The smart weapons market size is expected to see strong growth in the next few years. It will grow to $25.66 billion in 2030 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to increasing demand for network-enabled smart weapons supporting real-time targeting, integration of artificial intelligence and advanced seekers to improve autonomous engagement, growing procurement of precision weapons to minimize collateral damage in complex battlefields, development of multi-mode guidance systems for enhanced versatility, expanding collaboration between defense manufacturers and governments to accelerate next-generation smart-weapon programs. Major trends in the forecast period include development of multi-platform deployment capabilities (air, land, naval), enhanced precision guidance systems for smart weapons, integration of multi-sensor targeting systems, miniaturization of smart bullets and munitions, advanced non-lethal weapon systems.
The rise in global and regional instability is driving the growth of the smart weapons market. Transnational and regional instability refers to political unrest occurring in neighboring countries. Many nations are adopting smart weapons to safeguard themselves against increasing regional tensions and threats from nearby states. For example, in July 2024, according to the Armed Conflict Location and Event Data, a U.S.-based nonprofit organization, more than 165,273 political violence incidents were recorded worldwide between July 2023 and June 2024, marking a 15% increase from the previous year. During this period, an estimated one in seven people globally were affected by conflict. Therefore, increasing transnational and regional instability is propelling the smart weapons market.
Leading companies in the smart weapons market are focusing on developing innovative technologies, such as EDGE smart weapons, to enhance precision, minimize collateral damage, and improve battlefield effectiveness. EDGE smart weapons refer to advanced precision-guided munitions that leverage cutting-edge technologies like artificial intelligence (AI), machine learning, and advanced sensors to improve targeting accuracy and operational efficiency. For instance, in November 2023, General Atomics Aeronautical Systems, Inc., a US-based aerospace company, introduced the MQ-9B SkyGuardian RPA. This remotely piloted aircraft offers over 40 hours of endurance, advanced surveillance with high-resolution sensors, and the capability to operate safely in civil airspace alongside commercial aircraft. Its modular design allows for customizable payloads, making it suitable for a range of military and humanitarian missions.
In September 2023, EDGE Group, a UAE-based defense contractor company, acquired a 50% stake in SIATT for an undisclosed amount. This strategic acquisition enhances EDGE's capabilities in developing intelligent weaponry and cutting-edge systems, focusing on technological advancements in both the UAE and Brazilian markets. SIATT is a Brazil-based company specializing in smart weapons.
Major companies operating in the smart weapons market are Lockheed Martin Corporation, MBDA Incorporated, Orbital ATK Inc., General Dynamics Corporation, BAE Systems plc., The Boeing Company, Textron Inc., Northrop Grumman Corporation, Raytheon Technologies Corporation, Rheinmetall AG, Thales Group, Israel Aerospace Industries Ltd., Denel SOC Ltd., Rafael Advanced Defense Systems Ltd., L3Harris Technologies Inc., Alliant Techsystems Inc., Leonardo-Finmeccanica, Saab AB, Aselsan A.S., Diehl Stiftung & Co. KG, OTO Melara S.P.A, United Technologies Corporation., China Aerospace Science and Industry Corporation Limited.
North America was the largest region in the smart weapons market in 2025 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the smart weapons market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs on smart weapons components, including precision sensors, guidance systems, and advanced munitions, have increased production costs and delayed supply chains. North America, Europe, and Asia-Pacific, which are key manufacturing and defense deployment regions, are most affected. However, these tariffs have also incentivized domestic production, promoted innovation in guidance and targeting technologies, and enhanced local defense manufacturing capabilities, supporting long-term market resilience and security readiness.
The smart weapons market research report is one of a series of new reports that provides smart weapons market statistics, including smart weapons industry, global smart weapons market size, regional shares, competitors with a smart weapons market share, detailed smart weapons market segments, market trends and opportunities, and any further data you may need to thrive in the smart weapons industry. This smart weapons 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.
Smart weapons are computer-guided weapons equipped with sensors and guidance systems. These precision-guided weapons are designed to hit targets with high accuracy and precision, and they are often operated remotely, utilizing external operating systems.
The primary types of smart weapons include air-to-ground missiles, surface-to-air missiles, smart bombs, sensor-fused weapons, directed energy weapons, precision artillery munitions, electromagnetic pulse weapons, smart bullets, and various other sophisticated weapons. Air-to-ground missiles are projectiles launched from military aircraft to target ground-based objectives on land or at sea. These smart weapons utilize technologies such as laser guidance, infrared guidance, radar guidance, and satellite guidance. They find applications on various platforms, including air, naval, and land-based systems.
The countries covered in the smart weapons market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The smart weapons market consists of sales of precision-guided bombs, guided bullets, and smart land mines. Values in this 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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Table of Contents
Executive Summary
Smart Weapons Market Global Report 2026 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses smart weapons market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for smart weapons? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The smart weapons market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
- The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
- The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
- The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
- The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
- The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
- Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.
Report Scope
Markets Covered:
1) By Type: Air-to-ground Missiles; Surface-to-air Missiles; Smart Bombs; Sensor Fused Weapons; Directed Energy Weapons; Precision Artillery Munitions; Electromagnetic Pulse Weapons; Smart Bullets; Other Smart Weapons2) By Platform: Air; Naval; Land
3) By Technology: Laser Guidance; Infrared Guidance; Radar Guidance; Satellite Guidance
Subsegments:
1) By Air-to-Ground Missiles: Guided Missiles; Tactical Missiles; Stand-off Missiles2) By Surface-to-Air Missiles: Short-Range Surface-to-Air Missiles; Medium-Range Surface-to-Air Missiles; Long-Range Surface-to-Air Missiles
3) By Smart Bombs: Laser-Guided Bombs; GPS-Guided Bombs; Inertial Guidance Bombs
4) By Sensor-Fused Weapons: Multi-Sensor Guided Munitions; Advanced Targeting Systems
5) By Directed Energy Weapons: Laser Weapons; High-Powered Microwave Weapons; Particle Beam Weapons
6) By Precision Artillery Munitions: Precision-Guided Projectiles; Smart Shells; Mortars with Guidance Systems
7) By Electromagnetic Pulse Weapons: High-Power Microwave Weapons; Nuclear and Non-Nuclear EMP Weapons
8) By Smart Bullets: Guided Projectiles; Smart Ammunition with Targeting Systems
9) By Other Smart Weapons: Autonomous Weapon Systems; Swarm Drones and Unmanned Aerial Vehicles; Advanced Non-Lethal Weapons
Companies Mentioned: Lockheed Martin Corporation; MBDA Incorporated; Orbital ATK Inc.; General Dynamics Corporation; BAE Systems plc.; The Boeing Company; Textron Inc.; Northrop Grumman Corporation; Raytheon Technologies Corporation; Rheinmetall AG; Thales Group; Israel Aerospace Industries Ltd.; Denel SOC Ltd.; Rafael Advanced Defense Systems Ltd.; L3Harris Technologies Inc.; Alliant Techsystems Inc.; Leonardo-Finmeccanica; Saab AB; Aselsan A.S.; Diehl Stiftung & Co. KG; OTO Melara S.P.A; United Technologies Corporation.; China Aerospace Science and Industry Corporation Limited.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: Word, PDF or Interactive Report + Excel Dashboard
Added Benefits
- Bi-Annual Data Update
- Customisation
- Expert Consultant Support
Companies Mentioned
The companies featured in this Smart Weapons market report include:- Lockheed Martin Corporation
- MBDA Incorporated
- Orbital ATK Inc.
- General Dynamics Corporation
- BAE Systems plc.
- The Boeing Company
- Textron Inc.
- Northrop Grumman Corporation
- Raytheon Technologies Corporation
- Rheinmetall AG
- Thales Group
- Israel Aerospace Industries Ltd.
- Denel SOC Ltd.
- Rafael Advanced Defense Systems Ltd.
- L3Harris Technologies Inc.
- Alliant Techsystems Inc.
- Leonardo-Finmeccanica
- Saab AB
- Aselsan A.S.
- Diehl Stiftung & Co. KG
- OTO Melara S.P.A
- United Technologies Corporation.
- China Aerospace Science and Industry Corporation Limited.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | January 2026 |
| Forecast Period | 2026 - 2030 |
| Estimated Market Value ( USD | $ 19.16 Billion |
| Forecasted Market Value ( USD | $ 25.66 Billion |
| Compound Annual Growth Rate | 7.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 24 |


