ID: MRFR/A&D/9111-HCR | 164 Pages | Published By Sejal Akre on March 2023
Smart Weapons Market is anticipated to reach USD $24.1 Billion by 2027 and register a CAGR of 5% between 2020 and 2030
Smart Weapons Market Size is Anticipated to Reach $24.1 Billion In 2030, Registering A CAGR Of 5%.2020-2030
Smart weapons are also known as smart guns, smart munitions, or guided munition. With the development of UAVs, UGVs, and advanced combat vehicles, the development of smart weapons has also increased.
The global smart weaponsmarket has witnessed high growth in recent years owing to the increasing defense expenditure, naval modernization program, and increasing demand for remote weapon stations. However, the increasing complexity ofthe weapon system is expected to hinder the market's growth to a certain extent.
According to MRFR, the current projections of global smart weapons market growth till 2027 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a devastating negative impact on the aviation, defense, and maritime industry across the world. In the defense industry, due to a decrease in tax revenues with a decrease in GDP, it is also expected to decrease the demand for new aircraft, naval vessels, ground vehicles, and related systems for defense applications in the next few years. This is also expected to decrease the demand for smart weapons.
Many governments across the globe are focused on controlling COVID-19 outbreaks in their countries. Hence, they are investing more in healthcare equipment and the development of vaccines. Therefore, the defense expenditures on new systems are expected to be lower in the next few years. The defense expenditure is expected to increase gradually during the forecast period after the pandemic ends.
Thus, it is expected that the global smart weapons market will grow at a slower rate in 2021 and 2022; from 2023, it will grow gradually.
Increasing Defense Expenditures
Globally, military spending has increased significantly in recent years. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure rose by 2.6% to approximately USD 1.82 trillion from 2017 to 2019. The increase in defense expenditure is expected to boost the demand for advanced smart weapons.
Factors such as ongoing conflicts in the Middle East & Africa, long-standing tensions among the US and China, the US and Iran, India and Pakistan, and South Korea and North Korea, territorial disputes between countries in Asia-Pacific, and a focus on counterterrorism activities are pushing governments to strengthen their defense capabilities. A rise in military spending directly boosts the growth of the defense equipment industry, which covers everything from aircraft and weapons to smart weapons.
Increasing Demand for Remote Weapon Stations
Recently, the global market has witnessed significant growth due to an increase in investments in the procurement of remotely operated weaponsacross the globe. Moreover, with the growing terrorist threats across the globe, the rising number of cross-border threats and armed conflicts would fuel the demand for remote weapon stations.
Over the years, terrorist organizations such as ISIS and Al-Qaeda have been posing significant threats to the national security of various countries, which have resulted in the modernization of weapons and procurement of smart weapons to curb such threats.
Complexity of Weapon Systems
Most of the smart weapons include many mechanical and electronic components. This increases its complexity. Due to this complexity, they are difficult to maintain and there are more chances of failure of parts. Thus, the complexity of weapon systems is expected to restrict the growth of the global smart weapons market during the forecast period.
Cumulative Growth Analysis
Increasing Use of Remotely Operated Weapon Systems to Bolster Market’s Growth Rate
The global smart weapons market growth is expected to be at a rate of 6.5% over the analysis period (between 2021 and 2027) on account of the use of remotely operated weapon systems.
The missiles segment accounted for the largest market share and is expected to register the highest CAGR during the review period. This is due to the increasing development of technologically advanced missiles and increasing demand globally.
This segment is expected to register asteady growth rate during the forecast period. This is due to the increasing demand for munitions as weapons.
This segment is expected to register the highest CAGR during the forecast period. This is due to the increased usage of guided projectiles for UAVs, fighter jets, and helicopters by military forces across the globe.
North America Accounted for the Largest Market Share
North America comprises two major countries, namely, the US and Canada. North America leads in global military expenditure and technological advancements and generates a very high demand for smart weapons. Although Canada makes some investments in the development of such advanced weapons, the country’s smart weapons market is primarily dependent on the US. The region held the largest share in the overall market in 2020, primarily due to the presence of major manufacturers such as Lockheed Martin, Raytheon Technologies Corporation, and Northrop Grumman.
Furthermore, the increasing military expenses by the US Department of Defense (DOD) on smart weapons, in recent years, have resulted in the regional market witnessing a significant surge in demand.
APAC Races Ahead at the Fastest Rate as China and India Take the Lead
MRFR anticipates the Asia-Pacific (APAC) market to exhibit the fastest growth during the conjectured period, thanks to the increased defense expenditure of key economies. In Asia-Pacific, the market growth is significantly driven by major countries, such as China, Japan, India, and Australia, due to the rising investments in smart weapons. Increasing military expenditure and rising territorial conflicts between neighboring countries such as China, South Korea, and North Korea are driving the smart weapons market in the region. According to SIPRI, China’s military spending increased from approximately USD 215 billion in 2016 to USD 250 billion in 2018. Additionally, military expenditure in India grew by around 9% from 2017 to 2019. Furthermore, navy modernization activities and increasing development of naval combat systems by China, India, and other Asian countries are further driving the regional market's growth.
Significant Investments by Players to Intensify Competition
The global smart weapons market is expected to grow significantly in the coming years due to increasing defense expenditure and naval modernization programs. The global smart weapons market is characterized by the presence of several global and regional vendors. The market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense competition, and government regulations are the key factors that impact global market growth. The vendors compete based on cost, product quality, and reliability.
Key Players Operating in the Global Smart Weapons Market:
Scope of the Report
The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the global market. With easy-to-comprehend segmentation that includes product, technology, platform, and region, MRFR projections are based on historical and expected trends. Major firms active in the global market have been profiled and paired with the top strategies employed by them to remain competitive in the industry.
|Market Size||USD 24.1 billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Technology,and Platform|
|Geographies Covered||North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America|
|Key Vendors||Lockheed Martin Corporation, Raytheon Technologies Corporation, BAE Systems, PLC, The Boeing Company, L-3 Communications Holdings, Inc., MBDA, Inc., General Dynamics Corporation, Orbital ATK, Thales Group, Textron Inc., and Rheinmetall Ag.|
|Key Market Opportunities||Increasing Demand for Remote Weapon Stations|
|Key Market Drivers||Increasing Defense Expenditures|
Smart Weapons Market I Registering A CAGR Of 5%.2020-2030
Lockheed Martin Corporation (US),Raytheon Technologies Corporation (US),BAE Systems, PLC (UK),The Boeing Company (US),L-3 Communications Holdings, Inc. (US),MBDA, Inc. (France),General Dynamics Corporation (US),Orbital ATK (US),Thales Group (France),Textron Inc. (US),Rheinmetall Ag (Germany)
North America Accounted for the Largest Market Share
Increasing Demand for Remote Weapon Stations and the growing terrorist threats across the globe, the rising number of cross-border threats and armed conflicts would fuel the demand for remote weapon stations.
According to Latest Update directed energy weapons ,guided rocket, guided projectile are types of smart weapons in defense Market