Precision Guided Munition Market
Precision Guided Munition Market Analysis by Product (Tactical Missile, Guided Ammunition, Guided Rockets, Loitering Munition) By Technology (Anti-Radiation, Radar Homing, Global Positioning System, Inertial Navigation System, Semi-Active Lasers) & Regional Forecast 2022-2032
Global Precision Guided Munition Market Outlook (2022-2032)
The global precision guided munition market was estimated to be worth US$ 30 Bn in the year 2021. The market is forecast to reach a value of over US$ 34 Bn by 2022-end, and is expected to grow with steady CAGR of 5% during the forecast period, 2022- 2032. By the end of 2032, the market is predicted to reach a global valuation of US$ 56.44 Bn.
Market Value of Precision Guided Munitions in 2021
US$ 30 Bn
Projected Value of the Precision Guided Munition Market in 2022
US$ 34.65 Bn
Expected Value of the Precision Guided Munition Market in 2032
US$ 56.44 Bn
CAGR during the forecast period, 2022-2032
Key Players offering Precision Guided Munitions
In 2021, Asia Pacific accounted for more than 31% of the global market and is expected to continue its dominance over the forecast period. Increasing tensions between countries in this region and the immediate need to improve the defense capabilities are likely to foster the development of precision-guided munitions.
The maximum share in this market is occupied by the GPS (Global Positioning System) segment as it is expected to provide real time location and movements which will help in various war activities.
Demand Analysis of Precision Guided Munition, 2015-2021 vs. Market Outlook 2022-2032
According to Fact.MR, a market research and competitive intelligence provider, from 2015 to 2021, the global market for precision guided munition expanded at a CAGR of approximately 4.2%. Mounting international tensions concerning borders and mounting defence budgets have significantly widened growth prospects for the industry in the past few years.
Aside from the lockdowns and government restrictions on public gatherings, the COVID-19 situation has hindered R&D in all precision guided munition companies worldwide. Because of the pandemic, government funds have been redirected towards economic recovery, which may affect industries that order precision guided munitions.
Simultaneously, during the next decade, the market will go through significant growth due to the enhanced changes in the military operations and adopting enhanced techniques in warfare. Furthermore, toughening security measures around the world could make precision-guided munitions more prevalent. Military and tactical operations have been made more cautious as a result of political and territorial conflicts between major economies. Most major economies purchase advanced war equipment for precise operation as a means of ensuring national security. From 2022-2032, the industry is poised to expand 1.6x.
What are the Specific Drivers of the Precision Guided Munition Market?
Extensive Consolidation of National Defence Capabilities Widening Growth Prospects
Modern defense systems to tackle war-like situations and the need for territorial protection have driven major countries to deploy advanced defense and attacking systems. Over the forecast period, there is likely to be an increase in security measures for guarding activities. Most major economies are investing in advanced war equipment that can perform precise operations.
The development of technology and collaboration with foreign defense departments will boost the market's growth. Insurgencies and border conflicts are pushing demand for high-tech ammunition to cross US$ 15 Bn by 2032, as geopolitical tensions and border conflicts are increasing.
Land-based border security systems are being deployed by various nations. On August 17, 2019, the U.S. and Russia announced they had withdrawn from the Intermediate-range Nuclear Force Treaty, which has been in place for 31 years. In this way, both countries have the option of using land-based guided munitions with a range of 310 to 3,400 miles on their borders.
Advanced Technological Innovations in Weapons Systems to Accelerate Growth
Precision guided munition is capable of detecting enemy radar and damaging communications networks by targeting them with precision. Global growth will be boosted by the efforts of various countries to develop advanced anti-radiation missiles. A USAF request for information was received in January 2020 from the US navy's Advanced Anti-radiation Guided Missile extended range program (AARGM-ER) regarding modifications to F-35 fighter jets.
With the modification program, fifth-generation airliners will be able to integrate anti-radiation missiles. As part of the program, new and upcoming threats will be researched and developed. The market growth can be attributed to the increasing requirements of various nations to acquire autonomous guided munition. The conversion of dumb/normal bombs into autonomous precision guided munitions is another major market accelerator.
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How will the U.S market change during the forecast period?
Spending more to strengthen the defense will bolster the market
As of 2021, the U.S. market was estimated at US$ 5.3 Bn, with a significant growth rate expected for the next ten years. Continuing conflict between the U.S. and Iran is expected to lead to an increase in defense spending, which will influence the market in a positive manner for guided weapons through the forecast period.
According to the U.S Department of Defense announced that as of FY 2022, it possessed US$ 991.88 billion in available budgetary resources, denoting nearly 12% of the FY 2022 U.S Federal Budget. Out of this allocation, the agency spent US$ 381.48 billion, or 38.5% of total budgetary resources. Besides procuring conventional weapons, the country intends to strengthen existing ammunitions capabilities.
Furthermore, the National Defense Strategy of 2021 articulated a renewed focus on great power competition for combating anti-access/area denial (A2/AD) systems. This wide proliferation of A2/AD systems is likely to increase the operational utility of precision guided munitions across the country. According to Fact.MR, the U.S is expected to account for 40% of total market value through 2032.
What is the outlook of the Asia-Pacific market?
30% of the global market is expected to be occupied by the Asia-Pacific
According to Fact.MR, Asia Pacific is expected to account for more than 30% of global revenue. The region is expected to grow at the fastest CAGR during the forecast period. Among the largest players ordering tactical warfare are China, South Korea, North Korea, India, Japan, and Pakistan.
The penetration of guided weapons is expected to increase as a result of technological developments and collaborations with foreign defense departments. In its recently concluded budget, the Indian Government has allocated over ? 500,000 crores (US$ 66 billion) to the Ministry of Defense, a hike of 10% compared to the previous FY.
Likewise, in China, the government allocated ¥ 1.36 trillion (US$ 213 billion) in 2021 to its defense capabilities, representing an increase of 6.8% compared to FY2020. Such budgetary allocations are unsurprising, given the highly volatile nature of border conflicts across key Asian countries. Hence, the market is expected to post significant gains across the region.
Why is there an Increasing Demand for Tactical Missiles?
Enhanced damage capability and long range travel is attracting the sales
More than 70% of global revenue is expected to be generated by the tactical missiles segment. Due to the long-range travel and extreme damage capability of tactical missiles, this trend is expected to continue.
In addition to the presence of nuclear warheads, these missiles can also be equipped with navigation systems and launched to destroy targets at desired locations, from the air or the surface. These capabilities are expected to drive the market.
Is GPS is the new need of this Market?
Features like real-time locating and accuracy are driving the market
During 2021, Global Positioning System (GPS) revenue accounted for more than 69% of global revenue. Targets are located using technology. Its growing demand for guided weapons is the result of the ease of illuminating the target for aerial attacks.
In the next few years, however, GPS technology will likely replace semi active laser guidance for war weapons. In the future, GPS-enabled guided munitions for long-range warfare may be more popular due to the ability to accurately locate and track targets in real time.
Several global firms dominate the global market, resulting in intense competition. Several major corporations and defense agencies across the world are investing heavily in research and development activities to develop precision-guided equipment. Market players have been able to expand their business and customer base as a result of these activities. As the global market for precision guided munitions emerges, market players are expected to enjoy lucrative growth opportunities in the future.
- BAE Systems signed a contract with the U.S. Navy for USD 114.5 million to revamp USS Bulkeley (DDG 84), a guided-missile destroyer.
- Lockheed Martin and Raytheon's joint venture company, Javelin, was awarded the 2100 F-Model missiles contract in January 2019.
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Key Segments Covered in the Precision Guided Munition Industry Survey
- Precision Guided Tactical Missile
- Precision Guided Ammunition
- Precision Guided Rockets
- Precision Loitering Munition
- Anti-Radiation Precision Guided Munition
- Radar Homing Precision Guided Munition
- Global Positioning System-based Precision Guided Munition
- Inertial Navigation System-based Precision Guided Munition
- Precision Guided Semi-Active Lasers
- Infrared Precision Guided Munition
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