Global Precision Guided Munition Market Insights Forecasts to 2032

• The Global Precision Guided Munition Market Size was valued at USD 36.8 Billion in 2022.
• The Market Size is Growing at a CAGR of 5.6% from 2022 to 2032
• The Worldwide Precision Guided Munition Market Size is expected to reach USD 63.9 Billion by 2032
• North America is expected to Grow the fastest during the forecast period

The Global Precision Guided Munition Market Size is expected to reach USD 63.9 Billion by 2032, at a CAGR of 5.6% during the forecast period 2022 to 2032.

A precision guided munition (PGM) is an incendiary missile, rocket, or bomb that is directed by a "seeker" control system that uses a laser guidance beam, a global positioning system (GPS), and/or an integrated inertial navigation system to identify military targets with great accuracy. Precision guided weapons, also known as "smart bombs," can be launched from the air, the ground, or a vessel and can alter their flight path based on recent information about where it is headed. PGMs often serve two equally vital purposes: damage or annihilate very specific targets in order to eliminate key threats and limit unintended damage to civilians, equipment, and infrastructure around those targets. While both of these objectives are critical, the PGM's ordnance, targeting systems, and anti-jamming technologies all play critical roles in ensuring mission success. PGMs have also improved military operations' tactical effectiveness. They have significantly improved force interchange ratios by lowering the number of weapons that are likely to be required to eliminate particular targets. As a result, they have reduced logistical needs and boosted the speed with which military actions can be carried out. Efficiency is the primary driving reason behind the advancement of precision guided bombs. Furthermore, the rising complexity of major global powers' air defenses and anti-ship missiles has led to a higher demand for precision guided munitions, known as Long Range Precision Fires, or LRPFs, that are capable of firing from longer distances and operating in restricted situations. Moreover, advances in positioning system technology, such as semi-active lasers, radar homing, Inertial Navigation Systems (INS), and Global Positioning System (GPS), have had a profound effect on the precision guided munitions market.

Driving Factors

The precision guided munitions market will likely grow owing to steady increases in defense budgets around the world, as well as the demand for superior precision guided munition for repelling modern confront along the country's border. In addition, the growing number of wars and rising defense spending are two important drivers driving the global market. Military operations improvements and the implementation of new warfare techniques are expected to drive market expansion over the forecast period. Furthermore, the increased deployment of security measures lately around the world is anticipated to boost the distribution of precision guided munition market over the forecast period.

Additionally, rising worries about national security as a result of increased terrorist activity are expected to drive demand for precision guided munition over the forecast period. Political turmoil and territorial disputes between major nations have contributed to the use of preventative measures in tactical and military operations. Major economies' defense systems are currently concentrating on the acquisition of modern combat weaponry with reliable operations. These factors are expected to have a favorable impact on the precision-guided munition market over the projected period. Furthermore, the continued development of next-generation precision guided air and missile defense systems is projected to boost demand for precision guided munition technology. GPS, INS, laser, radar, and other technologies are examples of these.

Market Segmentation

By Product Insights

The tactical missiles segment is dominating the market with the largest revenue share over the forecast period.

On the basis of product, the global precision guided munition market is segmented into the tactical missiles, guided rockets, guided ammunition, loitering munition, and others. Among these, the tactical missiles segment is dominating the market with the largest revenue share of 57.3% over the forecast period. This is attributed to their extremely long-range travel and capacity to seriously damage targets. They are extremely adaptable and may be launched from a variety of modes, angles, and platforms. These missiles can be equipped with nuclear warheads and navigation systems, and they can be launched from the ground or the air to kill targets in specific environments. One of the factors driving the expansion of this market is the increasing number of missile modernization programs being carried out over the world. These variables are anticipated to benefit the market sector over the forecasted term. Furthermore, due to their low cost and lightweight qualities, guided rockets are expected to rise moderately over the forecast period. Additionally, because of its distinctive characteristic of loitering about the target and hitting at a specific position, the loitering munition product category is expected to accelerate at a large rate in the projected time.

By Technology Insights

The semi-active lasers segment accounted for the largest revenue share of more than 27.5% over the forecast period.

On the basis of end-uses, the global precision guided munition market is segmented into INS (inertial navigation system), GPS (global positioning system), infrared, semi-active lasers, radar homing, anti-radiation, and others. Among these, the semi-active lasers segment is dominating the market with the largest revenue share of 27.5% over the forecast period. The key factor driving its increased demand in the field of guided weapons is its fast coordination by illuminating the target for aerial attack. The Global Positioning System (GPS) is expected to replace semi-active laser navigation for combat weapons within the anticipated timeframe. The ability to detect exact target locations while also providing real-time target movement is anticipated to promote the appeal of GPS-enabled guided munition for long-range military activities. As a result, several vendors of precision guided munitions (PGMs) concentrate on creating PGMs incorporating GPS technology.

Regional Insights

North America dominates the market with the largest market share over the forecast period.

North America is dominating the market with more than 38.7% market share over the forecast period. In past years, North America, notably the United States, has been a leading player in the precision guided munition market. The United States Department of Defense is a significant source of demand for precision guided munitions, and numerous American defense businesses are global industry leaders. A substantial defense budget, military modernization projects, and continuing confrontations all lead to the region's high market share. The US military's strong R&D has resulted in the creation of long-range missiles and rockets with precision enough to hit targets autonomously.

Asia Pacific, on the contrary, is expected to grow the fastest during the forecast period, because of rising defense budgets, geopolitical conflicts, and advancements in military technology in countries such as China, India, and Japan. China, in particular, has emerged as a significant player in the development and export of precision guided weapons. Furthermore, rising tensions between India and Pakistan have prompted India to build up its defensive capabilities by deploying upgraded missiles such as the Prithvi, Agni, Brahmos, and others.

The Europe market is expected to register a substantial CAGR growth rate during the forecast period. European countries with an established foothold in the precision guided munition market include France, the United Kingdom, and Germany. These countries invest in cutting-edge defense technologies and frequently work together on precision guided munition advancement initiatives. Security concerns, NATO commitments, and measures to improve defense capabilities drive the European market.

List of Key Market Players

• Lockheed Martin
• BAE Systems
• Atlas Elektronik
• Saab AB
• Thales Group
• Elbit Systems
• KONGSBERG
• Raytheon Technologies
• Boeing
• General Dynamics Corporation
• Northrop Grumman Corporation
• Israel Aerospace Industries Ltd.
• L3 Technologies Inc.
• Hanwha Group

Key Market Developments

• On September 2023, BAE Systems reached a contract with the Swedish Defence Materiel Administration (FMV) for 48 new ARCHER artillery systems for the Swedish Army for around $500 million. The BONUS anti-armor munition can be fired up to 35km, conventional munitions up to 40km, and the precision-guided munition Excalibur up to 50km. Sweden has also donated ARCHER to Ukraine, and the system has been eliminated from Switzerland's new artillery acquisition.

• On March 2023, The Japanese Ministry of Defense (MoD) will receive long-range, precision-guided Vulcano 155 mm projectiles from Leonardo. The Vulcano rounds will be utilized by Type 99 155 mm self-propelled howitzers and Type 19 155 mm self-propelled howitzers of the Japan Ground Self-Defense Force (JGSDF). If the Vulcano ammo is accepted, it will be the JGSDF's first precision-guided ammunition system.

• On February 2023, HALCON, a subsidiary of Edge Group, has been awarded multiple contracts to supply various precision-guided munitions (PGMs) to the United Arab Emirates (UAE) Armed Forces. One of the contracts, for $582.5 million (AED2.14 billion), will call for HALCON to supply Thunder P3 light PGMs, which are specifically intended for the MK series of general-purpose aerial munitions. HALCON has been awarded another $1.27 billion (AED4.7 billion) contract to provide the UAE forces with Desert Sting 25 (DS-25) air-to-surface precision-guided glide munitions.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Precision Guided Munition Market based on the below-mentioned segments:

Precision Guided Munition Market, Product Analysis

• Tactical Missiles
• Guided Rockets
• Guided Ammunition
• Loitering Munition
• Others

Precision Guided Munition Market, Technology Analysis

• INS (Inertial Navigation System)
• GPS (Global Positioning System)
• Infrared
• Semi-Active Lasers
• Radar Homing
• Anti-Radiation
• Others

Precision Guided Munition Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa