Precision Guided Munition Market

The global market value of Precision Guided Munition Market was valued at USD 35.6 billion in 2024 and is projected to grow at a CAGR of 5.9% during the forecast period. Advancements in war techniques and enhancements in military operations are driving growth in the market significantly. The increasing deployment of security measures in recent years is likely to increase the market growth significantly. Rising concerns about national security due to increasing terror activities are fueling the growth of the market.

Political and territorial conflicts between major economies have increased the implementation of precautionary measures for tactical and military operations. This technology is quite helpful in minimizing collateral damage. Due to the pandemic, there have been many challenges for the growth of this industry. Just like all the other industries the defense industry had also suffered during the pandemic. The expenditure on defense was reduced by all the nations across the globe. The disruption of supply chains her led to a reduction in the activities related to the defense industry.

Increasing usage of drones in recent times in the Russia-Ukraine war is fueling the market growth. The usage of drones and missiles in the recently concluded Operation Sindoor is spurring the growth of the market significantly.

Growth Drivers

Increasing geopolitical tensions, and conflicts are fueling the market growth. Regional conflicts, border disputes, and rising global tensions are prompting countries to modernize their military capabilities, including investment in precision weapons. Rising demand for accurate and minimally destructive weapons, which are used in urban warfare, and counter-terrorism operations is favored due to their accuracy and reduced risks to civilians and infrastructure. Growing defense budgets for precision strike capabilities globally.

Integration of AI, ML, and network-centric warfare capabilities into guidance systems. Improvements in GPS, INS, semi-active laser guidance, and infrared homing technologies spurring the market growth.  Enhanced flexibility in deployment across domains increases demand. Defense exporters are expanding sales to developing nations seeking to bolster their capabilities.

Drone warfare in recent times has highlighted the effectiveness of guided munitions launched from UAV platforms. The market shows increasing adoption of modular munitions systems that enhance operational flexibility and reduce costs. These modular designs enable munitions to be adapted across multiple platforms, including drones, artillery, and aircraft while using common components. Defense forces benefit from streamlined logistics, reduced maintenance costs, and improved operational efficiency.

Segmentation

Precision Guided Munition Market by Product

·         Tactical Missiles

·         Guided Rockets

·         Guided Ammunition

·         Loitering Munition

Precision Guided Munition Market by Technology

·         Infrared

·         Semi-Active Lasers

·         Inertial Navigation System (INS)

·         Global Positioning System (GPS)

·         Radar Homing

·         Anti-Radiation

·         Others

By Region

·         Asia-Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Precision Guided Munition Market by Products

Based on the products the Precision Guided Munition Market is segmented into Tactical Missiles, Guided Rockets, Guided Ammunition, and Loitering Munition. Tactical missiles are used in a wide range of platforms- air, land, and sea. Making them highly versatile. Countries like U.S. China, India, and Russia allocate a large portion of their defense budgets to their missile programs.

Integration of GPS, AI, and real-time targeting has enhanced the effectiveness of tactical missiles. This shift is supported by the growing need to improve operational efficiency, enhance strike effectiveness, and minimize the broader tactical and political risks associated with conventional bombardment strategies. PGMs are widely adopted across platforms ranging from unmanned aerial systems and fighter aircraft to mobile artillery and naval launchers.

Loitering munitions are becoming one of the most rapidly growing and disruptive segments in the precision-guided munitions market because of their singular capability to integrate real-time reconnaissance, target recognition, and strike within a single, lightweight system. These munitions, commonly referred to as "kamikaze drones," are engineered to loiter or patrol over a target zone for hours, or even days, waiting for high-value or time-critical targets to materialize before striking with precision.

Regional Outlook

Based on the regions, the Precision Guided Munition Market is analyzed into 5 regions: Asia-Pacific, North America, Latin America, Middle East and Africa, and Europe. The Asia-Pacific region is dominating the market significantly and is expected to dominate the market during the forecast period. The war-like condition between India, and Pakistan is the key reason for India to work on strengthening its defense capabilities with the addition of missiles like Brahmos, Prithvi, Agni, and Rafael. technological developments and collaborations with foreign defense departments for modern war equipment are projected to increase the penetration of guided weapons. The ongoing conflict between Iran and the U.S. has led to enhancements in the military operations of the respective countries, thus driving the demand for these products. 

Rising adoption of unmanned systems for guided munition delivery. Modern guidance systems are improving munition accuracy, allowing military forces to achieve precise target engagement. These systems incorporate GPS, inertial navigation, and laser guidance technologies to enhance operational effectiveness while reducing unintended damage.  North America is also blessed with the presence of top defense contractors like Lockheed Martin, RTX, Boeing, and Northrop Grumman, who have advanced expertise in areas such as guidance systems, propulsion, modular munitions, and AI targeting. These kinds of organizations are constantly breaking the boundaries of innovation and developing long-term partnerships with defense agencies to implement future PGMs rapidly, with testing and development.

The presence of prominent manufacturers along with high incentives in military operations economies including the UK, Germany, France, Italy, and Russia, are anticipated to upscale the market for guided weapons. Moreover, military developments in Russia are further expected to advance the production of improved artillery and missiles, which is expected to have a positive impact on the market. Countries such as China, South Africa, North Korea, India, and France are expected to boost the demand further in the precision-guided munition market. They offer longer ranges and higher accuracy. Tactical missiles are seen as a critical deterrent in volatile regions such as the Middle East, Asia-Pacific, and Eastern Europe, driving demand in the market. Loitering munitions are the fastest-growing segment, especially in modern drone warfare.

Key Players

·         Lockheed Martin

·         Atlas Elektronik

·         Raytheon

·         Thales Group

·         BAE Systems

·         Northrop Grumman

·         General Dynamics

·         Elbit Systems

·         Other Players