Precision Guided Munition Market Size - By Munition Type, By System, By Type (Autonomous, Semi-autonomous), By Speed (Subsonic, Supersonic, Hypersonic), By End Use, Global Forecast 2023 - 2032

Precision Guided Munition Market Size

Precision Guided Munition Market size was valued at over USD 33.2 billion in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032

due to the expanding defense budgets worldwide. The increase in defense spending by governments is being driven by rising geopolitical tensions and the need to modernize military capabilities. The accuracy and efficiency provided by Precision Guided Munition (PGM) have become a strategic priority for armed forces.

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Precision Guided Munition (PGM) refers to advanced military ordnance equipped with precise guidance systems, enabling the accurate targeting of specific objectives such as enemy vehicles or facilities. PGMs significantly enhance military effectiveness by reducing collateral damages and increasing mission success rates, making them a crucial component of modern warfare strategies.

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Various international treaties and agreements, such as arms control & non-proliferation pacts, place restrictions on the sale, transfer, and use of Precision Guided Munitions (PGMs). These limitations can hinder the industry gains by reducing the potential export opportunities and imposing strict regulations on technology transfers.

COVID-19 Impact

The COVID-19 pandemic has impacted the precision guided munition market in several ways. Disruptions in supply chains and production facilities led to delays in PGM deliveries. The pandemic-induced budget constraints led to defense spending cuts in some countries, affecting procurement plans. Additionally, the restrictions on international travel & trade hindered global collaborations and sales.

Precision Guided Munition Market Trends

The industry is experiencing notable trends owing to increasing acquisition activities of precession guided munition across the globe. Growing global security concerns and evolving military doctrines are compelling governments to allocate higher budgets for defense purposes. Technological advancements have led to more accurate & versatile PGMs, making them indispensable in modern warfare scenarios. Additionally, the rising asymmetric warfare and the need to minimize collateral damages have amplified the demand for precision munitions. Furthermore, the integration of PGMs into network-centric warfare systems and the ongoing development of counter-drone capabilities are expanding product utility.

Precision Guided Munition Market Analysis

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Based on system, the precision guided munition market is segmented in infrared, Global Positioning System (GPS), Inertial Navigation System (INS), radar homing, semi-active lasers, anti-radiation and others. The Inertial Navigation System (INS) segment was dominating the market with over USD 10 billion in revenue in 2022. The Inertial Navigation System (INS) technology has advanced, offering high accuracy & reliability, making it crucial for precisely guiding PGMs to their intended targets. The rising complexity of military operations in diverse environments including GPS-denied areas has raised the demand for autonomous & robust navigation solutions provided by Inertial Navigation Systems (INSs).

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Based on type, the precision guided munition market is segmented into autonomous and semi-autonomous. The semi-autonomous segment held a market share of over 80% in 2022. Semi-autonomous PGMs offer a balance between human control and automation, enhancing precision while maintaining flexibility. This appeals to military forces seeking to minimize civilian casualties and collateral damages. Advancements in artificial intelligence and target recognition technologies have improved the effectiveness of semi-autonomous PGMs. The proliferation of unmanned & autonomous enemy threats such as drones has also spurred the development of PGMs with capabilities such as rapid response and autonomous interceptions.

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Asia Pacific is witnessing development in the precision guided munition market as the region's escalating geopolitical tensions and territorial disputes have prompted countries to heavily invest in defense modernization including the acquisition of advanced PGMs. The emergence of regional military powers has increased the demand for sophisticated munitions to maintain strategic superiority. In 2023, China's budget for PGMs is over USD 10 billion. The country is developing several new PGM systems including the air-launched anti-ship missile (YJ-18), the land attack cruise missile (YJ-21), and the Hypersonic Glide Vehicle (HGV).

Precision Guided Munition Market Share

Major players operating in the precision guided munition market are

• Aerojet Rocketdyne
• Bharat Dynamics Limited
• Elbit Systems Ltd.
• General Dynamics Corporation
• Hanwha Corporation
• Israel Aerospace Industries
• Kongsberg
• L3Harris Technologies Inc.
• Leonardo S.p.A.
• Lockheed Martin Corporation
• MBDA
• Northrop Grumman Corporation
• Raytheon Company
• Rheinmetall AG
• Saab AB
• Thales Group
• Boeing
• BAE Systems
• KBP Instrument Design Bureau
• China North Industries Corporation (Norinco)
• Denel Dynamics
• LIG Nex 1
• Roketsan A.S.

Precision Guided Munition Industry News

• In December 2022, The Netherlands Ministry of Defence (MoD) signed an agreement with Kongsberg Defence & Aerospace, a Norwegian company, to procure a new Naval Strike Missile (NSM) system. The new anti-ship missiles are slated to be procured for the Royal Netherlands Navy’s (RNLN) fleet of air defense and command frigates.

The precision guided munition market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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By Munition Type 2018 - 2032

• Tactical missiles
• Guided rockets
• Guided ammunition
• Loitering munition

By System, 2018 – 2032

• Infrared
• Global Positioning System (GPS)
• Inertial Navigation System (INS)
• Radar homing
• Semi-active lasers
• Anti-radiation

By Type, 2018 – 2032

• Autonomous
• Semi-autonomous

By Speed, 2018 – 2032

• Subsonic
• Supersonic
• Hypersonic

By End Use, 2018 – 2032

• Airborne
• Land-base
• Naval

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • GCC
  • South Africa
  • Rest of MEA