Precision Guided Munition Market Size, Share & Trends Report

Precision Guided Munition Market Size, Share & Trends Analysis Report By Product (Tactical Missiles, Loitering Munition), By Technology (Global Positioning System, Semi-active Lasers), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jun, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-692-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 103

Report Overview

The global precision guided munition market size was valued at USD 30.27 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.6% from 2020 to 2027. Enhancements in the military operations and adoption of advanced war techniques are anticipated to support the market growth in the projected time. Moreover, increasing security measures across the globe are likely to increase the penetration of precision guided munition. Political and territorial conflicts between major economies have increased the precautionary measures for tactical and military operations. Defense systems in the major economies are focusing on the procurement of advanced war equipment with precise operations. This, in turn, is likely to have a positive impact on the market growth over the forecast period.

U.S. precision guided munition market size

In U.S., the market size was valued at USD 4.80 billion in 2019 and is anticipated to witness significant growth over the forecast period. Ongoing conflicts between U.S. and Iran are anticipated to increase defense spending in the coming period, which is likely to influence the market growth over the forecast period.

Leading militaries across the globe are focusing on the procurement of advanced warfare equipment to maintain their lead. Thus, they are likely to increase the demand for precision-guided missiles, rockets, and mortars. In addition, adoption of advanced positioning systems in nuclear warheads are expected to support the market growth.

Enhancements in the defense systems to tackle war-like situations and the need for the protection of territory have influenced major countries to deploy advanced defense and attacking systems. Increasing security measures for guarding activities are likely to drive the market for guided war munition over the forecast period.

Advancements in the positioning system technology including semi-active lasers, radar homing, Inertial Navigation System (INS), and Global Positioning System (GPS) have influenced the market growth. Furthermore, compatibility of the positioning systems with nuclear warheads in missiles is likely to accelerate its penetration in the munition.

Product Insights

Tactical missiles accounted for the largest share of 70.4% in 2019. They are gaining popularity in defense systems across the globe owing to their long-range travel and ability to damage the targets significantly. These missiles can be installed with nuclear warheads, coupled with navigation systems, and can be launched from surface and air to destroy the targets at desired locations. These factors are likely to support the segment growth in the forthcoming years.

Guided rockets are anticipated to witness moderate growth over the forecast period owing to their low cost and lightweight properties. However, limited or short-range travel by the rockets is anticipated to pose a challenge to the segment growth. Developments in the guided systems in rockets are expected to increase its penetration in the global market in the projected time.

The loitering munition product category is anticipated to witness the fastest growth over the projected period owing to its unique feature of loitering around the target and hitting at a precise location. Moreover, lightweight and partial automated mechanism in the components without human intervention is likely to have a positive impact on its accelerating penetration in the market.

Guided ammunition including bombs, bullets, mortars, and artillery shells is anticipated to grow moderately in the coming years owing to its less adoption in the defense systems. Short-range and less destruction at the target location are expected to pose a challenge to its growth in future.

Technology Insights

The Global Positioning System (GPS) accounted for the largest share of 26.4% in 2019 and is anticipated to witness the fastest growth over the forecast period. Detection of exact target location with the provision of real-time movement of the targets is likely to increase the popularity of GPS enabled guided munition for war activities at long range.

Semi-active laser guidance technology for locating the targets accounted for the second largest market share in 2019. Fast coordination by illuminating the target for aerial attack is the primary factor that is increasing its demand in guided weapons.

Global precision guided munition market share

The infrared enabled guided munition is expected to witness significant growth over the forecast period owing to its low cost and precise location detection. Infrared components attached in the war equipment occupy less space and are light in weight, thus are widely installed in missiles, rockets, and artillery. However, enhanced accuracy and precision offered by the counterparts are expected to hamper the demand in the coming years.

Radar homing guidance systems are majorly used for missile guidance that allow missiles to locate the targets autonomously. These systems are attached with radar transceivers and necessary electronics that simplify its locating operations. This guidance system is popular in tactical ballistic missiles.

Regional Insights

Asia Pacific was the largest regional market for precision-guided munition in 2019 with a share of 30.5% and is anticipated to maintain its lead over the forecast period. China, South Korea, India, North Korea, Pakistan, and Japan are among the largest players ordering tactical warfare. Growing tensions between the countries in the region and need to strengthen the defense capabilities are likely to expand the scope of precision guided munition.

Growing tension between India and Pakistan has led India to strengthen its defense capabilities with the addition of enhanced missiles, including Prithvi, Agni, and Brahmos. Moreover, 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 U.S. has led to the enhancements in the military operation of the respective countries, thus demand for the products is likely to increase in future. With strong R&D, the U.S. military has developed long-range missiles and rockets with precision to hit the targets autonomously.

The presence of prominent manufacturers in Europe, coupled with high investments in the military operation by economies, including U.K., Germany, France, Italy, and Russia, is anticipated to upscale the market for guided weapons. Moreover, military developments in Russia are likely to develop improved artillery and missiles, which is expected to have a positive impact on the market growth.

Key Companies & Market Share Insights

Prominent players in collaboration with major defense organizations across the globe are investing heavily in R&D activities to develop precision-guided equipment. For instance, in February 2019, BAE Systems inked a contract with the U.S. Navy worth USD 114.5 million to enhance the guided-missile destroyer, USS Bulkeley (DDG 84) in its Norfolk shipyard. Furthermore, in January 2019, a 2100 F-Model missiles contract was awarded to Javelin, a joint venture company of Lockheed Martin and Raytheon. Some of the prominent players in the precision guided munition market include:

  • Lockheed Martin

  • Atlas Elektronik

  • Raytheon

  • Thales Group

  • BAE Systems

  • Northrop Grumman

  • General Dynamics

  • Elbit Systems

Precision Guided Munition Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 31.9 billion

Revenue forecast in 2027

USD 46.7 billion

Growth Rate

CAGR of 5.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, technology, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; and MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; Italy; Russia; China; India; South Korea; Brazil; Argentina; Saudi Arabia; Iran

Key companies profiled

Lockheed Martin; Atlas Elektronik; Raytheon; Thales Group; BAE Systems; Northrop Grumman; General Dynamics; Elbit Systems

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global precision guided munition market report on the basis of product, technology, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Tactical Missiles

    • Guided Rockets

    • Guided Ammunition

    • Loitering Munition

  • Technology Outlook (Revenue, USD Million, 2016 - 2027)

    • Infrared

    • Semi-Active Lasers

    • Inertial Navigation System (INS)

    • Global Positioning System (GPS)

    • Radar Homing

    • Anti-Radiation

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Russia

    • Asia Pacific

      • China

      • India

      • South Korea

    • Central & South America (CSA)

      • Brazil

      • Argentina

    • Middle East & Africa (MEA)

      • Saudi Arabia

      • Iran

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