Precision Guided Munition Market Report 2026

Precision Guided Munition Market Overview

• Precision Guided Munition market size has reached to $42.86 billion in 2025 • Expected to grow to $67.2 billion in 2030 at a compound annual growth rate (CAGR) of 9.2% • Growth Driver: Increase In Military Expenditure Drives The Precision-Guided Munition Market • Market Trend: Technological Innovation Propels The Precision-Guided Munition Market • Asia-Pacific was the largest region in 2025.

What Is Covered Under Precision Guided Munition Market?

A precision-guided munition is a guided weapon that detects electromagnetic energy reflected from a target to destroy a point target and minimize collateral damage. These are guided using a global positioning system (GPS), a laser guidance beam, or an integrated inertial navigation system. The main types of products in the precision-guided munition category are tactical missiles, guided rockets, guided ammunition, torpedoes and loitering munitions. Tactical missiles are shorter-ranged weapons designed for use in close combat areas. These operate at various speeds, such as subsonic, supersonic and hypersonic. The different modes of operation include semi-autonomous and autonomous and involve several technologies such as infrared, semi-active laser, inertial navigation system (INS), a global positioning system (GPS), radar homing and anti-radiation. It is also segmented by launch platform into land, airborne and naval.

What Is The Precision Guided Munition Market Growth Forecast?

The precision guided munition market size is expected to see strong growth in the next few years. It will grow to $67.2 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to growing adoption of network-enabled and multi-mode guidance systems, increasing procurement of loitering munitions for flexible battlefield engagement, integration of artificial intelligence to enhance targeting accuracy and autonomy, expanding modernization programs to replace legacy unguided munitions with precision variants, development of digital guided missiles optimized for contested and GPS-degraded environments. Major trends in the forecast period include enhanced precision guidance systems, long-range loitering capabilities, integration of multi-sensor targeting, miniaturization of munition components, network-centric munition connectivity.

Global Precision Guided Munition Market Segmentation

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

What Is Driver Of The Precision Guided Munition Market?

The increase in military expenditure is significantly driving the growth of the precision-guided munition market. The military refers to the armed forces of any country that help maintain peace and stability in the country. Military expenditure is more focused on military modernization programs and the increase in the need for precision-guided munition to minimize collateral damage and increase lethality against the target, thereby promoting the adoption of precision-guided munition. For instance, according to The House of Commons Library, the UK-based library and information resource of the lower house of the British Parliament, in the 2023/24 financial year, the UK allocated £54.2 billion ($68.8 billion) for defense spending. This amount is projected to increase to £57.1 billion (70.74 billion) in 2024/25, reflecting a 4.5% rise in real terms. Therefore, increasing military expenditure is expected to propel the growth of the precision-guided munition market.

Key Players In The Global Precision Guided Munition Market

Major companies operating in the precision guided munition market are 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.

Global Precision Guided Munition Market Trends and Insights

Major companies operating in the precision-guided munition sector are focused on developing new technological solutions, such as guided high-explosive ammunition, to meet end-customer demands and strengthen their market position. Guided high-explosive ammunition is munition equipped with precision guidance systems that enable it to target and strike specific objectives, minimizing collateral damage while delivering a high-explosive payload accurately and selectively. For instance, in October 2023, Northrop Grumman Corporation, a US-based aerospace and defense company, was given a contract by the US Navy to develop its recently developed 57mm guided high explosive ammunition. The company will test and mature the munition in preparation for qualification, with an eye toward using it with the Mk110 Naval Gun Mount.

What Are Latest Mergers And Acquisitions In The Precision Guided Munition Market? EDGE Group Enhances Defense Capabilities In Brazil Through Strategic Stake Acquisition

In October 2023, EDGE Group, a UAE-based defense and technology conglomerate, acquired 50% stake in Brazilian Missile House for an undisclosed amount. This strategic acquisition is designed to strengthen EDGE's footprint in the Latin American defense market, with a particular emphasis on Brazil, by prioritizing the development of cutting-edge high-tech defense systems. Brazilian Missile House is a Brazil-based defense contractor specializing in missile systems and aerospace technology.

Regional Insights

Asia-Pacific was the largest region in the precision-guided munition market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Precision Guided Munition Market?

The precision-guided munition market consists of sales of autonomous long range artillery munition, loitering munitions, aircraft self-protection missile and digital guided missiles. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Precision Guided Munition Market Report 2026?

The precision guided munition market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the precision guided munition industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.