“The Guided Missile Market is estimated to grow at a significant CAGR of 6.1% during the forecast period, to reach a value of US$ 23.6 billion in 2028.”
Market Dynamics
Introduction
There have been several innovations in the defense industry in the past two decades, that have transformed the overall landscape of global warfare. With the advent of sophisticated guided missiles, there has been a steady increase in the use of advanced missile subsystems and components such as propulsion and guidance systems, thereby reducing the hazards for the crew in a high-risk environment.
These missile components are tailored to ensure a safer missile launch and a higher impact upon its strike. Generally, the guided missiles use jet or rocket propulsion and rely on a guidance system that can alter the missile's direction mid-flight and point it directly at a target.
Market Drivers
There has been a steady increase in the demand for guided missiles in recent years, as a result of the growing geo-political tensions and increasing counter-terrorism efforts. For example, since the onset of the Russia-Ukraine war, there have been several new developments w.r.t the guided missile sphere in Europe, which has fuelled the market growth, immensely.
The global market for guided missiles is being significantly influenced by factors including the increase in defense spending of several countries along with the rising number of regional conflicts and anti-terrorist missions. Many governments across the globe, including those in the US, China, India, and Russia, are investing considerably in modernizing their military and warfare capabilities. As a result, several weapon makers are reorienting their efforts to focus on developing guided missiles.
Recent Market JVs and Acquisitions
There have been a few major mergers and acquisitions in the defense industry in recent years, which have significantly influenced the overall market dynamics.
As a result of these mergers and acquisitions, the overall market scenario has been revamped.
- 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 and defense technologies.
Recent Product Development
There have been several investments, contracts, and agreements in the defense industry directed at guided missiles in recent times, which is likely to boost the overall market growth. Some of them are:
- In February 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 February 2022, Bharat Dynamics Limited (BDL) signed a multi-million-dollar contract with the Indian Army, for the manufacture and supply of Konkurs-M anti-tank guided missiles.
- In August 2021, the Russian Defence Ministry signed a contract with the Scientific and Production Association Mashinostroyenia, Russia, for the supply of 3M22 Zircon hypersonic missiles, which are designed to destroy sea-based and ground-based targets, at a distance of over 1,000 km.
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, and 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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Strategic Missile and Tactical Missile.
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Tactical missile is expected to be the demand generator for the guided missile 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 Missiles, Laser-guided Missile, Infrared (IR)-guided Missile and Others.
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The GPS-guided missile is anticipated to contribute the largest share of the guided missile market.
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Propulsion-Type Analysis
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Solid Propulsion, Liquid Propulsion, and Others.
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Solid propulsion is estimated to remain dominant as well as the fastest-growing propulsion type in the forecast period.
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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 likely to remain dominant and fastest-growing platform in the foreseeable future.”
- The market is segmented into land-based platform, airborne platform, and naval-based platform.
- With the increasing terror threats and border disputes, the land-based platform is expected to remain dominant as well as the fastest-growing platform of the market during the forecast period.
- Currently, several countries are focusing on and strengthening the capabilities of their land-based warfare capabilities through the development and procurement of sophisticated ground-launched guided missile systems.
By Product Type
“Tactical Missile is expected to be demand generator and faster-growing product of the market during the forecast period.”
- The market is segmented into strategic missiles and tactical missiles.
- Among these missile types, tactical missiles account for the dominant market share, as these short-range missiles are procured in a larger number as compared to their counterparts.
- On the contrary, it is likely that the strategic missile market sub-segment would witness the fastest growth, during the forecast period.
- Lockheed Martin Corporation and Raytheon Technologies Corporation are the two major manufacturers of strategic or long-range nuclear-powered such as inter-continental ballistic missiles (ICBM) and submarine-launched ballistic missiles (SLBM).
By Guidance Type
“GPS-guided Missile is anticipated to contribute the largest share of the guided missile market.”
- The market is segmented as GPS-guided missiles, infrared (IR)-guided missiles, laser-guided missiles, and others.
- Among these sub-segments, GPS-guided missiles are the most commonly used missile systems, across the globe, and contribute to the major market share.
- On the other hand, laser-guided and IR-guided missiles are generally tactical missiles, which are rarely used currently, after being replaced by GPS-guided missiles.
By Propulsion Type
“Solid Propulsion is estimated to remain the dominant and fastest-growing propulsion type in the missile market during the forecast period.”
- The market is segmented into solid propulsion, liquid propulsion, and others.
- Among the various propulsion types, solid propulsion accounts for supreme market share as it generates a significantly high initial thrust, which enables the missiles to fly with enough speed and strike their intended target.
By Actuation Type
“Thrust-based actuation is anticipated to be the leading and fastest-growing actuation type during the forecast period.”
- The market is segmented into a fin-based actuation system and a thrust-based actuation system.
- As the thrust-based actuation systems are mostly used for self-propelled munitions such as guided missiles, it is likely to maintain its market dominance, throughout the forecast period.
- In addition, the thrust-based actuation system is even operational at high altitudes, where the atmosphere is too thin, thereby ensuring the effective functioning of the guided missile system.
- 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 for Guided missiles during the forecast period.”
- In terms of regions, North America is likely to maintain its supremacy in the global guided missile market, throughout the forecast period.
- This is mostly due to the large investments made by the US Department of Defense (DoD) on guided projectiles in recent times along with the active presence of major companies such as General Dynamics Corporation, Northrop Grumman, and Raytheon Technologies Corporation, among others, in the region.
- Concurrently, Asia-Pacific is an emerging region in the global market as the entire continent is quite vulnerable to high-tension border conflicts and terror threats.
Key Players
There is stiff competition in the global guided missile market, with the top five companies comprising a mammoth share of over 95% of the overall market. The growth of the companies is directly dependent on the total defense expenses focused on missile systems, industry conditions, and government support. These companies primarily differentiate their guided missile product offering based on their quality, range, and penetration in the target and emerging markets. The following are the key players in the Guided Missile Market:
Here is the list of the Top Players (Based on Dominance)
- Lockheed Martin Corporation
- Raytheon Technologies Corporation
- Northrop Grumman
- Boeing
- Bharat Dynamics Limited (BDL)
Note: The above list does not necessarily include all the top players in the market.
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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.
What Deliverables Will You Get in this Report?
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Key questions this report answers
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Relevant contents in the report
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How big is the sales opportunity?
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In-depth Analysis of the Guided Missile Market
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How lucrative is the future?
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The market forecast and trend data and emerging trends
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Which regions offer the best sales opportunities?
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Global, regional, and country-level historical data and forecasts
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Which are the most attractive market segments?
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Market segment analysis and Forecast
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Which are the top players and their market positioning?
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Competitive landscape analysis, Market share analysis
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How complex is the business environment?
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Porter’s five forces analysis, PEST analysis, Life cycle analysis
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What are the factors affecting the market?
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Drivers & challenges
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Will I get the information on my specific requirement?
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10% free customization
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Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Guided missile 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.
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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