Precision Guided Munition Market Report 2025

This Precision Guided Munition report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The precision guided munition market size has grown rapidly in recent years. It will grow from $39.07 billion in 2024 to $43.12 billion in 2025 at a compound annual growth rate (CAGR) of 10.4%. The growth in the historic period can be attributed to military modernization and the need for accuracy, expansion of defense budgets, advancements in targeting and guidance technology, growth in global conflicts and counterterrorism efforts, demand for reduced collateral damage.

The precision guided munition market size is expected to see strong growth in the next few years. It will grow to $63.1 billion in 2029 at a compound annual growth rate (CAGR) of 10%. The growth in the forecast period can be attributed to integration of artificial intelligence for precision, growth in asymmetric warfare and counter-insurgency, customized munitions for specific mission needs, expansion in unmanned aerial vehicle (uav) warfare, increased use in maritime and naval operations. Major trends in the forecast period include smart munitions with enhanced target recognition, regulatory standards for precision munition deployment, electromagnetic and cyber warfare integration, miniaturization and increased loiter time of munitions, modular munition systems for multi-role capabilities.

The rise in military expenditure is a significant factor driving the growth of the precision-guided munition market. The military comprises the armed forces of any nation responsible for maintaining peace and stability within the country. Military spending increasingly emphasizes modernization programs and the need for precision-guided munitions to minimize collateral damage while enhancing lethality against specific targets, thereby encouraging the adoption of these technologies. For example, according to The House of Commons Library, the UK-based library and information resource of the British Parliament's lower house, the UK allocated £54.2 billion ($68.8 billion) for defense spending in the 2023/24 financial year. This amount is expected to rise to £57.1 billion ($70.74 billion) in 2024/25, reflecting a 4.5% increase in real terms. Consequently, the growing military expenditure is anticipated to drive the expansion of the precision-guided munition market.

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.

Strategic partnerships and collaborations have become a significant trend in the precision-guided munition market. Major players in this sector are increasingly focusing on partnerships and collaborations to enhance efficiency, broaden their value propositions, leverage the skills and capabilities of other companies, improve leadership skills, and extend their growth into new areas. For example, in November 2023, General Atomics Aeronautical Systems, Inc., a US-based company, formed a partnership with EDGE, a UAE-based defense and technology conglomerate that specializes in advanced systems and solutions for military and aerospace sectors. This collaboration, announced at the Dubai Airshow, aims to integrate EDGE's smart weapons onto GA-ASI’s MQ-9B SkyGuardian RPA, focusing on incorporating precision-guided munition (PGM) and guided-glide weapon (GGW) solutions from EDGE into the MQ-9B SkyGuardian.

In October 2023, EDGE Group, a defense and technology conglomerate based in the UAE, acquired a 50% stake in Brazilian Missile House for an undisclosed amount. This strategic acquisition aims to enhance EDGE's presence in the Latin American defense market, particularly in Brazil, by focusing on the development of advanced high-tech defense systems. Brazilian Missile House is a defense contractor located in Brazil that specializes in missile systems and aerospace technology.

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 2024. 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.

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 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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