Precision Guided Munition Market

Global Precision Guided Munition Market Size (2024 to 2029)

The precision-guided munition market size is projected to reach USD 47.98 Billion by the end of 2029 from USD 37.59 Billion in 2024, growing at a CAGR of 5% during the forecast period.

The precision-guided munition market is expected to have huge growth opportunities in the future. Collaborations between the key players with strategic moves to develop innovative weapons to promote strong military forces are positively impacting the market growth. Frequent upgrades in warfare systems are likely prompting the need to adopt effective systems in the defense and military, which are surging, enhancing the need to adopt highly accurate systems. It is becoming quite common to adopt high-end technologies in the army with high investments to increase the capabilities in war operations. Stealth aircraft is one of the major trends in the world right now. Government authorities have already invested huge amounts to develop stealth aircraft with more precision in the targets. Major countries like India and Russia collaborated to launch the BrahMos missile, which was developed with the most advanced technology and is highly accurate in destroying the targeted areas. All the new developments are striking huge demand for the new generation air defense systems that are steadily lavishing the growth opportunities for the precision-guided munition market.

Global Precision Guided Munition Market Drivers:

The growing prevalence of adopting highly advanced technologies in the military is a major factor that is escalating the growth rate of the precision-guided munition market. Precision-guided munition focuses on a specific target to destroy or degrade the key threat and then minimizes the collateral damages. These are highly effective in military operations where the latest technology, like artificial intelligence, provides advanced features for army operations.

Increasing conflicts between the countries due to border disputes are enhancing the growth rate of the precision-guided munition market. Russia-Ukraine and Israel and Hamas war are elevating the market growth rate of the market. The unguided munitions might not be useful during this war as they are not specific in destroying the targeted threats effectively. Therefore, the military forces completely lean on the guided precision munition for effective operations on the battlefield. For instance, in 2022, the US sent new precision-guided shells named M982 Excalibur shells with a 25-mile range to Ukraine that are showing effective results in their battle with Russia. Israel is using 'Iron Sting' precision-guided munition against Hamas, which brought a significant impact on the enemy's rocket and tunnel capabilities. The Israel-Hamas conflict targeted civilians, and the number of casualties among the common people was relatively high. With the use of precision-guided munition, the operations can hit the specific target, ensuring safety for the civilians. Therefore, precision-guided munitions are game-changing weapons in military operations that are significantly boosting the market growth rate to an extent.

With the increasing popularity of precision-guided munition in real-time military operations, emerging countries like India, China, the US, and others are investing heavily in the development of these weapons. With the conflicts arising between the countries, the demand to adopt highly advanced military weapons is growing tremendously, which is greatly influencing the market size.

Global Precision Guided Munition Market Restraints:

However, the difficulty in merging the advanced missiles in the current operations is slowly degrading the adoption of the new technologies on the battlefield, which is hindering the growth rate of the market. Integration of the large missiles with the existing command needs a huge process and advanced technologies. It requires skilled engineers to perform tasks where the availability of these people is limited, which restricts the growth rate of the market. The precision-guided munition costs are very high due to its effectiveness in long-range missiles, which is impeding the market growth rate. Alterations in the effective outcomes with the weather problems are strongly limiting the demand for the use of PGM in military forces.

Strict norms imposed by the government for the safety of the people in the army are also slowly degrading the market share during the forecast period. In many countries, precision-guided munitions are banned due to their risk factors emerging during real-time operations. The threat of gaining access to technology and weapons during transportation is increasing with cyber-attacks, which is why strict norms are imposed on exporting or importing weapons between countries. This attribute is ascribed to limiting the growth rate of the precision-guided munition market growth to the extent.

Impact of COVID-19 on the Precision-Guided Munition Market:

The COVID-19 impact on the precision-guided munition market was both positive and negative. When COVID-19 hit the world, all the focus shifted to public safety affairs, and the demand for the development of military weapons declined. During this time, all the manufacturing units were shut down due to a lack of funds and workers. Supply chain disruptions hardly hit the manufacturing unit of the weapons that inclined in negative growth rate. The decreased defense budget due to the economic crisis and postponement of the scheduled projects significantly decreased the growth opportunities for the market in 2020. However, the market started to bounce back at a faster rate with the increasing border conflicts between many countries across the world.

REPORT COVERAGE:

This research report on the global precision-guided munition market has been segmented and sub-segmented based on speed, product, technology, mode of operation, launch platform, and region.

Global Precision-Guided Munition Market - By Speed:

• Subsonic
• Supersonic
• Hypersonic

The supersonic segment is gaining traction over the market share with the rising demand for high-speed aircraft designs in defense systems. The supersonic precision-guided munition is gaining more popularity due to increasing prominence for the development of various missiles with the latest technologies. For instance, India and Russia's joint venture to develop a BrahMos-NG supersonic missile is all set to conduct the test by the end of 2024. The subsonic segment is likely to have prominent growth opportunities throughout the foreseen years.

Global Precision-Guided Munition Market - By Product:

• Tactical Missiles
• Guided Rockets
• Guided Ammunition
• Torpedoes
• Loitering Munitions

The tactical missiles segment is expected to grow at a CAGR of 4.9% during the forecast period. As the demand for short-range missiles is booming, the tactical missiles segment growth rate is strongly growing at a random rate. Tactical missiles are important during short-range targets with high precision value. The guided ammunition segment is next in leading the market share, whereas the Guided rockets segment is likely to grow at a higher rate.

Global Precision-Guided Munition Market - By Technology:

• Infrared
• Laser
• Inertial Navigation System (INS)
• Global Positioning System (GPS)
• Radar Homing
• Anti-radiation

GPS (Global Positioning System) segment is ruling with a significant growth rate estimated at a CAGR of 4.9% during the forecast period 2024-2029. The navigation system is one of the most important things during the military operations. The accurate velocity signal through satellites enhances the efficiency of the missile operations to reach the specific target, which further prompts the growth of this segment.

Global Precision-Guided Munition Market - By Mode of Operation:

• Autonomous
• Semi-autonomous

The semi-autonomous segment is greatly influencing the market share with the increasing investments from the government platforms. The autonomous segment is likely to have a steady pace during this forecast period. The penetration of new technological developments in the defense sector is enhancing the demand for autonomous segments.

Global Precision-Guided Munition Market - By Launch Platform:

• Land
• Airborne
• Naval

The land segment is gaining more traction over the market share due to ongoing conflicts between Russia & Ukraine and Israel & Hamas. With these conflicts, the demand for the development of precision-guided munition has become more normal, which is why the market growth rate is surging.

Global Precision-Guided Munition Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The North American precision-guided munition market is gaining a significant growth rate. The US and Canada are major countries contributing the highest share of the market. US defense is focusing on the integration of new technologies to combat the threats in a much more effective way. Increasing conflicts between other countries are raising interest in military forces to enhance the development process in every possible way, which is greatly prompting the growth rate of the market. According to the latest update, US military forces have roughly 33 munitions and 19 PGMs under production.

Asia Pacific is next to North America and is leading the market share with the rising border conflicts between India, China, India-Pakistan, and others. Emerging countries like India, China, and South Korea are hugely investing in defense systems. The popularity of the latest technological developments and the launch of new integration systems are gearing up the growth rate of the market in Asia Pacific. Also, government support through investments is greatly impacting the market value during the forecast period in Asia Pacific.

Europe is likely to hit the highest CAGR by the end of 2029 with the ongoing war between Russia and Ukraine. Russia and Ukraine's war positively impacted the share of the market in Europe. Russia's defense is planning to produce more PGMs to enhance the specific target outcomes by reducing the casualties.

Latin America and the Middle East & Africa are set to showcase growth opportunities for the precision-guided munition market.

KEY MARKET PLAYERS:

Major Key Players in the Precision-Guided Munition Market are Northrop Grumman Corporation (US), Lockheed Martin (US), Boeing (US), Raytheon Technologies (US), and General Dynamics Corporation (US)

RECENT HAPPENINGS IN THE MARKET:

• In 2023, Northrop Grumman Corporation (US), a leading aerospace and defense technology company, received a contract from the US Navy to develop guided munition. The company developed a guided 57mm Ammunition, which has the unique ability to destroy the target more precisely.

https://news.northropgrumman.com/news/releases/northrop-grumman-to-develop-new-guided-ammunition-for-the-us-navy

• In 2023, Northrop Grumman Corporation (US) was ready to transform 155-millimeter artillery shells into one GPS-guided smart munition with the award received from the US Army explosives experts. The US Army set a deal with this company worth USD 40.6 billion to avail M1156E4 precision guidance kits.

https://www.militaryaerospace.com/sensors/article/14295027/smart-munitions-gpsguided-artillery-shells