Market Overview:
The global precision guided munition market is projected to reach a valuation of US$ 35.85 billion by 2023, with a compound annual growth rate (CAGR) of 7.1% during the forecast period of 2023 to 2030. Precision guided munitions are advanced weapons designed for accuracy in targeting and minimizing collateral damage. These munitions offer significant advantages over conventional unguided weapons, including enhanced precision, reduced risk to friendly forces, and improved effectiveness against high-value targets. The growing need for precision strike capabilities across the military and defense sectors is fueling the demand for precision guided munitions, making them an essential component for modern warfare strategies.
Market Key Trends:
One key trend shaping the precision guided munition market is the increasing adoption of smart munitions by armed forces worldwide. Smart munitions, such as laser-guided bombs and guided artillery shells, provide enhanced accuracy and target acquisition capabilities. They incorporate advanced technologies, such as GPS, inertial navigation systems, and precision guidance systems, that enable precise target engagement. The integration of these technologies enables military personnel to strike targets with greater accuracy and minimize collateral damage, enhancing the overall efficiency of military operations. With the increasing emphasis on precision strike capabilities and the ongoing modernization of armed forces, the demand for smart munitions is expected to witness significant growth in the coming years.
Segment Analysis:
The precision guided munition market can be segmented based on type, component, technology, and end-user. Based on type, the market can be divided into missiles, munitions, and bombs. The munitions segment is anticipated to dominate the market during the forecast period. This can be attributed to the increasing adoption of precision guided munitions by armed forces across the globe. Munitions provide accuracy, lethality, and precision in terms of hitting targets, which make them the preferred choice for military operations.
Key Takeaways:
The Global Precision Guided Munition Market Growth is expected to witness high, exhibiting a CAGR of 7.1% over the forecast period (2023-2030). This growth can be attributed to the increasing demand for the modernization of military and defense systems worldwide. The advancements in precision guidance technology, such as global positioning systems (GPS) and laser guidance systems, have significantly improved the accuracy and efficiency of munitions, leading to their increased adoption by defense organizations.
In terms of regional analysis, North America is expected to dominate the precision guided munition market during the forecast period. This can be attributed to the presence of major defense contractors and the high defense expenditure in the region. The United States, being one of the largest defense spenders globally, is expected to drive the demand for precision guided munitions in North America.
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 players focus on strategic collaborations, mergers and acquisitions, and technological advancements to strengthen their market position and expand their product portfolios.
Overall, the precision guided munition market is expected to grow significantly in the coming years, driven by increasing defense budgets, advancements in guidance technology, and the need for accurate and precise military operations.
