Close-in Weapon Systems - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019-2029

The Close-in Weapon Systems Market size is estimated at USD 7.08 billion in 2024, and is expected to reach USD 11 billion by 2029, growing at a CAGR of 9.21% during the forecast period (2024-2029).

A close-in weapon system (CIWS) is a weapon system specifically designed to identify and neutralize incoming short-range missiles and enemy aircraft that have successfully penetrated the outer defense mechanisms. These systems are commonly utilized on naval vessels. It should be noted that CIWS devices are present on a wide range of modern warships. Experts have pointed out that high-energy lasers now provide a cost-effective solution for targeting asymmetric threats such as unmanned aircraft and small attack boats, accomplishing this task at the speed of light and with an exceptional level of accuracy.

The close-in weapon systems market is anticipated to be driven by a consistent increase in the global military fleet, internal and external security threats, technological innovations, aging global military fleet, joint ventures, and strategic alliances formed to address the specific requirements of the modernization initiatives undertaken by the global armed forces. Moreover, the growing instances of asymmetric warfare and the emphasis on developing advanced warfare systems are the main drivers for the market. However, the design and operational issues regarding the use of automated weaponry including CIWS may challenge the industry in the short term.

Close-in Weapon Systems Market Trends

Gun-Based Close-in Weapon Systems is Anticipated to Grow with the Highest CAGR During the Forecast Period

Gun-based close-in weapon systems are expected to experience substantial growth in the market throughout the projected period due to the rising demand for various gun-based close-in weapon systems (CIWS), such as Pantsir-M, DARDO, AK-630, Goalkeeper CIWS, Kashtan CIWS, Myriad CIWS, and others. A gun-based close-in weapon system (CIWS) often consists of radar systems, computational devices, and rapidly-firing, multi-barrel rotary cannons that are located within a rotating turret. Furthermore, increasing expenditure on the defense sector and growing procurement of advanced weapons systems drive the market growth.

The Kashtan CIWS is predicted to garner attention in the coming years, primarily because of its ample ammunition storage capacity and several advantages, including its ability to safeguard ships against anti-radar missiles, ASMs, and airborne threats from aircraft, among others. Furthermore, it possesses the capability to engage ground targets and smaller vessels. For example, in September 2021, China unveiled an innovative 11-barrel variant of its land-based 30mm air-defense system, with a mounted-trailer version seemingly improved for the point-defense of critical installations. The 1130 Types represents one among the numerous categories of gun-based naval CIWS manufactured by China.

North America to Dominate the Market During the Forecast Period

Utilization of close-in weapons systems (CIWS) in North America is currently a primary area of emphasis for both the US and Canada, as they endeavor to enhance the capabilities of their existing military vehicles. The US, in particular, places a high priority on modernizing its military systems to effectively compete with China and Russia on a global scale. Additionally, the US emphasizes the significance of day-to-day operations in ongoing conflicts, as well as disaster response and cooperation. It is anticipated that defense contractors will engage in the production of current CIWS models, while also conducting comprehensive research and development for future endeavors.

For instance, in April 2023, RTX Corporation secured a modification contract for the MK 15 close-in weapon system (CIWS). The award has been provided by the US Naval Sea Systems Command. The contract is expected to be completed by September 2026. Similarly, in May 2022, the Canadian military announced its plans to procure new ground-based air defense systems for USD 1 billion. The military has started the process to procure a new high-tech system that will be capable of shooting down enemy aircraft, missiles, and drones. The weapons included highly capable close-in weapons systems that could take down any adversary aircrafts entering without authorization.

Close-in Weapon Systems Industry Overview

The close-in weapon systems market is consolidated in nature due to the presence of a few players holding significant shares in the market. Some of the key players in the market are RTX Corporation, Leonardo S.p.A, BAE Systems plc, THALES, and ASELSAN A.S. The growing demand for CIWS is fostering R&D for new optronics and sensor subsystems. Meanwhile, companies are trying to expand their geographical presence in emerging markets such as Asia-Pacific, along with a dedicated product portfolio for the CIWS systems.

For instance, RTX Corporation offers the Phalanx Weapon System, which is a rapid-fire, computer-controlled, radar-guided gun that can defeat anti-ship missiles and other close-in threats on land and at sea. With such dedicated systems, the company has established a prominent role as a popular provider of CIWS systems across various geographies of the market, with countries like South Korea anticipated to procure the systems in the coming future. Players from countries like India, and Japan, among others, are looking to collaborate with foreign manufacturers to build the weapon systems, and this provides growth opportunities to the foreign players to enhance their geographical reach in the years to come.

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