The global precision guided munition market is estimated to be valued at US$ 35.85 billion in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Precision guided munitions are advanced weapons systems that provide high accuracy in targeting and striking enemy assets. These munitions use various technologies such as satellite navigation, laser guidance, and infrared imaging to accurately hit targets, thereby reducing collateral damage and increasing operational efficiency. The need for precision guided munitions is driven by the increasing demand for accuracy in military operations to minimize civilian casualties and infrastructure damage. These munitions provide a significant advantage in modern warfare scenarios where the precision strike capability is crucial.
Market key trends:
One key trend in the precision guided munition market is the increasing adoption of smart munitions. Smart munitions utilize advanced technologies such as GPS navigation, data link communication, and image recognition to provide improved targeting capabilities. These munitions can be guided to their targets with high accuracy, enabling superior operational effectiveness. The integration of smart munitions in military arsenals helps in achieving better situational awareness, reduced response time, and increased overall effectiveness in combat scenarios. The increasing investments in research and development activities to develop advanced smart munitions are expected to drive the growth of the precision guided munition market during the forecast period.
PEST Analysis:
· Political: The political factor influencing the precision guided munition market involves government regulations and policies on defense spending. Government investments in defense technology and the allocation of budgets for precision guided munitions impact the market's growth.
· Economic: The economic factor influencing the market is the rise in defense expenditure among various countries. The increase in defense budgets allows for the development and procurement of precision guided munitions, driving market growth.
· Social: The social factor influencing the market is the growing need for precision and accuracy in military operations. With increasing global conflicts and security concerns, there is a higher demand for precision guided munitions to minimize collateral damage and ensure targeted strikes.
· Technological: The technological factor influencing the market is the continuous advancements in guidance systems and targeting technologies. Developments such as GPS, improved sensors, and advanced algorithms enhance the accuracy and effectiveness of precision guided munitions.
Key Takeaways:
The Precision Guided Munition Market Size is expected to witness high growth, exhibiting a CAGR of 7.1% over the forecast period (2023-2030). This growth can be attributed to the increasing defense budgets by various countries, which allocate funds for the development and procurement of precision guided munitions.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the precision guided munition market. This can be attributed to the strong presence of key players, advanced defense infrastructure, and significant defense investments by the United States.
Key players operating in the precision guided munition market include Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, General Dynamics Corporation, BAE Systems, Rheinmetall AG, SAAB, Elbit Systems Ltd, MBDA, and Israel Aerospace Industries. These key players have a strong market presence, technological capabilities, and extensive product portfolios, making them significant contributors to the market's growth and competition.
