July 16, 2024

Increasing Defense Budgetary Allocations To Drive Growth Of Precision Guided Munition Market

The global Precision Guided Munition Market is estimated to be valued at Us$ 35.85 Bn in 2023 and is expected to exhibit a CAGR Of 7.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Precision guided munitions refer to guided weapons that can accurately reach and destroy specific targets. They combine seeker targeting systems with different technological guidance systems, including laser, GPS/INS (inertial navigation system), satellite and radar guidance. Accuracy attained with precision guided munitions minimizes collateral damage and offers reduced time of engagement compared to unguided ammunitions. Rising political tensions and increasing defense spending of major countries is driving demand for precision guided munitions globally.

Market key trends:

One of the key trends in the precision guided munition market is the growing investment in development of new generation guided weapons. Various defense organizations are focusing on developing advanced precision guided munitions with multimode sensors, integration of artificial intelligence for improved target recognition. For instance, the U.S. defense forces are developing hypersonic weapons with precision-strike capabilities to enhance effectiveness against technologically advanced adversaries. Additionally, integration of new warhead designs and additive manufacturing techniques are gaining popularity for cost-effective mass production of guided munitions. Adoption of multi-payload capabilities on a single platform is another trend observed in precision guided weapons market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants to the precision guided munition market is moderate. The market requires high R&D investments and established supply chains to produce precision guided munitions.

Bargaining power of buyers: The bargaining power of buyers is high in the precision guided munitions market. There are a large number of global defense organizations that procure precision guided munitions.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. The precision guided munitions market has the presence of specialized component suppliers and established global OEMs.

Threat of new substitutes: The threat of new substitutes for precision guided munitions is low as there are limited alternatives that can offer the precision and accuracy provided by these munitions.

Competitive rivalry: The competitive rivalry among established players in the precision guided munitions market is high due to their global presence and continuous investments in R&D.

Key Takeaways

The Global Precision Guided Munition Market Demand is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing defense spending globally and rising geopolitical tensions.

On a regional basis, North America dominated the precision guided munitions market in 2023 with over 30% market share. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due increasing defense budgets of major economies such as China and India.

Key players operating in the precision guided munition market are Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, General Dynamics Corporation, BAE Systems, Rheinmetall AG, SAAB, Elbit Systems Ltd, MBDA, and Israel Aerospace Industries. Lockheed Martin offers precision guided munitions such as Joint Air-to-Surface Standoff Missile (JASSM), Hellfire, and Joint Direct Attack Munition (JDAM).

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it