Market Insights
The global cruise missiles market was estimated at US$ 1.7 billion in 2021 and is expected to grow at a CAGR of 13.8% during 2022-2028 to reach US$ 4.2 billion by 2028.
The impact of COVID-19 on the overall market revenue is deemed to be less. Although manufacturing delays hit the industry for a short duration in 2020 and 2021.
Cruise missiles are self-propelled, guided, and unmanned missiles focused on delivering warheads with high accuracy. In recent years, the impact and utilization of missiles in modern warfare strategies have expanded, encouraging the defense and military of countries to have a significant of cruise missiles in the armory. Additionally, technological upgradation has enabled the adoption of self-guided cruise missiles, which fly in extremely low-altitude and non-ballistic trajectories and travel at supersonic and hypersonic speeds. In addition, these missiles are broadly utilized in the attacks by the tactical teams where missiles of various ranges are put to different purposes.
The strategic benefits of obtaining cruise missiles increase the application and demand of cruise missiles in the defense & military. Additionally, the increasing defense budget and intensified governmental emphasis on strengthening the military assets intensifies the demand for cruise missiles. Additionally, with the innovation in technologies, companies were capable to develop innovative missiles with high speeds and longer ranges, that in turn, are expected to promote the use of cruise missiles. Though, maintenance costs and high manufacturing, subsequently budget constraints are estimated to restrict the market growth.
Cruise missiles are vital for any country in the defense strategies; thus, every country allocates a significant amount of budget for the same. Additionally, nations globally increase their defense & military segment by enhancing their military budget. Furthermore, growing territorial & political issues amongst nations are expected to increase the military budget, thus boosting the cruise missiles market. An increase in the defense budget is projected to improve the combat abilities of countries, permitting proper implementation of planned strategies backed by ample funding. Furthermore, government organizations are inclined to enhance security systems & strengthening them by upgrading the military base. Consequently, the market thrives with optimal demand during the forecast period. Additionally, the increasing threat of anti-security and terrorism activities promotes market growth.
The COVID-19 lockdown situation globally is anticipated to suspend planned & existing projects by half a year, as government and communities reel from the consequences of the production and manufacturing shutdown. The influence of the same will be evident completely on logistics, raw material, and project completion. However, the demand in 2020 declined slightly and improve starting from 2021.
For example, by end of September 2021, the U.S. Navy finalized a contract with Northrop Grumman Corp. for producing the AGM-88G Advanced Anti-Radiation Guided Extended-Range Missile.
There have been numerous developments in the defence industry directed at cruise missiles in the recent years, which would boost the overall market. Some of them are:
- Feb 2021- Lockheed Martin signed a contract worth US$ 414mn with the US Navy and Airforce to supply LRASM, an anti-ship, precision-guided standoff missile based on the successful joint air-to-ground standoff missile.
- In September 2019, Israel-based Rafael Advanced Defence Systems completed its acquisition of Aeronautics, a leading Israeli unmanned aerial systems developer expanding its product portfolio by integrating missile systems, directed energy weapons, communications and advanced active protection armour.
Segment Analysis
Based on speed, the global cruise missiles market is divided into Hypersonic, Subsonic, and Supersonic. The supersonic segment held the largest share of the market in 2021 owing to the increasing demand for missiles from the defense forces. A supersonic missile depends mainly on inbuilt electronic countermeasures and sheer speed to infiltrate the defense network of the enemy forces. The United States, the United Kingdom, Russia, China, India, and France are some nations that can build a supersonic cruise missile. The hypersonic segment is expected to grow at the fastest rate owing to the growing demand for next-generation precision-guided munitions.
Based on range, the global cruise missiles market is segmented into long-range missiles, medium-range missiles, and short-range missiles. The long-range missiles segment is projected to show continued demand soon due to its high accuracy, reliability, and quick-hit capability at a very long distance in enemy territories.
Based on application, the market is segmented into attack and defensive. The defensive segment is expected to grow at the fastest CAGR during the forecast period due to the rapid expansion of military forces across the world along with a rise in procurement of cruise missiles by forces to safegaurd from any incoming ambush in case of any war situation.
Region-wise, North America was the largest cruise missiles market in 2021 and is forecast to lead the market during the forecast period. This is due to the high defence budget, technological advancements, favorable regulations, and presence of key manufacturers in the region. However, Asia-Pacific is expected to witness the fastest demand growth by 2028 owing to the surge in investments in the defence sector, rise in terrorism activities, and unstable socio-political scenarios in the region. Further, emerging economies such as India and China are also investing heavily in cruise missiles, apart from modernizing their existing military equipment.
Key Players
There is stiff competition in the global cruise missiles market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their smart weapon offerings on the basis of their quality and their penetration in the target and emerging markets. Also, there have been some major mergers and acquisitions in the industry in recent years, which significantly influenced the competitive dynamics. For example:
- In November 2021, Russian Navy successfully test a potential hypersonic missile. The launch was performed in the latest series of tests of Zircon, which is anticipated to go into service by 2022. Zircon is expected to arm Russian submarines, frigates, and cruisers. It is one of the numerous hypersonic missiles of Russia is under development.
- In September 2021, North Korea successfully introduced recently developed long-range cruise missiles. The missile test is the very first missile test in the past 6 months by North Korea.
- in October 2019, the Indian Air Force (IAF) performed a test of 2 supersonic cruise missiles named BrahMos a surface-to-surface cruise missile to authenticate the IAF’s capability to counteract targets positioned up to 300-kilo meters with determined precision.
The following are the major players in the global cruise missiles market:
- Aerojet Rocketdyne Inc.
- Avibras Industria Aeroespacial SA
- China Aerospace Science and Industry Group Corporation Limited
- Defense Research and Development Organization (DRDO)
- Kongsberg Gruppen ASA
- Lockheed Martin Corporation
- MBDA Inc.
- Raytheon Technologies Corporation
- Roketsan Roket Sanayii ve Ticaret AS
- Tactical Missile Corporation
- The Boeing Company
Research Methodology
This report offers high-quality insights and is the outcome of 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 book, press release, journals, investor presentation, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both the 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. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for the existing and new players
- Key success factors
