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Precision guided munitions are missile or bomb systems that can accurately hit targets with a high success rate. These weapons incorporate guidance systems like laser, satellite navigation, and optical/infrared technologies that make them accurate and reduce collateral damage. Modern armed forces rely heavily on precision guided munitions as they minimize civilian casualties and enable pinpoint attacks on adversarial targets. The growing defense budgets of major economies have prompted them to replace unguided munitions with precision guided variants for military missions. Precision guided bombs and missiles are also compatible with a wide range of aircraft and delivery platforms like fighter jets, helicopters, and drones.
The global Precision Guided Munition Market is estimated to be valued at US$ 35.85 Bn 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 key trends:
Rising adoption of autonomous and AI technology: Major players are developing precision guided munitions with autonomous capability and integrating AI/deep learning systems to identify targets autonomously. Autonomous precision guided weapons would enable high-tempo operations without extensive human intervention. For instance, Lockheed Martin and Kratos Defense are developing low-cost loitering strike missiles with AI-based sensors and algorithms for target recognition.
Increasing focus on improving range and payload capacity: Manufacturers recognize the need to enhance range, altitude ceiling and warhead payload of precision munitions to widen their usage in diverse military campaigns. Ongoing R&D aims to develop next-gen precision weapons with interoperable engines, advanced materials and design improvements for multiplying mission effectiveness.
Porter’s Analysis
Threat of new entrants: The precision guided munition market requires high R&D investments and collaborations with defense organizations, making the threat of new entrants low.
Bargaining power of buyers: The bargaining power of major buyers like defense organizations is high given the specialized nature and bulk purchases of precision guided munitions.
Bargaining power of suppliers: A few large players dominate the supply of critical components like missile engines and guidance systems, giving them significant bargaining power over munition manufacturers.
Threat of new substitutes: Although laser-guided bombs offer substitutability, precision guided munitions have distinct advantages in terms of range, accuracy and ability to change targets that limit threats from new substitutes.
Competitive rivalry: The market consists of a few major global players with differentiated weapons portfolios, resulting in high competitive rivalry to win deals from defense ministries.
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. Lockheed Martin offers precision guided munitions like Joint Direct Attack Munition (JDAM), Joint Air-to-Surface Standoff Missile (JASSM) and others.
Key Takeaways
The global precision guided munition market is expected to witness high growth. The global Precision Guided Munition Market is estimated to be valued at US$ 35.85 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030.
Regional analysis comprises North America dominates the market currently due to high defense budgets of countries like the US. The Asia Pacific region is expected to grow at the fastest pace during the forecast period led by the rising defense expenditure of China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
