Precision Guided Munition Market Size, Share & Trends
Precision Guided Munition Market Size, Share and Trends by Product (Tactical Missile, Interceptor Missile, Torpedoes, Rockets, Loitering Munition), System (Guidance & Navigation, Target Acquisition), Launch Platform, Speed, Mode of Operation, and Region- Global Forecast to 2031
PRECISION GUIDED MUNITION MARKET OVERVIEW
According to Marketsandmarkets, the Global Precision Guided Munition (PGM) Market size was valued at USD 37.24 billion in 2026 and is projected to reach USD 62.53 billion by 2031, growing at a CAGR of 10.9% from 2026 to 2031. The market is growing as defense forces increase spending on weapons that can hit targets more accurately and use fewer rounds per mission. Growth is also supported by military modernization, replacement of older inventories and higher demand for long-range, guided, and networked weapons.
REPORT SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 | USD 32.81 Billion |
| Market Size in 2026 | USD 37.24 Billion |
| Market Forecast in 2031 | USD 62.53 Billion |
| Growth Rate | CAGR of 10.9% from 2026 to 2031 |
| Years Considered | 2021–2031 |
| Base Year | 2025 |
| Forecast Period | 2026–2031 |
| Units Considered | Value (USD Million/Billion) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, Middle East, Rest of the World |
KEY TAKEAWAYS
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By RegionAsia Pacific is projected to exhibit the highest CAGR during the forecast period.
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By ProductBy product, the guided ammunition segment is projected to register the highest CAGR of 27.9% during the forecast period.
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By SystemBy system, the guidance and navigation systems segment is expected to lead the market during the forecast period.
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By Launch PlatformBy launch platform, the airborne segment is estimated to account for the largest market share of 55.1% in 2026.
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Competitive Landscape - Key CompaniesMajor market players have adopted both organic and inorganic strategies, including partnerships and investments. Lockheed Martin Corporation (US), Northrop Grumman (US), and RTX (US) have entered into a number of agreements and partnerships to cater to the growing demand for precision guided munitions.
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Competitive Landscape - Startups/SMEsJSR Dynamics and Donaustahl GmbH have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The Precision Guided Munition Industry is being driven by the need to improve strike accuracy, reduce damage outside the target area, and increase the effectiveness of each weapon used. The demand is also rising as armed forces prepare for longer-range operations, contested environments, and faster target engagement.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The precision guided munition market is moving from established tactical missiles, interceptor missiles, guided rockets, medium- and large-caliber guided ammunition, torpedoes, and loitering munitions toward weapons with longer range, lower unit cost, and more flexible guidance. Future demand is being shaped by extended-range strike, multi-mode and EW-resilient guidance, networked and semi-autonomous munitions, higher-speed weapons, and wider use of modular designs across launch platforms. These changes affect land warfare, air and missile defense, combat aviation, naval warfare, long-range strike, and special operations because these forces need weapons that can engage targets accurately in contested environments. Demand is also shifting toward weapons that can receive target updates, operate when GPS is limited, and be used from different land, air, and naval platforms. The main technology shift is toward combining improved guidance, connectivity, autonomy, propulsion, and modular weapon integration in the same munition systems.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Growing demand for precision strike to reduce collateral damage
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Growing need for higher strike effectiveness with lower ammunition expenditure
Level
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Stringent arms transfer regulations and export control frameworks
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High development and manufacturing costs
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Miniaturization of guidance, seeker, and control electronics
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Development of multi-mode and EW-resilient guidance and seeker systems
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Platform integration, interoperability, and certification complexity
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Storage, shelf-life, and lifecycle maintenance requirements
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Growing demand for precision strike to reduce collateral damage
Defense forces are increasing the use of guided missiles, rockets, ammunition, torpedoes, and loitering munitions to improve accuracy against selected targets. Better guidance helps reduce the risk of damage to nearby infrastructure, civilians, and friendly forces.
Restraint: Stringent arms transfer regulations and export control frameworks
Precision-guided munitions and their guidance, seeker, propulsion, and warhead technologies are subject to strict export and arms transfer controls. These rules can limit access to some markets, delay approvals, and restrict the transfer of certain weapons and components.
Opportunity: Miniaturization of guidance, seeker, and control electronics
Smaller guidance, seeker, and control systems allow precision functions to be added to more types of missiles, rockets, and medium- and large-caliber ammunition. This can also support lower-weight, more compact weapon designs and wider use across different launch platforms.
Challenge: Platform integration, interoperability, and certification complexity
Precision-guided munitions must work with the launch platform, fire-control system, targeting system, and communication links used by the armed forces. Integration and certification can take time because each aircraft, ship, submarine, vehicle, or launcher may have different technical and safety requirements.
PRECISION GUIDED MUNITION MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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RTX’s Excalibur is a 155 mm guided artillery round used against selected ground targets. It uses GPS/INS guidance and can be fired from systems such as the M777A2 and M109A6. | Improves accuracy of artillery fire | Can reduce the number of rounds needed for a target | Supports longer-range artillery missions | Can reduce effects outside the target area |
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Lockheed Martin’s GMLRS is used with HIMARS and M270 launchers for surface-to-surface strikes. The rockets are used against selected point and area targets at long range. | Supports long-range fire missions | Can reduce the number of rounds needed for a target | Can be used against point and area targets | Works with mobile HIMARS and M270 launchers |
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MBDA’s Brimstone missile is used by the UK Royal Air Force against fixed and moving ground targets. It has been used in combat and can be used during day and night operations. | Can strike fixed and moving targets | Supports day and night use | Can be launched from aircraft | Can reduce effects outside the target area |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The precision guided munition market ecosystem includes weapon and munition manufacturers, guidance and system integration providers, and propulsion and component suppliers. Companies such as RTX, Lockheed Martin, Northrop Grumman, MBDA, Thales, and BAE Systems develop missiles, guided rockets, guided ammunition and related weapon systems. ASELSAN, Leonardo, BAE Systems, and RTX supply guidance, seeker, targeting, and integration systems used in these weapons. Northrop Grumman, MBDA, General Dynamics, and L3Harris provide propulsion, munition components, warhead-related systems, and other supporting technologies. Together, these companies support precision-guided weapons programs used by land, air, and naval forces.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Precision Guided Munition Market, By Product
Loitering munitions are expected to hold the largest market share because they combine surveillance, target tracking, and strike functions in one weapon. Their use is increasing for time-sensitive and mobile targets, while both expendable and recoverable systems are being added to military inventories for land and tactical operations.
Precision Guided Munition Market, By System
The propulsion systems segment is expected to witness the fastest growth as defense programs place more focus on longer range, higher speed, and longer flight time. Demand for improved solid propulsion, ramjet, scramjet and other propulsion systems is increasing across missiles, guided rockets, and other long-range precision weapons.
Precision Guided Munition Market, By Launch Platform
The naval segment is expected to exhibit the highest growth rate as countries add more precision weapons to surface ships and submarines. Procurement of naval missiles, torpedoes, and longer-range strike weapons is increasing as navies improve sea-control, anti-ship, land-attack, and submarine warfare capabilities.
Precision Guided Munition Market, By Speed
Supersonic weapons are expected to dominate the market because they are widely used across tactical missiles, interceptor missiles, anti-ship weapons, and other precision strike systems. They provide a balance of speed, range, cost, and technical maturity, making them suitable for a wider set of missions than many hypersonic systems.
Precision Guided Munition Market, By Mode of Operation
Autonomous precision-guided munitions are expected to hold the largest market share as more weapons use onboard guidance, seekers, and control systems to complete key parts of the engagement after launch. This reduces the need for continuous operator input and supports the use of missiles, torpedoes, and loitering munitions against moving or time-sensitive targets.
Precision Guided Munition Market, By Range
The long range (300–1,000 km) segment is expected to register the highest CAGR due to increasing demand for strike systems that can engage targets from farther away while keeping launch platforms outside many threat zones. Growth is also supported by new missile and rocket programs for deep strike, sea control, and long-range fire missions.
REGION
Asia Pacific to be fastest-growing region in global precision guided munition market during forecast period
The growth of the Asia Pacific precision guided munition market is supported by higher defense spending, military modernization, and rising demand for long-range strike and air defense weapons. Countries in the region are also increasing the procurement of guided missiles, rockets, torpedoes, and precision ammunition to strengthen their land, air, and naval combat capabilities.
PRECISION GUIDED MUNITION MARKET: COMPANY EVALUATION MATRIX
In the precision guided munition market matrix, Northrop Grumman (Star) is placed strongly because it has a broad role across missiles, propulsion, guidance, seekers, warheads, and related weapon systems. Its position is also supported by work on air-launched, surface-launched, and naval weapons programs for the US and allied forces. ASELSAN A.S. (Emerging Leader) is placed well because it supplies guidance kits, seekers, navigation systems, and control electronics used in precision weapons. However, its presence is more focused on guidance and electronic subsystems, and it has a smaller range of complete precision-guided munition products than companies placed further to the right. Overall, companies with broader product coverage, more weapons programs, and a larger customer base are placed higher and further to the right in the matrix.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
List of Top Precision Guided Munition Companies
- RTX (US)
- Northrop Grumman (US)
- Lockheed Martin Corporation (US)
- Boeing (US)
- General Dynamics Corporation (US)
- BAE Systems (UK)
- ASELSAN A.S (Turkey)
- MBDA (France)
- Israel Aerospace Industries Ltd. (Israel)
- Thales (France)
- Rheinmetall AG (Germany)
- Leonardo S.p.A. (Italy)
- KONGSBERG (Norway)
- Saab AB (Sweden)
- Elbit Systems Ltd. (Israel)
- Rafael Advanced Defense Systems Ltd. (Israel)
- General Automics (US)
- Denel Dynamics (South Africa)
- Hanwha Group (South Korea)
- Polska Grupa Zbrojeniowa (Poland)
WHAT IS IN IT FOR YOU: PRECISION GUIDED MUNITION MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading Manufacturer | Additional segment breakdown for countries | Additional country-level market sizing tables for segments/subsegments covered at the regional/global level to gain an understanding of market potential by each country |
| Emerging Leader | Additional company profiles | Competitive information on targeted players to gain granular insights into direct competition |
| Regional Market Leader | Additional country market estimates | Additional country-level deep dive for a more targeted understanding of the total addressable market |
RECENT DEVELOPMENTS
- September 2026 : Lockheed Martin secured a contract worth USD 1.2 billion from the US Army for the Precision Strike Missile Increment 2 program. The work includes the development and production of the missile for the Army. The program supports longer-range surface-to-surface strike missions.
- August 2026 : Saab received an order worth about USD 125.0 million from the Finnish Defence Forces for the RBS 70 NG air defense system. The order also includes training, spare parts, and maintenance equipment. The system will be used for short-range air defense.
- August 2026 : India’s Ministry of Defence signed contracts worth about USD 165.2 million with Tata Advanced Systems and NIBE for loitering munition systems. The contracts, which cover munitions and related equipment, will add more loitering munition systems to the Indian Army’s inventory.
Table of Contents
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Methodology
This study involved four major activities to estimate the current size of the precision guided munition market. Exhaustive secondary research was conducted to gather information on the market, its adjacent markets, and its parent market. The next step involved validating these findings, assumptions, and sizing with industry experts across the value chain through primary research. Demand-side analysis was conducted to estimate the overall market size. Thereafter, data triangulation procedures were employed to estimate the sizes of various segments and subsegments within the precision guided munition market.
Secondary Research
During the secondary research process, various sources were consulted to identify and collect information for this study. The secondary sources included government sources, such as SIPRI; corporate filings, including annual reports, press releases, and investor presentations; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases.
Primary Research
Extensive primary research was conducted after acquiring information on the precision guided munition market through secondary research. Several primary interviews were conducted with market experts from the demand and supply sides across major countries of North America, Europe, Asia Pacific, the Middle East, and the Rest of the World. Primary data was collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the precision guided munition market. The research methodology used to estimate the size of the market included the following details:
- Key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of annual and financial reports of the top market players and extensive interviews with leaders, including CEOs, directors and marketing executives.
- All percentage shares, splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed input, analyzed by MarketsandMarkets and presented in this report.
Precision Guided Munition Market: Top-Down and Bottom-Up Approach
Data Triangulation
After arriving at the overall size of the precision-guided munition market from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data were triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using both top-down and bottom-up approaches. The following figure indicates the market breakdown structure and data triangulation procedures that were implemented in the market engineering process for this report on the precision guided munition market.
Market Definition
The precision guided munition market includes guided weapon systems designed to engage selected targets using onboard or integrated guidance, navigation, target acquisition, and control technologies. These weapons can correct their flight path after launch or during the terminal phase to improve the accuracy of target engagement. The market includes tactical missiles, interceptor missiles, guided rockets, medium- and large-caliber guided ammunition, torpedoes, and loitering munitions.
A weapon is considered within the market when it meets the following conditions:
- Uses a guidance or navigation system during flight or terminal engagement
- Can make trajectory or course corrections after launch
- Uses onboard or external target acquisition or homing support, where applicable
- Is designed for precision engagement of a selected target
- Can operate in autonomous or semi-autonomous mode
- Can be launched from land, airborne, or naval platforms
Key Stakeholders
- Armed Forces
- Defense Regulatory Bodies
- Ministry of Defense
- Ammunition Dealers
- Original Equipment Manufacturers
- Subcomponent Manufacturers
- Technology Support Providers
Report Objectives
- To define, describe, segment, and forecast the size of the precision guided munition market based on product, system, mode of operation, range, speed, and region
- To forecast the size of the various segments of the market based on five major regions, namely, North America, Europe, Asia Pacific, the Middle East, and the Rest of the World (RoW), along with major countries in each of these regions
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To identify industry trends, market trends, and technology trends currently prevailing in the market
- To provide an overview of the regulatory landscape with respect to precision-guided munitions across regions
- To analyze micromarkets with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders by identifying key market trends
- To profile key market players and comprehensively analyze their market share and core competencies
- To evaluate the degree of competition in the market by analyzing recent developments, such as contracts, agreements, and acquisitions adopted by leading market players
- To identify detailed financial positions, key products, and unique selling points of leading companies in the market
- To provide a detailed competitive landscape of the market, along with market share analysis and revenue analysis of key players.
Available customizations:
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the precision guided munition market
- Profiling of other market players (up to five)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolios of each company in the precision guided munition market
Key Questions Addressed by the Report
What is the current size of the Precision-Guided Munition Market?
The global Precision-Guided Munition (PGM) Market was valued at USD 32.81 billion in 2025 and is projected to reach USD 62.53 billion by 2031.
What is the expected CAGR of the Precision-Guided Munition Market?
The market is expected to grow at a CAGR of 10.9% from 2026 to 2031, driven by increasing defense modernization programs and demand for precision strike capabilities.
What are the major growth drivers of the Precision-Guided Munition Market?
Key growth drivers include rising demand for precision strike weapons, increasing military modernization initiatives, advancements in GPS/INS and AI-enabled guidance technologies, and the need to minimize collateral damage in modern warfare.
Which region holds the largest share of the Precision-Guided Munition Market?
North America is expected to hold the largest market share during the forecast period, supported by high defense spending and continuous procurement of advanced precision weapons.
Which region is expected to grow the fastest?
Asia Pacific is projected to be the fastest-growing region and is expected to account for 25.5% of the market in 2025, driven by rising defense budgets and military modernization programs.
Which product segment is expected to grow the fastest?
The Loitering Munitions segment is projected to register the highest growth rate, with a CAGR of 9.0%, due to its ability to combine ISR and precision strike capabilities in a single platform.
Which mode of operation dominates the market?
The Autonomous segment is expected to dominate the market as armed forces increasingly adopt AI-enabled and autonomous precision weapon systems for faster target engagement.
What are the key trends shaping the Precision-Guided Munition Market?
Major trends include AI-enabled targeting, network-centric warfare integration, multi-mode seekers, loitering munitions, autonomous strike systems, miniaturized munitions, and advanced GPS/INS navigation technologies.
Who are the leading companies in the Precision-Guided Munition Market?
Major companies include Northrop Grumman, Lockheed Martin Corporation, RTX, Boeing, General Dynamics Corporation, MBDA, BAE Systems, Thales, Leonardo, and Israel Aerospace Industries.
What insights does a Precision-Guided Munition Market report provide?
The report provides analysis of market size, growth forecasts, product segmentation, launch platforms, technology trends, regional outlook, competitive landscape, procurement programs, and strategic developments across the defense industry.
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Growth opportunities and latent adjacency in Precision Guided Munition Market
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Oct, 2019
The reason I want to purchase this report is because I want to know the size of the arms market in each country in detail. It would be nice to have as much detail as possible on each weapon system..
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Apr, 2026
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