Artillery Market

Market Overview

The global artillery market revenue was valued at USD 9.84 billion in 2023. It is estimated to reach USD 18.75 billion by 2032, growing at a CAGR of 7.43% during the forecast period (2024–2032). Many countries are undertaking military modernization programs to replace outdated artillery systems with newer, more capable models. This includes upgrading existing systems and procuring new ones to meet current operational requirements.

The term "artillery" has its origins in the Middle Ages, possibly derived from the French word "atelier" or the Old French "artillerie," which referred to military weapon craftsmen and manufacturers. The introduction of gunpowder marked a significant milestone in the evolution of artillery, leading to the development of cannons and other advanced artillery pieces. Modern artillery systems fire projectiles that can be either solid "shot" or non-solid "shells," with various types of ammunition historically used, including canister, chain shot, and grapeshot.

Artillery systems encompass a wide variety of ranged weapons designed to launch munitions beyond the reach of infantry firearms. Over time, artillery has evolved significantly, transitioning from heavy, immobile siege engines used to breach defensive walls to modern, highly mobile field artillery cannons and self-propelled vehicles. Today, artillery primarily includes shell-firing guns, howitzers, mortars, and rocket artillery. These systems are critical in providing fire support and suppression for ground forces, engaging targets at various ranges—from short distances to intercontinental.

Moreover, international defense cooperation and strategic alliances often involve joint military exercises and equipment procurement programs. These collaborations can lead to increased demand for artillery systems as partner countries seek to standardize and enhance their military interoperability.

Top 4 Key Highlights

• Howitzers dominate the type segment.
• Fire Control Systems dominate the subsystem segment.
• Long Range dominates the range segment.
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Advancing Artillery Capabilities for Modern Warfare

Modernization initiatives in artillery systems refer to defense forces' efforts to upgrade and improve their existing artillery capabilities with cutting-edge technologies, equipment, and operational concepts. These initiatives are intended to enhance artillery systems' effectiveness, range, accuracy, mobility, and overall battlefield performance. Modernization entails replacing outdated artillery systems with newer models, including advanced features such as digitalized fire control systems, improved targeting systems, enhanced communication capabilities, and more efficient ammunition.

For instance, modern artillery systems like the M109A7 Paladin and the K9 Thunder incorporate automated loading systems and GPS-guided munitions, significantly increasing their precision and rate of fire. Moreover, modern artillery units are equipped with network-centric capabilities, allowing them to integrate seamlessly with other modernized military components, such as command and control systems, surveillance systems, and unmanned platforms. This integration facilitates real-time data sharing and improved situational awareness, which are crucial for effective decision-making on the battlefield.

Market Restraint

High Cost of Artillery Systems and Maintenance

The high cost of artillery systems and maintenance presents a significant challenge for many countries, particularly those with limited defense budgets. The development, manufacture, and deployment of advanced artillery systems necessitate significant financial resources, which can strain national budgets and limit the acquisition of new systems. The high cost of artillery systems is due to several factors, including the incorporation of advanced technologies such as digital fire control mechanisms, automated loading features, and enhanced communication capabilities. These advanced features improve the operational capabilities of artillery platforms while increasing their production costs. Moreover, the costs of maintaining and supporting artillery systems can be high, requiring significant investments in training, spare parts, and logistics.

Market Opportunities

Unmanned Artillery Systems Transform Battlefields with Autonomous Firepower

Unmanned artillery systems significantly enhance the adaptability and responsiveness of battlefield operations. These systems can be rapidly deployed and repositioned as needed, enabling a dynamic response to ever-changing operational requirements. Integrating unmanned artillery systems with other autonomous platforms, such as drones and ground robots, allows for the formation of a networked and coordinated force with superior situational awareness and collaborative engagement capabilities. For example, systems like the Autonomous Truck Mounted howitzer System (ATMoS) can be repositioned in less than 30 minutes, drastically reducing response times compared to manned counterparts.

Utilizing unmanned systems also reduces the logistical footprint by requiring fewer personnel and support equipment, thereby streamlining operations and enhancing operational efficiency. This reduction can be significant; estimates suggest that unmanned systems can reduce personnel requirements by up to 50%, translating into lower operational costs and fewer resources needed for support and maintenance. Moreover, the development and deployment of unmanned artillery systems drive innovation in artificial intelligence, robotics, and advanced sensors. For instance, AI-driven targeting systems can improve accuracy by 70%, and advanced sensors can provide real-time data with unprecedented precision. These technological advancements foster collaboration between different industries, propelling overall technological progress.

Regional Analysis

Based on region, the global artillery market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America's artillery market share is expected to expand substantially during the forecast period. This growth is largely driven by the United States, the world's largest military spender, which boasts the most advanced and extensive arsenal of defense equipment. The United States' robust defense capabilities have been pivotal in fueling the expansion of the artillery market across North America. Moreover, the increasing demand for advanced defense solutions, particularly in enhancing military readiness and protective capabilities, underscores the United States leadership in possessing cutting-edge military equipment.

In 2022, the United States allocated a staggering USD 877 billion to its military budget, representing 39% of the global military expenditure—a figure three times higher than China, the world's second-largest military spender. This substantial investment not only supports the modernization and expansion of artillery systems but also fosters innovation in defense technologies. The United States' strategic focus on maintaining technological superiority and operational readiness drives continuous advancements in artillery capabilities, including precision-guided munitions, integrated digital systems, and network-centric warfare capabilities.

The Asia-Pacific region emerges as the fastest-growing market for artillery systems. Major military powers such as China, Japan, India, and Australia bolster this growth with substantial military budgets and ongoing modernization efforts. These nations prioritize investments in advanced artillery technologies, including multi-launch rocket systems and self-propelled howitzers. For instance, India's Kalyani Strategic Systems Limited secured a USD 155 million contract in November 2022 to export 155mm artillery guns to a friendly nation, scheduled for delivery by 2025. Moreover, India hosts the world's largest artillery factory, established by the Kalyani Group, further highlighting the region's commitment to advancing artillery capabilities. In another development, in May 2023, China's People's Liberation Army-Strategic Support Force (PLA-SSF) awarded a contract to the PLA-SSF Northwest Institute of Nuclear Technology (NINT) for the production of 203mm artillery guns, highlighting China's robust investment in advancing its artillery systems. These factors are expected to propel regional market growth.

Segmental Analysis

The global artillery market is bifurcated into type, subsystem, and range.

Based on type, the global artillery market is segmented into howitzers, mortars, rocket launchers, anti-air weapons, and artillery.

Howitzers dominate the type segment due to their versatility and effectiveness in various operational scenarios. Howitzers are powerful, long-range weapons that can fire a wide range of weapons, including high-explosive, armor-piercing, and incendiary rounds. They are extremely maneuverable and can serve various roles, including direct and indirect fire support, counter-battery fire, and interdiction. The howitzer segment has established itself in the market as a result of continuous modernization efforts, technological advancements, and capability diversification.

Nations seek howitzers that can handle a wide range of operational scenarios, from conventional warfare to counterinsurgency operations. This diversification includes the creation and acquisition of a variety of howitzer types, including towed, self-propelled, and automated howitzers. The goal is to have a flexible artillery portfolio that can respond effectively to various threats and terrain.

Based on subsystem, the global artillery market is segmented into turrets, engines, fire control systems, ammunition handling systems, chassis, and auxiliary systems.

Fire Control Systems owns the subsystem segment due to their critical role in enhancing the accuracy, range, and overall effectiveness of artillery systems. Fire control systems are critical components that allow for precise targeting and firing of artillery projectiles, resulting in optimal engagement of targets with greater accuracy and efficiency. These systems incorporate advanced technologies such as digital fire control mechanisms, automated loading features, and improved communication capabilities, thereby significantly improving artillery platform operational capability.

Fire Control Systems' dominance in the artillery market is based on continuous technological advancements that aim to improve targeting precision, response times, and operational flexibility. Modern fire control systems incorporate sophisticated guidance technologies, allowing artillery units to engage moving targets effectively. By improving accuracy and range, these systems improve the overall effectiveness of artillery operations, making them essential components in modern warfare scenarios.

Based on range, the global artillery market is bifurcated into short-range, medium-range, and long-range.

Long range dominates the range segment, which includes artillery systems capable of engaging targets beyond 30 kilometers. Long-range artillery is an important component of modern warfare because it allows forces to engage enemy positions, disrupt enemy movements, and provide indirect fire support to friendly troops while remaining at a safe distance. The Long-range segment's dominance in the artillery market is based on continuous technological advancements that aim to increase the range, accuracy, and lethality of artillery systems. Modern long-range artillery systems incorporate advanced technologies such as digital fire control mechanisms, automated loading features, and improved communication capabilities, thereby significantly improving artillery platform operational capability.

Recent Developments

• April 2023- Lockheed Martin Corporation (US) was awarded a contract from the US Army. The contract was valued at USD 615 million and was aimed at manufacturing HIMARS (High Mobility Artillery Rocket System) and related equipment.
• May 2023- Rostec (Russia) announced new improvements in Pantsir S1 Air Defence gun Systems and other artillery systems with improved guidance and range based on the combat experience in the Ukraine war.