Missiles Global Market Report 2024

The missiles market size has grown strongly in recent years. It will grow from $32 billion in 2023 to $34.96 billion in 2024 at a compound annual growth rate (CAGR) of 9.3%. The growth observed during the historic period can be attributed to various factors such as heightened geopolitical tensions, ongoing military modernization programs, regional security apprehensions, dynamics associated with arms races, and the formation of strategic alliances and defense pacts among nations.

The missiles market size is expected to see strong growth in the next few years. It will grow to $44.94 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. Anticipated growth in the forecast period can be linked to emerging threats and evolving security challenges, advancements in modern warfare tactics, strategies focused on deterrence and defense, adherence to global arms control agreements, and changes in military doctrines. Key trends expected during this period encompass enhancing electromagnetic pulse (EMP) resilience, expanding long-range strike capabilities, miniaturization of missile technology, heightened utilization of multi-mode seekers, and an emphasis on collaborative development and international partnerships in the missile industry.

The missile market is poised for growth due to increased global defense spending. Countries worldwide are investing significantly in defense to safeguard their territories. As of April 2022, the Stockholm International Peace Research Institute (SIPRI) reported a projected 0.7% increase in total global military spending to $2,113 billion, marking the seventh consecutive year of growth. China, the second-largest spender globally, allocated an estimated $293 billion to its military in 2021, reflecting a 4.7% increase over 2020. China has consistently increased military spending for the past 27 years. This surge in defense expenditures contributes to the expansion of the missile market.

The missile market is also driven by government initiatives aimed at strengthening defense capabilities. Government initiatives involve plans or actions to address specific defense challenges, often funded through various sources such as taxes, grants, and donations. For instance, in August 2023, the German government introduced the European Sky Shield Initiative (ESSI) to enhance Europe's air and missile defense capabilities. ESSI involves the construction of a ground-based integrated air defense system with anti-ballistic missile capabilities in Europe. These government initiatives play a crucial role in providing stable and reliable funding for missile development, contributing to the growth of the missile market.

The missiles market is witnessing a significant trend with the integration of artificial intelligence (AI) into missile systems. Countries worldwide are developing AI-driven missiles to target objectives that may be challenging for human-guided missiles. AI technology enhances the capabilities of missiles, enabling them to strike moving targets with greater accuracy. For example, Rafael Advanced Defense Systems Ltd., an Israel-based defense technology company, introduced the Sea Breaker missile, a fifth-generation weapon system that incorporates artificial intelligence and decision-making algorithms. With a range of up to 300 km, the Sea Breaker offers precision strikes with advanced imaging infrared (IIR) seeker technology, making it effective for engagements with maritime and land targets, including those in challenging environments.

Innovation in the missile market extends to the development of air-to-air missiles (AAM) as major companies focus on providing advanced solutions to customers. Air-to-air missiles are rockets propelled by one or more motors, designed to be launched from aircraft to destroy other aircraft. Rafael Advanced Defense Systems Ltd. launched SKY SPEAR, a long-range air-to-air missile, in June 2023. This missile, designed to excel in aerial combat scenarios, features long-range engagement capabilities to outpace adversaries before they can respond. The SKY SPEAR missile's RF seeker technology enhances early detection and precision targeting, contributing to its effectiveness in challenging air-to-air engagements.

In July 2023, L3Harris Technologies Inc., a prominent US-based aerospace and defense technology company, successfully acquired Aerojet Rocketdyne for an undisclosed sum. This strategic acquisition is anticipated to reinforce L3Harris's position in the defense industrial base and facilitate accelerated innovation in propulsion systems. Aerojet Rocketdyne, a US-based company renowned for its expertise in manufacturing rockets, hypersonic technologies, strategic missiles, and electric propulsive systems, adds significant capabilities to L3Harris's portfolio, positioning the company for advancements in critical aerospace and defense technologies.

Major companies operating in the missiles market report are Raytheon Technologies Corporation, Boeing International Holdings Ltd., Lockheed Martin Corporation, Airbus SE, Hanwha Corporation, China Aerospace Science and Technology Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems PLC, L3Harris Technologies Inc., Textron Inc., JSC Rosoboronexport, Huntington Ingalls Industries Inc., Matra BAe Dynamics, Leonardo SpA, Rheinmetall AG, Serco Group PLC, Israel Aerospace Industries, Saab AB, Roketsan Roket Sanayii ve Ticaret AS, MBDA Incorporated, Rafael Advanced Defense Systems Ltd., Kongsberg Gruppen ASA, Aerojet Rocketdyne Holdings Inc., ASELSAN A.S., Bharat Dynamics Limited, Ukroboronprom State Concern, FNSS Savunma Sistemleri AŞ, Avibras Industrial Aerospecial SA, Tactical Missiles Corporation.

Asia-Pacific was the largest region in the missiles market in 2023. Western Europe is expected to be the fastest-growing region in the global missiles market report during the forecast period. The regions covered in the missiles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the missiles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Primary product types consist of cruise missiles and ballistic missiles. Cruise missiles, designed for terrestrial targets, maintain atmospheric flight at a consistent speed, aiming to deliver a sizable warhead with exceptional accuracy across long distances. These missiles vary in range, spanning short-range, medium-range, and intermediate-range categories, utilizing propulsion systems such as ramjets, scramjets, turbojets, liquid propulsion, solid propulsion, and hybrid propulsion. Missiles find application in defense and homeland security measures.

The missiles market research report is one of a series of new reports that provides missiles market statistics, including missiles industry global market size, regional shares, competitors with a missiles market share, detailed missiles market segments, market trends and opportunities, and any further data you may need to thrive in the missiles industry. This missiles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The missiles market consists of sales of guided missiles or rockets to deliver an explosive warhead with precision at high speed. Values in this missiles market are factory gate values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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