Smart Weapons Market Size - By Weapon Type (Missiles, Munitions, Guided Rockets, Guided Projectiles, Directed Energy Weapons), By Technology (Infrared, Laser, Global Positioning System (GPS), Radar), By End Use (Land, Airborne, Naval) & Forecast, 2023 – 2032

Smart Weapons Market Size

Smart Weapons Market size was valued at USD 17.4 billion in 2022 and is anticipated to grow at a CAGR of over 6% between 2023 and 2032.

The consistent and substantial increase in financial allocations by governments & defense departments for the development, acquisition, and deployment of advanced smart weapon systems are fueling market growth.

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High interference from government regulatory bodies, who have the authority to set rules and regulations on weapons systems, limits the market opportunities for smart weapons. These organizations impose restrictions on weapon development, testing, production, sale, and deployment.

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COVID-19 Impact

The COVID-19 pandemic impacted several markets including the smart weapons market in 2020. The global defense industry faced disruptions in manufacturing, supply chains, and workforce availability due to lockdowns & social distancing measures. This led to delays in the production, procurement, and delivery of smart weapons. Governments reallocated funds from defense budgets to address healthcare and economic concerns, which constrained military spending on smart weapon systems. International trade restrictions and reduced global demand further hindered market growth.

Smart Weapons Market Trends

The smart weapons market is experiencing several prominent trends. There is a growing emphasis on technological advancements with continuous innovation in guidance systems, AI, and sensors. The development of autonomous smart weapons including drones & unmanned systems is on the rise. Network-centric warfare integration is becoming more prevalent, enhancing military coordination and effectiveness.

 Additionally, there is a focus on non-lethal smart weapons, which reduce collateral damage. Cybersecurity concerns are also mounting, given the increased connectivity of these systems. Stricter export control regulations are being imposed, and environmental considerations are shaping the development of more eco-friendly smart weapon technologies. Rapid prototyping and 3D printing are expediting development, while international collaboration is increasing. Lastly, emerging economies are investing in smart weapons, expanding smart weapons market.

Smart Weapons Market Analysis

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The laser technology segment surpassed USD 4.5 billion in 2022 and is poised to witness 7% CAGR through 2032. Laser-guided systems offer unparalleled precision and accuracy, reducing the risk of collateral damage & civilian casualties in military operations. This precision makes them highly effective against a wide range of targets including moving objects. Laser-based smart weapons are typically faster than traditional munitions as they travel at the speed of light. This rapid response time is crucial in countering threats such as drones and incoming missiles. The growth of laser technology in the smart weapons business is driven by its precision, speed, cost-efficiency, and logistical advantages, making it a compelling choice for modern military applications.

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The land segment captured around 50% of the smart weapons market share in 2022 and is expected to generate a market revenue of USD 15 billion by 2032.  The increasing importance of asymmetric warfare and counter-insurgency operations has driven the demand for land-based smart weapon systems. These weapons provide militaries with the ability to precisely target insurgents and terrorist threats while avoiding harm to non-combatants. The demand for land-based smart weapons is growing as countries prioritize the enhancement of their land-based defense capabilities to address contemporary security challenges.

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North America region held 30% revenue share of the smart weapons market in 2022. Particularly the U.S., has one of the world's largest defense budgets, with a strong emphasis on technological superiority. This commitment to military modernization fuels the development and procurement of advanced smart weapon systems. North America is home to several major defense contractors and technology companies, fostering innovation & research in smart weapon technologies. This results in the region being at the forefront of advancements in the defense sector.

The U.S. actively promotes the export of its smart weapon systems, leading to a significant share of the global arms trade. The combination of substantial defense budgets, evolving security challenges, technological innovation, and export opportunities has propelled the market growth.

Smart Weapons Market Share

Major companies operating in the smart weapons market are

• BAE Systems plc
• Elbit Systems Ltd
• General Dynamics Corporation
• Israel Aerospace Industries Ltd
• L3Harris Technologies Inc.
• Leonardo S.p.A
• Lockheed Martin Corporation
• MBDA
• Mitsubishi Heavy Industries
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB
• Textron Inc.
• Thales Group
• The Boeing Company.

The competitive landscape is characterized by continuous innovation as companies strive to improve their offerings with new technologies, integrations, and partnerships.

Smart Weapons Industry News

• In August 2023, BAE Systems plc entered into an agreement to acquire the Ball Aerospace business from Ball Corporation. The proposed acquisition represents an exceptional opportunity to strengthen its portfolio with significant scale and high-end technology capabilities. Ball Aerospace will gain over USD 2 billion in annual revenue in the growing space, C4ISR, and missile & munitions markets.

This smart weapons market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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By Weapon Type

• Missiles
• Munitions
• Guided rockets
• Guided projectiles
• Guided firearms
• Directed energy weapons

By Technology

• Infrared
• Laser
• Global Positioning Systems (GPS)
• Radar
• Others

By End Use

• Land
• Airborne
• Naval

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Kore
  • ANZ
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Israel
  • Rest of MEA