Precision Guided Munition Market Size, Share & Trends Analysis Report By Product (Tactical Missiles, Guided Rockets, Guided Ammunition), By Technology, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global precision guided munition market size was estimated at USD 35.53 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030. Enhancements in military operations and the adoption of advanced war techniques are anticipated to support market growth in the projected time period. Moreover, the increasing deployment of security measures across the globe in recent years is likely to increase the penetration of precision-guided munition.

The precision-guided munition market growth is anticipated to be driven by the growing demand for advanced warfare equipment by major economies to maintain their lead in the global scenario. In addition, rising concerns regarding national security due to increasing terror activities are anticipated to spur the demand for precision guided munition over the forecast period.

Political and territorial conflicts between major economies have increased the implementation of precautionary measures for tactical and military operations. Defense systems in major economies are focusing on the procurement of advanced war equipment with precise operations. These factors are likely to have a positive impact on the market for precision-guided munition over the forecast period.

In the U.S., the market size stood at USD 5.61 billion in 2022 and is anticipated to accelerate at a significant rate during the estimated time until 2030. Ongoing conflicts between the U.S. and Iran are anticipated to increase defense spending in the coming period, which is likely to influence the market for guided war equipment over the forecast years.

Leading global militaries are focusing on procuring advanced warfare equipment to maintain their dominance. Thus, they are likely to drive the demand for precision-guided missiles, rockets, and mortars. In addition, the adoption of advanced positioning systems in nuclear warheads is expected to support market growth. Enhancements in defense systems to tackle conflict situations and the need to protect territories have influenced major countries to deploy advanced defense & attacking systems. Growing security measures for guarding activities are likely to drive the market for guided war munition over the forecast period.

Advancements in positioning system technology, including semi-active lasers, radar homing, Inertial Navigation System (INS), and Global Positioning System (GPS) have influenced the market for precision-guided munitions. Furthermore, the compatibility of positioning systems with nuclear warheads in missiles is likely to accelerate their penetration into the market.

Product Insights

The tactical missiles segment led the market and accounted for a 70.8% share of the global revenue in 2022. This trend is attributed to their long-range travel and the capability to damage targets significantly. These missiles can be installed with nuclear warheads coupled with navigation systems and can be launched from the surface and air to destroy targets at their desired locations. These factors are likely to support the market segment in the estimated timeframe.

Guided rockets are anticipated to witness moderate growth in the estimated time, owing to their low cost and lightweight properties. However, limited or short-range travel by these rockets is anticipated to pose a challenge to their market growth. On the other hand, developments in the guided systems of rockets are expected to increase their penetration in the precision-guided munition market during the projected time.

The loitering munition product category is anticipated to accelerate at a significant rate in the projected time, owing to its unique feature of loitering around the target and hitting at a precise location. Moreover, the lightweight nature and partial automated mechanism present in the components that do not require human intervention are likely to have a positive impact on its accelerating penetration in the market.

The guided ammunition segment, which includes bombs, bullets, mortars, and artillery shells, is anticipated to grow moderately in the coming period, owing to its lower rate of adoption in defense systems. Short-range and less destruction at the target location are factors expected to pose a challenge for its growth in the estimated time.

Technology Insights

The semi-active laser guidance technology for locating the targets accounted for a significant share of 25.8% of the global revenue in 2022. Fast coordination by illuminating the target for aerial attack is the primary factor for its growing demand in the area of guided weapons. The semi-active laser guidance for war weapons is likely to be replaced by the Global Positioning System (GPS) in the estimated timeframe. Detection of exact target location with the provision of real-time target movement is likely to drive the popularity of GPS-enabled guided munition for war activities at long range.

The infrared-enabled guided munition segment is expected to grow at a significant rate in the precision guided munition market, owing to its low cost and precise location detection capabilities. Infrared components attached to war equipment occupy less space and are lightweight, and thus are widely installed in missiles, rockets, and artillery. However, enhanced accuracy and precision offered by counterparts are expected to hamper their demand in the projected period.

Radar-homing guidance systems are majorly used for missile guidance that allow missiles to locate the targets autonomously. These systems are attached with radar transceivers and necessary electronics that simplify their locating operations. This guidance system is extremely popular in tactical ballistic missiles.

Regional Insights

The Asia Pacific region dominated the market and accounted for about 31.4% of the revenue share in 2022. The industry is anticipated to continue the same trend over the forecast period. China, South Korea, India, North Korea, Pakistan, and Japan are among the largest economies ordering tactical warfare. Growing tensions between the countries in this region and the need to strengthen defense capabilities are likely to create scope for the precision-guided munition industry.

Growing tensions between India and Pakistan have led India to strengthen its defense capabilities with the addition of enhanced missiles, including Prithvi, Agni, Brahmos, and others. Moreover, technological developments and collaborations with foreign defense departments for modern war equipment are projected to increase the penetration of guided weapons. The ongoing conflict between Iran and the U.S. has led to enhancements in the military operations of the respective countries, thus driving the demand for these products. Strong R&D by the U.S. military has led to the development of long-range missiles and rockets with precision to hit targets autonomously.

The presence of prominent manufacturers in Europe, coupled with high investments in military operations by economies including the UK, Germany, France, Italy, and Russia, are anticipated to upscale the market for guided weapons. Moreover, military developments in Russia are further expected to advance the production of improved artillery and missiles, which is expected to have a positive impact on the market.

The global precision-guided munitions industry has continuously witnessed mergers and acquisitions by major players to ensure competitiveness and profitability and establish a strong foothold in the market. Technological advancements in the U.S. and European countries, including Germany and France, to manufacture guided munition, are expected to influence the growth of the global precision-guided munition market.

Countries such as China, South Korea, India, France, Saudi Arabia, Germany, Israel, and South Africa are expected to boost the demand further in the precision-guided munition industry. However, the high costs involved in research & development activities and international import/export regulations are expected to hinder market growth over the forecast period.

Key Companies & Market Share Insights

Key players in the market include General Dynamics, Lockheed Martin Corporation, Raytheon, Northrop Grumman, and Elbit Systems, among others. In February 2019, BAE Systems inked a contract with the U.S. Navy worth USD 114.5 million to improve and modernize the guided-missile destroyer, USS Bulkeley (DDG 84), in its Norfolk shipyard. Prominent players in collaboration with major global defense organizations are investing heavily in R&D activities to develop precision-guided equipment. In January 2019, a 2100 F-Model missiles contract was awarded to Javelin, a joint venture company of Lockheed Martin and Raytheon. Some prominent players in the global precision guided munition market include:

• Lockheed Martin

• Atlas Elektronik

• Raytheon

• Thales Group

• BAE Systems

• Northrop Grumman

• General Dynamics

• Elbit Systems

Precision Guided Munition Market Report Scope

Global Precision Guided Munition Market Report Segmentation

This report forecasts revenue growth at the global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global precision guided munition market report on the basis of product, technology, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Tactical Missiles

  • Guided Rockets

  • Guided Ammunition

  • Loitering Munition

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Infrared

  • Semi-Active Lasers

  • Inertial Navigation System (INS)

  • Global Positioning System (GPS)

  • Radar Homing

  • Anti-Radiation

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • South Korea

  • Central & South America (CSA)

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • Iran