Precision Guided Munition MarketSize and Trends

The global precision guided munition market size was valued at US$ 35.85 billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 7.1 % from 2023 to 2030. The growth of the precision guided munition market is driven by increasing military expenditure, advancements in missile defense systems, and technological developments. Additionally, the market is expected to benefit from growing interest in network-centric warfare systems, which are designed to allow soldiers to share information and coordinate their operations more effectively.

Figure 1. Global Precision Guided Munition Market by Region, 2022

Global Precision Guided Munition Market Trends:

Growing popularity of smart precision-guided munitions

Smart precision-guided munitions are very important weapon in any battlefield, especially long-range battlespace. They are programmed to follow precise directions and thereby avoid hitting innocent civilians or damaging aircraft that may be in range of the bomb.

Growing number of merger and acquisition in the market

In December 2020, Lockheed Martin Corporation acquired Aerojet Rocketdyne Holdings, Inc., a rocket, and missile propulsion manufacturer. The acquisition is expected to enhance Lockheed Martin Corporation’s support for critical U.S. and allied security missions and strengthening its market positioning in space and hypersonic technology used in missiles and rockets. Key players are adopting such business strategies to increase market presence and this trend is expected to continue in the market, thereby fueling market growth.

Figure 2. Global Precision Guided Munition Market by Product , 2022

Global Precision Guided Munition Market Segmentation:

The global precision guided munition market report is segmented into product, technology, and region

Based on product, the market is segmented into Tactical Missiles, Guided Rockets, Guided Ammunition, and Loitering Munition. Out of which, the tactical missiles segment is expected to grow at a significant rate in the global precision guided munition market over the forecast period. These are shorter-ranged weapons that can be used in a variety of applications, such as close combat, scouting, and reconnaissance.

Guided Ammunition segment is also expected to witness significant growth in the near future as they are highly effective and versatile as they can be fired at various angles, modes, and platforms.

Based on Technology, the market is segmented into Infrared, Semi-Active Laser, Inertial Navigation System (INS), Global Positioning System (GPS), Radar Homing, Anti-Radiation, and Others. Out of which, Infrared is expected to dominate the global market over the forecast period and this is attributed to its cost- effectiveness and precise location detection

Semi-Active Laser segment is also expected to witness significant growth in the near future owing to its fast coordination and compatibility with various weapon systems ranging from rockets to missiles.