The accuracy of precision-guided munitions, also known as smart weapons, significantly increases their effectiveness against hostile targets while reducing the risk of causing collateral damage. As a result, there is a growing demand for precision-guided munitions worldwide, particularly in the defense industry. This trend is likely to continue as militaries around the world seek to enhance their capabilities and reduce the risk of unintended casualties in combat operations. Additionally, advancements in technology have made these weapons more versatile and capable of delivering a range of payloads, further increasing their appeal to militaries and defense contractors.
In response to the increasing number of terrorist attacks, governments have realized the importance of improving their defense capabilities. To enhance their military systems and combat terrorist threats, defense forces in developed countries have been continuously modernizing their equipment. Precision-guided munitions, which offer high levels of accuracy and efficiency, are being increasingly utilized in modern warfare. They have proven to be an effective tool in reducing casualties and collateral damage during military operations such as airstrikes, naval battles, and land battles.
As a result, the precision-guided munitions market has seen a boost in revenue growth. Precision-guided weapons offer cutting-edge capabilities and improved accuracy, making them an ideal choice for military operations. Their accuracy and precision make them essential in thwarting terrorist activities. In addition, precision-guided munitions can also be used in government initiatives aimed at developing thermal and solar energy in various countries.
Although the use of precision-guided weapons has been criticized due to the presence of severe ingredients in cheaper versions of the product, the benefits outweigh the risks. The reduction of potential accidental injury to civilians and civilian infrastructure in military operations is essential in modern warfare. The market is expected to see continuous growth due to the high demand for precision-guided munitions in the defense industry, driven by the need to combat terrorism and modernize military systems.
The Precision-Guided Munition (PGM) Market was valued at USD 35.8 million in 2023 and is estimated to grow from USD 35.8 million to USD 48.7 million by 2030 at a CAGR of 4.5%.
Ground-based operations are expected to boost the revenue growth rate in the global precision-guided munition market during the forecast period. This can be attributed to the growing demand for accuracy and precision in land-based operations, including infantry combat, tank warfare, and artillery. Precision-guided munitions are increasingly being utilized in such operations, resulting in an increased demand for them. The use of GPS-guided and laser-guided munitions has also risen in ground-based operations due to their high precision and accuracy. As a result, the land-based platform segment is expected to experience a substantial growth rate.
The market revenue growth of the global precision-guided munition market is expected to be the fastest in North America during the forecast period. This is due to the region's increasing adoption of advanced defense technologies and its rising defense expenditure and demand for high-precision weapons. Moreover, the presence of major market players in this region such as Raytheon Company, Lockheed Martin Corporation, and Boeing is expected to boost the market revenue growth.
During the forecast period, the Europe market is anticipated to occupy a considerable share of the global precision-guided munition market revenue. This can be attributed to the surge in defense expenditure, technological advancements in the defense industry, and the escalation of military conflicts in the region.
The Asia Pacific market is expected to register a considerably fast revenue growth rate in the precision-guided munition market during the forecast period.
Advanced missile technologies pose a significant threat to strategic assets like military airbases and ships. These new technologies include high-speed cruise missiles and nuclear-capable ballistic missiles. Such advanced weapons are capable of defeating even the most advanced air defense systems like the medium extended air defense system.
The BrahMos missile, jointly developed by India and Russia, is one such weapon that is difficult to intercept using older missile defense shields. These developments have increased the need for new high-speed air defense electronic warfare systems.