The Precision Guided Munition Market is estimated to be valued at Us$ 35.85 Bn in 2023 and is expected to exhibit a CAGR Of 7.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The precision guided munition market comprises various products used for guided bombing and precise targeting for defense and military applications. Some key products include laser guided bombs, electro-optically guided missiles, radar homing missiles, and others. These guided weapons improve precision and accuracy of targeting while minimizing collateral damage during combat operations.
Market Dynamics:
The precision guided munition market is primarily driven by growing demand for advanced and smart weapons requiring less manpower for operation. Development of autonomous weapons systems using AI, machine learning and drones is accelerating the demand for guided munitions. Additionally, increasing defense budgets of developed and developing economies for military modernization is also contributing to growth of this market. However, high costs associated with development of precision guided weapons and stringent export regulations on weapons and ammunition in some countries poses challenges to market players.
SWOT Analysis
Strength: Precision Guided Munition Market has high accuracy and reduces collateral damage which strengthens its demand. It offers precision targeting capabilities with minimized risks of causing civilian casualties. Development of advanced technologies has enhanced the precision, range and effects of guided munitions.
Weakness: High costs associated with the development of precision guided munitions pose significant challenges. Maintaining an advanced navigation and guidance system also leads to increased expenditure.
Opportunity: Growing defense modernization programs and rising geo-political tensions have increased procurement of smart weapons. Emerging requirements of armed forces to engage time-critical targets promptly offer scope for precision guided munitions.
Threats: Development of countermeasures like electronic warfare capabilities can degrade precision of guided munitions. Proliferation of cheaper unguided weapons act as a threat to guided munitions market.
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, due to increasing defense modernization initiatives and focus on network-centric warfare. Growing procurement of advanced unmanned systems and loitering munitions will further drive its demand.
Regional analysis North America dominates the market and is expected to continue its dominance over the forecast period due to large defense spending and ongoing upgrades of armed forces in the US and Canada. Asia Pacific exhibits fastest growth due to rising bilateral and multilateral operations requiring precision attack capabilities in the region. China, India, Japan, South Korea are actively procuring smart munitions.
Key players operating in the Precision Guided Munition Market are 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. Key players are engaged in new product launches, collaborations and contracts to strengthen market presence.
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