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Precision Guided Munition Market Size Outlook: A $67.2 Billion Market By 2030, Growing At 9.2% Annually
The precision guided munition market has seen rapid expansion in recent years. Its size is expected to increase from $42.86 billion in 2025 to $47.21 billion in 2026, achieving a compound annual growth rate (CAGR) of 10.1%. This historical growth can be attributed to factors such as the greater deployment of GPS-guided and laser-guided munitions in contemporary warfare, a growing need for precise strike capabilities to lessen collateral damage, advancements in inertial navigation systems for guided weapons, the broadening of aircraft self-protection missile programs, and the initial stages of development for autonomous long-range and loitering munition platforms.
The precision guided munition market is anticipated to show considerable expansion over the next few years. It is projected to achieve a size of $67.2 billion in 2030, growing at a compound annual growth rate (CAGR) of 9.2%. This growth in the forecast period can be attributed to the increasing adoption of network-enabled and multi-mode guidance systems, the rising procurement of loitering munitions for adaptable battlefield engagement, the integration of artificial intelligence to enhance targeting accuracy and autonomy, expanding modernization programs aimed at replacing legacy unguided munitions with precision variants, and the development of digital guided missiles optimized for contested and GPS-degraded environments. Key trends expected in this period include enhanced precision guidance systems, long-range loitering capabilities, the incorporation of multi-sensor targeting, the miniaturization of munition components, and network-centric munition connectivity.
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Key Demand Driver Expected To Lift Precision Guided Munition Market Revenue
The rising military expenditure is a significant factor driving the expansion of the precision-guided munition market. This spending, primarily directed towards military modernization programs, addresses the growing demand for precision-guided munition to reduce collateral damage and enhance lethality against targets, thereby boosting their adoption. For instance, data from The House of Commons Library, a UK-based parliamentary information resource, indicates that the UK allocated £54.2 billion ($68.8 billion) for defense spending in the 2023/24 financial year. This sum is projected to reach £57.1 billion (70.74 billion) in 2024/25, representing a 4.5% increase in real terms. Consequently, the increasing military expenditure is expected to propel the growth of the precision-guided munition market.
Exploring The Precision Guided Munition Market Through Its Key Segments
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
New Trends Redefining Competition In The Precision Guided Munition Market
Leading companies in the precision-guided munition sector are prioritizing the creation of new technological advancements, such as guided high-explosive ammunition, to satisfy customer requirements and solidify their market standing. This guided high-explosive ammunition integrates precision guidance systems, enabling it to accurately aim for and hit specific targets, thus minimizing peripheral damage while precisely and selectively delivering a potent explosive charge. For example, in October 2023, Northrop Grumman Corporation, an aerospace and defense company based in the US, secured a contract from the US Navy for the development of its recently introduced 57mm guided high explosive ammunition. The company intends to test and enhance this munition in preparation for its qualification, with the goal of ultimately employing it with the Mk110 Naval Gun Mount.
Precision Guided Munition Market Competition: Key Players And Industry Participants
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 Regional Overview: Largest Market And Global Coverage
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.
