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Precision guided munitions (PGMs) are essentially smart weapons that can accurately identify and destroy targets with minimal collateral damage. They are guided to hit targets with precision using inertial guidance systems, laser designation, or GPS/INS (global positioning system/inertial navigation system). The increasing focus on advanced targeting systems, to accurately strike enemy assets, has led to the development of electro-optical/infrared (EO/IR) guided PGMs and laser-guided bombs (LGBs). Additionally, the use of millimeter-wave radar and GPS guidance has allowed PGMs to be used in all weather conditions.
The global Precision Guided Munition Market is estimated to be valued at US$ 25 Billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for smart weapons from defense forces globally is expected to drive the growth of the precision guided munition market over the forecast period. Precision guided munitions can reduce collateral damage, minimize civilian casualties and increase combat effectiveness compared to unguided munitions. Furthermore, increasing focus on network-centric warfare capabilities is also encouraging the development and use of these smart weapons. However, high manufacturing costs compared to traditional unguided munitions could hinder market growth. Continuous investment in research and development to reduce the costs of guidance and targeting systems will promote the adoption of precision guided munitions.
Key players operating in the precision guided munition market are Lockheed Martin, Boeing, Northrop Grumman, General Dynamics, Raytheon Technologies. Lockheed Martin enjoys a leading position due to its comprehensive portfolio of laser, GPS and infrared guided systems. It supplies major product lines like JAGM, GMLRS, Hellfire and JASSM to global armed forces.
Segment Analysis
The precision guided munition market can be segmented into laser guided, infrared guided, GPS guided, radar homing and others. Among these, the laser guided segment holds the largest market share owing to its high accuracy in targeting. Unlike unguided ammunitions which have probability of causing collateral damage, laser guided munitions ensure foolproof accuracy in hitting the intended target with minimal margin of error making them a preferred choice for defense forces.
PEST Analysis
Political: Defense modernization initiatives undertaken by many governments along with rising geo political tensions are driving investments in advanced precision guided weapons. Countries are procuring these systems for enhanced operational capabilities.
Economic: The high procurement and maintenance costs of precision guided munitions pose economic challenges. However, their ability to minimize collateral damage helps reduce long term expenses associated with rebuilding infrastructure and aid.
Social: Precision guided weapons play a key role in minimizing civilian casualties during military operations. This addresses social and ethical concerns around collateral damage of conventional unguided bombs and missiles.
Technological: Advancements in terminal guidance systems like GPS, infrared and semi active laser have improved accuracy of precision guided weapons. Miniaturization of various components has also enhanced logistical flexibility. Further innovations are expanding the engagement envelope of these systems.
Key Takeaways
The global Precision Guided Munition Market is expected to witness high growth over the forecast period. The global precision guided munition market is estimated to be valued at US$ 25 Billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
North America currently dominates the market owing to major defense spending by the US and presence of key players. The Asia Pacific region is projected to be the fastest growing market with increasing defense modernization initiatives by China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
