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Long Term Contracts and Agreements, Acquisition, Partnership & Joint Ventures are Among the Key Strategies Adopted by Leading Players to grow in the Smart Weapons Market
In 2015, the smart weapons market was dominated by Lockheed Martin (U.S.), Raytheon (U.S.), MBDA, Inc. (U.K.), General Dynamics Corporation (U.S.), and Orbital ATK (U.S.), among others. These companies are expected to continue their dominance till 2021.
Top two players of the smart weapons market
Lockheed Martin (U.S.) operates through five major segments, namely, Missiles & Fire Control (MFC), Aeronautics, Information Systems & Global Solutions (IS&GS), Space Systems, and Mission Systems & Training (MST). The Missiles & Fire Control (MFC) segment deals with air and missile defense systems, tactical missiles and air-to-ground precision strike weapon systems, fire control systems, along with manned and unmanned ground vehicles. The company in recent years has received several contracts. This has led the company to broaden its product portfolio of smart weapons for military. Long-term contracts are the major strategies adopted by Lockheed Martin (U.S.) for strengthening its position in the smart weapons market. The company received a USD 331.8 million contract from the U.S. Army for the production of guided multiple launch rocket system (GMLRS). In April 2016, the company was awarded a contract worth USD 116.8 million by the U.S. Air Force to continue the production of Joint Air-to-Surface Standoff Missile-Extended Range (JASSM-ER), both of which helped the company to widen its product portfolio, along with becoming one of the major suppliers of smart weapons in the global market space.
Raytheon Company (U.S.) mainly supplies guided missiles, anti-tank and anti-aircraft missiles, man-portable grenade launchers, and anti-tank and anti-aircraft guns to naval forces and military forces of the U.S. The company is also a key provider of advanced services that include mission systems integration, electronics in areas of control, communications & intelligence systems, sensing, effects, command, and a wide range of mission support services for defense applications. The company in recent years has laid emphasis on contract and acquisitions to strengthen its product portfolio as well as its position in the smart weapons market. For instance, Jordans Ministry of Defence has signed an agreement with the U.S. Department of Defense to procure tube-launched, optically tracked, wireless-guided, or TOW missiles made by the Raytheon Company. The company has delivered more than 690,000 TOW missiles to the U.S. and allied warfighters. The TOW weapons system is expected to be used by the U.S. military even after 2025. This procurement has helped the company increase its revenue, and improve its infrared missiles and wire guided missiles technologies.
It is also important to note that companies, such as MBDA (U.K.) and General Dynamics Corporation (U.S.) contributed to the overall smart weapons market. These aforementioned companies, along with Orbital ATK (U.S.) and BAE Systems (U.K.), are expected to witness significant growth in the coming years, primarily owing to new product launches, long-term contracts, and acquisition strategies adopted by them in recent years.
Smart Weapons Market by Product (Missiles, Munitions, Guided Projectile, Guided Rocket, Guided Firearms), platform (Air, Land, Naval), Technology (Laser, Infrared, Radar, GPS, Others) & Region - Global Forecast to 2021
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