Market Overview
The Global
Precious Guided Munitions Market is expected to reach a
valuation of USD 43.5 billion in 2024 and is anticipated to achieve a remarkable
CAGR of 7.0% for the forecast period to
reach a value of 79.7 billion in 2033.
Precision-guided munitions or PGMs are advanced projectiles like missiles or bombs guided by laser, GPS, or inertial navigation systems, accurately targeting military objectives. Known as "smart bombs," they improve operational efficiency by minimizing the required munitions and logistical needs.
Also, the growing security measures and increase in national security concerns due to terrorism are expected to drive PGM distribution. These munitions allow quicker military operations and strategic advantages, marking efficacy as their key driver. Also, constant deployment and demand growth are expected as security concerns persist and technology advances, ensuring PGMs remain pivotal in modern military strategies.
Key Takeaways
- Market Growth: The Precious Guided Munitions Market size is expected to grow by 33.5 billion, at a CAGR of 7.0% during the forecasted period of 2025 to 2033.
- By Product: The tactical missiles segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Technology: Global Positioning System (GPS) segment is expected to lead the Precious Guided Munitions market in 2024.
- By Mode of Operation: The semi-autonomous operations segment is expected to get the largest revenue share in 2024 in the Precious Guided Munitions market.
- Regional Insight: Asia Pacific is expected to hold a 31.0% share of revenue in the Global Precious Guided Munitions Market in 2024.
- Use Cases: Some of the use cases of Precious Guided Munitions include targeted strikes, strategic flexibility, and more.
Use Cases
- Targeted Strikes: PGMs allow for accurate targeting of particular enemy positions, minimizing collateral damage and civilian casualties.
- Enhanced Battlefield Efficiency: They enhance mission success rates by ensuring accurate hits on high-value targets like enemy installations or armored vehicles.
- Minimized Risk to Friendly Forces: PGMs assist minimize the risk to friendly troops by enabling attacks from safer distances or with reduced exposure to hostile fire.
- Strategic Flexibility: They provide commanders with better flexibility in tactical operations, enabling rapid responses and adaptive engagement strategies.
Market Dynamic
Driving Factor
Advancements in TechnologyConstant developments in guidance systems, sensors, and materials are improving the precision, range, and capabilities of PGMs. These technological enhancements attract defense investments and drive market growth as militaries look for more effective and versatile munitions.
Increasing Geopolitical Tensions
The rising geopolitical tensions and regional conflicts around the world drive the need for PGMs. Governments and defense forces give importance to modernization and enhancement of their military capabilities, like the acquisition of advanced munitions to maintain strategic superiority and ensure national security.
Restraint
High Development and Procurement Costs
The development, testing, and production of advanced PGMs involve high costs, which can create a major financial burden for defense budgets, which can limit procurement volumes and slow down market growth, mainly for smaller or financially constrained countries.
Stringent Export Controls and Regulations
PGMs are mostly subject to strict export controls and regulations due to their sensitive nature & potential implications for international security. These regulations can impact market access and limit the export opportunities for manufacturers, impacting overall market expansion.
Opportunities
Increasing Demand for Precision and Accuracy
There is an increase in the global demand for precision-guided munitions due to their ability to reduce collateral damage and better operational effectiveness, which is driven by the need for more accurate targeting in modern warfare scenarios, including counter-terrorism operations and urban warfare.
Rapid Technological AdvancementsConstant development in technology, like better guidance systems, miniaturization of sensors, and development of autonomous capabilities, provides opportunities for innovation and differentiation in the PGMs market. These technological developments allow manufacturers to provide more specialized and capable munitions, attracting investments and expanding market opportunities.
Trends
Integration of Artificial Intelligence (AI) and Machine LearningAI and
machine learning are being highly integrated into PGMs to improve their capabilities, like autonomous targeting, adaptive guidance systems, and real-time decision-making, which is driving innovation and enhancing the effectiveness of PGMs in complex battlefield environments.
Shift towards Multi-domain Operation
There is a rising trend towards integrating PGMs into multi-domain operations, where military forces coordinate across air, land, sea, space, and cyber domains, which allows for synchronized and coordinated attacks, improving operational flexibility and effectiveness against diverse threats.
Research Scope and Analysis
By Product
The tactical missiles segment is expected to dominate the Precious Guided Munitions Market with a maximum share of global revenue in 2024, driven by their long-range capability & effectiveness in targeting. These missiles, deployable from both air & surface platforms and equipped with navigation systems and potentially nuclear warheads, are important for accurate target destruction.
Further, guided rockets are expected to grow moderately due to their cost-effectiveness and lightweight design, although their limited range poses challenges. Advances in rocket guidance systems are anticipated to expand their market presence. Loitering munitions are projected to see high growth, distinguished by their ability to linger near targets and strike with precision. Their lightweight construction and autonomous features, minimizing the demand for human intervention, are expected to further propel their adoption in the market.
By Technology
The Global Positioning System (GPS) segment is anticipated to hold the largest revenue share in 2024 and is expected to continue leading the precision-guided munition industry in the forecast years. GPS is a space-based radio-navigation system that operates independently of internet or phone reception, demanding no
data transfer from users. It provides important positioning capabilities for civil, military, and army users worldwide. Further, the ability to detect precise target locations and track real-time moving targets is expected to drive the adoption of GPS-based munition systems, supporting segment growth. Also, the infrared segment is projected to grow fastest during the forecast period.
Infrared technology, which utilizes electromagnetic radiation with wavelengths longer than visible light, is affordable and precise in locating targets. Its integration into missiles, rockets, and artillery is favored for its lightweight and compact nature, providing user convenience. These exceptional characteristics are anticipated to significantly boost the infrared segment's growth in the future.
By Speed
The hypersonic segment is projected to achieve the highest growth rate based on speed during the forecast period. Hypersonic precision-guided munitions travel at speeds exceeding five times the speed of sound, making them extremely difficult to counter, which is expected to drive market growth. Further, countries like China, Russia, and the United States are actively developing hypersonic weapons, which can reach speeds up to 15,000 mph. These countries are at the forefront of hypersonic technology development. In addition, Russia used a hypersonic missile against Ukraine. Currently, the fastest known supersonic missile is the BrahMos, capable of reaching speeds of around 2,100 mph. Hypersonic missiles are expected to hit targets much faster, improving their strategic value and driving further development and adoption in this segment.
By Mode of Operation
Semi-autonomous operations will play an important role in the precision-guided munition market in the coming years by combining human oversight with advanced automated systems. These munitions are capable of performing important functions independently, like target acquisition and navigation, while allowing human operators to make final decisions, which enhances accuracy and reliability, reducing the risk of human error in high-stakes scenarios. Further, semi-autonomous systems can adapt to dynamic battlefield conditions, providing live data and adjusting their course as needed, which is making military operations faster and more precise. As technology advances, the adoption of semi-autonomous precision-guided munitions is expected to grow, driven by their ability to enhance mission outcomes while maintaining essential human control.
By Launch Platform
Land-based platforms play a major role in the precision-guided munition market in 2024 by providing versatile and strategic launch capabilities. These platforms, like mobile launchers and fixed installations, provide the flexibility to install precision munitions from numerous terrains and environments. They improve operational readiness by allowing quick response to emerging threats and enabling accurate targeting of enemy positions. Land-based systems can be integrated with advanced targeting and guidance technologies, ensuring high accuracy and effectiveness. In addition, they support a wide range of munitions, from tactical missiles to guided rockets, making them important for different military operations. The strategic advantage of land-based platforms depends on their ability to position closer to conflict zones, minimizing the time to target and increasing mission success rates. As military forces continue to prioritize precision and responsiveness, the significance of land-based launch platforms in the precision-guided munition market is expected to grow.
The Precious Guided Munitions Market Report is segmented on the basis of the following
By Product
- Tactical Missiles
- Guided Rockets
- Guided Ammunition
- Torpedoes
- Loitering Munitions
By Technology
- Global Positioning System (GPS)
- Infrared
- Semi-Active Lasers
- Radar Homing
- Inertial Navigation System
- Anti-Radiation
- Others
By Speed
- Subsonic
- Supersonic
- Hypersonic
By Mode of Operation
- Autonomous
- Semi-autonomous
By Launch of Platform
Regional Analysis
The Asia Pacific region is anticipated to
hold about 31% market share in 2024, driven by ongoing tensions between India and Pakistan, along with various political and territorial issues across the region. Major countries like Japan, Pakistan, India, China, North Korea, and South Korea are increasing their demand for tactical warfare to improve and advance defense capabilities. India, in particular, aims to strengthen its defense with advanced missiles like Agni, Prithvi, and Brahmos, among others. Efforts to enhance foreign ties and technological collaborations with international defense departments are expected to boost the penetration of precision-guided munitions in the Asia Pacific.
Also, North America is set to maintain a significant market share due to increased research and development by the U.S. military, resulting in the development of rockets and long-range missiles for precise, autonomous targeting. Europe is also expected to grow, supported by major manufacturers and significant investments from countries like Germany, the UK, Russia, France, and Italy, with Russia's developments further driving market growth.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The Precious Guided Munitions Market is highly competitive, with key players like Lockheed Martin, Raytheon Technologies, and BAE Systems leading the industry. These companies aim for innovation, integrating advanced technologies like AI and precision targeting systems to gain an edge. Emerging players and growth in defense spending globally are intensifying competition. Strategic partnerships, acquisitions, and continuous R&D are crucial for staying ahead in this rapidly evolving market.
Some of the prominent players in the Global Precious Guided Munitions Market are
- BAE Systems
- Raytheon
- General Dynamics
- Atlas Elektronik
- Lockheed Martin
- Northrop Grumman
- Elbit Systems
- Thales Group
- Rheinmetall AG
- MBDA
- Other Key Players
Recent Developments
- In May 2024, BAE Systems Australia announced the design &development of a new sovereign munition concept known as RAZER, positioning the company as a future supplier of low-cost precision-guided munitions to Australian and potential export customers. RAZER is an affordable air-launched precision-guided munition that is developed to transform a 40-50kg standard non-guided munition into a precision air-launched weapon at low cost.
- In February 2024, The US Air Force announced that is buying add-on seekers for its Joint Direct Attack Munition-Extended Range (JDAM-ER) bombs to help the precision-guided munitions take out Russian GPS jammers in Ukraine. Further, a USD 23.6-million contract was awarded to California-based Scientific Applications and Research Associates (SARA) to deliver and integrate the Home-on GPS Jam seeker with the JDAM-ERs sent to Ukraine, where the work is expected to be completed by October 2025.
- In January 2024, U.S. Special Operations Command is looking for loitering munitions that can be dropped from a variety of aircraft in its inventory, as it is predations Command is getting ready for what it’s calling an “assessment event” to examine the industry’s air-launched kamikaze drones, to rapidly field new capabilities.
- In March 2023, U.S. and U.K. conducted airstrikes against Houthi targets in Yemeny Eleanor Wa which is against Houthi targets in Yemen, two U.S. defense officials told CBS News. The strikes were launched against eight Houthi targets and conducted with support from Australia, Bahrain, Canada and the Netherlands, U.S. Central Command.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 43.5 Bn |
| Forecast Value (2033) |
USD 79.7 Bn |
| CAGR (2024-2033) |
7.0% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Product (Tactical Missiles, Guided Rockets, Guided Ammunition, Torpedoes, and Loitering Munitions), By Technology (Global Positioning System (GPS), Infrared, Semi-Active Lasers, Radar Homing, Inertial Navigation System, Anti-Radiation, and Others), By Speed (Subsonic, Supersonic, and Hypersonic), By Mode of Operation (Autonomous and Semi-autonomous), By Launch of Platform (Land, Airborne, and Naval) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
BAE Systems, Raytheon, General Dynamics, Atlas Elektronik, Lockheed Martin, Northrop Grumman, Elbit Systems, Thales Group, Rheinmetall AG, MBDA, and Other Key Players |
| Purchase Options |
HVMN Inc., Thync Global Inc., Apple Inc., Fitbit Inc., TrackmyStack, OsteoStrong, The ODIN, Thriveport LLC, Muse, Moodmetric, and Other Key Players |
Frequently Asked Questions
The Global Precious Guided Munitions Market size is expected to reach a value of USD 43.5 billion in 2024 and is expected to reach USD 79.7 billion by the end of 2033.
Asia Pacific is expected to have the largest market share in the Global Precious Guided Munitions Market with a share of about 31.0% in 2024.
Some of the major key players in the Global Precious Guided Munitions Market are BAE Systems, Raytheon, General Dynamics, and others.
The market is growing at a CAGR of 7.0 percent over the forecasted period.