Precision Guided Munition Market, By Product (Tactical Missiles, Guided Rockets, Guided Ammunition, Loitering Munition), By Technology (Infrared, Semi-Active Laser, Inertial Navigation System (INS), Global Positioning System (GPS), Radar Homing , Anti-Radiation, Others), and By Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)

Published In : Jun 2023

Code : CMI5792

Pages :150

Formats :

Excel and PDF

Industry : Aerospace and Defense

Market Challenges And Opportunities

Global Precision Guided Munition Market Drivers:

Rising demand from defense sector to foster precision guided munition market growth

The precision guided munition market is a growing segment in the global military and defense industry. These weapons use advanced technologies, such as GPS tracker, laser guidance, and inertial navigation systems, to accurately hit a specific target or location. They are used in a variety of applications, including military operations, law enforcement, and homeland security. They also provide several benefits over traditional weapons, including high accuracy and reduced collateral damage.

Increasing military expenditure to propel market growth

Rise in military spending due to rising counterterrorism activities is driving growth of the market. For instance, In July 2018, the European Defense Fund announced a budget of USD 14.66 billion for the period of 2021-2027 which covers both research window and capability expansion. Similarly, Indian government announced a record budget of USD 65.64 billion for defense spending, which is 13.73% of total Central Government Expenditure and 2.15% of GDP for the year 2021-22. Moreover, military spending in Japan also witnessed a significant increase from USD 48.6 billion in 2020 to USD 21.7 billion in 2021 owing to perceived threats from North Korea and China.

Global Precision Guided Munition Market Opportunities:

A growing number of military and defense programs by various nations for protecting territory and security measures is projected to provide significant growth opportunities in the global market for precision guided munitions market. In addition, the increasing number of missile modernization programs is expected to provide additional market opportunities over the forecast period.

The precision guided munitions market is projected to witness significant growth over the forecast period owing to growing demand for advanced war weapons that can accurately hit the target without any human intervention. Increasing military expenditure is also expected to propel the growth of this market. Furthermore, the increasing need for long-range tactical missiles to defeat enemy targets and a growing concern for the advancement of air and missile defense systems are further predicted to increase the demand for the use of precision guided munitions.

Global Precision Guided Munition Market Restraints:

Federal and legislative rules and regulations

There are a few challenges that hinder the development of the precision guided munition market. These include federal and legislative rules and regulations that state-owned defense organizations must comply with, such as import-export control regimes and exchange controls. This factor is expected to hinder the market growth.

Accuracy of autonomous precision guided munitions is difficult to restrict market growth

The accuracy of autonomous precision guided munitions is difficult to guarantee, because they depend so heavily on sensor data. The algorithms that process these data can make errors, resulting in false detections. As a result, it is critical to ensure the reliability of the sensors and the targeting software that control the weapon’s operation. This can be a challenge because there are a variety of environmental conditions that can negatively impact the accuracy of these technologies, including weather, light, and the obscuring effects of dust or smoke.