Precision Guided Munition Market is Estimated to Witness High Growth Owing to Rising Demand for Smart Weapon Systems
Precision guided munitions are weapons that can accurately target pre-programmed locations using precision guidance technologies such as inertial guidance systems, terminal guidance systems, and GPS. These weapons help enhance target precision and minimize collateral damage. They are designed to precisely engage targets with a single hit or minimal numbers of hits. Some key products include laser-guided bombs, electro-optically guided missiles, radio frequency and radar guided bombs. Precision guided munitions are used for various military applications such as aircraft, vehicle, and handheld weapons. They provide tactical advantages such as greater accuracy, lesser collateral damage, multi-target engagement and all-weather capability.
The global 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 Dynamics:
One of the key drivers for precision guided munition market growth is the rising demand for smart weapon systems from defense forces globally. Smart weapons have tactical advantages of greater precision and accuracy over conventional unguided munitions. They minimize collateral damage during military operations through precision targeting. Furthermore, precision guided munitions provide cost savings through efficient use of minimal weapons and ammunition for desired results. Rising military conflicts and territorial disputes especially in Asia Pacific and Middle East regions have increased procurement of advanced weapon systems. In addition, ongoing modernization programs of aging weapon inventories further propels market demand. However, high costs associated with development and procurement of precision guided munitions remain a key challenge.
SWOT Analysis
Strength: Precision Guided Munitions provide precise targeting and inflict minimal collateral damage. Their accuracy leads to cost savings as fewer munitions are required to achieve the desired effects. Many PGM technologies also offer all-weather capability which provides a tactical advantage.
Weakness: PGM technology requires advanced guidance and navigation systems which increases development costs. Operational costs are also higher than unguided munitions due to more complex hardware. Deployment is limited by available stocks and production capacity constraints.
Opportunity: Ongoing modernization programs worldwide are driving demand for precision-engagement solutions. PGM adoption is gaining momentum across both western and developing nations to minimize risks in urban warfare scenarios. New contracts could emerge from the growing demand for loitering munitions and hypersonic weapons.
Threats: Reliance on sophisticated electronics leaves some PGMs vulnerable to cyber and electronic warfare threats. Rapid evolution of adversaries' countermeasures may reduce effectiveness over time requiring continuous upgrades. Technology transfers among nations pose proliferation concerns. Budget cuts could curtail procurement and slow the fielding of new capabilities.
Key players
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. Lockheed Martin and Raytheon are the largest suppliers with extensive product portfolios spanning various PGM technologies. Other major firms like Northrop Grumman and BAE Systems also have significant presence in this market specialized in specific weapon types.
The global 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 Dynamics:
One of the key drivers for precision guided munition market growth is the rising demand for smart weapon systems from defense forces globally. Smart weapons have tactical advantages of greater precision and accuracy over conventional unguided munitions. They minimize collateral damage during military operations through precision targeting. Furthermore, precision guided munitions provide cost savings through efficient use of minimal weapons and ammunition for desired results. Rising military conflicts and territorial disputes especially in Asia Pacific and Middle East regions have increased procurement of advanced weapon systems. In addition, ongoing modernization programs of aging weapon inventories further propels market demand. However, high costs associated with development and procurement of precision guided munitions remain a key challenge.
SWOT Analysis
Strength: Precision Guided Munitions provide precise targeting and inflict minimal collateral damage. Their accuracy leads to cost savings as fewer munitions are required to achieve the desired effects. Many PGM technologies also offer all-weather capability which provides a tactical advantage.
Weakness: PGM technology requires advanced guidance and navigation systems which increases development costs. Operational costs are also higher than unguided munitions due to more complex hardware. Deployment is limited by available stocks and production capacity constraints.
Opportunity: Ongoing modernization programs worldwide are driving demand for precision-engagement solutions. PGM adoption is gaining momentum across both western and developing nations to minimize risks in urban warfare scenarios. New contracts could emerge from the growing demand for loitering munitions and hypersonic weapons.
Threats: Reliance on sophisticated electronics leaves some PGMs vulnerable to cyber and electronic warfare threats. Rapid evolution of adversaries' countermeasures may reduce effectiveness over time requiring continuous upgrades. Technology transfers among nations pose proliferation concerns. Budget cuts could curtail procurement and slow the fielding of new capabilities.
Key players
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. Lockheed Martin and Raytheon are the largest suppliers with extensive product portfolios spanning various PGM technologies. Other major firms like Northrop Grumman and BAE Systems also have significant presence in this market specialized in specific weapon types.
Key Takeaways
The global precision guided munition Market is expected to witness high growth over the forecast period. The global 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.
North America currently dominates due to large procurement budgets and high PGM stockpiles of the US and allied nations. Asia Pacific is projected to be the fastest growing regional market for Precision Guided Munitions during the forecast period. This growth can be attributed to rising defense budgets and ongoing military modernization programs in China and India. Growing territorial disputes and regional security threats are prompting these nations to bolster their precision-strike capabilities. Additionally, other Asian countries such as South Korea, Japan and Australia are also increasing their procurement of PGMs.
