Precision-Guided Munitions Market

Industry Overview

The Global Precision-Guided Munitions Market size was valued at USD 36.7 billion in 2023. It is likely to grow up to USD 52.9 billion by 2030 at a CAGR of 6.3% during the forecast period ranging between 2025 and 2030. 

Increase in defense budget and technological modernization is helping the market to grow. Governments around the world are spending a large part of the defense budget on state-of-the-art weapons and smart munitions. This is leading to a rapid increase in the research, development and purchase of Precision-guided munitions (PGMs).

Precision-guided munitions (PGMs) are modern weapons that can hit targets with pinpoint accuracy. They use GPS, laser, infrared and electro-optical technologies that enable them to complete missions with minimal collateral damage. These weapons are considered more efficient, reliable and effective than conventional bombs. 

They are used especially in military operations, counter-terrorism operations and border attacks. All three branches of the Air Force, Navy and Army use them. They increase the chances of military success and also protect the lives of soldiers. In the future, these munitions are becoming even smarter and more automated.

Global Precision-Guided Munitions Industry Dynamics      

Global Precision-Guided Munitions Market Trends/Growth Drivers

Increasing military conflict situation and increase in cross-border threats

Increasing incidents of military conflict, terrorism, border disputes and proxy wars at the global level are rapidly increasing the demand for precision-guided munitions (PGMs). The armies of countries are now giving preference to high-precision munitions instead of conventional weapons, which will cause minimum civilian damage and make missions successful. Major countries like the US, Russia, China, India are continuously increasing their defense budgets to include PGMs in their armies. Changes in security strategies and inclination towards smart warfare technologies are also the main reasons behind the growth of the global precision-guided munitions market.

Other key growth drivers and trends include integration of state-of-the-art targeting systems and AI-based navigation is making PGMs smarter and more reliable. Their increasing compatibility with drones and unmanned warfare systems has also fueled their demand in the market. Armies with limited resources and adopting rapid war termination strategies are preferring these weapons. Standardization of precision weapons by NATO and other defense alliances has also boosted the market. Participation of private defense companies and investment attraction in the defense sector have also driven this segment forward.

Global Precision-Guided Munitions Market Report Coverage

Global Precision-Guided Munitions Market Challenges

High cost and limited budget 

Precision-guided munitions are costly due to their advanced technology, making them difficult for developing countries to adopt. Limited defense budget and higher cost compared to conventional weapons are deterrents for governments. Designing, manufacturing and testing PGMs require long time and high technical expertise. Policy restrictions on their use in many countries due to rules of war and human rights concerns also slow down the growth of the global precision-guided munitions market.

Global Precision-Guided Munitions Market Opportunities

Increasing inclination towards modern warfare system 

Most countries are now preferring PGMs with accuracy and minimum collateral damage over conventional weapons. Their role is constantly increasing in border security, anti-terrorism operations and urban warfare. Their use has become more effective due to technological advancements such as AI-based targeting systems and GPS guidance. Increase in defense budget, growing demand for smart weapons and strategic military modernization programs are creating new opportunities for the global precision-guided munitions market.

Recent Developments By the Key Players

SSH Communications Security has enter into a strategic partnership with Leonardo S.p.A to boost cyber-security growth which is supported by a financial investment agreement.

Global Precision-Guided Munitions Market Segmentation 

Insight by By Product

Missiles rule due to higher demand 

The global precision-guided munitions market is segmented on the basis of product into Missiles, Smart Bombs, Shells and Mortars. Among these, the demand for missiles is growing the fastest as they are capable of hitting targets with high accuracy at long distances. Long range, high precision and advanced guidance systems such as GPS and INS technologies have further strengthened their utility.

Insight by By Technology

GPS-Guided technology rules due to high success rate

The global precision-guided munitions market is segmented on the basis of technology into GPS-Guided, Infrared, Laser-Guided and Radar-Guided. The GPS-guided technology is the fastest to be adopted as it provides weather-neutral and real-time targeting. It has a low risk of target loss and it hits the target accurately even at long ranges. The availability of satellite systems and AI integration have further enhanced the efficiency of GPS-guided systems.

Insight by By Speed

Subsonic PGMs rule due to higher efficiency

Based on speed, the global precision-guided munitions market is classified into Subsonic, Supersonic and Hypersonic segments. Among these, Subsonic PGMs are in the highest demand as they are cheaper, easier to use and offer more stable guidance. They are more suitable for platforms such as UAVs and small fighter aircraft. Their affordable price and low radar signature make them popular even in the armies of less developed countries.

Insight by Launch Platform

Air-launched PGMs dominate due to higher range and accuracy 

Based on the launch platform, the global precision-guided munitions market is divided into Air-launched, Surface-launched and Naval-launched groups. Among these, air-launched PGMs are growing the fastest as modern fighter jets and drones can launch them from high altitudes. This platform offers better range, speed and accuracy. Rapid increase in air strike tactics and changes in the format of warfare are further strengthening this segment.

Global Precision-Guided Munitions Market: Geographic Overview

North America is the largest in the US due to its cutting-edge technologies, high demand, military budget and R&D investments. 

Asia-Pacific is the most promising market as the military capabilities of countries like India, China and South Korea are growing rapidly. 

Europe has increased defense spending due to the Russia-Ukraine war. NATO cooperation and strategic treaties have accelerated the demand for modern PGMs.

Global Precision-Guided Munitions Market: Major Players

1.    Research Overview

        1.1.    The Report Offers
        1.2.    Market Coverage
                  1.2.1.    By By Product 
                  1.2.2.    By By Technology 
                  1.2.3.    By By Speed 
                  1.2.4.    By Launch Platform 
        1.3.    Research Phases
        1.4.    Limitations
        1.5.    Market Methodology
                  1.5.1.  Data Sources
                             1.5.1.1. Primary Research
                             1.5.1.2. Secondary Research
                  1.5.2.  Methodology
                             1.5.2.1. Data Exploration
                             1.5.2.2. Forecast Parameters
                             1.5.2.3. Data Validation
                             1.5.2.4. Assumptions
                  1.5.3.  Study Period & Data Reporting Unit

2.    Executive Summary

3.    Industry Overview

       3.1.    Industry Dynamics
                 3.1.1.    Market Growth Drivers
                 3.1.2.    Market Restraints
                 3.1.3.    Key Market Trends
                 3.1.4.    Major Opportunities
       3.2.    Industry Ecosystem
                 3.2.1.    Porter’s Five Forces Analysis
                 3.2.2.    Recent Development Analysis
                 3.2.3.    Value Chain Analysis
       3.3.    Competitive Insight
                 3.3.1.    Competitive Position of Industry Players
                 3.3.2.    Market Attractive Analysis
                 3.3.3.    Market Share Analysis

4.    Global Market Estimate and Forecast

       4.1.    Global Market Overview
       4.2.    Global Market Estimate and Forecast to 2030

5.    Market Segmentation Estimate and Forecast

       5.1.    By By Product 
                 5.1.1. Missiles
                           5.1.1.1. Market Definition
                           5.1.1.2. Market Estimation and Forecast to 2030
                 5.1.2. Smart Bombs
                           5.1.2.1. Market Definition
                           5.1.2.2. Market Estimation and Forecast to 2030
                 5.1.3. Shells
                           5.1.3.1. Market Definition
                           5.1.3.2. Market Estimation and Forecast to 2030
                 5.1.4. Mortars
                           5.1.4.1. Market Definition
                           5.1.4.2. Market Estimation and Forecast to 2030

       5.2.    By By Technology 
                 5.2.1. GPS-Guided
                           5.2.1.1. Market Definition
                           5.2.1.2. Market Estimation and Forecast to 2030
                 5.2.2. Infrared
                           5.2.2.1. Market Definition
                           5.2.2.2. Market Estimation and Forecast to 2030
                 5.2.3. Laser-Guided
                           5.2.3.1. Market Definition
                           5.2.3.2. Market Estimation and Forecast to 2030
                 5.2.4. Radar-Guided
                           5.2.4.1. Market Definition
                           5.2.4.2. Market Estimation and Forecast to 2030

       5.3.    By By Speed 
                 5.3.1. Subsonic
                           5.3.1.1. Market Definition
                           5.3.1.2. Market Estimation and Forecast to 2030
                 5.3.2. Supersonic
                           5.3.2.1. Market Definition
                           5.3.2.2. Market Estimation and Forecast to 2030
                 5.3.3. Hypersonic
                           5.3.3.1. Market Definition
                           5.3.3.2. Market Estimation and Forecast to 2030

       5.4.    By Launch Platform 
                 5.4.1. Air-launched
                           5.4.1.1. Market Definition
                           5.4.1.2. Market Estimation and Forecast to 2030
                 5.4.2. Surface-launched
                           5.4.2.1. Market Definition
                           5.4.2.2. Market Estimation and Forecast to 2030
                 5.4.3. Naval-launched
                           5.4.3.1. Market Definition
                           5.4.3.2. Market Estimation and Forecast to 2030

6.   North America Market Estimate and Forecast

      6.1.    By By Product   
      6.2.    By By Technology   
      6.3.    By By Speed   
      6.4.    By Launch Platform   
                6.4.1.    U.S. Market Estimate and Forecast
                6.4.2.    Canada Market Estimate and Forecast
                6.4.3.    Mexico Market Estimate and Forecast

7.   Europe Market Estimate and Forecast

      7.1.    By By Product   
      7.2.    By By Technology   
      7.3.    By By Speed   
      7.4.    By Launch Platform   
                7.4.1.    Germany Market Estimate and Forecast
                7.4.2.    U.K. Market Estimate and Forecast
                7.4.3.    France Market Estimate and Forecast
                7.4.4.    Italy Market Estimate and Forecast
                7.4.5.    Spain Market Estimate and Forecast
                7.4.6.    Russia Market Estimate and Forecast
                7.4.7.    Rest of Europe Market Estimate and Forecast

8.   Asia-Pacific (APAC) Market Estimate and Forecast

      8.1.    By By Product   
      8.2.    By By Technology   
      8.3.    By By Speed   
      8.4.    By Launch Platform   
                8.4.1.    China Market Estimate and Forecast
                8.4.2.    Japan Market Estimate and Forecast
                8.4.3.    India Market Estimate and Forecast
                8.4.4.    South Korea Market Estimate and Forecast
                8.4.5.    Vietnam Market Estimate and Forecast
                8.4.6.    Thailand Market Estimate and Forecast
                8.4.7.    Malaysia Market Estimate and Forecast
                8.4.8.    Rest of Asia-Pacific Market Estimate and Forecast

9.   Rest of the World (RoW) Market Estimate and Forecast

      9.1.    By By Product   
      9.2.    By By Technology   
      9.3.    By By Speed   
      9.4.    By Launch Platform   
                9.4.1.    Brazil Market Estimate and Forecast
                9.4.2.    Saudi Arabia Market Estimate and Forecast
                9.4.3.    South Africa Market Estimate and Forecast
                9.4.4.    U.A.E. Market Estimate and Forecast
                9.4.5.    Other Countries Market Estimate and Forecast

10.  Company Profiles

       10.1.   Lockheed Martin Corporation
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   Raytheon Technologies Corporation
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   BAE Systems plc
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   Northrop Grumman Corporation
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   General Dynamics Corporation
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   Leonardo S.p.A.
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   Rheinmetall AG
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   Saab AB
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   Elbit Systems Ltd.
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   L3Harris Technologies Inc.
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments
       10.1.   MBDA Inc.
                  10.1.1.    Snapshot
                  10.1.2.    Overview
                  10.1.3.    Offerings
                  10.1.4.    Financial Insight
                  10.1.5.    Recent Developments

11.    Appendix

         11.1.    Exchange Rates
         11.2.    Abbreviations

Note: Financial insight and recent developments of different companies are subject to the availability of information in the secondary domain.