Artillery Systems Market Growth Analysis

Market Insights

The Artillery Systems Market was estimated at US$ 3.5 billion in 2021 and is expected to grow at a CAGR of 7.1% during 2022-2028 to reach US$ ~8.9 billion in 2028.

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What are artilleries?

Artilleries are long-range military weapons that are specifically intended to hurl projectiles. These are usually utilized in cross-border military operations and missions. The Artillery Systems Market has evolved globally due to its extensive use in military sectors. The growth in concern for military operations and the protection of military soldiers are propelling the Artillery Systems Market. The market has proven its usefulness in recent years due to its enormous advantage and rapid development rate. Terrorist attacks, national wars, and other violent actions drive the Artillery Systems Market Trends. The world is also worried about the safety of military personnel because they are the reason for the country's peacefulness. As a result, the government's and defense ministries' increased awareness of military protection is fueling artillery systems market growth.

Market Dynamics

The rising demand from defense sectors for enhanced military equipment to combat adversary assaults drives the artillery systems market size. The market's main competitors are even attempting to improve their services by improving the features of artillery systems to offer the defense industry essential characteristics. The participants focus on developing creative solutions for artillery systems that will allow military troops to aim their attacks more accurately. During active military operations, these devices are extremely successful on the battlefield. Furthermore, growing investments by government sectors associated with defense entities primarily support the artillery systems market outlook. The Artillery Systems Market will expand rapidly in the future because of rising demand from states worldwide to safeguard the military and preserve global peace.

Covid-19 Impact

Despite an increase in global defense expenditure in 2020, the expanding scope of the COVID-19 pandemic and its various waves are predicted to have a global impact on the economies of several countries. This may push governments to cut defense spending throughout the projection period, hurting market development. The effect of the pandemic was also observed in the production of artillery systems in several manufacturing facilities in 2020. Emerging countries' increased military budget allows them to invest in developing new and modern artillery systems. The launch of weapon modernization initiatives to build advanced artillery is expected to boost the use of newer artillery, improving market prospects in the next years.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:

Global military spending in 2020 reached USD$3081 billion, a 3.1% increase over 2019. Military spending has grown faster in recent years, with 2020 being 9.3% greater than in 2011. According to SIPRI (Stockholm International Peace Research Institute), the United States, China, India, Russia, and the United Kingdom had the greatest worldwide military expenditures in 2020. These nations contributed 62% of total world spending.

Segments Analysis

By Type

The market is segmented based on type: mortar, howitzer, and rocket artillery. Among these sectors, the mortar category is the most important, accounting for most of the Artillery Systems Market Share. Because of the tiny size and lightweight qualities, mobility is increased. These characteristics are increasing the mortar industry. Because of the increased deployment of self-propelled and towed howitzers in the worldwide military sector, the howitzer segment is predicted to rise fast.

By Component Type

The artillery systems market segment is divided into the gun turret, fire control, ammunition handling, and auxiliary systems. The fire control system segment is expected to have the highest market share in all sectors. Meanwhile, during the assessment period, the ammo handling system is expected to have the greatest CAGR. These areas are explosive expansion due to rising demand for precise target identification and improved fire systems.

By Range Type

The artillery systems market is divided into three range segments: short-range, medium-range, and long-range. Due to the widespread use of medium-range artilleries in military sectors, the medium-range category accounts for most of the artillery systems market. Because of the growth in border disputes worldwide, the long-term CAGR is predicted to be the highest.

Regional Analysis

In terms of regions, North America is likely to maintain its supremacy in the Artillery Systems market throughout the forecast period.  Owing to increased demand for superior protective solutions in the defense and military sectors, The United States, the world's largest military spender, is occupied with the most modern and big amount of defense equipment, contributing considerably to the market's growth in North America. Due to the growth in terror incidents, the European Market is regarded as the second-largest share-holding market, after only North America. Europe's areas, such as the United Kingdom, France, Russia, and Germany, encourage market expansion.

Concurrently, the Artillery Systems market in the Asia Pacific is anticipated to expand at the highest CAGR during the forecast period. The modernization of combat platforms by armed forces in various Asia Pacific countries is expected to boost the growth of the region's artillery system market. China, India, and South Korea are among the key countries investing in artillery systems and associated technology. China is the most important market for artillery systems in the Asia Pacific, owing to the country's constant technical developments and other variables such as geopolitical circumstances and the replacement of obsolete systems.

Key Players

There is stiff competition in the artillery systems market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their artillery systems based on their quality and penetration in the target and emerging markets. Also, several acquisitions and mergers in the industry recently have considerably persuaded the competitive subtleties. For instance:

• Australia inked a contract with South Korea in December 2021 to purchase 30 K-9 Thunder self-propelled howitzer units. Australia is the seventh country to acquire the howitzer manufactured in South Korea.
• Rheinmetall received a fresh order from the Netherlands in October 2021 to provide 155mm illumination and smoke/obscurant artillery munitions. The missiles will be sent to the Netherlands in mid-2023.
• The US Army awarded Lockheed Martin a USD$183 million contract in September 2020 to construct and deliver 28 High Mobility Artillery Rocket System launchers and accompanying equipment.
• Hirtenberger Defense Europe GmbH was granted a EUR 17 million contract by the French Defense Procurement Agency in July 2020 to acquire 120mm 60 mm mortar systems and thousands of rounds of suitable ammunition.

The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the artillery systems market:

• IMI Systems (Israel)
• Kmw+NexterDefense Systems (Netherlands)
• Lockheed Martin (US)
• Avibras (Brazil)
• BAE Systems (UK)
• Leonardo SpA
• Nexter Group
• Elbit Systems (Israel)
• General Dynamics (US)
• Hanwha Group (South Korea)
• China North Industries Corporation (Norinco) (China)
• Denel SOC Ltd (South Africa)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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