Artillery Systems Market Size

Artillery Systems Market Size

Artillery Systems Market was valued at USD 12.13 billion in 2023 and is expected to grow at a CAGR of over 8% between 2024 and 2032.

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Increased defense collaboration among countries and defense contractors is a significant growth driver for the market. These collaborations often take the form of strategic alliances, joint ventures, co-development projects, and technology transfer agreements, all of which contribute to the development and deployment of advanced artillery systems. Such collaborations are fueled by the need to pool resources, share technological expertise, and achieve common defense objectives in an increasingly complex global security environment. One of the primary benefits of defense collaboration is the pooling of financial and technological resources. Developing cutting-edge artillery systems is capital-intensive and requires substantial investment in research and development. By collaborating, countries and defense companies can share the financial burden, thereby accelerating the development process and reducing individual costs.

For instance, in November 2023, The UK Ministry of Defence awarded a USD 4.5 million contract to BAE Systems Bofors AB to service the Archer Artillery System. A broad range of services are covered under the contract, including training, equipment/components via technical design and configuration, maintenance, repair, and configuration management of the Archer Artillery Systems.
 

Rising asymmetric warfare is a significant growth driver for the artillery systems market, as it necessitates the development and deployment of versatile and responsive artillery solutions to counter unconventional threats. Asymmetric warfare refers to conflicts where opposing forces differ significantly in terms of military power and tactics. These conflicts often involve non-state actors, insurgent groups, and guerrilla fighters who employ unconventional methods such as terrorism, cyber-attacks, and guerilla warfare to challenge conventional military forces. One of the key characteristics of asymmetric warfare is its unpredictable and unconventional nature. Unlike traditional state-on-state conflicts, asymmetric warfare does not follow conventional rules of engagement. Non-state actors often operate in small, mobile units, blending in with civilian populations and employing hit-and-run tactics.
 

The market is heavily regulated, with stringent compliance requirements related to safety, environmental impact, and international arms control agreements. Navigating these regulatory landscapes can be complex and time-consuming for manufacturers. Compliance with export controls, such as the International Traffic in Arms Regulations (ITAR) and other regional regulations, can also limit market opportunities and pose significant challenges to expanding into new markets.