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Precision guided munitions are advanced weapons that are used to destroy enemy target with high precision. Precision guided munitions precisely direct rockets, bombs and missiles through various guidance systems including lasers, GPS and infrared technology. They offer greater accuracy in targeting than traditional unguided munitions, thereby reducing collateral damage. Increased procurement of advanced precision guided munitions by major defense economies for military modernization programmes is driving market growth.
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 key trends:
The increasing defense modernization programs to equip armed forces with advanced weapon systems has accelerated the demand for precision guided munitions over the forecast period. Major countries like US, China and India have significantly increased their defense budget to procure precision guided missiles and rockets. Additionally, the ongoing geopolitical tensions and rising instances of cross border terrorism have encouraged many nations to boost their stockpile of precision guided munitions for enhanced security. The ongoing technlogocal advancements in guidance systems like incorporation of AI, hypersonic technology is also helping manufacturers to develop new generation of smart munitions with high accuracy and destruction capability.
Segment Analysis
The global precision guided munition market comprises various segments such as missile-based, bomb-based, rocket-based, and others. Among these, the missile-based segment accounts for the largest market share and is expected to maintain its dominance during the forecast period. Precision guided missiles have high accuracy, extended range, and all-weather combat capability. Advantages like these have increased their adoption, especially for aerial bombardment operations.
Key players
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 Corporation and Raytheon Technologies Corporation have a significant market share due to their large product portfolios and geographical presence.
Regional analysis
North America holds the major share of the precision guided munition market. Heavy investments by the US and Canada in the development of advanced warfare technologies drive the growth of the regional market. However, the Asia Pacific region is projected to grow at the fastest pace during the forecast period. Significant defense modernization programs underway in China, India, Japan, and South Korea are creating high demand for precision weapons in the region.
Key Takeaways
The global Precision Guided Munition Market is expected to witness high growth over the forecast period. The growing geopolitical tensions globally have increased military budgets of numerous countries. This has driven the demand for precision weapons with enhanced target selectivity and minimum collateral damage. 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.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
