Precision Guided Munition Market

The report "Precision-Guided Munition Market by Product (Tactical Missile, Interceptor Missile, Torpedoes, Rockets, Loitering Munition), System (Guidance & Navigation, Target Acquisition), Launch Platform, Speed, Mode of Operation, Region - Global Forecast to 2030" The precision-guided munitions market is estimated to be USD 37.24 billion in 2025 and is projected to reach USD 49.71 billion by 2030, at a CAGR of 5.9%. Precision-guided munitions represent a rapidly evolving domain within the defense sector, characterized by the integration of advanced targeting technologies, autonomous guidance systems, and modular warhead configurations. PGMs enable defense forces to transition from conventional volume fire tactics to high-precision, low-collateral, and scalable strike capabilities across land, air, and sea platforms.

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This shift is supported by the growing need to improve operational efficiency, enhance strike effectiveness, and minimize the broader tactical and political risks associated with conventional bombardment strategies. PGMs are widely adopted across platforms ranging from unmanned aerial systems and fighter aircraft to mobile artillery and naval launchers.

Based on guided ammunition, the guided artillery shells segment is expected to grow at the highest CAGR during the forecast period.

Guided artillery rounds are a rapidly developing niche within the precision-guided munitions (PGM) market, offering revolutionary ground-based fires. They match the range and destructive power of traditional artillery with the precision of sophisticated guidance systems, providing first-round effects and significantly minimizing ammunition consumption, mission time, and collateral damage.

Artillery has in the past been employed for area suppression or volume fire missions. Guided artillery rounds, however, offer precision targeting of high-value targets like command posts, mobile air defenses, and dug-in positions, without needing multiple adjustments or salvos. GPS/INS, laser, or terminal homing sensors direct these rounds to maintain high accuracies at extended ranges, even in dynamic or contested environments.

The M982 Excalibur, Vulcano, and Krasnopol systems are in the process of being deployed or are in a mature development stage with backward compatibility to current 155 mm and 152 mm howitzers. Backward compatibility allows for swift increases in firepower without platform replacement, which is an attractive modernization option.

Programmable shells are especially useful in GPS-denied areas or in urban combat, where accuracy is crucial and traditional rounds are too dangerous. In addition, the combination of programmable fuzes, target data links, and AI-assisted targeting is increasing the tactical utility of these rounds across a range of mission profiles.

Based on product, the loitering munitions segment is projected to grow at the highest CAGR during the forecast period.  

Loitering munitions are becoming one of the most rapidly growing and disruptive segments in the precision-guided munitions market because of their singular capability to integrate real-time reconnaissance, target recognition, and strike within a single, lightweight system. These munitions, commonly referred to as “kamikaze drones,” are engineered to loiter or patrol over a target zone for hours, or even days, waiting for high-value or time-critical targets to materialize before striking with precision.

Their two-fisted capability of intelligence, surveillance, and reconnaissance (ISR), followed by a rapid strike, gives loitering munitions an operational and tactical advantage over their conventional PGM counterparts, which involve pre-plotted target coordinates. They are highly useful in liquid, decentralized, or asymmetric theaters, where the battlefield is liquid and threats are mobile.

Based on region, North America is expected to account for the  largest market share during the forecast period.

North America will hold the highest percentage in the global precision-guided munitions market because of its unparalleled defense manufacturing base, consistent military spending, and strategic focus on advanced cutting-edge precision strike technology. Historically, the focus has been on precision rather than merely on numbers when it comes to military policy. As a result, precision-guided munitions have become a cornerstone of force presentation strategy across all militarily significant domains: land, air, sea, and space.

The United States Department of Defense alone is the largest purchaser and producer in the PGM market, sustaining a healthy pipeline of programs in tactical missiles, smart bombs, loitering systems, and extended-range fires. Flagship programs like JDAM, GMLRS, StormBreaker, JAGM, and PrSM are not only used nationally but also exported abroad, supporting the North American dominance in world standards and interoperability.

North America is also blessed with the presence of top defense contractors like Lockheed Martin, RTX, Boeing, and Northrop Grumman, who have advanced expertise in areas such as guidance systems, propulsion, modular munitions, and AI-targeting. These kinds of organizations are constantly breaking the boundaries of innovation and developing long-term partnerships with defense agencies to implement future PGMs rapidly, with testing and development.

Key Players

Northrop Grumman (US), RTX (US), General Dynamics Corporation (US), BAE Systems (UK), Lockheed Martin Corporation (US), MBDA (France), Israel Aerospace Industries (Israel), QinetiQ (UK), Boeing  (US), and Aselsan AS (Turkey), are some of the leading companies in the precision-guided munitions market. These companies have well-equipped manufacturing facilities and strong distribution networks across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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