Press release
Global Precision Guided Munition Market Expansion at 9.7% CAGR, Valued at $62.03 Billion by 2029
Use ONLINE30 for 30% savings on global market reports and stay on top of tariff updates, market trends, and economic shifts worldwide.What Are the Precision Guided Munition Market Size Forecast for 2025?
In recent times, there has been a substantial expansion in the size of the precision guided munition market. It is projected to catapult from $39.07 billion in 2024 to $42.86 billion in 2025, maintaining a compound annual growth rate (CAGR) of 9.7%. This growth during the historic period is largely owed to the modernization of the military, the necessity for precision, an amplified defense budget, advancements in the technology used for targeting and guidance, an increase in worldwide conflicts and counterterrorism activities, and the requirement for minimization of collateral damage.
What Is the Market Size Outlook for Precision Guided Munition Until 2029?
Anticipating robust expansion, the precision guided munition market is projected to surge to a size of $62.03 billion by 2029, indicating a compound annual growth rate (CAGR) of 9.7%. This anticipated rise in the forecast period can be credited to elements like the incorporation of artificial intelligence for precision, the escalating growth in asymmetric warfare and counter-insurgency, personalized munitions for distinct mission requirements, the broadening scope of unmanned aerial vehicle (uav) warfare, and heightened use in maritime and naval operations. Crucial trends predicted for the forecast period encompass intelligent munitions with superior target recognition, regulatory norms for precision munition deployment, the fusion of electromagnetic and cyber warfare, reduction in size and extended loiter time of munitions, and modular munition frameworks for multi-purpose abilities.
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What Are the Major Factors Driving Demand in the Precision Guided Munition Market?
The rise in military spending is a significant catalyst for the expansion of the precision-guided munition market. This refers to the financial resources channeled towards any country's armed forces, which ensures national peace and stability. The emphasis on military modernization strategies, coupled with the growing need for precision-guided munition to decrease incidental harm and improve the efficacy against targets, boosts precision-guided munition's uptake. In the case of the UK, The House of Commons Library, the information and literary resource of the lower house of the British Parliament, states that £54.2 billion ($68.8 billion) was devoted to defense expenditure in the 2023/24 fiscal year. This budget is set to surge to £57.1 billion ($70.74 billion) in 2024/25, implying a real-term growth of 4.5%. Thus, the upward trajectory in military spending is envisaged to spur the precision-guided munition market's growth.
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How Are End-Use Segments Shaping the Precision Guided Munition Market Outlook?
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
What Are the Strategic Trends Transforming the Precision Guided Munition Market Landscape?
Major players in the precision-guided munition market are concentrating their efforts on arising with novel technological solutions such as guided high-explosive ammunition to cater for customer needs and reinforce their market standing. The guided high-explosive ammunition is a munition type fitted with precision guidance systems that allow it to focus on and hit specific targets, thereby reducing incidental harm while precisely and selectively delivering a high-explosive payload. An example of this is in October 2023, when the US Navy awarded a contract to Northrop Grumman Corporation, an American aerospace and defense firm, to advance its newly developed 57mm guided high explosive ammunition. The firm will proceed with testing and maturing the munition with plans to use it with the Mk110 Naval Gun Mount with the goal of reaching qualification.
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Who Are the Prominent Companies in the Precision Guided Munition Market by ?
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.
Which Region Is Expected to See the Highest CAGR 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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