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Precision Guided Munition Market Forecast: What Value Will The Market Reach By 2030?
The precision guided munition market size has shown rapid expansion in recent years. This market is expected to grow from $42.86 billion in 2025 to $47.21 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 10.1%. The historical growth of the market can be attributed to several factors, including the increased deployment of GPS-guided and laser-guided munitions in modern warfare, a rising demand for precision strike capabilities to reduce collateral damage, technological improvements in inertial navigation systems for guided weapons, the expansion of aircraft self-protection missile programs, and the early development of autonomous long-range and loitering munition platforms.
The precision guided munition market size is projected to undergo significant expansion over the next few years, reaching $67.2 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 9.2%. This anticipated growth during the forecast period can be attributed to several factors, including the increasing adoption of network-enabled and multi-mode guidance systems, the rising procurement of loitering munitions for versatile battlefield engagement, the integration of artificial intelligence to improve targeting accuracy and autonomy, expanding modernization initiatives to replace older unguided munitions with precision variants, and the development of digital guided missiles optimized for contested and GPS-degraded environments. Furthermore, major trends anticipated in this period include advancements in precision guidance systems, extended-range loitering capabilities, the incorporation of multi-sensor targeting, the miniaturization of munition components, and network-centric munition connectivity.
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Precision Guided Munition Market Demand Drivers: What’s Powering Industry Growth?
Growing military expenditure is a key factor propelling the expansion of the precision-guided munition market. The military refers to a country’s armed forces, responsible for maintaining national peace and stability. This spending is increasingly focused on military modernization initiatives and the heightened demand for precision-guided munition, aiming to reduce collateral damage and boost effectiveness against targets, thus fostering their adoption. As an illustration, according to The House of Commons Library, the UK Parliament’s information resource, the UK allocated £54.2 billion ($68.8 billion) for defense in the 2023/24 financial year. This sum is projected to reach £57.1 billion (70.74 billion) in 2024/25, indicating a 4.5% real-term increase. Consequently, rising military expenditure is anticipated to stimulate the growth of the precision-guided munition market.
Precision Guided Munition Market Segment Trends And Revenue Contributors
The precision guided munition market covered in this report is segmented –
1) By Product: Tactical Missiles, Guided Rockets, Guided Ammunition, Torpedoes, Loitering Munitions
2) By Technology: Infrared, Semi Active Laser, Inertial Navigation System (INS), Global Positioning System (GPS), Radar Homing, Anti-Radiation
3) By Launch Platform: Land, Airborne, Naval
4) By Mode of Operation: Semi-Autonomous, Autonomous
5) By Speed: Subsonic, Supersonic, Hypersonic
Subsegments:
1) By Tactical Missiles: Air-to-Ground Missiles, Surface-to-Air Missiles, Anti-Ship Missiles, Anti-Tank Missiles
2) By Guided Rockets: Surface-Launched Rockets, Air-Launched Rockets
3) By Guided Ammunition: Precision-Guided Artillery Shells, Guided Mortar Rounds, Smart Bombs
4) By Torpedoes: Lightweight Torpedoes, Heavyweight Torpedoes
5) By Loitering Munitions: Fixed-Wing Loitering Munitions, Rotary-Wing Loitering Munitions
Precision Guided Munition Market Innovation Trends: What Developments Are Reshaping The Industry?
Leading companies within the precision-guided munition industry are concentrating on creating novel technological advancements, including guided high-explosive ammunition, to satisfy client requirements and enhance their standing in the market. This type of ammunition incorporates sophisticated guidance systems, allowing it to accurately aim for and hit precise targets, thereby reducing unintended damage while delivering a powerful explosive charge with precision and discretion. A prime example occurred in October 2023 when the US Navy awarded a contract to Northrop Grumman Corporation, an American aerospace and defense firm, for the advancement of its recently introduced 57mm guided high explosive ammunition. The corporation plans to conduct testing and refinement of the munition to prepare it for official qualification, with the ultimate goal of integrating it with the Mk110 Naval Gun Mount.
Precision Guided Munition Market Competitive Landscape: Which Companies Lead The Industry?
Major companies operating in the precision guided munition market are Northrop Grumman Corporation, Lockheed Martin Corporation, The Boeing Company, BAE Systems plc, General Dynamics Corporation, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Elbit Systems Ltd., Saab AB, Israel Aerospace Industries Ltd., Rheinmetall AG, Bharat Dynamics Limited, Denel Dynamics a division of Denel SOC Ltd., LIG Nex 1 Co. Ltd., Rafael Advanced Defense Systems Ltd., Kongsberg Gruppen ASA, Roketsan A.S., China Aerospace Science and Industry Corporation, China North Industries Group Corporation Limited, Hanwha Defense Co. Ltd., Taurus Systems GmbH, Diehl Defence GmbH & Co. KG, Nexter Systems S.A., Raytheon Technologies Corporation, Aerojet Rocketdyne Holdings Inc., Precision Guided Solutions LLC, Textron Inc.
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Precision Guided Munition Market Geographic Spread And Regional Opportunities
Asia-Pacific was the largest region in the precision-guided munition market in 2025. The regions covered in the precision guided munition market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
