The global precision guided munition market size was US$ 34.67 billion in 2021. The global precision guided munition market size is forecast to reach US$ 48.55 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.5% during the forecast period from 2022 to 2030.

A precision-guided munition (PGM, smart weapon, smart munition, or smart bomb) is a guided munition with the goal of hitting a specific target precisely, decreasing collateral damage, and increasing lethality against the target. Precision in weapon development has always been considered important. Precision guided munition is a weapon capable of being aimed & directed at a single target. Such weapons use an external guidance system or their own guidance system. An aircraft, submarine, ship, land vehicle, or even a soldier on the ground can launch precision guided munition.

Factors Influencing Market Growth

• A growing need for superior security measures, escalating defense spending in emerging economies, and increased requirements for surveillance activities are boosting the global market growth.
• Growing territorial and political conflicts between leading economies often influence the development of their respective armies and militaries; thus, adopting precision attacking methods in the army, air force, and naval forces fosters the development of the global precision guided munition market.
• The technological advancements in attacking weapons like rockets, artillery shells, bombs, missiles, mortars, and bullets, and manufacturers' increasing focus on supplying guiding mechanisms in the components, are driving market growth worldwide
• Regulatory restrictions regarding the transfer of arms & high manufacturing costs may slow down the overall market.

Impact Analysis of COVID-19

COVID-19 has not shown a significant impact on the precision guided munition market. The COVID-19 pandemic presented various challenges for the defense industry. Insufficient financial resources lead to cutbacks in defense spending and postponement of scheduled contracts, which restricts industrial development. Due to delayed testing of missile defense technology, research and development activities related to precision guided munitions delayed. Additionally, the slowdown of the supply chain of precision guided munitions also affects a number of companies and slows down the manufacturing process. Thus, these factors considerably hampered market growth in the wake of COVID-19. 

Regional Insights

 North America held the largest share of the precision guided munition market in 2021. Several key market players are responsible for the progressive growth of the regional market. Additionally, these key vendors invest continuously in R&D activities for the development of new and advanced technologies, which penetrate the missile defense system. In addition, military developments across the region are expected to enhance artillery and missiles, thereby driving the regional market growth.

Leading Competitors

The leading prominent companies profiled in the global precision guided munition market are:

• Bae Systems
• Elbit Systems
• General Atomics
• General Dynamics Corporation
• Israel Aerospace Industries
• Kongsberg
• Leonardo S.p.A
• Lockheed Martin Corporation
• Northrop Grumman
• Raytheon Technologies
• Rheinmetall AG
• Saab AB
• Thales
• The Boeing Company
• Other Prominent Players

Scope of the Report

The global precision guided munition market segmentation focuses on Speed, Product, Technology, Launch Platform, and Region.

Segmentation based on Speed

• Subsonic
• Supersonic
• Hypersonic

Segmentation based on Product

• Tactical Missiles
• Guided Rockets
• Guided Ammunition
• Torpedoes
• Loitering Munitions

Segmentation based on Technology

• Infrared
• Laser
• Inertial Navigation System (INS)
• Global Positioning System (GPS)
• Radar Homing
• Anti-radiation

Segmentation based on Launch Platform

• Land
• Airborne
• Naval

Segmentation based on Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America