Missiles Market Report 2025

The missiles market size has grown strongly in recent years. It will grow from $24.96 billion in 2024 to $27.21 billion in 2025 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to geopolitical tensions, military modernization programs, regional security concerns, arms race dynamics, strategic alliances and defense pacts.

The missiles market size is expected to see strong growth in the next few years. It will grow to $36.11 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to emerging threats and security challenges, modern warfare tactics, deterrence and defense strategies, global arms control agreements, shifts in military doctrine. Major trends in the forecast period include electromagnetic pulse (EMP) resilience, long-range strike capabilities, miniaturization of missile technology, and increased use of multi-mode seekers, collaborative development and international partnerships.

Increased defense spending is anticipated to drive growth in the missile market. Countries worldwide are investing in defense to safeguard their territories. For example, a report published in April 2024 by the Stockholm International Peace Research Institute (SIPRI), a Sweden-based international research institute, revealed that global military spending reached $2.443 trillion in 2023, representing a 6.8% increase in real terms compared to 2022. Consequently, this rise in defense expenditure is fueling the growth 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.

Major companies in the missile market are concentrating on developing advanced products, such as cruise missiles, to meet evolving security threats in modern warfare environments. Cruise missiles are precision-guided weapons that maintain a consistent speed and altitude, delivering explosive payloads over long distances. Their design enhances maneuverability and stealth, making them effective for striking strategic targets. For example, in September 2024, Anduril Industries, a US-based defense technology company, launched the Barracuda family of cruise missiles, which includes the Barracuda-100, -250, and -500 models, each with distinct capabilities. The Barracuda-500 is designed for cargo launch from transport aircraft, while the Barracuda-250 is optimized for internal carriage on platforms like the F-35. All variants boast a range exceeding 500 nautical miles, a payload capacity of over 100 pounds, the ability to achieve 5 Gs of maneuverability, and more than 120 minutes of loitering time. This design ensures adaptability for various missions and compatibility with multiple payloads.

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 include 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, Leonardo SpA, Rheinmetall AG, 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, Avibras Industrial Aerospecial SA, Tactical Missiles Corporation.

Asia-Pacific was the largest region in the missiles market in 2024. 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.

Missiles represent guided airborne weapons engineered for precision, high-speed delivery of explosive warheads. Their components comprise the targeting system, guidance system, flight system, engine, and warhead.

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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