by The Precision Guided Munition Market is estimated to be valued at US$ 35.85 billion in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Precision Guided Munition Market refers to a class of munitions that are designed to enhance accuracy and precision in military operations. These munitions are equipped with advanced guidance systems, such as GPS, laser, and infrared that enable accurate targeting and minimize collateral damage. Precision guided munitions help militaries to achieve mission objectives with increased effectiveness and reduced risk to personnel and non-combatants. They find applications across various defense sectors, including air, naval, and ground forces.
Market Dynamics:
The Precision Guided Munition Market is driven by several factors. Firstly, the increasing need for precision in military operations, particularly in asymmetric warfare scenarios, is boosting the demand for precision guided munitions. These munitions enable precise targeting and minimize the risk of civilian casualties. Secondly, technological advancements in guidance systems, such as GPS and laser targeting, are further propelling market growth. These advancements have improved the accuracy and effectiveness of precision guided munitions, making them a preferred choice for militaries worldwide. The precision guided munition market is expected to witness high growth opportunities due to increasing defense budgets of several countries, particularly in emerging economies.
Segment Analysis:
The precision guided munition market can be segmented based on type, platform, and region. In terms of type, the market is dominated by the laser-guided munitions segment. This segment is expected to exhibit dominance due to its high accuracy and precision, which is crucial in modern warfare. Laser-guided munitions are designed to track and target specific objects, leading to reduced collateral damage and increased effectiveness. With advancements in laser technology and the increasing demand for precision strikes, the demand for laser-guided munitions is expected to grow significantly.
PEST Analysis:
- Political: The political landscape plays a crucial role in the precision guided munition market. Government policies, regulations, and international relations influence the procurement of these weapons. Political instability in certain regions may create challenges for market growth.
- Economic: Economic factors such as defense budgets, GDP growth, and military modernization programs impact the market for precision guided munitions. Increasing defense spending globally and the focus on modernizing military capabilities contribute to market growth.
- Social: The social factors influencing the market include geopolitical tensions, evolving warfare tactics, and the need for precise targeting to minimize civilian casualties. The growing importance of precision strikes in modern warfare drives the demand for precision guided munitions.
- Technological: Technological advancements in guidance systems, sensors, and warhead technology play a vital role in the precision guided munition market. The development of advanced target acquisition systems and improved accuracy enhances the efficiency and effectiveness of these weapons.
Key Takeaways:
The Global Precision Guided Munition Market Size is expected to witness high growth, exhibiting a CAGR of 7.1% over the forecast period of 2023-2030. This growth can be attributed to increasing military modernization programs, geopolitical tensions, and the need for precise and effective strikes in modern warfare.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the precision guided munition market. The presence of key players such as Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation, along with significant defense spending by the US government, contribute to the growth of this region.
Other key players operating in the precision guided munition market include General Dynamics Corporation, BAE Systems, Rheinmetall AG, SAAB, Elbit Systems Ltd, MBDA, and Israel Aerospace Industries. These companies play a significant role in driving innovation and meeting the demand for precision guided munitions globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
