What Has Driven the Growth of the Smart Weapons Market in Recent Years?
The smart weapons market has seen considerable growth due to a variety of factors.
• The size of the smart water management market has expanded substantially in recent years. The anticipated growth from $17.36 billion in 2024 to $20.02 billion in 2025, with a compound annual growth rate (CAGR) of 15.3%, is quite significant.
This growth during the historical period can be attributed to factors such as exports and international sales, an increased demand for precision-guided munitions (PGMs), multi-role weapons and a focus on electronic warfare and countermeasures, as well as the demand for interoperable weapons systems.
What is the Market Size Forecast for the Smart Weapons Market?
The smart weapons market is expected to maintain its strong growth trajectory in upcoming years.
• The market for smart water management is anticipated to experience a swift expansion in the upcoming years, reaching a value of $35.82 billion in 2029, with a CAGR of 15.7%.
This surge in the forecast period can be linked to anti-terrorism initiatives, defense budget appropriations, the inclusion of cybersecurity, modernization of military forces, and a growing need for precision strike arms. Key trends for the forecast period encompass the adoption of artificial intelligence (AI) and machine learning (ml), increased miniaturization and autonomy, usage of directed energy weapons (dew), counter-drone and counter-missile systems, and collaboration between humans and machines in making decisions.
What Are The Core Factors Supporting Growth In The Smart Weapons Market?
Growth in the smart weapons market is being driven by heightened global and regional turbulence. The political instability in neighboring countries is what is often meant by transnational and regional instability. As a method of riding out increasing regional unrest and defense against threats from adjacent nations, numerous countries are adopting smart weapons. The Stockholm International Peace Research Institute, a nonprofit organization in Sweden that promotes the use of digital technology in academic circles, released a report in May 2023. The report indicated that in 2022, some 64 multinational peace operations were executed across 38 countries and regions worldwide. This surpassed the total amount of procedures carried out in the preceding decade. As of the end of 2022, according to this report, there were 114,984 international personnel engaged in global multilateral peace operations, a rise of 2.79 percent from the prior year. Therefore, escalating transnational and regional instability fuels the demand in the smart weapons market.
What Are The Major Segments Within The Global Smart Weapons Market?
The smart weapons market covered in this report is segmented –
1) By Type: Air-to-ground Missiles, Surface-to-air Missiles, Smart Bombs, Sensor Fused Weapons, Directed Energy Weapons, Precision Artillery Munitions, Electromagnetic Pulse Weapons, Smart Bullets, Other Smart Weapons
2) By Platform: Air, Naval, Land
3) By Technology: Laser Guidance, Infrared Guidance, Radar Guidance, Satellite Guidance
Subsegments:
1) By Air-to-Ground Missiles: Guided Missiles, Tactical Missiles, Stand-off Missiles
2) By Surface-to-Air Missiles: Short-Range Surface-to-Air Missiles, Medium-Range Surface-to-Air Missiles, Long-Range Surface-to-Air Missiles
3) By Smart Bombs: Laser-Guided Bombs, GPS-Guided Bombs, Inertial Guidance Bombs
4) By Sensor-Fused Weapons: Multi-Sensor Guided Munitions, Advanced Targeting Systems
5) By Directed Energy Weapons: Laser Weapons, High-Powered Microwave Weapons, Particle Beam Weapons
6) By Precision Artillery Munitions: Precision-Guided Projectiles, Smart Shells, Mortars with Guidance Systems
7) By Electromagnetic Pulse Weapons: High-Power Microwave Weapons, Nuclear and Non-Nuclear EMP Weapons
8) By Smart Bullets: Guided Projectiles, Smart Ammunition with Targeting Systems
9) By Other Smart Weapons: Autonomous Weapon Systems, Swarm Drones and Unmanned Aerial Vehicles, Advanced Non-Lethal Weapons
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Which Trends Are Expected To Transform The Smart Weapons Market?
Leading enterprises in the smart weapons market are directing their efforts towards the creation of innovative technologies like EDGE smart weapons to increase accuracy, minimize unwanted damage, and boost battlefield efficacy. The term EDGE Smart Weapons relates to state-of-the-art, accuracy-guided armaments that leverage groundbreaking technologies such as artificial intelligence, machine learning, and sophisticated sensors to augment targeting precision and operational productivity. For instance, General Atomics Aeronautical Systems, Inc., an American aeronautics firm, introduced the MQ-9B SkyGuardian RPA in November 2023. The MQ-9B SkyGuardian is known for its impressive endurance exceeding 40 hours, advanced monitoring features with high-definition sensors, and its capacity to operate securely in civilian airspace along with commercial aircraft. Its module-based design opens the way for flexible payload integration, rendering it adaptable for a wide range of military and humanitarian missions. The rise of strategic partnerships and collaborations marks a major trend in the smart weapons market. For example, in February 2021, Rheinmetall Denel Munition, a German automobile and weapons manufacturer, and Northrop Grumman, an American aerospace and defense technology firm, entered into a decade-long agreement to create ammunition technologies for upcoming artillery operations. Their focus lies on precision-guided extended range artillery ammunition solutions (PGK), with the plan to supply 155mm artillery rounds fitted with an integrated M1156 precision guidance kit.
Who Are the Key Players in the Smart Weapons Market?
Major companies operating in the smart weapons market include:
• Lockheed Martin Corporation
• MBDA Incorporated
• Orbital ATK Inc.
• General Dynamics Corporation
• BAE Systems plc.
• The Boeing Company
• Textron Inc.
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Rheinmetall AG
• Thales Group
• Israel Aerospace Industries Ltd.
• Denel SOC Ltd.
• Rafael Advanced Defense Systems Ltd.
• L3Harris Technologies Inc.
• Alliant Techsystems Inc.
• Leonardo-Finmeccanica
• Saab AB
• Aselsan A.S.
• Diehl Stiftung & Co. KG
• OTO Melara S.P.A
• United Technologies Corporation.
• China Aerospace Science and Industry Corporation Limited.
• The ExOne Company
• Höganäs AB
• MTU Aero Engines AG
What Is The Most Dominant Region In The Smart Weapons Market?
North America was the largest region in the smart weapons market in 2024 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the smart weapons market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
