Precision Guided Munition Market Forecasts to 2030 - Global Analysis By Product Type, Warhead Type, Mode of Operation, Platform, Propulsion Speed, Technology and By Geography

According to Stratistics MRC, the Global Precision Guided Munition Market is accounted for $37.7 billion in 2023 and is expected to reach $57.4 billion by 2030 growing at a CAGR of 6.2% during the forecast period. Precision guided munition are advanced military weapons equipped with guidance systems that enable precise targeting and delivery of ordnance to designated objectives. Utilizing technologies such as GPS, laser, or inertial guidance, PGMs significantly enhance accuracy and effectiveness while minimizing collateral damage. These munitions are crucial for modern warfare, offering increased precision and reduced risk to civilians and friendly forces.

According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached $1.98 trillion in 2020, reflecting a 2.6% increase from 2019. The United States, China, and India emerged as the top three countries in terms of military spending.

Market Dynamics:

Driver:

Increasing defense budgets globally

Increasing defense budgets globally are a significant driver for the precision guided munition market. As countries allocate more funds towards military modernization and procurement, the demand for advanced precision-guided weapons rises. These munitions offer enhanced accuracy, minimize collateral damage, and enable strategic strikes. The growing investments in defense capabilities, particularly in regions with heightened security concerns, fuel the adoption of precision-guided munitions, thereby contributing to market growth.

Restraint:

Accuracy of autonomous systems

While advancements have been made in guidance and navigation technologies, ensuring consistent precision remains a challenge. Factors such as signal interference, environmental conditions, and countermeasures can affect the accuracy of autonomous munitions. Stringent testing and validation processes are required to guarantee reliable performance, which can prolong development timelines and increase costs, thereby restraining market growth.

Opportunity:

Rising geopolitical tensions

Conflicts, territorial disputes, and regional instability create a demand for advanced weaponry, including precision-guided munitions. Countries seek to strengthen their military capabilities to deter threats and maintain strategic advantages. The escalating tensions drive the procurement of precision-guided munitions, as they provide a means to strike targets with high accuracy and minimize the risk of escalation, thereby opening up growth opportunities in the market.

Threat:

Volatile defense budgets

Volatile defense budgets pose a threat to the precision guided munition market. Economic uncertainties, shifting political priorities, and competing domestic demands can lead to fluctuations in defense spending. Sudden budget cuts or reallocations can impact the procurement and development of precision-guided munitions. The unpredictability of defense budgets makes long-term planning and investment decisions challenging for manufacturers and suppliers, potentially hindering market stability and growth prospects.

Covid-19 Impact:

The COVID-19 pandemic has had a mixed impact on the precision guided munition market. While defense budgets faced pressure due to economic challenges, the need for advanced weaponry persisted. Supply chain disruptions and production delays affected the delivery of components and systems. However, the pandemic also accelerated the adoption of unmanned and remote-controlled platforms, driving demand for compatible precision-guided munitions.

The global positioning system (GPS) segment is expected to be the largest during the forecast period

The Global Positioning System (GPS) segment is expected to dominate the precision guided munition market during the forecast period. GPS technology provides accurate positioning and guidance capabilities, enabling precise targeting and navigation of munitions. The widespread availability and reliability of GPS infrastructure make it a preferred choice for many precision-guided weapon systems. The integration of GPS receivers into munitions enhances their accuracy and effectiveness, making them suitable for a wide range of military applications. As countries modernize their arsenals and seek reliable guidance solutions, the GPS segment is poised to capture a significant market share.

The airborne segment is expected to have the highest CAGR during the forecast period

The airborne segment is anticipated to exhibit the highest compound annual growth rate in the precision guided munition market during the forecast period. Airborne platforms, such as fighter jets, bombers, and unmanned aerial vehicles (UAVs), are increasingly employing precision-guided munitions for strategic strikes and close air support missions. The growing demand for air-launched precision weapons, coupled with advancements in airborne guidance systems and the miniaturization of components, is driving the rapid growth of this segment.

Region with largest share:

North America, particularly the United States, is expected to hold the largest share in the precision guided munition market during the forecast period. The region's dominance can be attributed to its significant defense expenditures, technological advancements, and the presence of major defense contractors. The U.S. military's emphasis on precision strikes and minimizing collateral damage has driven the development and procurement of advanced precision-guided munitions. Moreover, the region's ongoing military modernization programs and its involvement in global security operations further contribute to its market leadership.

Region with highest CAGR:

The Asia Pacific region is projected to experience the highest CAGR in the precision guided munition market during the forecast period. The region's growth can be attributed to increasing defense spending by countries such as China, India, Japan, and South Korea. The modernization of military forces and the pursuit of advanced weapon systems are key drivers for the adoption of precision-guided munitions in the region. Additionally, ongoing territorial disputes and regional security concerns are fueling the demand for precise strike capabilities. Asia's expanding defense industry, technological advancements, and the presence of emerging players further contribute to its rapid market growth.

Key players in the market

Some of the key players in Precision Guided Munition Market include Atlas Elektronik, BAE Systems plc, EDGE Group, Elbit Systems Ltd., General Atomics, General Dynamics Corporation, Hanwha Group, Israel Aerospace Industries Ltd., Kongsberg Gruppen, L3 Technologies Inc., Leonardo S.p.A., Lockheed Martin Corporation, MBDA, Northrop Grumman Corporation, Rheinmetall AG, RTX Corporation, Saab AB, Thales Group and The Boeing Company.

Key Developments:

In November 2023, GA-ASI partnered with EDGE to integrate UAE-made smart weapons like the Desert Sting, Thunder and Al Tariq precision munitions onto the MQ-9B SkyGuardian drone platform.

In November 2023, EDGE signed deals with the Brazilian Navy and UAE Armed Forces to supply their MANSUP anti-ship PGMs.

In October 2023, the U.S. Navy awarded Northrop Grumman a development contract for their newly designed 57mm guided high explosive ammunition. This PGM has the ability to continuously maneuver in-flight towards a target using on-board seekers and fuzes.

Product Types Covered:

• Tactical Missiles
• Guided Bombs
• Guided Rockets
• Loitering Munitions
• Other Product Types

Warhead Types Covered:

• Fragmentation
• High Explosive
• Penetrator
• Thermobaric
• Other Warhead Types

Mode of Operations Covered:

• Autonomous
• Semi-Autonomous

Platforms Covered:

• Airborne
• Naval
• Land-based

Propulsion Speeds Covered:

• Subsonic
• Supersonic
• Hypersonic

Technologies Covered:

• Infrared
• Anti-Radiation
• Global Positioning System (GPS)
• Inertial Navigation System (INS)
• Radar Homing
• Semi-Active Laser
• Other Technologies

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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