Rising Defense Budgets is Fueling the Smart Weapons Technology Market Growth Due to Increasing Military Investment: A Significant Driver Propelling The Smart Weapons Technology Market In 2025

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What Is the Smart Weapons Technology Market Size and Projected Growth Rate?
In the past few years, the market size for smart weapons technology has seen substantial growth. A rise from $20.01 billion in 2024 to $21.49 billion in 2025 is predicted, at a compound annual growth rate (CAGR) of 7.4%. This historical period growth is due to an enhanced demand for precision-guided ammunition, a heightened emphasis on minimizing friendly fire incidents, increased military involvement in city-based warfare, a surge in the usage of real-time information for strategic targeting, and a growing dependence on satellite-guided navigation systems.

In upcoming years, the smart weapons technology market is forecasted to witness substantial growth, ballooning to a value of $28.43 billion by 2029, with a compound annual growth rate (CAGR) of 7.3%. This projected growth during the forecast period can be ascribed to escalating concerns of asymmetric warfare, expanding usage of autonomous defense mechanisms, increasing demand for consolidated battlefield solutions, amplified government emphasis on border safety, and rising acquisition of advanced armament. Key trends expected during this period are progress in artificial intelligence technology, breakthroughs in sensor fusion and targeting, increased spending in research and development, the evolution of hypersonic weapon systems, and advancements in electronic countermeasure technologies.

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What Are the Major Segments in the Smart Weapons Technology Market?
The smart weapons technology market covered in this report is segmented -

1) By Product: Missiles, Munitions, Guided Projectiles, Guided Rockets, Guided Firearms, Directed Energy Weapons
2) By Technology: Laser, Infrared, Radar, Global Positioning System (GPS), Other Technologies
3) By Platform: Air, Land, Naval

Subsegments:

1) By Missiles: Air-to-Air Missiles, Air-to-Ground Missiles, Surface-to-Air Missiles, Surface-to-Surface Missiles, Anti-Tank Missiles, Anti-Ship Missiles
2) By Munitions: Smart Bombs, Precision-Guided Munitions (PGMs), Cluster Munitions, Thermobaric Munitions, Penetrator Warheads
3) By Guided Projectiles: Guided Artillery Shells, Smart Mortars, Extended Range Guided Projectiles, Terminally Guided Projectiles
4) By Guided Rockets: Laser-Guided Rockets, GPS-Guided Rockets, Infrared-Guided Rockets, Semi-Active Radar Guided Rockets
5) By Guided Firearms: Smart Rifles, Laser-Guided Small Arms, Fire-Control System Enabled Firearms, Ballistic Tracking Firearms
6) By Directed Energy Weapons: High Energy Lasers (HEL), High Power Microwave (HPM) Weapons, Particle Beam Weapons, Electromagnetic Railguns

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What Are The Driving Smart Weapons Technology Market Evolution?
The smart weapons technology market is set to grow due to an increase in defense budgets. These budgets denote the financial means a government dedicates towards the upkeep and progression of its military and defense activities. Escalating geopolitical strains underpin the rise in defense budgets, forcing countries to invest more in reinforcing their military efficacy amid regional disputes, strategic competitions, and national security threats. The efficacy and precision of smart weapons technology aids in optimizing military operations, which indirectly benefits the defense budget by reducing the requirement for extensive troop deployment and lessening the expenses related to collateral damage. An example of this was displayed in November 2024 when, as per the UK's Ministry of Defense, total defense expenditure experienced a raise of about $1.4 billion (£1.1 billion) against the figures of 2022-23. Consequently, the increasing defense budgets are the key driving force for the expansion of the smart weapons technology market.

Which Firms Dominate The Smart Weapons Technology Market Segments?
Major companies operating in the smart weapons technology market are Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems, L3Harris Technologies Inc., Textron Inc, Rheinmetall AG, Elbit Systems Ltd., Israel Aerospace Industries Ltd., MBDA, Diehl Stiftung & Co. KG, Saab AB, General Atomics, Aselsan A.S., Denel SOC Ltd., Thales Group, UVision Air, Rafael Advanced Defense Systems Ltd., Bharat Dynamics Limited

What Trends Are Expected to Dominate the Smart Weapons Technology Market in the Next 5 Years?
Leading companies in the smart weapons technology marketplace are prioritizing the development of cutting-edge solutions such as autonomous systems to heighten targeting precision and operational productivity. Autonomous systems demonstrated as technologies that function independently of human interaction, lean on sensors, AI, and machine learning for decision-making processes. These systems find significant utility in military environments where they empower weapons and vehicles to autonomously navigate, target, and survey. For example, in September 2023, the UK-based technology firm MARSS Group unveiled the Interceptor-SR, a handheld autonomous system engineered to counter drone threats. This pioneering system integrates AI-supported autonomous tracking, thermal sensors, and kinetic deactivation abilities, allowing it to self-dependently recognize and neutralize Class 1 drones. The Interceptor-SR is remarkably adaptable, with both mounted and portable deployment alternatives, making it an efficient strategy for diverse military operations. Its modular configuration promises adaptability and efficiency against aerial adversities.

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Which Is The Largest Region In The Smart Weapons Technology Market?
North America was the largest region in the smart weapons technology market in 2024. The regions covered in the smart weapons technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Smart Weapons Technology Market?
2. What is the CAGR expected in the Smart Weapons Technology Market?
3. What Are the Key Innovations Transforming the Smart Weapons Technology Industry?
4. Which Region Is Leading the Smart Weapons Technology Market?

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