the forecast period led by increasing defense expenditure of India, China and other southeast Asian countries.

Key players operating in the Precision Guided Munition market are Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, General Dynamics Corporation, BAE Systems, Rheinmetall AG, SAAB, Elbit Systems Ltd, MBDA, and Israel Aerospace Industries. Major players are investing in development of advanced technologies and engaging in new partnerships/contracts for strengthening their market presence.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it