The global precision guided munition market was valued at USD 35.53 billion in 2022 and is projected to reach USD 55.16 billion by 2030, registering a CAGR of 5.7% from 2023 to 2030. Market expansion is expected to be supported by advancements in military operations and the increasing adoption of sophisticated warfare techniques.
The growing implementation of security measures worldwide in recent years is also anticipated to strengthen the demand for precision-guided munition. Furthermore, major global economies continue to increase their investment in advanced warfare systems to maintain strategic superiority, which is expected to drive market growth. Rising concerns related to national security—largely due to escalating terror activities—are also likely to propel demand for precision-guided munitions over the forecast period.
Heightened political and territorial disputes among leading nations have triggered the widespread adoption of precautionary defense measures, including advanced tactical and military systems. Defense departments are increasingly prioritizing the procurement of precise, high-performance war equipment, which is anticipated to positively influence the market outlook.
In the U.S., the precision guided munition market reached USD 5.61 billion in 2022 and is expected to record notable growth through 2030. Ongoing tensions between the U.S. and Iran are likely to elevate defense budgets, thereby accelerating the adoption of precision-guided warfare technologies in the coming years.
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Key Market Trends & Insights
- Asia Pacific dominated the global market with a 31.4% revenue share in 2022.
- The Asia Pacific region continues to demonstrate rapid growth in defense-related technologies.
- By product, the tactical missiles segment led the market with a 70.8% share in 2022.
- Based on technology, semi-active laser guidance accounted for 25.8% of the global revenue in 2022.
Market Size & Forecast
- 2022 Market Size: USD 35.53 Billion
- 2030 Projected Market Size: USD 55.16 Billion
- CAGR (2023–2030): 5.7%
- Largest Regional Market (2022): Asia Pacific
Key Companies & Market Share Insights
Major industry players are strengthening their market presence through capacity expansions, government contracts, and significant investments in research and development. For example, in February 2019, BAE Systems secured a USD 114.5 million contract from the U.S. Navy to upgrade and modernize the guided-missile destroyer USS Bulkeley (DDG 84) at its Norfolk shipyard. Additionally, in January 2019, Javelin—a joint venture between Lockheed Martin and Raytheon—received a contract for 2,100 F-Model missiles.
Prominent companies include:
- Lockheed Martin
- Atlas Elektronik
- Raytheon
- Thales Group
- BAE Systems
- Northrop Grumman
- General Dynamics
- Elbit Systems
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Conclusion
The precision guided munition market is set for steady growth through 2030, fueled by rising defense modernization initiatives, increasing geopolitical tensions, and escalating global security concerns. Major economies are investing heavily in advanced, accurate, and technology-driven warfare systems to enhance their tactical capabilities. With strong demand for tactical missiles and laser-guided technologies, coupled with consistent defense spending—particularly in regions like Asia Pacific and the U.S.—the market is expected to maintain its upward trajectory over the forecast period.