Smart Weapons Market - Technological breakthroughs, Value chain and stakeholder analysis by 2019
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The rising need for precision to minimize the collateral damage coupled with the increasing number of conflicts resulting in high defense spending is the major factor driving the smart weapons market globally. Governments in various countries such as the U.S., China and Russia are spending heavily on modernizing their military resources. Thus, a large number of weapon manufacturers have shifted their focus towards the development of smart weapons. On the contrary, the smart weapons market is facing various challenges such as the impact of arms trade regulations and high dependency on the U.S. government.
Air-to-ground missiles dominated the market in 2012 whereas direct energy weapon segment is expected to experience fastest growth over the forecast period. Direct energy weapons operate at the speed of light and can cause high damage to the facilities, equipments or personnel. Thus, their demand is continuously increasing across different countries globally. Segments such as electromagnetic pulse weapons and smart bullets are small segments. However; they are expected to experience high growth over the forecast period owing to ongoing technological developments to enhance their functionalities.
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Geographically, North America led by the U.S. and Canada dominates the smart weapons market. The growth in this region is attributed to high military spending and presence of key market players that makes the availability of weapons easier for the U.S. government. Emerging countries in Asia Pacific such as China, Japan and India and the rising demand from the Middle East for modern weapon systems offers potential opportunities to the smart weapons market in the coming years.
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