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Base Year: 2024
Companies covered: 20
Tables & Figures: 260
Countries covered: 18
Pages: 210
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Precision Guided Munition Market
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Precision Guided Munition Market Size
The global precision guided munition market was valued at USD 36.5 billion in 2024 and is estimated to grow at a CAGR of 5.1% from 2025 to 2034. The increasing demand for precision targeting in modern warfare is driven by the need to minimize collateral damage and maximize operational efficiency. Military forces globally seek advanced weaponry that combines accuracy with extended range for effective target engagement in complex combat scenarios.
For instance, General Atomics Electromagnetic Systems (GA-EMS) was awarded a U.S. Navy contract through Advanced Technology International (ATI) to advance the development of the Long Range Maneuvering Projectile (LRMP) Common Round. The LRMP is a 155mm artillery projectile capable of achieving a range exceeding 120 kilometers using foldable wings and onboard guidance systems. The five-year Naval Surface Technology Innovation Consortium (NSTIC) project aims to enhance the range and versatility of existing artillery platforms, addressing the requirements for accurate, long-range precision strike capabilities.
Modern guidance systems are improving munition accuracy, allowing military forces to achieve precise target engagement. These systems incorporate GPS, inertial navigation, and laser guidance technologies to enhance operational effectiveness while reducing unintended damage.
For instance, the Russian defense industry demonstrates this trend through its development of a precision-guided artillery shell for the 2S42 Lotos self-propelled gun. Developed by TsNIItochmash JSC, a Rostec subsidiary, this shell has a range of 30 kilometers. The integration of guidance systems in artillery reflects the military focus on precision-strike capabilities. This development indicates the increasing importance of guidance technologies in modern combat operations.
Precision Guided Munition Market Trends
The defense market demonstrates a significant trend toward integrating advanced munitions with unmanned aerial platforms. This development responds to military requirements for precision strike capabilities that offer both versatility and cost-effectiveness. The integration of drones with guided munitions enables enhanced operational flexibility, accuracy, and effectiveness in military operations.
For instance, EDGE and Baykar exemplify this market direction through their integration program, which incorporates EDGE's Desert Sting DS-16 precision-guided munition onto the Bayraktar TB2 drone platform. This collaboration expands their previous partnership and establishes a framework for integrating EDGE's guided munitions and payloads across Baykar's drone systems. The program assigns technical integration responsibilities to Baykar, while EDGE provides design, manufacturing, and equipment support expertise. This partnership addresses the market demand for precision strike capabilities while strengthening the defense supply chain through technological collaboration.
The market shows increasing adoption of modular munitions systems that enhance operational flexibility and reduce costs. These modular designs enable munitions to be adapted across multiple platforms, including drones, artillery, and aircraft, while using common components. Defense forces benefit from streamlined logistics, reduced maintenance costs, and improved operational efficiency. The systems incorporate technologies such as AI-based targeting and multi-mode guidance systems to enhance combat adaptability.
The capability to interchange guidance kits and warheads based on mission needs provides tactical advantages. Modular designs also facilitate rapid upgrades to counter emerging threats. This development reflects the defense industry's emphasis on creating adaptable solutions that meet modern warfare requirements while optimizing cost-effectiveness and performance.
Precision Guided Munition Market Analysis
Based on platform, the market is segmented into tactical missiles, guided rockets, guided ammunition, torpedoes, loitering munitions. In 2024, the tactical missiles segment accounted for the largest market share with 43.7% share.
Tactical missiles are essential components of the precision-guided munition market, providing accurate strike capabilities for short-to-medium-range combat operations. These systems incorporate GPS, inertial navigation, and laser guidance technologies to ensure precise target engagement while minimizing collateral damage. Military forces worldwide are increasing their investments in tactical missile systems to enhance battlefield effectiveness, particularly for operations requiring quick deployment and precision strikes. The systems' versatility enables integration across ground, air, and naval platforms, supporting multi-domain operations.
Recent technological developments in artificial intelligence-based target recognition and modular design have improved tactical missiles' adaptability for different mission requirements. Key programs such as the U.S. Joint Air-to-Ground Missile (JAGM) and Russia's Iskander-M demonstrate continuous advancement in tactical missile systems. These improvements address military requirements for reliable, cost-effective munitions that can penetrate sophisticated defense systems while maintaining operational effectiveness in both counter-insurgency and conventional warfare scenarios.
Based on launch platform, the precision guided munition market is divided into land, airborne, naval. The airborne segment is the fastest-growing segment with a CAGR of 6.1% during the forecast period.
Airborne platforms represent a vital segment in the precision-guided munition market, providing enhanced flexibility and extended range for precision strikes in complex combat scenarios. Fighter jets, bombers, and unmanned aerial vehicles (UAVs) incorporate advanced munitions, including air-to-ground missiles, guided bombs, and loitering munitions. These systems enable precise engagement of high-value targets while reducing collateral damage, making them essential for modern military operations. The integration with advanced sensors and targeting systems enhances their operational effectiveness in dynamic environments.
Recent technological developments in stealth capabilities and AI-driven targeting systems have enhanced airborne platform capabilities. UAVs, such as the Bayraktar TB2, and combat aircraft, including the F-35, showcase the increasing importance of airborne systems in deploying precision munitions. These platforms enable forces to conduct operations in contested airspace and perform long-range strikes, fulfilling both strategic and tactical requirements.
North America is expected to reach over USD 22.5 billion by 2034. The North American precision guided munition market is expanding due to increased defense budgets, technological advancements, and demand for accurate weapons systems. The United States maintains a dominant position through substantial investments in military equipment modernization and defense capability expansion. The market growth stems from developments in smart technologies, targeting systems, and missile accuracy improvements. The need to counter sophisticated threats continues to increase the demand for advanced munitions, supporting operational effectiveness in contemporary combat environments.
China's precision guided munition market is expanding due to increased defense spending and military modernization efforts. The country focuses on developing advanced missile systems, precision strike capabilities, and autonomous weapon technologies. The defense industry investments aim to enhance munition precision, accuracy, and range. China's integration of artificial intelligence and advanced sensors strengthens its operational capabilities to meet modern warfare requirements.
Germany's precision guided munition market benefits from its robust aerospace and defense industrial base. The country develops advanced munitions for ground and air forces, prioritizing accuracy and reduced collateral damage. Germany's collaboration with NATO allies enhances defense technology integration and joint military operation capabilities. The market growth reflects increased European security concerns and requirements for precision weapons in peacekeeping and defense missions.
Japan's precision guided munition market expands in response to regional security challenges. The country enhances its missile defense systems across air and naval platforms, with significant focus on sensors, targeting systems, and countermeasures development. Japan's research emphasizes autonomous and smart munitions while maintaining alignment with its pacifist constitution. The increasing regional tensions in the Asia-Pacific drive demand for advanced precision weaponry.
South Korea's precision guided munition market growth aligns with its defense strategy against regional threats, particularly North Korea. The country invests in precision strike systems, including guided artillery, missiles, and drones to improve military response accuracy and efficiency. South Korea's defense infrastructure development includes partnerships with global defense entities and integration of artificial intelligence and satellite systems to enhance targeting precision.
Precision Guided Munition Market Share
Northrop Grumman Corporation, BAE Systems, and Lockheed Martin Corporation are major manufacturers in the market. These companies develop technologies that integrate sensors, guidance systems, and warhead solutions to improve munition accuracy and performance. They invest in research and development while working with defense agencies to enhance their product portfolios and system reliability. Their technological capabilities and defense partnerships strengthen their position in the market.
Precision Guided Munition Market Companies
Major players operating in the precision guided munition industry are:
Precision Guided Munition Industry News
This precision guided munition market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2034, for the following segments:
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Market, By Product
Market, By Technology
Market, By Speed
Market, By Mode of Operation
Market, By Launch Platform
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