Smart Weapons Market – Global Industry Analysis and Forecast (2023-2029)

Smart Weapons Market size was valued at US$ 20.02 Bn. in 2022 and the total revenue is expected to grow at 8.02% through 2023 to 2029, reaching nearly US$ 34.36 Bn.
Smart Weapons Market Overview:
Smart Weapons, also known as Precision-Guided Munitions (PGMs). They are a type of weapon, which is designed to hit pre-determined targets with precise accuracy, maximising the application of explosive force while reducing collateral damage and military personnel losses. PGMs have on-board computer systems as well as laser, television, or satellite guidance systems that allow the smart weapon to lock on to a target designated by military personnel and drive itself along a trajectory to the target.

Smart bombs can be made from conventional weapons by incorporating smart weapon kits and technologies. Smart weapons can be used in surgical strikes as well as counterinsurgency operations in inhabited areas because of their fire-and-forget capability and excellent precision. Smart weapons are unloading an increasing share of target acquisition, navigation, and assault functions from human operators, due to significant advancements in algorithm, processor, and sensor technology.To know about the Research Methodology:-Request Free Sample Report
Smart Weapons Market Dynamics:
The availability and innovation of several types of smart weapons has resulted from advancements in weapon manufacturing technology. In terms of adoption and technological complexity, the market is diversified. Advances in smart weapons are expected to set the ground for substantial shifts in military power. Increasing cost of upkeep and ageing military equipment have resulted in increased demand for the smart weapons market. The market is expected to be driven by changes in the nature of warfare, need for high precision ammunition and armaments, and the growing need to reduce security harm. India and China are expanding military spending to update their equipment, which is leading to the deployment of smart weaponry.

Smart weapons are forerunners to the next-generation autonomous or 'brilliant' weapons, which are wholly computerised and capable of fully self-guided target detection, response selection, navigation and attack format coordination, as well as reload and re-attack planning. The use of smart weaponry has altered the trajectory of combat involvement and strategy. Smart firearms feature safeguards allow them to operate only when initiated by a trusted individual, lowering the risk of misuse, gun theft, and self-harm. RFID (Radiofrequency Identification Device) chips, fingerprint recognition, biometric sensors, mechanical locks, and magnetic kits are all safety measures in smart weapons.

The global smart weapons market is driven by rising demand for precision strike weapons and countries' fragile financial positions. On the other hand, arms transfer laws imposed on the import and export of smart weapons are a key stumbling block for the smart weapons sector. On the contrary, high expenditure on defense and weapon technology upgrades are elements that are creating new growth prospects for major businesses.

Driving Factors:
Demand for improved precision strike weapons is increasing
The modern military strategies have evolved rapidly. Advanced missile systems with great range and high effect are being developed by both developed and developing countries. For example, the Defence Research and Development Organisation (DRDO) successfully test-fired the new generation nuclear-capable ballistic missile 'Agni Prime' off the coast of Odisha near Balasore in December 2022. In October 2022, the United States successfully tested hypersonic missile technology, a new weapons system that China and Russia have already deployed. Such advancements in missile technology are increasing demand for precision attack weapons.
Terrorist organizations' security threats have increased
Terrorist attacks have escalated rapidly in recent decades, as terrorists' power has increased. For instance, in January 2022, a fatal twin suicide bombing attacked central Baghdad. According to the United States Department of Homeland Security and the National Consortium for the Study of Terrorism and Responses to Terrorism, there were 8,302 terrorist attacks worldwide in 2019, with 25,082 deaths and 19,924 injuries. As the number of attacks rises, so does the number of smart weapons acquired and procured by major economies, raising demand for smart weapons and boosting market growth. Furthermore, security attacks are one of the main causes for the defence forces' increased demand for smart weaponry. Moreover, advancements in the technological development of smart weaponry enable the ability to confront terrorists in a far more effective and efficient manner.

Restraining Factors:
Arms transportation regulations
Arms regulations placed on import and export trade are not adequately regulated under current legislation, since illegal arms stockpiling remains a problem. Arms control treaties, issues with regulating the arms trade, stressing the complexity of the interests involved in the emergence of small arms as the most promising weapons, and black and grey markets in terms of inefficient trade regulations are expected to stifle the smart weapons market growth.

The pact aims to prohibit the use of specific weapons that are regarded extremely harmful or have lethal consequences. A limited quantity of prohibited weapons and ammunition can be purchased and stored for training and expanding detection, authorization, and destructive procedures and counter-measures. As a result, the pact is expected to regulate, prohibit, and limit the trade of smart weapons on the worldwide market, which is limiting smart weapons market expansion.

COVID-19 Impact:

During the pandemic, the defense sector has faced unprecedented hurdles. The defence industry was severely impacted by the global lockdown, which resulted in production halts from key firms and delayed supply of jets to India. Despite the setbacks, the market is likely to grow steadily during the pandemic. Raytheon Company has secured a USD 353.4 million deal with the US Navy in March 2020 to supply guided missile round packs and replacement parts for the Block 2A and two variants of the rolling airframe missile system. As a result of big corporations signing contracts, the market is expected to increase steadily during COVID-19.
Smart Weapons Market Segment Analysis:
Based on Product, the smart weapons market is segmented into missiles, munitions, guided projectiles, guided rockets, guided firearms, and directed energy weapons on the basis of product. The weapons use a variety of guided systems to locate the target. some of the guided systems include satellite systems, TV camera guidance systems, and laser guidance systems. An air-to-ground and surface-to-air missiles are expected to dominate the smart weapons market. Over the years, guided missile systems have advanced at a rapid pace. The Smart Tech Challenges Foundation was founded in response to the demand for gun safety in the smart weapons field. Biometric technology, such as palm print scanners or voice recognition is being included into development projects, which are expected to drive the market growth.

Based on Platform, the smart weapons market is segmented into air, land, and naval. The land segment is expected to increase at the fastest rate during the forecast period. Increased defense budget, rapid military force expansion, and increased smart weapon purchase are expected to increase the adoption of the smart weapons.

Based on Technology, the smart weapons market is segmented into laser, infrared, radar, gps, and others on the basis of technology. the laser guidance market is expected to increase at an exponential rate In the coming years. The advent of cutting-edge technology, such as lasers, has boosted precision and operating efficiency.
Smart Weapons Market Regional Insights:
The smart weapons market is segmented into is segmented into North America, Europe, Asia Pacific, Middle East and Africa and South America on the basis of region. North America is held dominate the smart weapons market because of its large defence budget and supportive regulatory environment. The demand for smart weapons has been supported by main industry player's continued technical development endeavours.

By 2029, the Asia Pacific smart weapons sector is expected to contribute more than 25% share in the marekt. Increased cross-border conflicts and terrorist activities in the region can be linked to the region's high market penetration. As a result of these circumstances, several countries have increased their attempts to acquire modern weapon systems. Governments of countries including as Russia, the United States, China, India, and others are boosting their investments in weapons forces in order to gain combat superiority. Furthermore, the rise in terrorist and civil activities in numerous places, as well as the rise in international wars, forces countries to improve their military capabilities through weapon advancements, increasing the demand for smart weapons.

The objective of the report is to present a complete picture of global smart weapons market. Data from past years is compiled to anticipate the future prospects of this market. Porter's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organisation's current competitive position, and the strength of a position that an organisation may look to move into. The report helps in identifying competitive rivalry currently running in the smart weapons market. It also helps to understand bargaining power of suppliers and consumers.

The report also presents PESTLE analysis which helps to gain a macro picture of smart weapons market. Political factors help to identify the influence of government over smart weapons market. Economic factors a have direct impact on a company’s long-term prospects in a market. The economic environment may affect how a company dealing in smart weapons price their products or influence the supply and demand model. Social factors, such as demographics and culture can impact the smart weapons market by influencing peak buying periods, purchasing habits, and lifestyle choices. Technological factors may have a direct or an indirect influence on an industry. The legal and regulatory environment can affect the policies and procedures of an industry, and can control employment, safety and regulations. Environmental factors include all those relating to the physical environment and to general environmental protection requirements.
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Smart Weapons Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 20.02 Bn.


Forecast Period 2023 to 2029 CAGR:
8.02%
Market Size in 2029:
US $ 34.36 Bn.


 Segments Covered:
by Product
Missiles
Munitions
Guided Projectiles
Guided Rockets
Guided Firearms
Directed Energy Weapons


by Platform
Air
Land
Naval


by Technology
Laser
Infrared
Radar
GPS
Others



Smart Weapons Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Smart Weapons Market Key Players are:
1. Denel Dynamics (South Africa)
2. Rafael Advanced Defense Systems Ltd. (Israel)
3. OTO Melara S.P.A (Italy)
4. Alliant Techsystems Inc. (US)
5. Boeing (US)
6. Northrop Grumman (US)
7. General Dynamic (US)
8. Raytheon (US)
9. Lockheed Martin (US)
10.BAE Systems (UK)
11.Thales Group (France)
12.Textron Defense Systems (US)
13.MBDA (France)
14.L3 Technologies (US)
15.Rheinmetall Ag (Germany)
16.Israel Aerospace Industries (Israel)
17.China Aerospace Science & Industry Corp (China)

Frequently Asked Questions:

1. What is the CAGR of the Smart Weapons Market in the forecast period (2023-29)?
Ans. Smart Weapons Market revenue is expected to grow at 8.02% through 2023 to 2029.

2. Who are the key players in the Smart Weapons Market?
Ans. Denel Dynamics (South Africa), Rafael Advanced Defense Systems Ltd. (Israel), OTO Melara S.P.A (Italy), Alliant Techsystems Inc. (US), Boeing (US), Northrop Grumman (US), General Dynamic (US), Raytheon (US), Lockheed Martin (US), BAE Systems (UK), Thales Group (France), Textron Defense Systems (US), MBDA (France), L3 Technologies (US), Rheinmetall Ag (Germany), Israel Aerospace Industries (Israel) and China Aerospace Science & Industry Corp (China) are the key players in Smart Weapons Market.

3. Which product is dominating the Smart Weapons Market?
Ans. Missiles are dominating the Smart Weapons Market.

4. What segments are covered in the Smart Weapons Market report?

Ans. The segments covered in Smart Weapons Market report are based on product, platform, technology and region.

5. What is the forecast period for the Smart Weapons Market?
Ans. The forecast period for the Smart Weapons Market is 2023-2029.