Rocket and Missile Market by Product (Missiles, Rockets & Torpedoes), Speed (Subsonic, Supersonic, Hypersonic), Propulsion Type (Solid, Liquid, Hybrid Propulsion, Ramjet, Turbojet and Scramjet), Launch Mode, Guidance Mechanism & Region - Forecast to 2028
[268 Pages Report] The Rocket and Missile Market is estimated to be USD 57.7 billion in 2023 and is projected to reach USD 77.4 billion by 2028, at a CAGR of 6.1% from 2023 to 2028. The Rocket and Missile Industry is driven by factors such as a rising focus on the development of hypersonic missile systems and air defense systems.
Rocket and Missile Market Forecast to 2028
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Rocket and missile market Dynamics:
Drivers: Growing defense programs to secure nations against various threats
According to DoD’s Program Acquisition Cost by Weapon System, the performance of United States (U.S.) weapon systems is unmatched, ensuring that U.S. military forces have a tactical combat advantage over any adversary in any environmental situation. The Fiscal Year (FY) 2022 acquisition (Procurement and Research, Development, Test, and Evaluation (RDT&E)) funding requested by the Department of Defense (DoD) totals USD 245.60 billion, which includes funding totaling USD 133.60 billion for Procurement and $112.0 billion for RDT&E. The funding in the budget request represents USD 20.30 billion for Missiles and Munitions.
The Hypersonic Air-breathing Weapon Concept (HAWC) program is a joint DARPA/U.S. Air Force (USAF) effort that seeks to develop and demonstrate critical technologies to enable an effective and affordable air-launched hypersonic cruise missile. The program intends to emphasize efficient, rapid, and affordable flight tests to validate key technologies. Hence, the increasing need for defense programs by nations to defend against various threats is driving the rocket and missile market.
Restraints: Stringent regulations for arms transfer
State-owned defense organizations must comply with federal and legislative rules and regulations, such as import-export control regimes, exchange controls, the Foreign Corrupt Practices Act, and the Export Administration Act. In many countries, munition manufacturers are prohibited from exporting their products, thereby decreasing their chances of serving international customers. This hinders them from accessing international markets.
Also, the Missile Technology Control Regime (MTCR) is an informal political understanding among states that seek to limit the proliferation of missiles and missile technology. The regime was formed in 1987 by the G-7 industrialized countries (Canada, France, Germany, Italy, Japan, the UK, and the United States) to limit the risks of proliferation of weapons of mass destruction (WMD) by controlling exports of goods and technologies that could contribute to delivery systems (other than manned aircraft) for such weapons. In this context, the Regime places particular focus on rockets and unmanned aerial vehicles capable of delivering a payload of at least 500 kg to a range of at least 300 km and on equipment, software, and technology for such systems.
Opportunities: Miniaturization of missiles and their components
The demand for increasingly portable and discreet weaponry, tailored to today's landscape where rockets and missiles are employed by non-state entities. The requirement for easily transportable and concealed armaments has prompted the development of miniaturized rockets and missiles, optimized for swift deployment and stealthy usage. Another critical facet is the pursuit of heightened precision. Miniaturized variants can incorporate more intricate guidance systems, enhancing their accuracy in striking targets. This precision holds immense value across both military operations and law enforcement scenarios, elevating their effectiveness in achieving mission objectives. Cost-effectiveness also underpins this trend, as miniaturized rockets and missiles often entail lower developmental and production expenses compared to their larger counterparts. This affordability factor widens accessibility to a broader array of countries and organizations, democratizing the acquisition of advanced weaponry.
The Multi-Azimuth Defense Fast Intercept Round Engagement System (MAD-FIRES) program will also develop a point defense system against today's most stressing threats by developing a highly maneuverable, medium caliber, guided projectile, fire sequencing and control system capable of neutralizing large threat raids of high speed, highly maneuverable targets. Leveraging recent advancements in gun hardening, miniaturization of guided munition components, and long-range sensors, MAD-FIRES advances fire control technologies, medium caliber gun technologies, and guided projectile technologies enabling the multiple, simultaneous target, kinetic engagement mission at greatly reduced costs.
The Indian Ministry of Defense's (MoD) "TECHNOLOGY PERSPECTIVE AND CAPABILITY ROADMAP" report underscores the global shift towards miniaturization, emphasizing the technological advantages that culminate in the evolution of Microsystems. The report underscores the pivotal role of microsystem technology in fostering the development of navigation systems and warhead guidance, thereby contributing to the creation of more compact and efficient weaponry infused with collaborative multi-sensor capabilities. The report also highlights the imperative for advancing Miniature Synthetic Aperture Radar (SAR) and Inverse Synthetic Aperture Radar (ISAR) technologies. This strategic stance showcased in the report signifies India's strategic commitment to advancing the miniaturization of rocket and missile systems, aligning with contemporary trends and technological progress.
Challenges: Integration issues of larger rockets and missiles
Integration of a missile occurs at three levels: first on the missile itself, second with the platform from which it is being fired, and third with the existing command & control network. The integration of various electronic equipment, sensors, warheads, kill vehicles, propulsion systems, and other subsystems is very complex. There are present significant challenges present within the domain of large rockets and missiles in the rocket and missile industry. These challenges emanate from a multitude of factors, including the inherent complexity of these expansive systems.
Large rockets and missiles entail a diverse array of components, engendering intricate integration and subsequent rigorous testing. Precision is of utmost importance, given the requisite accuracy for optimal performance. However, the financial implications associated with integration can strain a nation's fiscal resources. Specific integration dilemmas manifest, encompassing the nuanced integration required for the guidance and control system, the exacting demands of the propulsion system, and the secure amalgamation of the warhead.
The mitigation of these challenges entails the strategic application of advanced simulation and modeling techniques, the embrace of modular design principles, the incorporation of standardized components, and the application of meticulous testing and evaluation protocols. Collectively, these measures attenuate the risks associated with integration hurdles, facilitating the seamless development and deployment of large rockets and missiles.
Rocket And Missile Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of rockets and missiles with a global presence. They have been operating in the market for several years and have a diversified product portfolio, state-of-the-art technologies, and robust global sales and marketing networks. Prominent companies include Northrop Grumman (US), Raytheon Technologies Corporation (US), and Lockheed Martin Corporation (US).
Private and small enterprises have a comparatively limited product portfolio, financial strength, and specialization in specific systems and subsystems. Some companies could enter strategic partnerships and joint ventures with prominent companies to gain a strong foothold in the rocket and missile market. Currently, private and small enterprises are looking at funding and investments to develop technologically advanced rockets & missiles and enter them into service.
Based on the product, the Missile Segment is projected to grow at the highest CAGR in the Rocket and missile market during the forecast period.
Based on the product, Rocket and missile market has been segmented into missiles, rockets, and torpedoes. The growth of the missile segment can be attributed to the significance of missile systems in strengthening the armed forces. Advancements in missile technology have led to the development of intercontinental ballistic missiles capable of reaching a speed of Mach 5.0, which underlines the need for the upgradation of missile defense systems.
Based on speed, the hypersonic segment held the highest growth rate during the forecast period.
The hypersonic segment is projected to register the highest CAGR of 7.4% during the forecast period Based on speed, the rocket and missile market has been segmented into subsonic, supersonic, and hypersonic. Hypersonic rockets and missiles are equipped with a propulsion system to enable them to attain a speed of Mach 5 or higher, which is five times faster than the speed of sound. Hypersonic precision-guided weapons are difficult to counter due to their high speed. Currently, these weapons are in a development phase and are expected to be operational in the near future.
The North American market is projected to contribute the largest share from 2023 to 2028
During the projection period, North America is expected to hold the biggest regional market share for rockets and missiles. The US is home to a number of significant businesses, including Northrop Grumman Corporation, Lockheed Martin, Raytheon Technologies, and General Dynamics Corporation. These companies consistently spend money on the research and development of cutting-edge technology utilised in missile defence systems.
Rocket and Missile Market by Region
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Key Market Players
The Rocket and missile companies is dominated by a few globally established players such as Northrop Grumman Corporation (US), Lockheed Martin Corporation (US), BAE Systems plc (UK), and Thales Group (France).
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Report Metric |
Details |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD Million/Billion) |
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Segments covered |
By Speed, By Product, By Propulsion Type, By Guidance Mechanism, By Launch Platform and By Region |
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Geographies covered |
North America, Europe, Asia Pacific, and Rest of the World |
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Companies covered |
Northrop Grumman Corporation (US), Lockheed Martin Corporation (US), BAE Systems (UK), Thales Group (France) and many more. |
Rocket and Missile Market Highlights
This research report categorizes rocket and missile market based on products, speed, propulsion, launch mode, guidance mechanism, and region.
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Recent Developments
- In May 2023, Northrop Grumman Systems Corp., Huntsville, Alabama, was awarded a USD 244.0 million contract modification to a previously awarded indefinite-delivery/indefinite-quality contract (HQ014718D0005). The contract modification will continue the development, integration, testing and fielding of complex advanced discrimination techniques, operation and sustainment of complex modeling and simulation techniques and tools used to model Ballistic Missile Defense System capabilities. The work will be performed in Huntsville, Alabama; Colorado Springs, Colorado; Boulder, Colorado; and Azusa, California, and is expected to be completed by March 4, 2026. There will be no funding obligated to associated task orders at time of award. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity.
- In May 2023, The U.S. Army awarded the Javelin Joint Venture (JJV) an indefinite-delivery, indefinite-quantity (IDIQ) production contract with a total ceiling of USD 7.20 billion for fiscal years 2023 to 2026 for the Javelin weapon system and associated equipment and services. This award includes a base year with authorized funding to USD 1.02 billion and production ramp support to increase Javelin All Up Round (AUR) production to 3,960 per year by late 2026.
- In April 2023, The U.S. Army awarded Lockheed Martin a USD 4.79 billion contract to manufacture two full-rate production lots of GMLRS rockets and associated equipment. The contract calls for the production of GMLRS Unitary and Alternative Warhead (AW) rockets and integrated logistics support for the U.S. Army and international partners. GMLRS is an all-weather rocket designed for fast deployment that delivers precision strike beyond the reach of most conventional weapons. The munition is the primary round for the Lockheed Martin produced HIMARS and MLRS family of launchers and features a Global Positioning System (GPS) aided inertial guidance package and small maneuvering canards on the rocket nose,which add maneuverability to enhance the accuracy of the system.
- In October 2022, BAE Systems received a five-year, USD 383.0 million contract from the U.S. Army to perform technical and sustainment support services for its fleet of Bradley Fighting Vehicles and M993 Multiple Launch Rocket System carriers. Under the contract, the BAE Systems System Technical Support (STS) and Sustainment System Technical Support (SSTS) teams will provide on-going engineering and logistics services to keep the family of Bradley Fighting Vehicles ready to support Soldiers’ missions. The vehicles include the M2 Bradley Infantry Fighting Vehicle (IFV) and M7 Bradley Fire Support Team (BFIST) variants. The M993 MLRS carrier is part of the M270 MLRS, the Army’s tracked heavy launch platform for the MLRS Family of Munitions.
Frequently Asked Questions (FAQs)
What is the current size of Rocket and missile market?
Response: The Rocket and missile market is projected to grow from an estimated USD 57.7 billion in 2023 to USD 77.4 billion by 2028, at a CAGR of 6.1% from 2023 to 2028.
What are the key sustainability strategies adopted by leading players operating in the rocket and missile market?
Response: The organic and inorganic strategies adopted by key players to strengthen their position in the Rocket and missile market are high R&D investment, new product and service launches, collaborations & expansions, contracts, partnerships, and agreements, to expand their presence in the market further.
What factors support Rocket and missile market growth during the forecast period?
Response: Increasing investments in the development of hypersonic solutions to strengthen military capabilities is the key factor supporting Rocket and missile market growth during the forecast period.
Which region is expected to hold the highest market share in the Rocket and missile market?
Response: North America accounted for the largest share of 49 % of the market in 2023.
Who are the leading players in Rocket and missile market?
Response: Northrop Grumman Corporation (US), Lockheed Martin Corporation (US), Raytheon Technologies Corporation (US), MBDA (France) and General Dynamics Corporation (US) are the leading players in the Rocket and missile market
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The research study conducted on rocket and missile market involved extensive use of secondary sources, including directories, databases of articles, journals on missiles and rockets in military, company newsletters, and information portals such as Hoover’s, Bloomberg, and Factiva to identify and collect information useful for this extensive, technical, market-oriented study of the rocket and missile market. Primary sources include industry experts from the core and related industries, alliances, organizations, Original Equipment Manufacturers (OEMs), vendors, suppliers, and technology developers. These sources relate to all segments of the value chain of rocket and missile market.
In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and assess future market prospects.
Secondary Research
In the secondary research process, various sources were referred to for identifying and collecting information for this study. The secondary sources included government sources, such as Worldbank defense expenditure database; department of defense websites, corporate filings such as annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, product development/innovation teams, and related key executives from Rockets and Missiles integrators; component providers; distributors; and key opinion leaders.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, threat type, range, domain, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs, and installation teams of the customer/end users who are using Rockets and Missiles were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of rockets and missiles and future outlook of their business which will affect the overall market.
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Market Size Estimation
Extensive research into rocket and missile sources and the concurrent advances in missile technology have pushed technology to the level where fully configured hypersonic missiles is now being designed and tested.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Rocket and missile market. These methods were also used extensively to estimate the size of various segments and subsegments of the market. The research methodology used to estimate the market size included the following:
- Key players in the industry and markets were identified through secondary research, and their market share was determined through primary and secondary research. This included an extensive study of annual and financial reports of top market players and interviews with 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 markets 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 inputs, analyzed by MarketsandMarkets, and presented in this report.
The research methodology used to estimate the market size also included the following details:
- All possible parameters that affect the markets 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 inputs, analyzed by MarketsandMarkets, and presented in this report.
- Market growth trends were defined based on approaches such as the product revenues of the leading companies from 2019 to 2022, military expenditure, exports/imports of rocket and missile parts and equipment by different countries from 2019 to 2022, historic procurement patterns between 2019 to 2022, among others.
Rocket and Missile Market Size: Bottom-Up Approach
Rocket and Missile Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall size of the Rocket and missile market using the market size estimation processes explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from demand as well as supply sides of the Rocket and missile market.
Market Defination
The rocket and missile market is the global market for the development, production and sale of rockets and missiles. The market is segmented by product, speed, propulsion type, launch mode. guidance mechanism, and region. The product segment is further segmented into Missiles, Rockets, And Torpedoes. The propulsion type segment is further segmented into Solid, Liquid, Hybrid, Ramjet, Turbojet, and Scramjet. The guidance mechanism segment is further segmented into Guided, and Unguided. The region segment is further segmented into North America, Europe, Asia Pacific, and rest of the world.
Key Stakeholders
- Rockets and Missiles Manufacturers
- Technology Support Providers
- Systems and Subsystem providers
- Government Agencies
- Military Organizations
- Investors and Financial Community Professionals
- Research Organizations
Report Objectives
- To define, describe, and forecast the size of the rocket and missile market based on product, speed, propulsion type, launch mode, guidance mechanism, and region from 2023 to 2028.
- To forecast the size of various segments of the market with respect to major regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), which comprises the Middle East & Africa, Latin America
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the rocket and missile market across the globe.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the rocket and missile market.
- To analyze opportunities for stakeholders in the market by identifying key market trends
- To analyze competitive developments such as contracts, acquisitions and expansions, agreements, joint ventures and partnerships, new product launches, and Research & Development (R&D) activities in the rocket and missile market.
- To provide a detailed competitive landscape of the -market, in addition to an analysis of business and corporate strategies adopted by leading market players.
- To strategically profile key market players and comprehensively analyze their core competencies2.
1 Micromarkets refer to further segments and subsegments of AI in military market included in the report.
2 Companies' Core competencies were captured in terms of their key developments and key strategies they adopted to sustain their position in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Rocket and Missile Market