Press Release

Spending on Global Precision Guided Munition to Exceed USD 24 Billion by 2028

The Global Precision Guided Munition Market is projected to grow at a CAGR of 9.56% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The global spending is expected to exceed USD 24 billion, led by the continuous modernization and procurement of weaponry such as Laser Guided bombs, Small diameter bombs (SMBs), Guided Multiple Launch Rocket Systems, etc., by countries like the US, UK, China, India, Israel, France, etc.

The growth of the Global Precision Guided Munition (PGM) Market is driven by several factors, including increasing military modernization efforts, rising global threats, and the need for effective counterterrorism operations. The demand for PGMs has surged due to the necessity for precise and surgical strikes against terrorist strongholds and hideouts, minimizing risks to friendly forces while maximizing the impact on enemy targets. For instance, the US Ministry has heavily relied on Precision Guided Munition for executing ground, air, and naval operations. Notably, the consistent procurement trend by the US military, such as acquiring around 15,000 munitions in 2022 and requesting nearly 16,600 in 2023, signals a sustained demand for these munitions.

This steady demand drives manufacturers to increase production to meet military needs, resulting in enhanced manufacturing output and revenue generation within the PGM industry. Consequently, the Global Precision Guided Munition Market size is expected to expand during the 2023-2028 period. Major economies’ significant investments in smart munitions and precision-guided weapons have been pivotal in driving ammunition demand. This persistent demand fuels innovation and global attention, contributing to the continuous growth of the Global Precision Guided Munition Market.

Leading PGM companies, such as BAE Systems and Elbit Systems, are introducing advanced solutions that integrate ordnance and munitions with electronic warfare (EW) technologies. This innovation led to the development of next-generation PGM portfolios, including artillery and ammunition systems like the M777 Lightweight Towed 155mm Howitzer and M109A6/A7 Paladin Self-Propelled Howitzer. These advancements resulted in improved target identification, detection, and countermeasures against enemy defenses enhancing market size in the forthcoming years, further states the research report, “Global Precision Guided Munition Market Analysis, 2023.”

Based on Product Type, Tactical Missiles Would Hold a Major Market Share of the Global Precision Guided Munition Market.

Based on the product type segment, the market is further bifurcated into, Tactical Missiles, Guided Rockets, Guided Ammunition, Torpedoes and, Loitering Munitions. Tactical Missiles are expected to hold a significant market share in the forthcoming period. Tactical missiles are positioned at the frontline of precision munitions, indicating unparalleled accuracy and efficacy in engaging targets. With their incorporation of sophisticated guidance systems like GPS, inertial navigation, and advanced seeker technologies, these missiles improve the overall performance of precision weapons during military operation.

In addition, the noticeable trend of increased missile production in multiple countries, including the United States, Russia, and North Korea, underscores the growing need for Precision Guided Munition in regions that prioritize maintaining regional stability. This trend is anticipated to have a domino effect, stimulating neighboring nations and other concerned global performers to bolster their military capabilities through the acquisition of advanced PGMs, which are anticipated to increase the market size in the coming years.

North America is Expected to witness Considerable Share in the Global Precision Guided Munition Market

The North American region is expected to register significant growth in the Global Precision Guided Munition Market in the forthcoming years. A burgeoning trend across this region involves the introduction of PGM swarms, where multiple munitions collaboratively coordinate their actions during military threats. This emerging approach is gaining traction in North America, leveraging the region's already strong networking capabilities, which are expected to continue advancing. Primarily led by the United States, North America stands as a pioneering force in defense technology and innovation. Its advanced research and development capabilities are instrumental in propelling the creation of cutting-edge PGM technologies.

These advancements across guidance systems, target identification, and autonomous capabilities, significantly enhance the effectiveness of military operations across the region. Furthermore, North America boasts a wealth of major defense contractors and aerospace companies renowned for their expertise in the design and manufacturing of PGMs. This is particularly true for the US, where a robust industrial base ensures a consistent supply of high-quality PGMs. This steady output caters to both domestic utilization and international export markets; North America holds a sizeable share in the PGM industries in the coming years.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (BAE System, General Atomics, Elbit System, General Dynamics Mission Systems, Inc., Northrop Grumman, Lockheed Martin Corporation, Raytheon Technology Corporation, Israel Aerospace Industries, Thales, MBDA, Leonardo S.p.A, Denel Dynamics, Rafael Advanced Defense Systems Ltd., Saab AB, Roketsan, Bharat Dynamics Limited) are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across various regions?
4. How has the industry been evolving in terms of geography & solution adoption?
5. How has the competition been shaping across various regions?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?