Increase In Military Expenditure Drives The Precision-Guided Munition Market: The Driving Engine Behind Precision Guided Munition Market Evolution in 2025

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Precision Guided Munition Market Size Growth Forecast: What to Expect by 2025?
There has been a swift expansion in the size of the precision guided munition market in the past few years. It is anticipated to escalate from $39.07 billion in 2024 to $43.12 billion in 2025 with a compound annual growth rate (CAGR) of 10.4%. The rise in the preceding years can be linked to the modernization of the military, the demand for accuracy, increased defense budgets, advancements in targeting and guidance technology, escalation in global conflicts and efforts towards counterterrorism, coupled with the demand to minimize collateral damage.

How Will the Precision Guided Munition Market Size Evolve and Grow by 2029?
The market size for precision guided weapons is slated to witness a robust expansion in the foroming years, estimated to reach $63.1 billion by 2029, with a CAGR of 10.0%. This projected growth for the stipulated timeframe can be credited to the incorporation of artificial intelligence for improved accuracy, an uptick in asymmetric warfare and counter-insurgency, bespoke munitions meeting distinct mission requirements, the proliferation of unmanned aerial vehicle (uav) conflict, and their amplified deployment in naval and maritime operations. Further trends projected for the forecast period comprise sophisticated munitions with upgraded target detection, regulatory norms for deploying precision munitions, incorporation of electromagnetic and cyber warfare, miniaturization, and enhanced lingering time of munitions, alongside modular munition systems for multi-role applications.

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What Drivers Are Propelling the Growth of Precision Guided Munition Market Forward?
The surge in defense spending is a substantial factor propelling the expansion of the precision-guided munition market. The military, embodying the national armed forces responsible for ensuring peace and stability, is putting more emphasis on modernization initiatives. There is also an elevated need for precision-guided munitions to enhance accuracy against chosen targets and limit unwanted collateral damage. This, in turn, escalates the demand for these devices. The House of Commons Library, serving as the information resource of the British Parliament's lower house, reported that the UK designated £54.2 billion ($68.8 billion) for defence funding in the 2023/24 fiscal year. The predicted increase of this allocation to £57.1 billion ($70.74 billion) in 2024/25 signifies a 4.5% growth in actual terms. Thus, the rise in military spending is likely to stimulate the precision-guided munition market's growth.

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Which Emerging Trends Are Transforming the Precision Guided Munition Market in 2025?
Firms in the precision-guided munition sector are concentrating their efforts on innovating new technologies like guided high-explosive ammunition to meet customer needs and solidify their market standing. This kind of ammunition comes equipped with precision guidance systems, enabling them to accurately and selectively target and hit specific objectives, thus reducing unintended damage but effectively delivering a high-explosive payload. To illustrate, Northrop Grumman Corporation, an aerospace and defense firm based in the US, was awarded a contract in October 2023 by the US Navy to advance its newly developed 57mm guided high explosive ammunition. In the process of qualifying the munition, the company plans to test and perfect it for potential use with the Mk110 Naval Gun Mount.

What Are the Key Segments in the Precision Guided Munition Market?
The precision guided munition market covered in this report is segmented -

1) By Product: Tactical Missiles, Guided Rockets, Guided Ammunition, Torpedoes, Loitering Munitions
2) By Technology: Infrared, Semi Active Laser, Inertial Navigation System (INS), Global Positioning System (GPS), Radar Homing, Anti-Radiation
3) By Launch Platform: Land, Airborne, Naval
4) By Mode of Operation: Semi-Autonomous, Autonomous
5) By Speed: Subsonic, Supersonic, Hypersonic

Subsegments:
1) By Tactical Missiles: Air-to-Ground Missiles, Surface-to-Air Missiles, Anti-Ship Missiles, Anti-Tank Missiles
2) By Guided Rockets: Surface-Launched Rockets, Air-Launched Rockets
3) By Guided Ammunition: Precision-Guided Artillery Shells, Guided Mortar Rounds, Smart Bombs
4) By Torpedoes: Lightweight Torpedoes, Heavyweight Torpedoes
5) By Loitering Munitions: Fixed-Wing Loitering Munitions, Rotary-Wing Loitering Munitions

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Who Are the Key Players Shaping the Precision Guided Munition Market's Competitive Landscape?
Major companies operating in the precision guided munition market include Northrop Grumman Corporation, Lockheed Martin Corporation, The Boeing Company, BAE Systems plc, General Dynamics Corporation, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Elbit Systems Ltd., Saab AB, Israel Aerospace Industries Ltd., Rheinmetall AG, Bharat Dynamics Limited, Denel Dynamics a division of Denel SOC Ltd., LIG Nex 1 Co. Ltd., Rafael Advanced Defense Systems Ltd., Kongsberg Gruppen ASA, Roketsan A.S., China Aerospace Science and Industry Corporation, China North Industries Group Corporation Limited, Hanwha Defense Co. Ltd., Taurus Systems GmbH, Diehl Defence GmbH & Co. KG, Nexter Systems S.A., Raytheon Technologies Corporation, Aerojet Rocketdyne Holdings Inc., Precision Guided Solutions LLC, Textron Inc.

What Geographic Markets Are Powering Growth in the Precision Guided Munition Market?
Asia-Pacific was the largest region in the precision-guided munition market in 2024. The regions covered in the precision guided munition market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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