Precision Guided Munition Global Market Report 2024

A precision-guided munition is a guided weapon designed to detect electromagnetic energy reflected from a target, enabling it to destroy a specific point target while minimizing collateral damage. These munitions are guided using various technologies, including a global positioning system (GPS), a laser guidance beam, or an integrated inertial navigation system.

The main types of products within the precision-guided munition category include tactical missiles, guided rockets, guided ammunition, torpedoes, and loitering munitions. Tactical missiles are weapons with shorter ranges intended for use in close combat areas. They operate at various speeds, including subsonic, supersonic, and hypersonic. The different modes of operation encompass semi-autonomous and autonomous, utilizing technologies such as infrared, semi-active laser, inertial navigation system (INS), GPS, radar homing, and anti-radiation. Additionally, precision-guided munitions are segmented by launch platform into land-based, airborne, and naval applications.

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

The precision guided munition market size has grown rapidly in recent years. It will grow from $36.04 billion in 2023 to $39.86 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The growth observed in the historical period can be attributed to several factors, including military modernization efforts emphasizing accuracy, the expansion of defense budgets globally, advancements in targeting and guidance technology, an increase in global conflicts and counterterrorism efforts, and a growing demand for precision-guided munitions to minimize collateral damage.

The precision guided munition market size is expected to see rapid growth in the next few years. It will grow to $58.97 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%. The anticipated growth in the forecast period can be attributed to various factors, including the integration of artificial intelligence for precision targeting, the growth in asymmetric warfare and counter-insurgency operations, the development of customized munitions tailored for specific mission needs, the expansion of unmanned aerial vehicle (UAV) warfare, and increased utilization of precision-guided munitions in maritime and naval operations. Major trends expected in the forecast period encompass the development of smart munitions with enhanced target recognition capabilities, the establishment of regulatory standards for precision munition deployment, the integration of electromagnetic and cyber warfare technologies, advancements in miniaturization and increased loiter time of munitions, and the adoption of modular munition systems designed for multi-role capabilities.

The precision-guided munition market is experiencing significant growth, propelled by an increase in military expenditure. Military forces worldwide, tasked with maintaining peace and stability, are allocating more resources to modernization programs. The focus on precision-guided munition has intensified to minimize collateral damage and enhance target lethality. The Stockholm International Peace Research Institute (SIPRI) reported a 2.6% increase in global military expenditure to $2 trillion in 2020, reinforcing the notion that heightened military spending is a driving force behind the precision-guided munition market's expansion.

Anticipated growth in military modernization programs is set to further boost the precision-guided munition market. Governments are announcing projects to replace outdated military equipment with more lethal and technologically advanced alternatives. These modernization initiatives aim to upgrade critical elements, develop precision-guided missiles, and provide training to operate sophisticated weapons. Precision-guided munitions play a crucial role in achieving the objectives of these programs. For example, the US Army's announcement of enhanced dedication to the M1E3 Abrams Main Battle Tank underscores the importance of precision-guided munitions in combating future threats on the battlefield, thus driving market growth.

Innovations in technology, such as guided high-explosive ammunition, are a focal point for major companies in the precision-guided munition sector. These advancements, equipped with precision guidance systems, enable munitions to accurately target and strike specific objectives, reducing collateral damage. Northrop Grumman Corporation's contract with the US Navy to develop the 57mm guided high explosive ammunition exemplifies the industry's commitment to meeting customer demands through technological innovation and maintaining a strong market position.

A key trend in the precision-guided munition market is the formation of strategic partnerships and collaborations. Key players recognize the benefits of working together to improve efficiency, expand value propositions, leverage each other's skills and abilities, enhance leadership capabilities, and enter new areas of growth. Rheinmetall's collaboration with Northrop Grumman to develop precision-guided enhanced range artillery ammunition is a strategic move aimed at strengthening their collective capabilities. Similarly, BAE Systems' acquisition of the Collins Aerospace Military Global Positioning System (GPS) business from Raytheon Technologies Corporation enhances BAE's GPS anti-jamming and anti-spoofing technology, crucial for defense missions.

In December 2021, Vertex Aerospace's acquisition of Raytheon Technologies’ defense training and mission-critical solutions business lines is a strategic move to expand into specialized technology solutions and services. These include defense and commercial training, mission-critical support solutions, and engineering and modernization capabilities, further solidifying the company's position in the precision-guided munition sector.

Major companies operating in the precision guided munition market include Northrop Grumman Corporation, Lockheed Martin Corporation, The Boeing Company, BAE Systems PLC, General Dynamics Corporation, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Elbit Systems Ltd., Saab AB, Israel Aerospace Industries Ltd., Rheinmetall AG, Bharat Dynamics Limited, Denel Dynamics a division of Denel SOC Ltd., LIG Nex 1 Co. Ltd., Rafael Advanced Defense Systems Ltd., Kongsberg Gruppen ASA, Roketsan A.S., China Aerospace Science and Industry Corporation, China North Industries Group Corporation Limited, Hanwha Defense Co. Ltd., Taurus Systems GmbH, Diehl Defence GmbH & Co. KG, Nexter Systems S.A., Raytheon Technologies Corporation, Aerojet Rocketdyne Holdings Inc., Precision Guided Solutions LLC, Textron Inc.

Asia-Pacific was the largest region in the precision-guided munition market in 2023. The regions covered in the precision-guided munition market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the precision-guided munition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The precision-guided munition market consists of sales of autonomous long range artillery munition, loitering munitions, aircraft self-protection missile and digital guided missiles. 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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