Precision Guided Munition Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Speed (Subsonic, Supersonic, Hypersonic), By Launch Platform (Land, Airborne, Naval), By Technology (Infrared, Inertial), By Region, Competition, 2020-2030F

Market Overview

The Global Precision Guided Munition Market will grow from USD 35.80 Billion in 2024 to USD 55.95 Billion by 2030 at a 7.73% CAGR. Precision Guided Munitions (PGMs) are advanced weapon systems incorporating sophisticated guidance and control mechanisms, such as GPS, laser, or infrared sensors, to achieve high-accuracy strikes against predetermined targets with minimal collateral damage. The market for these munitions is primarily driven by escalating global defense budgets, fueled by rising geopolitical tensions and a persistent demand for military modernization programs to enhance strike precision and operational effectiveness. According to the Stockholm International Peace Research Institute (SIPRI), in 2023, global military spending reached $2,443 billion, marking a 6.8% increase in real terms from 2022, directly impacting the procurement of advanced defense technologies like PGMs.

This growth is further supported by the imperative for militaries to minimize civilian harm and maximize target neutralization, alongside the increasing integration of autonomous systems in weaponry. However, the expansion of the precision guided munition market faces a significant impediment due to stringent export-control regimes, which restrict the global distribution and accessibility of these advanced defense products.

Key Market Drivers

The global precision guided munition market is substantially influenced by rising defense budgets and ongoing modernization initiatives worldwide. Nations are consistently increasing their military expenditures to upgrade existing capabilities and acquire advanced weapon systems that offer enhanced strike precision and operational effectiveness. According to a report by the European Defense Agency, in September 2025, EU member states are projected to spend over €100 billion on defense procurement in 2025, marking an increase of more than 13% to 15% compared to 2024. This heightened financial commitment enables militaries to invest in sophisticated precision guided munitions that minimize collateral damage and improve target neutralization. Concurrently, escalating geopolitical tensions and regional conflicts represent another significant driver for market expansion. These unstable conditions compel countries to fortify their defense postures and procure advanced munitions for deterrence, self-defense, or engagement in ongoing hostilities. According to the International Institute for Strategic Studies, in February 2025, global defense spending for 2024 reflected intensifying security challenges, with the Middle East and North Africa region experiencing nearly a 10% real-terms growth driven by regional conflicts, including a 72.9% real-terms surge in Israeli spending. Such instability directly translates into increased demand for combat-proven precision munitions.

This ongoing demand is further evidenced by substantial procurement contracts awarded to key industry players. According to the U.S. Department of Defense, in August 2025, BAE Systems was awarded a $1.743 billion firm-fixed-price contract for the production and delivery of up to 55,000 Advanced Precision Kill Weapon System II (APKWS II) rockets, highlighting the continued strategic importance and investment in precision guided munition technologies.

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Key Market Challenges

Stringent export-control regimes present a significant impediment to the expansion of the global Precision Guided Munition market. These complex regulatory frameworks directly restrict the international distribution and accessibility of advanced defense products, including PGMs. Manufacturers face substantial limitations in expanding their market reach as various national and multilateral agreements impose strict controls on sales, re-exports, and technology transfers. Such restrictions necessitate extensive licensing, adherence to compliance procedures, and frequently prohibit sales to specific regions or entities, irrespective of prevailing demand.

This demanding regulatory environment constrains manufacturers' ability to engage with a broader customer base and fulfill potential global requirements for these advanced weapon systems. According to the Aerospace Industries Association, U.S. aerospace and defense exports, which include precision guided munitions, reached a total value of $138.7 billion from 2023 to 2024. Despite this considerable export volume, the inherent design of export controls often limits market participation to a select group of approved nations, thereby preventing wider adoption and revenue growth for PGM producers. The administrative burden and legal complexities associated with navigating these regimes divert resources and can delay procurement processes, directly impacting the market's overall growth trajectory.

Key Market Trends

Advancements in AI-Enabled Target Recognition represent a significant driving factor for the Global Precision Guided Munition Market by enhancing the accuracy and autonomy of strike capabilities. Artificial intelligence algorithms enable munitions to identify, classify, and track targets more effectively across diverse and complex environments, reducing the reliance on human intervention in critical phases of engagement. This capability supports faster decision-making and minimizes potential collateral damage. According to the Aerospace Industries Association, in June 2025, 87% of aerospace and defense organizations planned to increase their Generative AI investment in 2025, indicating a strong industry commitment to these advanced technologies. Lockheed Martin further demonstrated this evolution on July 16, 2025, by achieving a breakthrough in AI and airborne surveillance with technology to automatically recognize maritime targets using an AI-powered Synthetic Aperture Radar, showcasing the direct application of AI in enhancing target identification.

The integration of Space-Based Assets for Precision Strike is fundamentally transforming how precision guided munitions are deployed and guided, offering unparalleled global reach and real-time situational awareness. These assets, including advanced satellites for communication, navigation, and surveillance, provide critical data for targeting, course correction, and post-strike assessment, significantly improving the effectiveness and responsiveness of precision strikes. Militaries are increasingly investing in resilient space architectures to ensure continuous and secure access to these capabilities. For instance, Northrop Grumman announced on July 24, 2025, that it had begun ground-based testing for space-based interceptors, a crucial component of the Golden Dome project aimed at advanced missile defense, highlighting the growing emphasis on space-based solutions for precision strike capabilities. This trend underscores a strategic shift towards leveraging extraterrestrial infrastructure for enhanced operational precision in global defense.

Segmental Insights

The "Airborne Launch Platform" segment is experiencing rapid expansion within the Global Precision Guided Munition Market due to its inherent operational advantages and evolving military requirements. This growth is primarily driven by the enhanced flexibility and extended range that airborne systems offer for precision strikes in complex combat scenarios. The integration of advanced guided munitions with modern fighter jets, bombers, and increasingly, unmanned aerial vehicles (UAVs), enables precise engagement of high-value targets while significantly reducing collateral damage. Furthermore, the continued modernization of global air forces, coupled with geopolitical instability, fuels demand for sophisticated air-launched precision-guided munitions capable of covering long distances and supporting missions such as strategic interdiction and counterterrorism.

Regional Insights

North America holds a leading position in the global precision guided munition market, primarily fueled by the substantial defense budgets and extensive modernization programs initiated by the U.S. Department of Defense. This region benefits significantly from sustained investment in research and development, promoting technological superiority in advanced guidance systems and sophisticated weapon platforms. The strong presence of numerous major defense contractors further contributes to a robust domestic manufacturing base. Additionally, a consistent demand for highly accurate strike capabilities, essential for minimizing collateral damage in contemporary operational environments, underpins North America's continued market dominance.

Recent Developments

• In April 2025, General Atomics Electromagnetic Systems (GA-EMS) and Rafael Advanced Defense Systems announced a Memorandum of Understanding. Under this collaboration, GA-EMS will serve as Rafael's U.S. partner and prime contractor to manufacture the long-range, precision-guided Bullseye™ strike missile for U.S. defense customers. This partnership aims to leverage Rafael's extensive investment in missile design and testing with GA-EMS's advanced manufacturing expertise, reducing development risks and costs. The Bullseye missile is designed to provide multi-platform launch capabilities from air, ground, and sea, offering an affordable and highly capable precision-guided strike solution to support critical defense missions.

• In November 2024, Lockheed Martin successfully completed a production qualification flight test for its Precision Strike Missile (PrSM), a significant milestone towards large-scale production. Conducted at White Sands Missile Range, New Mexico, the test demonstrated the system's performance and readiness for manufacturing. Two PrSM missiles were fired from a High Mobility Artillery Rocket System (HIMARS) launcher in a mid-range flight scenario, precisely engaging designated targets. Designed to replace older systems, the PrSM offers an extended range exceeding 500 kilometers and features advanced guidance systems with anti-jamming capabilities, making it a critical advancement in precision long-range strike capabilities.

• In May 2024, Boeing secured a substantial contract from the U.S. Air Force, valued at nearly $7.5 billion, for the production of Joint Direct Attack Munitions (JDAM) kits. This agreement involves supplying tail kits and other components necessary to convert conventional unguided bombs into precision-guided munitions. The contract also includes spare parts, repairs, and technical assistance, with manufacturing slated for Boeing's facilities in St. Louis, Missouri. This significant procurement underscores the ongoing global demand for precision-guided munitions and Boeing's critical role in enhancing the capabilities of U.S. and allied air forces.

• In March 2024, BAE Systems advanced artillery technology by developing the XM1155-SC, a next-generation, cannon-launched, precision-guided munition. This projectile is designed to significantly enhance the U.S. Army's long-range precision fire capabilities. Part of the Hypervelocity Projectile (HVP) family, the XM1155-SC aims to defeat both stationary and mobile targets in contested environments, extending the range of 155mm artillery rounds to more than double that of current precision-guided munitions, aiming beyond 110 kilometers. This development directly supports the U.S. Army's modernization goals for long-range precision fires, representing a notable breakthrough in the global precision-guided munition market.

Key Market Players

• Lockheed Martin
• Raytheon
• Boeing
• BAE Systems
• Northrop Grumman
• MBDA
• Rafael
• Roketsan
• NORINCO
• Thales

Report Scope:

In this report, the Global Precision Guided Munition Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Precision Guided Munition Market, By Speed:

o   Subsonic

o   Supersonic

o   Hypersonic

• Precision Guided Munition Market, By Launch Platform:

o   Land

o   Airborne

o   Naval

• Precision Guided Munition Market, By Technology:

o   Infrared

o   Inertial

• Precision Guided Munition Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Precision Guided Munition Market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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