“The overall guided munition market is estimated to grow at a robust CAGR of 5.9% during the forecast period, to reach a value of US$ 28.9 billion in 2028.”
Market Dynamics
Introduction
The guided munitions (missiles, projectiles, and bombs) are intended to increase the precision of the strike, minimize the collateral damage, and increase the lethality against intended targets. Ever since the 2nd World War, their development and usage have witnessed a momentous surge, primarily because of the increasing number of terror threats and international disputes. There are several components and sub-systems in the guided munitions, and each of these sub-systems carries out a distinct task that enables the guided munitions to execute specific operations, such as propulsion and flight, navigation, target recognition, and detonation. As a result of the greater demand for accurate strikes and lesser collateral damage during warfare, guidance systems have become an integral element of munitions over the years.
Market Drivers
The surge in defense spending, growing hostilities among different countries, and increasing anti-terrorist operations are some of the primary factors responsible for the swift growth of the guided munitions market. In addition, several governments across the globe, are extensively investing in their military modernization and overall warfare capabilities. As a result, several weapon manufacturers are focusing on developing advanced guided munitions.
Recent Market JVs and Acquisitions:
The industry has witnessed a few major mergers and acquisitions in recent years, which have drastically affected the overall competitive scenario and market landscape:
- In April 2020, Raytheon Technologies Corporation announced the successful completion of the all-stock merger of equals between Raytheon Company and United Technologies Corporation.
- In June 2018, Northrop Grumman Corporation announced the successful acquisition of Orbital ATK Inc., a global leader in aerospace & defense technologies.
Recent Product Development:
In recent years, there has been a marked increase in the overall development and deployment of guided munitions, across the globe. There have been several investments and developments in the defense industry, directed at guided munitions, which have greatly affected the global market landscape. Some of them are:
- In May 2024, Lockheed Martin secured a $332 million contract with the US Army to produce the Guided Multiple Launch Rocket System.
- In Feb 2023, Lockheed Martin Corporation signed a contract worth more than US$ 2 billion with the US Navy, to integrate hypersonic strike capability onto surface ships and to integrate the Conventional Prompt Strike (CPS) weapon system onto ZUMWALT-class guided missile destroyers.
- In April 2023, Raytheon Technologies Corporation signed a contract worth US$ 1.2 billion with the US Army, to provide Switzerland with the Patriot™ air defense system. Five Patriot fire units and several GEM-T guidance-enhanced missiles are included in the contract. The missile has a track record of taking down enemy aircraft, cruise missiles, and tactical ballistic missiles.
- In May 2022, Raytheon Technologies Corporation signed a contract worth US$ 217 million with the US Navy, to manufacture and provide 154 Tomahawk missiles for the US Navy, US Army, and US Marine Corps.
- In December 2021, it was reported that Raytheon Technologies Corporation signed a contract worth US$ 250 million with the US Air Force, for the design, development, integration, test, and production engineering for modifications in the GBU-53/B Storm Breaker small diameter bomb II (SDB II).
- In May 2021, Lockheed Martin Corporation signed a contract worth US$ 1.12 billion with the US Army for the production of over 9,000 Guided Multiple Launch Rocket System (GMLRS) rockets and associated equipment. These guided munitions would be delivered to the US Marine Corps, US Army, and international customers.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Platform-Type Analysis
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Land-Based Platform, Airborne Platform, Naval-Based Platform.
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Land-based Platform is expected to remain dominant and the fastest-growing platform in the years to come.
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Product-Type Analysis
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Guided Missile, Guided Projectile, and Guided Bombs.
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Guided Missile is expected to be the demand generator for the guided munition market and is likely to grow at the fastest rate in the coming years.
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Guidance-Type Analysis
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GPS-Guided Munition, Laser-Guided Munition, Infrared (IR)-Guided Munition, and Others.
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GPS-guided munition is anticipated to contribute the largest share of the guided munition market.
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Actuation-Type Analysis
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Fin-Based Actuation System and Thrust-Based Actuation System.
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The thrust-based actuation system is likely to remain the dominant and faster-growing actuation type in the years to come.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World.
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North America is expected to maintain its reign over the forecast period.
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By Platform Type
“Land-based platform is expected to remain the dominant platform for the guided munition in the foreseeable future.”
- Based on the platform type, the market is classified as land-based, airborne, and naval-based platforms.
- Among these sub-segments, the land-based platform is expected to maintain its dominance, throughout the foreseen future.
- With the increasing terror threats and border disputes, across the globe, several countries are boosting their land-based warfare capabilities through the development and procurement of land-based munitions.
By Product Type
“Guided-missile is expected to be the demand generator and fastest-growing product of the market during the forecast period.”
- Based on the product type, the market is segmented as guided missiles, guided projectiles, and guided bombs.
- Among these product types, guided missiles are the most commonly used munitions for defense forces, around the globe.
- These munitions have a longer range as compared to their counterparts and they can be launched from multiple platforms as well.
- Also, these munitions are integrated with propulsion systems, i.e. they develop their own power for their launch.
By Guidance Type
“GPS-guided munition is anticipated to contribute largest market share during the forecast period.”
- Based on guidance type, the market is segmented as GPS-guided munitions, infrared (IR)-guided munitions, laser-guided munitions, and others.
- Among these sub-segments, GPS-guided munitions are the most commonly used munitions, across the globe, and contribute to the major market share.
- This is largely because these weapons are designed to be jamming-resistant, and their efficiency is not hampered by extreme weather conditions.
- Hence, with the increasing hostilities across the globe, the demand for guided munitions is likely to increase manifold, thereby fuelling the market growth substantially.
By Actuation Type
“Thrust-based actuation system is likely to remain the dominant and faster-growing actuation type in the forecasted period.”
- Based on the actuation type, the market is segmented into a fin-based actuation system and a thrust-based actuation system.
- Among the sub-segments, the thrust-based actuation system is considered apt for the functioning of the munitions, as the actuation system remains effective even at high altitudes and during thin atmospheric conditions.
- As a result, these systems generate the largest market demand. On the other hand, the fin-based actuation systems lag as they cannot operate in low air density or exo-atmospheric conditions.
- With the advancement of guided missiles that leave the Earth's atmosphere, such actuation systems are becoming increasingly prevalent in missile systems, across the globe.
Regional Analysis
“North America is expected to maintain its reign during the forecast period.”
- In terms of region, North America is estimated to remain the largest market for the guided munition market, over the forecast period.
- The region is home to market leaders such as Lockheed Martin Corporation, Raytheon Technologies Corporation, Boeing, and Northrop Grumman, among others, which are also active contractors for the US Department of Defense (DoD) for guided munitions.
- In addition, the region accounts for over 40% of the global military expenses, as it is an extensive investor in the military industry. Concurrently, Asia-Pacific is an emerging region in the global guided munition market, fuelled by the increasing regional military expenses, particularly from powerful countries such as India and China, in recent times. Also, the frequency of terror threats and border conflicts in the region is very high, which boosts the demand for guided munitions.
Key Players
Over the years, there has been strong competition in the global guided munition market. The top five players in this highly consolidated market, occupy a much larger slice of the pie, as a result of their technological expertise, industry experience, financial position, and government support. There have also been some mergers and acquisitions in the defense industry, in recent years, which have reshaped the overall competitive scenario.
The following are the key players in the guided munition market:
Here is the list of the Top Players (Based on Dominance)
- Lockheed Martin Corporation
- Raytheon Technologies Corporation
- Northrop Grumman
- Boeing
- General Dynamics Corporation
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for 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, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The guided munition market is segmented into the following categories.
Guided Munition Market, by Product Type
- Guided Missile (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Guided Projectile (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Guided Bomb (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Guided Munition Market, by Platform Type
- Land-based Platform (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Airborne Platform (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Naval-based Platform (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Guided Munition Market, by Guidance Type
- GPS-guided Munition (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Laser-guided Munition (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Infrared (IR)-guided Munition (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Guided Projectile Market, by Actuation Type
- Thrust-based Actuation System (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Fin-based Actuation System (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Guided Munition Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, Ukraine, Italy, and the Rest of Europe)
- Asia-Pacific (Country Analysis: China, Japan, India, South Korea, Australia, Pakistan, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, Iran, Israel, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Guided munition market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- 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 market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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- Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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