Precision Guided Munition Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 - 2034
The Global Precision Guided Munition Market, reaching a valuation of USD 36.5 billion in 2024, is expected to expand at a CAGR of 5.1% from 2025 to 2032, driven by increasing demand for precise targeting in military operations. The need for highly accurate, long-range weapon systems has become crucial as modern warfare demands greater efficiency, accuracy, and minimized collateral damage. Armed forces across the globe are focusing on developing advanced precision weapons that can engage targets effectively, especially in complex and dynamic battlefields. This surge in demand is supported by ongoing advancements in technology, such as the integration of GPS, inertial navigation, and laser guidance systems, which enhance the accuracy of these munitions.
In recent years, military forces have made significant investments in torpedoes, guided rockets, tactical missiles, guided ammunition, and loitering munitions, all contributing to the growth of the precision-guided munition market. The tactical missile segment currently holds the largest market share, accounting for over 40% of the global market. These missiles are critical for engaging targets with high accuracy during short-to-medium-range combat. The incorporation of advanced technologies ensures that these systems remain versatile, adaptable, and cost-effective, making them a preferred option for modern military operations. Military organizations worldwide are increasingly adopting these systems to improve battlefield capabilities and address complex operational challenges.
Airborne platforms are expected to experience the fastest growth in the precision-guided munition market. This segment benefits from the increasing use of unmanned aerial vehicles (UAVs) and combat aircraft equipped with precision-guided systems, including air-to-ground missiles and guided bombs. These platforms offer enhanced flexibility, allowing for longer-range strikes and precise target engagements, even in contested airspaces. The integration of AI-driven targeting systems and advanced stealth capabilities has further boosted the performance of airborne platforms, making them indispensable in modern military strategies.
North America is poised to remain the dominant region in the precision-guided munition market, with the market expected to surpass USD 22.5 billion by 2034. The United States continues to lead in defense technology development, with substantial investments in military equipment modernization and the expansion of defense capabilities. This growth is fueled by the increasing demand for smart technologies and missile accuracy improvements, enabling the country to counter sophisticated threats and maintain a strategic edge in global defense operations. The ongoing advancements in precision strike technologies make the region a key player in the global market for precision-guided munitions.
In recent years, military forces have made significant investments in torpedoes, guided rockets, tactical missiles, guided ammunition, and loitering munitions, all contributing to the growth of the precision-guided munition market. The tactical missile segment currently holds the largest market share, accounting for over 40% of the global market. These missiles are critical for engaging targets with high accuracy during short-to-medium-range combat. The incorporation of advanced technologies ensures that these systems remain versatile, adaptable, and cost-effective, making them a preferred option for modern military operations. Military organizations worldwide are increasingly adopting these systems to improve battlefield capabilities and address complex operational challenges.
Airborne platforms are expected to experience the fastest growth in the precision-guided munition market. This segment benefits from the increasing use of unmanned aerial vehicles (UAVs) and combat aircraft equipped with precision-guided systems, including air-to-ground missiles and guided bombs. These platforms offer enhanced flexibility, allowing for longer-range strikes and precise target engagements, even in contested airspaces. The integration of AI-driven targeting systems and advanced stealth capabilities has further boosted the performance of airborne platforms, making them indispensable in modern military strategies.
North America is poised to remain the dominant region in the precision-guided munition market, with the market expected to surpass USD 22.5 billion by 2034. The United States continues to lead in defense technology development, with substantial investments in military equipment modernization and the expansion of defense capabilities. This growth is fueled by the increasing demand for smart technologies and missile accuracy improvements, enabling the country to counter sophisticated threats and maintain a strategic edge in global defense operations. The ongoing advancements in precision strike technologies make the region a key player in the global market for precision-guided munitions.
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Market scope & definitions
1.2 Base estimates & calculations
1.3 Forecast calculations
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry synopsis, 2021-2034
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.1.1 Factor affecting the value chain
3.1.2 Profit margin analysis
3.1.3 Disruptions
3.1.4 Future outlook
3.1.5 Manufacturers
3.1.6 Distributors
3.2 Supplier landscape
3.3 Profit margin analysis
3.4 Key news & initiatives
3.5 Regulatory landscape
3.6 Impact forces
3.6.1 Growth drivers
3.6.1.1 Increasing demand for precision targeting in modern warfare
3.6.1.2 Advancements in guidance systems enhancing munition accuracy
3.6.1.3 Growing defense budgets for precision strike capabilities globally
3.6.1.4 Rising adoption of unmanned systems for guided munition delivery
3.6.1.5 Technological integration of AI and sensors in munitions
3.6.2 Industry pitfalls & challenges
3.6.2.1 High development and production costs of precision-guided munitions
3.6.2.2 Stringent regulations on arms trade impacting market growth
3.7 Growth potential analysis
3.8 Porter’s analysis
3.9 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY PRODUCT, 2021-2034 (USD MILLION)
5.1 Key trends
5.2 Tactical missiles
5.3 Guided rockets
5.4 Guided ammunition
5.5 Torpedoes
5.6 Loitering munitions
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY TECHNOLOGY, 2021-2034 (USD MILLION)
6.1 Key trends
6.2 Infrared
6.3 Laser
6.4 Inertial Navigation System (INS)
6.5 Global Positioning System (GPS)
6.6 Radar homing
6.7 Anti-radiation
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY SPEED, 2021-2034 (USD MILLION)
7.1 Key trends
7.2 Subsonic
7.3 Supersonic
7.4 Hypersonic
CHAPTER 8 MARKET ESTIMATES & FORECAST, MODE OF OPERATION, 2021-2034 (USD MILLION)
8.1 Key trends
8.2 Autonomous
8.3 Semi-autonomous
CHAPTER 9 MARKET ESTIMATES & FORECAST, LAUNCH PLATFORM, 2021-2034 (USD MILLION)
9.1 Key trends
9.2 Land
9.3 Airborne
9.4 Naval
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY REGION, 2021-2034 (USD MILLION)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Russia
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 South Korea
10.4.5 Australia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.6 MEA
10.6.1 South Africa
10.6.2 Saudi Arabia
10.6.3 UAE
CHAPTER 11 COMPANY PROFILES
11.1 Northrop Grumman Corporation
11.2 Lockheed Martin Corporation
11.3 Raytheon Technologies Corporation
11.4 Boeing Company
11.5 General Dynamics Corporation
11.6 General Atomics
11.7 Dynetics Inc
11.8 BAE Systems
11.9 MBDA
11.10 Thales
11.11 Rheinmetall
11.12 Leonardo S.p.A.
11.13 Kongsberg
11.14 Saab AB
11.15 Aselsan A.S.
11.16 Israel Aerospace Industries
11.17 Elbit Systems
11.18 Rafael Advanced Defense Systems Ltd.
11.19 Enel Dynamics
11.20 Bharat Dynamics Limited
1.1 Market scope & definitions
1.2 Base estimates & calculations
1.3 Forecast calculations
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry synopsis, 2021-2034
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.1.1 Factor affecting the value chain
3.1.2 Profit margin analysis
3.1.3 Disruptions
3.1.4 Future outlook
3.1.5 Manufacturers
3.1.6 Distributors
3.2 Supplier landscape
3.3 Profit margin analysis
3.4 Key news & initiatives
3.5 Regulatory landscape
3.6 Impact forces
3.6.1 Growth drivers
3.6.1.1 Increasing demand for precision targeting in modern warfare
3.6.1.2 Advancements in guidance systems enhancing munition accuracy
3.6.1.3 Growing defense budgets for precision strike capabilities globally
3.6.1.4 Rising adoption of unmanned systems for guided munition delivery
3.6.1.5 Technological integration of AI and sensors in munitions
3.6.2 Industry pitfalls & challenges
3.6.2.1 High development and production costs of precision-guided munitions
3.6.2.2 Stringent regulations on arms trade impacting market growth
3.7 Growth potential analysis
3.8 Porter’s analysis
3.9 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2024
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY PRODUCT, 2021-2034 (USD MILLION)
5.1 Key trends
5.2 Tactical missiles
5.3 Guided rockets
5.4 Guided ammunition
5.5 Torpedoes
5.6 Loitering munitions
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY TECHNOLOGY, 2021-2034 (USD MILLION)
6.1 Key trends
6.2 Infrared
6.3 Laser
6.4 Inertial Navigation System (INS)
6.5 Global Positioning System (GPS)
6.6 Radar homing
6.7 Anti-radiation
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY SPEED, 2021-2034 (USD MILLION)
7.1 Key trends
7.2 Subsonic
7.3 Supersonic
7.4 Hypersonic
CHAPTER 8 MARKET ESTIMATES & FORECAST, MODE OF OPERATION, 2021-2034 (USD MILLION)
8.1 Key trends
8.2 Autonomous
8.3 Semi-autonomous
CHAPTER 9 MARKET ESTIMATES & FORECAST, LAUNCH PLATFORM, 2021-2034 (USD MILLION)
9.1 Key trends
9.2 Land
9.3 Airborne
9.4 Naval
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY REGION, 2021-2034 (USD MILLION)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Russia
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 South Korea
10.4.5 Australia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.6 MEA
10.6.1 South Africa
10.6.2 Saudi Arabia
10.6.3 UAE
CHAPTER 11 COMPANY PROFILES
11.1 Northrop Grumman Corporation
11.2 Lockheed Martin Corporation
11.3 Raytheon Technologies Corporation
11.4 Boeing Company
11.5 General Dynamics Corporation
11.6 General Atomics
11.7 Dynetics Inc
11.8 BAE Systems
11.9 MBDA
11.10 Thales
11.11 Rheinmetall
11.12 Leonardo S.p.A.
11.13 Kongsberg
11.14 Saab AB
11.15 Aselsan A.S.
11.16 Israel Aerospace Industries
11.17 Elbit Systems
11.18 Rafael Advanced Defense Systems Ltd.
11.19 Enel Dynamics
11.20 Bharat Dynamics Limited
