The smart weapons market had a valuation of USD 17.17 billion in 2020. It is expected to reach USD 30.12 billion by 2028, with a compound annual growth rate (CAGR) of 8.02% during the period from 2021 to 2028. The COVID-19 pandemic has had an unprecedented and significant global impact, leading to a slight decline in demand for smart weapons across all regions.
Informational Source:
https://www.fortunebusinessinsights.com/smart-weapons-market-104058
Key Companies Covered in Smart Weapons Market are:
- BAE Systems (The U.K)
- Boeing (The U.S.)
- General Dynamics Corporation (The U.S.)
- Lockheed Martin Corporation (The U.S.)
- MBDA (France)
- Northrop Grumman Corporation (The U.S.)
- Raytheon Company, a Raytheon Technologies company (The U.S.)
- Rheinmetall AG (Germany)
- Textron Inc. (The U.S.)
- Thales Group (France)
This is attributable to the increasing adoption of network enabled weapons and the growing demand for precision weapons across the globe. For instance, in March 2020, Raytheon Technologies Corporation secured a contract with the U.S. Navy to modernize the radar-guided gun weapon system that has the capability to efficiently defend against attacks involving anti-ship missiles. The contract is expected to be worth USD 110 million.
Although the global pandemic has led to an unprecedented loss, the defense sector is slowly picking up the pace by adhering to the stringent regulations of social distancing imposed by the government agencies and the resumption of sensitive operational drills. The increasing focus on upgrading the military by countries globally is likely to favor the growth of the market in the near future.
Market Segmentation:
Based on product, the global market for smart weapons is divided into Missiles, Munitions, Guided Projectile, Guided Rocket, and Directed Energy Weapons. On the basis of platform, the market is segregated into Air, Land, and Naval. Based on technology, the market is categorized into Laser Guidance, Infrared Guidance, Radar Guidance, Satellite Guidance, and Others. Lastly, on the basis of region, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.
What does the Report Include?
The global market for smart weapons report includes in-depth analysis of several factors such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, which are contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies by them to introduce new products, announce partnerships, and collaboration that will further contribute to the market growth in the forthcoming years. Moreover, the research analyst has adopted several research methodologies to obtain information about the current trends and industry developments that will drive the market growth during the forecast period.
DRIVING FACTORS
Increasing Demand for Precision Weapons to Promote Growth
The increasing number of cross border issues and the rising geopolitical conflicts has propelled the countries globally to modernize their defense systems. According to the United Nations, there were several skirmishes involving countries such as Iran-US hostility, escalation in Arab World due to Syrian War, India-China border conflict, and Saudi Arabia-Yemen conflicts, among others. Therefore, the growing external threats have propelled the demand for smart precision weapons across the globe. Moreover, the increasing adoption of network enabled weapons that possess the ability to track and engage a target at an astonishingly brisk pace is expected to contribute to the global smart weapons market growth during the forecast period.
Further Report Findings:
- North America is expected to remain dominant and hold the largest global smart weapons market share during the forecast period. This dominance is attributable to the growing number of military modernization programs in countries such as the U.S. in the region. North America stood at USD 5.79 billion in 2020.
- The market in Europe is expected to showcase substantial growth backed by the presence of prominent companies such as BAE Systems, Thales Group, and Rheinmetall AG. In September 2019, BAE Systems signed a contract with the U.S. and nine other countries to provide a semi-guided missile weapons system. The contract that runs till 2025 is expected to be worth USD 2,680 million. Moreover, this is likely to boost the company’s position in the global market for smart weapons between 2021 and 2028.
- Based on product, the missiles segment is projected to experience exponential growth in the forthcoming years. This is ascribable to factors such as the surging demand for advanced guided missiles across the defense sector worldwide.
COMPETITIVE LANDSCAPE
Contract Signing by Eminent Companies to Intensify Industry Competition
The market is fragmented by the presence of major companies that are striving to maintain their presence by signing lucrative contracts with government agencies and other companies in a bid to expand their advanced smart weapons portfolio. Moreover, other key players are adopting strategies such as the introduction of new products, facility expansion, and collaboration that will bode well for the market growth in the forthcoming years.
Industry Development:
- February 2021 – Lockheed Martin Corporation secured a contract from the U.S. Navy and Air Force that involves the deployment of LRASM, an anti-ship, precision-guided standoff missile. According to the company, the contract is worth USD 414 million and is expected to strengthen its position in the global market.
- The increasing number of cross border issues and the rising geopolitical conflicts has propelled the countries globally to modernize their defense systems. According to the United Nations, there were several skirmishes involving countries such as Iran-US hostility, escalation in Arab World due to Syrian War, India-China border conflict, and Saudi Arabia-Yemen conflicts, among others. Therefore, the growing external threats have propelled the demand for smart precision weapons across the globe. Moreover, the increasing adoption of network enabled weapons that possess the ability to track and engage a target at an astonishingly brisk pace is expected to contribute to the global smart weapons market growth during the forecast period.
- The market is fragmented by the presence of major companies that are striving to maintain their presence by signing lucrative contracts with government agencies and other companies in a bid to expand their advanced smart weapons portfolio. Moreover, other key players are adopting strategies such as the introduction of new products, facility expansion, and collaboration that will bode well for the market growth in the forthcoming years.
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