Global Precision Guided Munition Market Grows Steadily at a CAGR of 5.2%

Introduction

A weapon that can be pointed at and fired at a single target is a precision-guided munition. Such weapons are guided either internally or externally. Precision-guided munition can be fired from aircraft, submarines, ships, land vehicles, and even from individual soldiers on the ground. For instance, Long-range anti-ship missiles, Hellfire missiles, JAGMs, Paveway laser-guided bombs, and other precise weapons are launched from the air.

Market Dynamics

Rising Military Spending Drives the Global Market

The NATO (North Atlantic Pacific Organization) nations have started plans to increase their defense budgets to counter potential threats from the Middle East and Russia. Several countries have also significantly increased their defense spending, including China, India, and Japan, due to persistent security threats and escalating geopolitical pressures. Demand for defense equipment is expected to rise over the forecast period due to rising geopolitical tensions in the Middle East and North Korea.

Development of Advanced Air and Missile Defense Systems Creates Tremendous Opportunities

Numerous countries are developing highly advanced weapons that can defeat advanced air defense systems like the Patriot Advanced Capability-3 (PAC-3), the S-400, and the Medium Extended Air Defense System. Countries like India, China, and Russia have also developed hypersonic missiles, which are difficult for missile defense systems to intercept. New-generation high-speed air defense electronic warfare systems are now required due to these developments. Governments worldwide put a lot of effort into creating stealth aircraft, but they also spend a lot of money on sophisticated surveillance systems to counter stealth technology.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global precision-guided munition market and is expected to grow at a CAGR of 7.2% during the forecast period. The escalating geopolitical conflicts and the rising threat of terrorist attacks are the primary forces behind the expansion of the defense industries in the region. Nations like China and India are investing in modernizing their armed forces to combat violence in response to growing national security concerns. These elements are anticipated to fuel the market demand for precision-guided weapons over the forecast period.

Europe is expected to grow at a CAGR of 5.8%, generating USD 14,777.79 million during the forecast period. Rising terrorist attacks are expected to expand the range of advanced weapon system development by several regional countries, including Northern Ireland, France, Germany, and Spain. In April 2021, the European Union also decided to invest in the defense industry to finance the European Defense Industrial Development Program. The primary objective of this program is the joint development of the European defense industry. The European Defense Fund (EDF) also raised a budget of USD 9.3 billion to aid defense cooperation in Europe. It is anticipated that this will increase the market for precision-guided munition growth prospects over the forecast period.

Key Highlights

• The global precision-guided munition market was valued at USD 31,983.1 million in 2021. It is expected to reach USD 58,366.7 million by 2030, growing at a CAGR of 6.2% during the forecast period (2022–2030).
• Based on product, the global precision-guided munition market is bifurcated into tactical missiles, guided rockets, guided ammunition, and loitering munition. The tactical missiles segment is the highest contributor to the market and is expected to grow at a CAGR of 6.3% during the forecast period.
• Based on technology, the global precision-guided munition market is bifurcated into an infrared, semi-active laser, inertial navigation system (INS), a global positioning system (GPS), radar homing, and anti-radiation. The global positioning system (GPS) segment owns the highest market share and is expected to grow at a CAGR of 8% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global precision-guided munition market and is expected to grow at a CAGR of 7.2% during the forecast period.

Competitive Players

1. Lockheed Martin Corporation
2. BAE Systems
3. Raytheon Technologies Corporation
4. MBDA
5. Israel Aerospace Industries
6. Elbit Systems Ltd.
7. SAAB
8. General Dynamics Corporation
9. Northrop Grumman Corporation
10. Rheinmetall AG.

Recent Developments

Recent Developments

• October 2022- Lockheed Martin has a contract to provide three Orion spacecraft for NASA's Artemis VI-VIII missions as part of the ongoing supply of exploration vehicles for the Artemis program. These missions will send astronauts into the depths of space and around the Moon.
• October 2022- BAE Systems and PTC Industries signed an agreement to produce titanium castings at PTC Industries' production facility in Lucknow, Uttar Pradesh, India, for the Indian 155mm M777 Ultra-Lightweight Howitzer (ULH).

Segmentation

1. By Product
   1. Tactical Missiles
   2. Guided Rockets
   3. Guided Ammunition
   4. Loitering Munition
2. By Technology
   1. Infrared
   2. Semi-Active Laser
   3. Inertial Navigation System (INS)
   4. Global Positioning System (GPS)
   5. Radar Homing
   6. Anti-Radiation