Light Weapons Market Size, Share and Forecast to 2031

The steady evolution of modern battlefields over the past few years has necessitated the constant improvement of infantry combat and noncombat equipment. Due to the increasing geographical tensions and border disputes throughout the world, particularly in the Asia-Pacific, Middle East, and African regions, governments are increasing their defense budgets annually to invest heavily in the modernization of their armed forces' inventory of weapons by replacing aging equipment with cutting-edge weapons and ammunition. The market for light weapons is anticipated to be driven by their ability to penetrate and disable heavily armored adversaries.

Market Dynamics

Growing Defense Budgets and Military Modernisation Initiatives to Drive the Global Light Weapons Market

The structure of international security systems has been damaged by the expanding hegemonism, unilateralism, and power politics that have fueled multiple global crises due to the dramatic changes in the international strategic landscape. Uncertainties in territory rights between numerous nations, such as the Saudi-Iranian Cold War in the Middle East and border tensions between India and China, are among the most significant variables influencing the geopolitical climate. The most common response of governments in this situation is to raise their military budget to strengthen the security of their respective nations.

Military superpowers, including the United Kingdom, China, the United States, and India, have enhanced their offensive and defensive capabilities. Several weapon purchase programs are now ongoing to strengthen the powers of the regional armed forces so that they can effectively respond to security threats and complete urgent, crucial, and dangerous strategic missions. The vast budgets include allocations for the acquisition of several infantry weapons and the research and development of new weapon systems to engage and neutralize opposing forces and threats. With increased military resources and the urbanization of the battlefield, governments are pursuing attempts to modernize the arsenal with light weapons that will improve the flexibility of dismounted soldiers. Such modernization efforts are anticipated to boost the growth of the light weapons market over the forecast period.

Technological Advancements in Weapon Systems to Provide Opportunities for the Global Light Weapons Market

With the evolution of aerial threats (aircraft and unmanned aerial vehicles) and armored vehicles (tanks, armored fighting vehicles, etc.), the armed forces are investing in the development of advanced weapon systems that are more destructive and can intercept targets at greater ranges than the existing light weapon systems. Due to the changing requirements of the battlefield, governments, in partnership with light weapon manufacturers, will deploy more advanced weapons to identify, track, and hit the target with greater precision.

New weapon sights, which may be integrated into light guns to improve the aim and precision of the weapon systems, are also being developed to increase the accuracy of the weapon systems. The companies are also designing new, lighter versions of the currently deployed armament systems using sophisticated material technology and the most recent manufacturing techniques. China, for example, developed and deployed a new ultra-light grenade launcher for the People's Liberation Army in September 2020, which is around 10 kg lighter than the QLZ-04 type launcher. The grenade launcher is currently deployed to help the ground troops and will likely be used in the plateau regions. The launcher weighs twenty kilograms less than the Type 04 grenade launcher (weight of 24 kg). It is anticipated that these advancements will increase the efficacy of new light weapon systems and accompanying equipment and boost their adoption, resulting in a need for ammunition compatible with these systems throughout the projected period.

Regional Insights

By region, the global light weapons market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America dominated the market and is estimated to register a CAGR of 6.7% during the forecast period. The industry is pushed by the United States Armed Forces' acquisition of modern weaponry to gain military dominance in the region and ensure internal peace and security. The U.S. Army is deploying new types of MANPADS and MANPATS weapons to engage armored targets efficiently. In September 2019, the U.S. Department of Defense awarded Lockheed-Raytheon JV a USD 185.6 million contract to support full-rate manufacturing of the Javelin launcher system. Contract completion is anticipated for August 2023. Defense contractors are collaborating on developing sophisticated weapon systems to meet the growing, complicated demands of the battlefield. Since November 2017, Raytheon Corporation and Saab AB have collaborated on creating new weaponry for the United States Army. In the early phases of this collaborative project, the team concentrated on developing the Carl-Gustaf M4 multi-role shoulder-fired weapon and Saab AB's AT4 disposable weapon system to meet the immediate needs of the U.S. Army and other foreign clients. The partnership improved the weapon's portability by reducing the weight of the most recent version of the weapon, the M4/M3E1, from 22 to 15 pounds. During the projected period, these developments are anticipated to provide a positive outlook for the U.S. light weapons market.

Asia-Pacific is the second largest region. It is estimated to reach an expected value of USD 2 billion by 2031, registering a CAGR of 7.3%. The Chinese Ministry of Defense has adopted a comprehensive, step-by-step strategy to modernize every battle area; thus, it is aggressively developing new weaponry to boost the capabilities of its armed forces. China North Industries Corporation (Norinco) has been concentrating on boosting domestic manufacturing and sales of armored vehicles. Similar to its earlier WMZ-551 APC, the business produced a 6x6 VN2C mine-resistant vehicle in 2016, equipped with 12.7 mm and 762 mm machine guns, eight electrically controlled grenade launchers, and capacity for additional turrets. In 2017, Norinco displayed a new vehicle compared to their VT-5 light tank. VN-17 features a remote turret, two multi-lens EO/IR sensors, a 35mm cannon, and a 7.62mm M.G. or HJ-12 anti-tank missile launcher with a medium range. These advancements are projected to drive the Chinese market throughout the forecast period.

Europe is the third largest region. Germany is replacing its old Marder IFVs in service with Puma IFVs. In 2010, the manufacture of the first batch of Puma IFVs began, and Germany planned to acquire approximately 350 units by 2020. Germany awarded ARTEC a contract in early July 2017 for the upgrading of its fleet of 246 Boxer vehicles. The whole Boxer fleet will be modified to A2 specifications. In November of 2019, Germany awarded Euro spike, a joint venture between Rafael, Diehl Defence GmbH, and Rheinmetall Electronics GmbH, a multi-year contract for 1,500 Spike missiles and hundreds of Integrated Control Launch Unit dismounted missile launchers. The deal calls for the local production of Spike missiles and launchers. In addition, the German Armed Forces awarded MBDA Inc. a contract in December 2019 to acquire the Enforcer MANPAT. Such occurrences may provide a good picture of the German light weapons market throughout the forecast period.

Key Highlights

The global light weapons market was 5.4 billion in 2022. It is estimated to reach an expected value of USD 10.5 billion in 2031, registering a CAGR of 7.5% during the forecast period (2022-2031).
By type, the global light weapons market is segmented into Heavy Machine Guns (HMGs), Grenades and Grenade Launchers, Mortars, Man-portable Anti-tank Systems (MANPATS), Man-Portable Air Defense Systems (MANPADS), and Other Types. The Man-Portable Air Defense System (MANPADS) segment dominated the market and is estimated to register a CAGR of 7.6% during the forecast period.
By technology, the global light weapons market is segmented into guided and unguided. The guided segment is further segmented into a laser-guided, infrared-guided, satellite-guided, and semi-automatic command line of sight. The guided segment dominated the market and is estimated to register a CAGR of 8.8% during the forecast period.