by 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 use guidance systems to accurately hit targets. These munitions provide significant advantages over conventional munitions, including improved accuracy, reduced collateral damage, and increased effectiveness. The growing need for precision strike capabilities, coupled with increasing defense budgets of various countries, is driving the demand for precision guided munitions.
Market Key Trends:
One key trend in the precision guided munition market is the increasing adoption of autonomous systems. The integration of advanced technologies, such as artificial intelligence and machine learning, enables autonomous precision guided munitions to make real-time decisions and adapt to changing battlefield conditions. These autonomous systems enhance the effectiveness and efficiency of military operations by reducing the dependency on human operators.
Overall, the precision guided munition market is expected to witness significant growth due to the increased demand for accuracy and effectiveness in military operations. The adoption of autonomous systems is a key trend that is expected to shape the market in the coming years.
Porter’s Analysis
Threat of New Entrants:
The precision guided munition market has a moderate threat of new entrants. While high initial investments and technological expertise act as barriers, the growing defense budgets in emerging economies could attract new players.
Bargaining Power of Buyers:
Buyers in the precision guided munition market have a high bargaining power. The defense sector demands cost-effective solutions and often engages in negotiations to obtain favorable pricing and terms.
Bargaining Power of Suppliers:
Suppliers in the precision guided munition market have a moderate bargaining power. Large defense contractors dominate the market and have established relationships with suppliers, giving them an advantage. However, suppliers with unique technology or capabilities can negotiate from a position of strength.
Threat of New Substitutes:
The threat of new substitutes in the precision guided munition market is moderate. While emerging technologies like artificial intelligence and autonomous systems could offer alternative solutions in the future, the precision and reliability of guided munitions make them difficult to replace currently.
Competitive Rivalry:
The competitive rivalry in the precision guided munition market is high. Key players compete to maintain or expand their market share through product innovation, collaborations, and acquisitions. The market is characterized by intense competition due to the presence of established defense contractors.
Key Takeaways
The Precision Guided Munition Market Demand is expected to witness high growth, exhibiting a CAGR Of 7.1% over the forecast period (2023-2030). This growth is driven by increasing global defense spending, rising geopolitical conflicts, and the need for accurate and efficient weapons.
In terms of regional analysis, North America is anticipated to be the fastest-growing and dominating region in the precision guided munition market. The region has a strong defense industry and significant investments in advanced military systems, making it a key market for precision guided munitions.
The 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. These companies have a strong market presence, technological expertise, and a wide range of precision guided munition offerings.
Overall, the precision guided munition market is poised for significant growth in the coming years, driven by increasing defense budgets and the need for advanced weaponry. Key players will continue to focus on innovation and strategic partnerships to maintain their market position in this highly competitive industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
