Smart Weapons Market

• Rise in demand for precision strike weapons is driving market growth

Smart weapons are computer-guided munitions with GPS, radio, infrared, laser, and satellite guidance systems, providing incredibly accurate and precise positioning. Precision-guided or smart weapons are designed to hit the target precisely while minimizing collateral damage and lethality. External operating systems positioned far away from the physical area are used to operate and support smart weapons. The use of intelligent weapons has altered the tactics and course of the war. Cruise missiles use the data from the navigation satellite to keep their flight path and course accurate.

Smart guns are equipped with safety features that allow them only to be activated by authorized users, minimizing the likelihood of misuse, gun theft, and self-harm.

Smart weapons have safety features like RFID (Radiofrequency Identification Device) chips, fingerprint scanners, biometric sensors, mechanical locks, and magnetic kits. The rise in demand for precision strike weapons and the unsteady state of international security are driving factors in the  market for smart weapons. However, the arms transfer regulations imposed on imports and export are a significant barrier to the market for smart weapons.

On the other hand, an increase in the defense budget and spending on upgrading weapon technology are factors that open up new opportunities for growth for major players. For instance, the U.S. S. The Navy and Northrop Grumman Corporation have a contract for the AGM-88G Advanced Anti-Radiation Guided Missile Extended Range (AARGM-ER)'s low-rate initial production (LRIP). An increase in the demand for cutting-edge precision strike weapons.

In the last ten years, modern warfare tactics have changed quickly. Developing sophisticated, long-range, high-impact missile systems is a priority for both developed and developing nations. For instance, in December 2021, the Defence Research and Development Organization (DRDO) successfully tested the new generation nuclear-capable ballistic missile "Agni Prime" from APJ Abdul Kalam Island, off the coast of Odisha in Balasore. In addition, in October 2021, the U. S. China, and Russia have already deployed hypersonic missile systems that have undergone successful testing. Such advancements in missile technology increase the demand for precision strike weapons.

Additionally, worldwide conflicts have highlighted the critical need for operational strikes and precision attacks. Thus, driving the Smart Weapons market revenue.

The Global Smart Weapons Market Industry is experiencing rapid technological advancements that enhance the effectiveness and precision of weaponry. Innovations in artificial intelligence, machine learning, and sensor technologies are driving the development of smart weapons, which can autonomously identify and engage targets with minimal human intervention. For instance, the integration of advanced guidance systems has improved the accuracy of missiles and drones, reducing collateral damage. This trend is expected to contribute to the market's growth, with projections indicating a market value of 18.9 USD Billion in 2024, reflecting the increasing demand for sophisticated military capabilities.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Smart Weapons market will dominate this market. The highest military or defense spending and expanding military modernization programs are credited with the growth. 2019 will be the U.S. 6,062 munitions were purchased with funds allotted by the Department of Defense totaling $4,03 billion. Additionally, the existence of important players like the Boeing Company, Lockheed Martin Corporation, Northrop Grumman Corporation, General Dynamics Corporation, and others will promote the expansion of the regional market.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2 : SMART WEAPONS SHARE BY REGION 2022 (%)

Source Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s Smart Weapons market accounts for the second-largest market share as a result of rising defense industry investments from countries like India, China, South Korea, Japan, and others. Cross-border conflicts, political unrest, and rising terrorism in the Asia Pacific drive the key market growth during the projection period. Further, the German Smart Weapons market held the largest market share, and the UK Smart Weapons market was the fastest-growing market in the European region.

The Asia Pacific Smart Weapons Market is expected to grow at the fastest CAGR from 2023 to 2030 significant growth as a result of key players like Thales Group, BAE Systems, Rheinmetall AG, and others. Additionally, the growing defense budgets for bolstering military capabilities from nations like the U. The main drivers of demand for these weapons are probably K, France, and Russia. Moreover, the India Smart Weapons market held the largest market share, and the China Smart Weapons market was the fastest-growing market in the Asia Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Smart Weapons market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Smart Weapons industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Smart Weapons industry to benefit clients and increase the market sector. The Smart Weapons industry has recently offered some of the most significant medical advantages. Major players in the Smart Weapons market, including 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., Rheinmetall Ag and others, are attempting to increase market demand by investing in research and development operations.

BAE Systems (UK) British multinational defense, security, and aerospace company BAE Systems plc. It is among the biggest defense contractors in the world, with operations in the United Kingdom, the United States, and several other nations. Among the many goods and services that BAE Systems designs develop, and produces are military aircraft, missiles, ships, submarines, and armored vehicles. In 1999, British Aerospace and Marconi Electronic Systems merged to form the business. It employs about 85,000 people worldwide and has its headquarters in Farnborough, Hampshire, in the UK.

In addition to being a significant supplier to the US military, BAE Systems has a long history of providing defense equipment to the UK armed forces. The FTSE 100 Index includes BAE Systems, traded on the London Stock Exchange. The company works in cyber security, intelligence, surveillance, defense, and aerospace markets.

L3Harris Technologies Inc. (US) The American technology company Harris Corporation served as a defense contractor, provider of information technology services, and manufacturer of wireless equipment, tactical radios, electronic systems, night vision devices, and both terrestrial and spaceborne antennas for use in the public, private, and commercial sectors. Their areas of expertise included electronic warfare, microwave weapons, and surveillance systems. To create L3Harris Technologies in 2019, it merged with L3 Technologies.