July 18, 2024

Precision Guided Munition Market: Advancements in Warfare Technology to Boost Market Growth

The precision guided munition market is estimated to be valued at US$ 35.85 billion in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023-2030, according to a new report published by Coherent Market Insights.

Market Overview:

Precision guided munitions are advanced weapons designed to accurately hit specific targets with minimal collateral damage. These weapons play a crucial role in modern warfare, providing enhanced target acquisition, tracking, and engagement capabilities. They are widely used by defense organizations across the globe to accomplish critical missions efficiently and effectively. The precision guided munition market is witnessing significant growth due to the increasing need for precision strikes against enemy targets, advancements in warfare technology, and the focus of defense organizations on strengthening their military capabilities. Furthermore, the integration of precision guided munitions with unmanned aerial vehicles (UAVs) and advancements in guidance systems are further fueling market growth.

Market Dynamics:

The precision guided munition market is driven by two main factors. Firstly, the increasing investments in defense modernization programs by various countries worldwide are expected to drive market growth. Governments are focusing on enhancing their military capabilities to ensure national security and protect their territories. Secondly, the rising threat of terrorism and regional conflicts has led to an increased demand for precision guided munitions. These weapons provide higher accuracy, reduce collateral damage, and increase the success rate of missions, making them essential in counter-terrorism operations and defense installations. Additionally, advancements in technology, such as the development of miniaturized munitions and the integration of Artificial Intelligence (AI) in guidance systems, are expected to further propel market growth in the coming years.

Market Key Trends:

The key trend in the precision guided munition market is the increasing demand for advanced munitions in military operations. Precision guided munitions offer improved accuracy and efficiency in targeting enemy forces, thereby reducing collateral damage and minimizing the risk of civilian casualties. With the growing need for precision strikes in modern warfare scenarios, there is a rising demand for these munitions across the globe. Additionally, the integration of advanced technologies such as Global Positioning System (GPS), Inertial Navigation Systems (INS), and Laser Seekers further enhances the precision and effectiveness of these munitions. This trend is expected to drive the growth of the precision guided munition market during the forecast period.

SWOT Analysis:

  • Strength: The precision guided munition market benefits from the increasing adoption of advanced technologies and the growing demand for precision strikes. These factors contribute to the market’s strong growth potential.
  • Weakness: One weakness of the precision guided munition market is the high cost associated with the development and production of these advanced munitions. This can limit the affordability and accessibility of precision guided munitions, especially for smaller military forces.
  • Opportunity: The market presents opportunities for innovation and development of advanced precision guided munitions, including the integration of Artificial Intelligence (AI) and autonomous systems. These advancements can further enhance the accuracy and effectiveness of munitions.
  • Threats: The precision guided munition market faces threats such as stringent regulations on arms exports and the proliferation of counterfeit or low-quality munitions in the market. These factors can impact the market’s growth and pose challenges for key players.

Key Takeaways:

The Global Precision Guided Munition Market Demand is expected to witness high growth, exhibiting a CAGR of 7.1% over the forecast period (2023-2030). This growth can be attributed to the increasing demand for advanced munitions in military operations. The market size for 2023 is projected to reach US$ 35.85 billion.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the precision guided munition market. The region’s dominance can be attributed to the presence of major defense contractors and increasing defense budgets in countries like the United States and Canada.

Key players operating in the precision guided munition market include Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, General Dynamics Corporation, BAE Systems, Rheinmetall AG, SAAB, Elbit Systems Ltd, MBDA, and Israel Aerospace Industries. These key players hold significant market shares and are engaged in strategic partnerships, acquisitions, and product innovations to maintain their competitive edge.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it