land-based smart weapons market was worth $3.65 billion in 2020 and is expected to reach $7.77 billion in 2028, growing at a CAGR of 8.02% during the forecast period. COVID-19 has had an unprecedented and devastating worldwide impact, with land-based smart weapons seeing a significant decrease in demand across all regions due to the outbreak.
The rising military spending of major economies is likely to encourage armed services to invest large sums on modern terrestrial combat systems and man-portable weapon systems, propelling the expansion of the land-based smart weapons market over the forecast period. In addition, the government's initiatives to develop and produce guided ammunition and missiles in-house and lessen reliance on foreign technologies are projected to propel the land-based smart weapons market forward in the coming years. In the coming years, sales of smart ammunition for land applications are likely to increase due to increased investment in innovative technologies that will improve the accuracy and performance of existing missiles and ammunition.
The increasing demand for extremely precise weapons as a result of rising geopolitical tensions and cross-border challenges, among other factors, is propelling the land-based smart weapons market forward due to their cost-effectiveness, improved accuracy, versatility, extended operational range, and reduced training time. Moreover, the growing number of military forces' replacement and modernization plans is expected to raise demand for land-based smart weapons. Raytheon Technologies Corporation, for example, signed a USD 110 million modification contract with the US Navy in March 2020 to improve the radar-guided cannon weapon system. The device is expected to assist the US Navy in strengthening its littoral warfare defense against aircraft and anti-ship missile threats.
Stringent Government rules in nations such as India, New Zealand, Australia, the United Kingdom, and others are expected to restrict the market for land-based smart weapons. These countries have enacted strict restrictions on the acquisition and use of weapons. For instance, after a mass shooting incident in Christchurch mosques that murdered 50 people, New Zealand outlawed semi-automatic guns across the country in 2019. Moreover, India has some of the strictest weapon rules in the world when it comes to the issue of gun licenses. As a result, such obstacles are projected to hinder the land-based smart weapons market expansion in the coming years.
land-based smart weapons market By Product:
Ammunition and Other Products are expected to be the fastest-growing segment during the forecast period Moreover, as cross-border conflicts become more common and demand mounts to avoid civilian losses, precision-guided weapons are expected to become more prevalent. Various governments have utilized unguided mortars against soldiers, light armored vehicles, and structures for decades. Traditional mortar systems often fire two or more rounds to stabilize the firing platform and compensate for weather conditions. As a result, guided mortars with better firing accuracy and reduced ammunition consumption have become necessary. Their increased precision makes them more valuable as an anti-tank weapon, allowing them to engage moving targets more precisely. These advantages have increased the popularity of guided mortar systems, which are presently in use by several global forces.
land-based smart weapons market By Technology:
The lasers guidance segment is expected to hold the highest share in the land-based smart weapons market during the forecast period. The development of cutting-edge technology such as lasers, which enhances accuracy and operational efficiency, has fueled the rise.
The satellite guidance segment is expected to increase significantly in the land-based smart weapons market during the forecast period. The increase is attributed to the demand for GPS-guided smart guns, which can work well even in inclement weather.
land-based smart weapons market By Platform:
The land segment is projected to be the fastest-growing in the land-based smart weapons market during the forecast period. It is primarily due to the increased defense spending and procurement of smart weapons and rapid military force expansion will contribute to segmental growth in the near future. CGI, for instance, signed a contract with the US Army in July 2017 to support the Army's Aviation and Missile Command (AMCOM) operations. The agreement has valued a total of USD 92.5 million.
North America is currently dominating the land-based smart weapons market and is projected to remain dominant during the forecast period. The largest defense or military spending and expanding military modernization initiatives are credited with the increase. To considerably improve Aegis' missile defense capabilities, the US has been testing updated models of both the SM-3 and SM-6 missiles, as well as fielding a new sensor. The US Department of Defense (DoD) also intends to strengthen the Ground-based Midcourse Defense (GMD) system's capability and dependability. Recently deployed GBIs will be upgraded with an improved booster and a more capable Exoatmospheric Kill Vehicle (EKV). Such expenditures in smart munitions development and procurement are expected to help the region grow fastest during the forecast period.
Asia-Pacific is predicted to grow at a significant rate during the forecast period. The increase is attributable to increased defense investments from India, China, South Korea, Japan, and other countries. The increased investments in technologically superior weaponry are due to the growing threat to the country posed by China's enhanced fighting capability. In addition, during the forecast period, cross-border conflicts, political turmoil, and increased terrorism in the Asia Pacific will drive crucial land-based smart weapons market growth.
Due to prominent businesses such as Thales Group, BAE Systems, Rheinmetall AG, and others, Europe is expected to grow significantly. Moreover, countries such as the United Kingdom, France, and Russia are anticipated to increase defense spending to reinforce military capabilities, which will fuel demand for land-based smart weapons.
In October 2020, the US Air Force's Air Combat Command approved the Storm Breaker's smart weapon for deployment on the F-15E, according to Raytheon Missiles & Defense, a Raytheon Technologies business (NYSE: RTX). As a result, f-15E squadrons can now be equipped with Storm Breaker and deployed for missions as a result of the fielding decision. In addition to or instead of GPS and inertial navigation system guidance, Storm Breaker has a revolutionary multimode seeker that guides the weapon using imaging infrared, millimeter-wave radar, and semi-active laser.
On November 9, 2021, MBDA opened a new permanent office in Brussels, strengthening its international presence near the European Union (EU) and NATO institutions better to assist their objectives toward increased European defense cooperation. MBDA firmly supports the EU and NATO's goals of deepening defense cooperation among participating countries. MBDA is one-of-a-kind and highly successful European integrated Defense Corporation. Our extensive European footprint provides us the critical mass to compete globally, with over 12,000 employees working together across France, the United Kingdom, Germany, Italy, and Spain. MBDA has a solid track record of international cooperation over the last 20 years. We are excited to contribute our knowledge to the joint success of the European defense agenda in its EU and NATO dimensions through this new office.
Market Key Players:
• Raytheon Technologies Corporation
• Lockheed Martin Corporation
• MBDA Inc.
• BAE Systems plc
• Rafael Advanced Defense Systems Ltd
• Textron Inc.
• Thales Group
• General Dynamic Corporation
• Northrop Grumman Corporation
• Rheinmetall AG
COVID-19 pandemic is expected to have a minor impact on overall land-based smart weapons market revenue. Although production delays are expected for a short time, the pandemic is unlikely to cause significant demand changes. The global lockdown has severely impacted the defense industry, resulting in production shutdowns from key companies and delayed deliveries of land-based smart weapons. Raytheon Company, for example, secured a USD 353.3 million deal with the US Navy in March 2020 to provide guided missile round packs and replacement parts for Block 2A and two variants of the rolling airframe missile system. As a result of crucial businesses signing contracts, the land-based smart weapons industry will likely increase steadily during COVID-19.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Land-based Smart Weapons Market, By Product
6.1.3 Others products
6.1.4 Market Size Estimations & Forecasts (2021-2026)
6.1.5 Y-o-Y Growth Rate Analysis
6.1.6 Market Attractiveness Index
6.2 Land-based Smart Weapons Market, By Technology
6.2.1 Satellite Guidance
6.2.2 Infrared Guidance
6.2.3 Radar Guidance
6.2.4 Laser Guidance
6.2.5 Others Technologies
6.2.6 Market Size Estimations & Forecasts (2021-2026)
6.2.7 Y-o-Y Growth Rate Analysis
6.2.8 Market Attractiveness Index
6.3 Land-based Smart Weapons Market, By Platform
6.3.4 Market Size Estimations & Forecasts (2021-2026)
6.3.5 Y-o-Y Growth Rate Analysis
6.3.6 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Land-based Smart Weapons Market, by Region
7.2 North America - Market Analysis (2021 - 2026)
7.2.1 By Country
7.2.2 By Product
7.2.3 By Technology
7.2.4 By Platform
7.3.1 By Country
188.8.131.52 Rest of Europe
7.3.2 By Product
7.3.3 By Technology
7.3.4 By Platform
7.4 Asia Pacific
7.4.1 By Country
184.108.40.206 South Korea
220.127.116.11 South East Asia
18.104.22.168 Australia & NZ
22.214.171.124 Rest of Asia-Pacific
7.4.2 By Product
7.4.3 By Technology
7.4.4 By Platform
7.5 Latin America
7.5.1 By Country
126.96.36.199 Rest of Latin America
7.5.2 By Product
7.5.3 By Technology
7.5.4 By Platform
7.6 Middle East and Africa
7.6.1 By Country
188.8.131.52 Middle East
7.6.2 By Product
7.6.3 By Technology
7.6.4 By Platform
8. Key Player Analysis
8.1 Raytheon Technologies Corporation
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Lockheed Martin Corporation
8.3 MBDA Inc.
8.4 BAE Systems plc
8.5 Rafael Advanced Defense Systems Ltd
8.6 Textron Inc.
8.7 Thales Group
8.8 General Dynamic Corporation
8.9 Northrop Grumman Corporation
8.10 Rheinmetall AG
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures