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Precision guided munitions (PGMs) are modern weapon systems designed to accurately hit designated targets and to minimize collateral damage. PGMs integrate various advanced technologies such as infrared, radar, laser, Global Positioning System (GPS), and satellite support for precise guidance. This enables the weapons to precisely hit the designated targets. Some key types of PGMs include laser-guided bombs, electro-optical guided missiles, radar homing missiles, and satellite-guided munitions. These munitions are widely used in air-to-surface and surface-to-surface applications. They offer significant military advantages in modern warfare by reducing collateral damage and minimizing civilian casualties, while increasing hit accuracy.
The global Precision Guided Munition Market is estimated to be valued at US$ 35.85 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of precision guided munition market is the increasing defense spending of major economies. Defense budgets are growing significantly to strengthen national security and enhance military capabilities. As guided munitions offer greater accuracy, minimizing collateral damage and civilian casualties, defense forces are increasingly procuring them. This is enabling the penetration of advanced PGMs for both domestic use and exports. Furthermore, ongoing technological advancements are making PGMs more autonomous, affordable and available in smaller sizes. This is increasing their application in diverse defense platforms such as naval ships, unmanned aerial vehicles and ground vehicles. Ongoing R&D is focused on developing PGMs with advanced imaging sensors and navigation capabilities for day/night and adverse weather operations.
Segment Analysis
The precision guided munition market can be segmented by product type, platform, and geography. By product type, the laser guided missiles segment is expected to dominate the market during the forecast period. Laser guided missiles offer precision strike capabilities with minimal collateral damage, which drives their demand across armed forces globally.
PEST Analysis
Political: Governments across countries are increasing their defense budgets to modernize their armed forces. This is increasing procurement of advanced precision guided munitions.Economic: The growing GDP and defense budgets of emerging economies like India, China, Middle East countries is allowing them to invest more in defense technologies. This is expanding opportunities for precision guided munition vendors.
Social: Precision weapons help minimize civilian casualties during conflicts. This addresses some of the social and ethical concerns related to use of weapons. Armed forces are thus increasingly preferring precision guided munitions.
Technological: Advancements in guidance technologies like GPS, laser, infrared are enhancing accuracy of precision munitions. Miniaturization of technologies is also allowing integration of guidance kits into smaller missiles and bombs.
Key players operating in the precision guided munition market are 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. Lockheed Martin enjoys a leading position with wide product portfolio including Joint Direct Attack Munition (JDAM), Joint Air-to-Surface Standoff Missile (JASSM), and Hellfire missiles.
Key Takeaways
The global Precision Guided Munition Market is expected to witness high growth supported by increasing defense modernization programs globally. The global precision guided munition market is estimated to be valued at US$ 35.85 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030.
The market in North America is expected to continue dominating due to large procurement budgets and presence of major precision guided munition manufacturers in the region. The US accounts for the majority share in the North American as well as global market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
