Smart Weapons Market Size, Share, Growth, and Forecast, 2024–2032

According to Fortune Business Insights, the global smart weapons market size was valued at USD 18.99 billion in 2023 and is projected to grow from USD 20.20 billion in 2024 to USD 45.24 billion by 2032, exhibiting a CAGR of 10.61% during the forecast period. This robust growth is attributed to rising global defense expenditure, which is driving countries to modernize their military capabilities through the adoption of next-generation precision weapon systems.

With increasing geopolitical tensions and evolving battlefield requirements, there is a growing focus on integrating smart, accurate, and technologically advanced weapons into military inventories. North America dominated the market in 2023, capturing 33.86% of the global market share, largely due to high defense budgets and the presence of top-tier defense manufacturers in the region.

Example Development

February 2021 – Rafael Advanced Defense Systems Ltd., an Israeli defense technology leader, unveiled the SPICE 250ER, a new member of its air-to-surface munition family featuring an integrated turbojet engine. The product was showcased at the Aero India exhibition in Bengaluru, India, representing advancements in long-range precision strike capabilities.

Key Companies Profiled in the Smart Weapons Market

• BAE Systems (U.K.)

• Lockheed Martin Corporation (U.S.)

• Thales Group (France)

• Northrop Grumman Corporation (U.S.)

• General Dynamics Corporation (U.S.)

• Raytheon Company (U.S., a Raytheon Technologies Company)

• MBDA (France)

• Boeing (U.S.)

• Textron Inc. (U.S.)

• Rheinmetall AG (Germany)

Source: https://www.fortunebusinessinsights.com/smart-weapons-market-104058

Market Segmentation

• By Product: The market is segmented into missiles, munitions, guided projectiles, guided rockets, and directed energy weapons. These smart weapons are increasingly adopted for their high precision, range, and effectiveness in reducing collateral damage.

• By Platform: Classified into air, land, and naval segments. The land segment is expected to experience notable growth due to increasing investments by governments to enhance ground-based defense operations and border security systems.

• By Technology: Divided into laser guidance, infrared guidance, radar guidance, satellite guidance, and others. These technologies are central to enhancing target accuracy and operational effectiveness under various combat scenarios.

• By Region: Segmented into North America, Europe, Asia-Pacific, and Rest of the World, with each region displaying unique growth trends based on defense strategies, budgets, and modernization efforts.

What Does the Report Include?

The report provides:

• A comprehensive analysis of smart weapons by product, platform, technology, and region

• Insights into the competitive landscape and strategies of key players

• Trends in product development, pricing, and innovation

• Recent industry partnerships, mergers, and acquisitions

• Key growth drivers, challenges, and market opportunities

Driving Factors

Increasing Global Defense Budget to Fuel Market Expansion

Global defense spending continues to climb as nations prioritize security and technological superiority. The U.S. allocated USD 732 billion in its 2020 defense budget, focusing on modernizing military systems, including smart weapons. Similarly, European and Asian countries are heavily investing in precision-guided munitions to strengthen deterrence capabilities and adapt to evolving threats.

Regional Insights

North America

North America led the global market in 2023, supported by its advanced military infrastructure and strong presence of industry leaders like Lockheed Martin, Boeing, Raytheon Technologies, and Northrop Grumman. The region accounted for USD 5.79 billion in 2020 and is projected to maintain its dominance through 2032.

Asia-Pacific

The Asia-Pacific region is set to experience significant growth, driven by escalating regional tensions, increasing defense allocations, and rising adoption of smart munitions by countries like India, China, and South Korea.

Competitive Landscape

The smart weapons market is characterized by intense competition among major defense OEMs. These companies are:

• Investing in R&D to develop next-gen smart weapons

• Forming strategic alliances and defense contracts

• Expanding their global footprint through mergers and acquisitions

These strategic efforts aim to meet evolving battlefield demands and secure long-term government contracts.

Industry Developments

• January 2021 – India’s Defense Research and Development Organization (DRDO) successfully conducted a test of its Smart Anti-Airfield Weapon (SAAW) using the Hawk-I jet developed by Hindustan Aeronautics Limited (HAL). This marked a major step forward in India’s indigenous smart weapons development initiative.