The fire control systems are critical components in projectile firing equipment that help to guide & target for course correction and help deliver weapons with precision. These systems include various components such as radar, sonar, rangefinders, Infrared Search & Track systems, etc. With the integration of these sensors, the desired pinpoint accuracy of the weapons delivery is being achieved as well the course correction of the weapons delivery is also attained with precision. The rising demand for military weapons across the defense industry stimulated the purchase of military weapon systems in the defense sector.
As a result, this intensified & necessitated the demand for fire control systems in military weapons. The market growth of fire control systems has also gained a sizeable market growth due to the advancements in the guidance technology for weapons as well as increasing demand for long stand-off range weapons used to deliver the payload with precision. This is further expected to grow with the increasing development of next-generation technologies of fire control systems in the land, sea, and air-based platforms.
The Global Fire Control System market is estimated to grow at a CAGR of around 5.22% during the forecast period, i.e., 2022-27. Some of the reasons attributing to the growth were emerging geopolitical tensions in the Asia-Pacific & the Middle East regions that led to an increase in the defense expenditure by the leading militaries such as the US, Russia, China, India, and Saudi Arabia, etc. Amid ongoing developments viz., Russia-Ukraine crisis, South China Sea territorial dispute, Indo-China Border tensions, etc., the demand for fire control systems, along with the various land-, sea-, and air-based firing solutions would come into the picture.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada|
|Europe: Germany, France, Italy, UK, Russia|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil|
|Middle East & Africa: Saudi Arabia, Israel, Turkey|
|Key Companies Profiled||Elbit Systems Ltd., General Dynamics Corporation, Indra Sistemas, S.A., BAE Systems Inc., Lockheed Martin Corp., Safran Group, Ultra Electronics Group, Rheinmetall AG, Leonardo SpA, Northrop Grumman Corporation, L3Harris Technologies Inc, Raytheon Technologies Corp., SAAB AB, Thales Group, Israel Aerospace Industries (IAI) Ltd|
|Unit Denominations||USD Million/Billion|
In addition, the US & Canada increased their military budgets to enrich defense sector capabilities by purchasing automated military hardware, including fighter jets, aircraft, nuclear submarines, attack helicopters, offshore patrol ships, frigates, as well as upgrading their old fleets. Besides, the rising expenditure for the advancement of military equipment & infrastructure increased the demand for fire control systems as it provides greater accuracy & safety to soldiers during wars & in anti-terrorist operations. As per Stockholm International Peace Research Institute (SIPRI), the Global defense budget for 2020 was USD1.96 trillion, which was relatively higher as compared to the global defense budget of USD1.79 trillion in the year 2017. This was used for the procurement of military weapons, operation & maintenance, military personnel research & development, etc.
In contrast, a cruise missile is another segment that has gained prominence with its high maneuverability as well as low-altitude flying capability. Besides, many countries such as Russia, China, India, the US, etc., have started the development & manufacturing of cruise missiles to gain accuracy in precision firing. In 2022, India signed an agreement with the Philippines to supply Brahmos, a system for anti-ship missiles valued at USD375 million. Thus, the trend for the integration of ground defense systems from countries across the globe is expected to grow further in the coming years, which would be crucial for the growth of the Fire Control System market.
Key Trends in the Market
Automated systems demand is increasing across the globe due to growing advancements in technology. The deployment of automated systems on the battlefield lessens the risk to military personnel. Moreover, Unmanned Combat Aerial Vehicles (UCAVs) are emerging as key automated systems to deploy on the battlefields. These automated systems hover over the targets, search for the location, and attack the target. This growing shift to deploy automated systems on the battlefield is expected to enhance the demand for fire control systems.
Based on the Platform:
Of them all, for the militaries around the world, land-based weapons have been an essential component of increasing the firepower as well as being a force multiplier. Land-based systems such as main battle tanks, armored fighting vehicles, and light protection vehicles, with their presence, can improve operational capability in terms of offensive firepower as well as provide a formidable defense against enemies.
The modernization of tanks with integrated day & night operational capability, enhanced & precision firing capability, and superior protection against projectiles have attracted the countries to maintain a substantial part of their fleet in mechanized formation. Furthermore, the US & Russia have been the forerunners in the integration of advanced fire control systems in their respective main battle tanks.
Based on the Weapon Class:
Among the two, the Launch-based systems are expected to retain a sizeable market share in the fire control system in the forecast period. Launch systems such as multi-barrel rocket launchers, missile launchers, and grenade launchers provide long-range firepower to the militaries, helping in eliminating enemy targets. The demand for launchers has gained momentum with the growing need for both offensive & defensive capability missile systems across the globe. Both ballistic & cruise categories of missile technologies have undergone massive technological advancements leading to achieving a high degree of precision, long-range, as well as enhanced delivery of payload.
In addition to guidance systems in rocket launchers, guided torpedoes, and mortars, a high level of strike precision has also been achieved, making it necessary to replace older generation hardware in leading militaries with the next generation of guided launchers.
Geographically, the Global Fire Control System Market encompasses five regions:
Of all regions globally, North America is expected to hold a major market share of fire control systems in the forecast period. With the high availability of Original Equipment Manufacturers (OEM) for defense systems such as aircraft, missiles, naval, and land-based systems, the demand for fire control systems has grown exponentially. North American countries such as the US & Canada are also major defense exporters of military hardware, which has helped to increase the demand. As per the US Department of State, the US arms exports were raised from USD170.09 billion to USD175.08 billion, accounting for about 2.8% growth in the financial year 2020.
Moreover, the increasing focus on the deployment of precision-guided weapons, developments in the automatic weapon system, high investments in research & development as well as modernization programs in the defense sectors are some of the significant dynamics fueling the growth of the fire control system across North American countries such as the US, Canada, and Mexico.
Additionally, the requirement for military hardware such as advanced target acquisition & guidance systems, auxiliary systems, and other fire control weapon systems is growing across air, land, and sea defense domains. Thus, the ongoing investments, developments, and advancements in the defense sector to expand military competencies would further strengthen the market for fire control systems during 2022-27. For instance:
Recent Developments by Leading Companies
Key Driver: Growing Demand for Precision Weapons
The demand for precision weapons is increasing, owing to various factors such as rising expenditures on defense, increasing terrorism, and increasing border conflicts. These weapons are designed to attack the intended target precisely & reduce collateral damage. They are used for air, ground & land operations. Additionally, the governments of developed countries such as the US, Russia, etc., invest heavily in modernizing defense platforms. Thus, manufacturers are shifting towards developing precision weapons.
Furthermore, precision-guided munitions comprise various weapons such as KM-8 Gran & Kitolov-2M, equipped with fire control systems. Thus, growing emphasis on reducing collateral damage would increase the demand for precision weapons, thereby enhancing the market for the fire control system.
Possible Restraint: High Research & Development Costs
The defense industry requires sustained funding for research & development activities. The designs, development, and production of weapons, missiles, tanks, fighter jets, fighter helicopters, etc., are highly expensive & time-consuming, making them a highly capital-intensive activity. In addition, the integration of fire control systems with these platforms is complex and requires a lot of research & development. Besides, developing countries such as India, Indonesia, etc., rely on developed nations for military hardware & advanced technologies. Moreover, the advancements in technologies require huge funds. Thus, high research & developments costs pose a challenge for the Fire Control System market.
Growth Opportunity: Growing Focus on Localized Manufacturing
With the high cost associated with the acquisition of defense hardware from other countries, many of the leading defense importer countries are adopting the strategy to locally manufacture defense goods to reduce the cost of the military as well as to become self-reliant in the case of any trade embargo or military conflict. According to India Brand Equity Foundation (IBEF), India has set the defense manufacturing target at USD25 billion by 2025. Additionally, countries such as Japan, and South Korea are focusing on localized manufacturing of military fighter aircraft & enhancing their indigenous platform development capabilities. For instance:
This growing emphasis on local manufacturing would require the installation of new engines, avionics, and fire control systems. Thus, it is expected to enhance the demand for the fire control system.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Fire Control System Market is expecting around 5.22% CAGR from 2022 to 27.
A. The Weapon Class segment is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The growth opportunities driving the Global Fire Control System Market are the rising deployment of remote-controlled weapon stations (RCWS) attached growing focus on government localized manufacturing of military fighter aircraft & enhancing their indigenous platform development capabilities.