The smart weapons market is anticipated to register a CAGR of over 4% during the forecast period.
- Change in the nature of warfare and demand for high precision arms and ammunition are two major factors driving the smart weapons market during the forecast period.
- The increasing military spending of the emerging countries is helping the countries to invest in the development of new and advanced smart weapons and modernize their equipment. This is also propelling the growth of the smart weapons market.
Key Market Trends
The Ammunitions and Other Products Segment is Expected to Experience the Highest Growth During the Forecast Period
The ammunitions and other products segment of the market studied is expected to register the highest CAGR during the forecast period. This is majorly due to the development of advanced electro-optical precision integration kits, and sensor fused weapons. Rafael unveiled FireFly, miniature loitering ammunition that can be used by dismounted soldiers and EPIK (Electro-optical Precision Integration Kit) for providing precision guidance to surface-to-surface multiple-launch rocket systems in June 2018. Similarly, German Ministry of Defense awarded Gesellschaft für Intelligente Wirksysteme mbH (GIWS) initial contract to restart the serial production of the SMArt 155 ammunition (Sensor-fuzed Munition for Artillery 155 mm) that was previously stopped in 2006. The phase 1 contract was awarded in December 2017 and the serial production of the ammunition is planned from 2024.
The North America Region is Expected to Experience the Highest Growth During the Forecast Period
The North America region currently has the highest market share and is anticipated to have the highest growth during the forecast period. This is majorly due to the increasing defense budget and government support, as well as continuous development and procurement of modern warfare equipment, includes smart weapons, smart textiles, and advanced armament. The US Army placed an order BONUS, a 155-millimeter heat-seeking anti-tank shell, from BAE Systems Bofors and Nexter Systems. Similarly, the US Navy signed a contract worth approximately USD 600 million to provide advanced precision kill weapon system (APKWS) laser-guided rockets. This contract was provided in October 2016 to meet the needs of the US Air Force, US Army, US Navy, US Marine Corps, and to the allied nations.
The smart weapons market is highly fragmented, owing to the presence of a number of players who provide different weapons based on different technologies. Some of the prominent players in the smart weapons market are The Boeing Company, MBDA, L3Harris Technologies Inc., BAE Systems plc, Raytheon Company, and Thales Group. Investments in the development of advanced weapons systems by the manufacturers for precise targeting, and tracking and attacking the target is expected to help them gain a competitive edge over the other competitors. For instance, MBDA is developing a new family of guided weapons, namely, SmartGlider that are designed to improve the air-to-surface capabilities of combat aircraft, like Rafale and Eurofighter Typhoon. This weapon is currently under development and is expected to be available to the armed forces by the end of 2025.
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