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Global Precision Guided Munition Market Top Major Players 2025, Forecast To 2034

27 Feb, 2025

What Has Been The Historical And Current Growth Of The Precision Guided Munition Market?

The precision guided munition market has seen considerable growth due to a variety of factors.
• The market size for precision guided munitions has experienced swift expansion in the recent past. The market will see a rise from $39.07 billion in 2024 to $43.12 billion in 2025, reflecting a compound annual growth rate (CAGR) of 10.4%.
Factors contributing to the growth during the historic period include military modernization, the need for precision, increased defense budgets, improvements in targeting and guidance systems, escalation in worldwide conflicts and counterterrorism endeavors, and the necessity for minimizing collateral damage.

What Is The Forecast For The Precision Guided Munition Market By 2029?

The precision guided munition market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for the robust expansion of the precision guided munition market in the up and coming years, with a projected value of $63.1 billion by 2029 and a compound annual growth rate (CAGR) of 10.0%.
The driving factors behind this anticipated growth within the forecast timeline include the incorporation of artificial intelligence in precision, the escalation in asymmetric warfare and counter-insurgency, the tailored production of munitions for specific mission requirements, an upsurge in unmanned aerial vehicle (uav) warfare, and increased participation in maritime and naval operations. The forecast period will also see emerging trends such as the development of intelligent munitions with advanced target recognition, established regulations for precision munition distribution, the inception of electromagnetic and cyber warfare, miniaturization and prolonged loiter time of munitions, and the creation of modular munition mechanisms for multi-operational capabilities.

Which Key Drivers Are Propelling The Precision Guided Munition Market's Growth?

The precision-guided munition market's growth is being greatly influenced by the rise in military spending. The armed forces of a country, commonly referred to as the military, plays a crucial role in preserving peace and stability within the nation. Priorities in military expenditure are shifting towards military modernization programs and an increasing demand for precision-guided munition, which aids in limiting collateral damage and improving efficacy against targets. This subsequently encourages the use of precision-guided munition. The House of Commons Library, the United Kingdom's library and information resource for the lower house of Parliament, reported that the UK has allocated £54.2 billion ($68.8 billion) towards defense spending for the financial year of 2023/24. The budget is forecasted to escalate to £57.1 billion ($70.74 billion) in 2024/25, indicative of a 4.5% increase in real terms. Consequently, the surge in military spending is anticipated to boost the precision-guided munition market's growth.

What Are The Key Segments Within The Global Precision Guided Munition Market?

The precision guided munition market covered in this report is segmented –
1) By Product: Tactical Missiles, Guided Rockets, Guided Ammunition, Torpedoes, Loitering Munitions
2) By Technology: Infrared, Semi Active Laser, Inertial Navigation System (INS), Global Positioning System (GPS), Radar Homing, Anti-Radiation
3) By Launch Platform: Land, Airborne, Naval
4) By Mode of Operation: Semi-Autonomous, Autonomous
5) By Speed: Subsonic, Supersonic, Hypersonic Subsegments:
1) By Tactical Missiles: Air-to-Ground Missiles, Surface-to-Air Missiles, Anti-Ship Missiles, Anti-Tank Missiles
2) By Guided Rockets: Surface-Launched Rockets, Air-Launched Rockets
3) By Guided Ammunition: Precision-Guided Artillery Shells, Guided Mortar Rounds, Smart Bombs
4) By Torpedoes: Lightweight Torpedoes, Heavyweight Torpedoes
5) By Loitering Munitions: Fixed-Wing Loitering Munitions, Rotary-Wing Loitering Munitions

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How Are New Trends Impacting The Size Of The Precision Guided Munition Market?

Leading firms in the precision-guided munition industry are concentrating on the creation of innovative technological solutions, such as guided high-explosive ammunition, in order to meet customer needs and reinforce their status in the market. Guided high-explosive ammunition is munition fitted with precision guidance systems, allowing it to accurately and selectively target and hit specific objectives, thereby reducing unintended damage while delivering a highly explosive payload. For example, in October 2023, the US Navy awarded a contract to Northrop Grumman Corporation, an American aerospace and defense firm, for the development of their recently created 57mm guided high explosive ammunition. The company plans to test and evolve the munition for certification, with intentions to utilize it with the Mk110 Naval Gun Mount.

Who Are the Key Players in the Precision Guided Munition Market?

Major companies operating in the precision guided munition market include:
• Northrop Grumman Corporation
• Lockheed Martin Corporation
• The Boeing Company
• BAE Systems plc
• General Dynamics Corporation
• Thales Group
• L3Harris Technologies Inc.
• Leonardo S.p.A.
• Elbit Systems Ltd.
• Saab AB
• Israel Aerospace Industries Ltd.
• Rheinmetall AG
• Bharat Dynamics Limited
• Denel Dynamics a division of Denel SOC Ltd.
• LIG Nex 1 Co. Ltd.
• Rafael Advanced Defense Systems Ltd.
• Kongsberg Gruppen ASA
• Roketsan A.S.
• China Aerospace Science and Industry Corporation
• China North Industries Group Corporation Limited
• Hanwha Defense Co. Ltd.
• Taurus Systems GmbH
• Diehl Defence GmbH & Co. KG
• Nexter Systems S.A.
• Raytheon Technologies Corporation
• Aerojet Rocketdyne Holdings Inc.
• Precision Guided Solutions LLC
• Textron Inc.

What are the Regional Insights into the Precision Guided Munition Market?

Asia-Pacific was the largest region in the precision-guided munition market in 2024. The regions covered in the precision guided munition market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.