The global smart weapons market size is expected to showcase exponential growth by reaching USD 30.12 billion by 2028. This information is published by Fortune Business Insights in its latest report, titled, “Smart Weapons Market, 2021-2028.” The report further mentions that the market stood at USD 17.17 billion in 2020 and is projected to exhibit a CAGR of 8.02% between 2021 and 2028. Factors such the increasing defense budget that is propelling countries to upgrade their military and the increasing focus on introducing advanced smart weapons are expected to boost the market’s growth in the forthcoming years.
- For instance, in February 2021, Rafael Advanced Defense Systems Ltd, the Israel-based weapons manufacturer, introduced a new member of the air-to-surface munition family, SPICE 250ER that is equipped with an integrated turbojet engine at the Aero India exhibition, Bengaluru, India.
COVID-19 Impact: Resumption of Military Programs and Defense Investment to Mitigate Brief Lull
The COVID-19 that swung in full face in 2020 brought to standstill several economies. The lockdown announced by the global government agencies further led to a seismic effect on the production and operation of several industries. The defense sector too witnessed the large-scale effects of the global pandemic that either delayed or postponed several military projects. However, after the lockdown was lifted in a phased manner the economy seems to be crawling back to normalcy. Several defense programs are being resumed and countries are investing in weapon modernization programs. For instance, in February 2021, the U.S. military announced its investment to procure THOR prototype system, an energy beam system primarily designed to zap drones hovering in the sky.
Based on product, the market is categorized into Missiles, Munitions, Guided Projectile, Guided Rocket, and Directed Energy Weapons. On the basis of platform, the market is segmented into Air, Land, and Naval.
- Based on the platform, the land segment is anticipated to experience considerable growth backed by the increasing expenditure on defense by the military worldwide.
Based on technology, the market is divided into Laser Guidance, Infrared Guidance, Radar Guidance, Satellite Guidance, and Others. Lastly, on the basis of region, the market is segregated into Rest of the World, North America, Europe, and Asia-Pacific.
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What does the Report Include?
The global market report provides analysis of the market while focusing on key aspects such as smart weapons product, platform, key players, and technology. Furthermore, the report offers in-depth insights on market trends, market competition, market status, competitive landscape, product pricing, and highlights key industry developments. Additionally, the report includes several direct and indirect factors that are likely to contribute to the growth of the market between 2021 and 2028.
Increasing Defense Budget Worldwide to Augment Growth
According to the Stockholm International Peace Research Institute (SIPRI), the United States allotted an overall defense budget worth USD 732 billion in 2020 with an aim to upgrade its military might. Likewise, other countries have increased their defense budgets as the growing focus to include advanced weapon systems in the repository to avert external threats is likely to boost the product’s adoption across the globe. Moreover, the increasing demand for next generation advanced weapons is expected to boost the global smart weapons market growth in the forthcoming years.
North America – The region stood at USD 5.79 billion in 2020 and is expected to hold the largest global smart weapons market share in the forthcoming years. This is attributable to the presence of major companies such as Lockheed Martin Corporation, General Dynamics Corporation, Boeing company, and Northrop Grumman Corporation that are involved in development of advanced weaponry systems in the region.
Asia-Pacific – The market in the region is anticipated to showcase significant growth backed by the increasing investment in the defense sector that is likely to propel the adoption of this type of weapons in the region between 2021 and 2028.
Increasing Investment in R&D Activities by Major Companies to Brighten Their Market Prospects
The market is consolidated by the presence of major companies and other established original equipment manufacturers (OEMs). They are proactively focusing on investing in developing advanced weapons technology to cater to the growing demand from defense authorities globally. Moreover, other key players are adopting strategies such as collaborations and partnerships to maintain their presence in the highly competitive global marketplace in the forthcoming years.
- January 2021 - Defense Research and Development Organization (DRDO), India successfully conducted a trial of the newly developed Smart Anti-Airfield Weapon (SAAW). The system, according to the officials, was equipped on the Hawk-I jet manufactured by the Hindustan Aeronautics Limited (HAL).
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List of the Companies Profiled in the Global Market:
- BAE Systems (The U.K)
- Lockheed Martin Corporation (The U.S.)
- Thales Group (France)
- Northrop Grumman Corporation (The U.S.)
- General Dynamics Corporation (The U.S.)
- Raytheon Company, a Raytheon Technologies company (The U.S.)
- MBDA (France)
- Boeing (The U.S.)
- Textron Inc. (The U.S.)
- Rheinmetall AG (Germany)