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Precision guided munitions or smart weapons are a class of weapons that are guided to a target. These weapons use various methods like lasers, satellite signals or infrared technology to hit a target with high precision. Precision guided munitions provide major advantages over unguided munitions like improved lethality, reduced collateral damage and lower logistic requirements. With rising cross border tensions and increasing military budgets of major economies, the demand for smart and accurate weapons is growing steadily.
The global Precision Guided Munition Market is estimated to be valued at US$ 26.15 Billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the precision guided munitions market is the increasing technological developments. Key players are focusing on enhancing the capabilities of these weapons. For instance, companies are working on developing laser-guided mortar rounds that can autonomously track and engage moving targets. Technologies like artificial intelligence and machine learning are also being integrated to give these munitions autonomous targeting capabilities. Such advances are increasing the effectiveness of precision guided munitions. With recent geopolitical tensions, many countries are also investing heavily in developing indigenous precision guided weapon programs. This is increasing both the demand and development of advanced smart weapons globally.
Key players related content comprises Key players related content: Key players operating in the precision guided munition market are Lockheed Martin Corporation, BAE Systems PLC, Raytheon Company, Northrop Grumman Corporation, General Dynamics Corporation, L3Harris Technologies, Boeing Company, and Thales Group.
Lockheed Martin Corporation offers a range of precision guided munitions such as Hellfire, Joint Air-to-Surface Standoff Missile (JASSM), and Joint Direct Attack Munition (JDAM). BAE Systems PLC offers products like Brimstone and Storm Shadow missiles.
Porter’s Analysis
Threat of new entrants: The precision guided munition market poses moderate threats to new entrants due to high R&D costs and established customers loyalty to existing brands.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of alternatives and differentiation in product offerings by vendors.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of substitutes and differentiated requirements of precision guided munitions.
Threat of new substitutes: The threat of new substitutes is moderate as innovation brings in new technologies but compliance to regulatory standards limits introductions.
Competitive rivalry: Competition in precision guided munition market is high due to strategic initiatives like mergers, new product developments and expansion adopted by key global players.
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$ 26.15 Billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.The market is dominated by North America and is expected to continue its dominance during the forecast period. Presence of key players and increased defense expenditure drives the growth of precision guided munition market in this region. Asia Pacific is expected to exhibit the fastest growth rate during the forecast period due to increasing defense modernization programs in countries such as India, China and South Korea.
*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.
