Close-In Weapon Systems (CIWS) Market Size - By Weapon Type, By Technology, By Platform, By Range, By End Use, Share, Growth Forecast, 2025 - 2034

Close-In Weapon Systems Market Size

The global close-in weapon systems market was valued at USD 7.2 billion in 2024 and is estimated to grow at a CAGR of 9.5% from 2025 to 2034. The growth of the close-in weapon systems (CIWS) market is attributed to rising threats from UAVs and missiles and increasing global defense expenditures.
 

The close-in weapon systems market was affected by tariffs imposed by the Trump administration.  The tariffs increased the price of raw materials that are critical for CIWS systems which increased the cost of production and service support. Defense contractors also experienced supply chains disruptions, which delayed the timely execution of contracts for national programs. Retaliatory trade actions by allied countries complicated the trade environment of international defense contractors, restricting market access and co-development opportunities. Trade policy imposed a financial burden on U.S. defense companies that risk undermining their global competitiveness in CIWS offerings and compromised the procurement budgets of domestic and foreign customers.
 

Growing global defense budgets are driving market growth. The Stockholm International Peace Research Institute (SIPRI) estimates global military spending reached USD 2.68 trillion in 2024, up 9.4% over 2023. This growth has led to an increased investment in upgrading armed forces and defense systems in many countries. The larger budgets enable countries to employ new technologies including directed energy weapons and AI based sensor fusion, which continue to drive demand for advanced CIWS systems deployed on land and naval platforms.
 

Furthermore, growth of the close-in weapon systems (CIWS) market is driven by the escalating threats by unmanned aerial vehicles (UAVs) and advanced missile technologies. As these threats are becoming more sophisticated and prevalent, militaries around the world are moving towards the deployment of effective point-defense capabilities that can detect, track, and destroy incoming projectiles at very short range. CIWS provides an essential last line of defense for naval ships, and critical infrastructure, adding survivability against fast, highly maneuvering threats.
 

Close-In Weapon Systems Market Trends

• The CIWS market is shifting towards directed energy weapons such as high energy lasers for low-cost but high-speed threat neutralization. These technologies can provide high accuracy and virtually unlimited ammunition and these are highly appropriate for engaging drone and missile threats. Ongoing trials by the U.S. Navy and other global forces highlight growing confidence in this emerging capability.
   
• This trend is expected to create new opportunities for players as they can focus on development and introduction of new advanced low cost products. This introduction of new products will help them distinguish their product offering and attract new customers.
   
• The modern CIWS is being developed with sophisticated radar and optical sensors to neutralize small UAV threats. The growing use of smaller UAVs in surveillance and attack applications has increased demand for CIWS with effective Counter UAV platforms. Armed forces priorities CIWS that are capable of detecting, tracking and killing UAV threats efficiently and reliably at close ranges.
   

Close-In Weapon Systems Market Analysis

Based on technology, the market is segmented into radar-guided systems and electro-optical/infrared (EO/IR)-guided systems.
 

• The radar-guided systems market in was valued at USD 5.9 billion in 2024. These systems are in widespread use and provide excellent performance in tracking high speed aerial threats, under various environmental conditions. Their capability to operate in all weather and low-visibility conditions make radar-guided CIWS systems an essential part of naval and land-based self-defense systems.
   
• The electro-optical/infrared (EO/IR)-guided systems market is anticipated to grow at a CAGR of 13.7% during the forecast period due to the increasing demand for precision targeting, especially for low-signature threats like drones and stealth missiles. Their passive tracking increase survivability and reduces the amount of electromagnetic/weapons effects decision-making. It makes them ideal for next generation CIWS platforms.
   

Based on platform, the close-in weapon systems market is divided into naval-based CIWS and land-based CIWS.
 

• Naval-based CIWS market led the market with 76.8% market share in 2024 due to the strong proliferation of CIWS on destroyers, frigates and aircraft carriers. The increased threat of anti-ship missiles and swarming drones has prompted global navies to prioritize CIWS integration for shipborne defense. Ongoing naval modernization programs and increasing capabilities in blue-water navies - such as India and China, further support navel-based CIWS growth.
   
• The land-based CIWS market is projected to register a CAGR of 12% during the forecast period due to rising need to defend airbases, command stations or posts, and strategic infrastructure from UAVs, artillery, and rockets. Defense agencies have been forced to implement both fixed and mobile land-based CIWS for rapid-response air defense due to geopolitical instability and asymmetric warfare.
   

Based on weapon type, the close-in weapon systems market is divided into gun-based systems, missile-based systems, laser-based systems, and hybrid systems.
 

• Gun-based market dominated the market with a market share of 52.5% in 2024 due to their operational maturity, high rate of fire, and low-cost engagement capability. Gun-based systems are widely integrated on naval platforms, and they are currently being used in existing CIWS systems, making them the default system to neutralize threats at close range.
   
• Laser-based market are projected to grow at a CAGR of 19.3% because of their precision targeting, low cost per shot, and unlimited ammunition potential. The increased use of high energy laser technology, successful trial deployment, and increasing interest of laser systems for counter-drone and swarm threat environments are driving the adoption of land-based CIWS.
   

Based on range, the close-in weapon systems market is divided into short-range (2 km), medium-range (2–10 km), and extended range (>10 km).
 

• Short-range (2 km) market held a market share of 61% in 2024. As traditional CIWS platforms are to provide ultra-close defense. This is critical to destroying fast, low-altitude threats where outer air-defense layers have failed. Short-range CIWS have compact designs and respond quickly, making them convenient for navy applications or fixed-base installations.
   
• Extended range (>10 km) market is projected to grow at a CAGR of 16.2% during the forecast period because of the rising threat of advanced cruise and hypersonic missiles. Defense planners seek to intercept threats earlier, allowing for more reaction time and greater capabilities for defense systems. There is a growing demand for long-range CIWS systems that are integrated with high-performance sensors and precision-guided interceptors.
   

Based on end user, the close-in weapon systems market is segmented into naval forces (navy) and ground forces.
 

• The naval forces market dominates the market with a market share of 74.9% in 2024. Driven by widespread CIWS integration on warships to counter missile and UAV threats. Rising maritime conflicts and fleet modernization efforts worldwide are sustaining demand. CIWS are considered vital for shipborne defense, providing last-layer protection against fast-approaching airborne threats.
   
• The ground forces market is projected to reach USD 6.2 billion by 2034 because of increasing threats from drones, rockets, and artillery. As asymmetric warfare continues to grow militaries are deploying land-based close in weapon systems to defend bases and strategic infrastructure. Portable and fixed configurations are increasingly deployed in active conflict zones and border regions.
   

• The U.S. close-in weapon systems market was valued at USD 2.4 billion in 2024. The U.S. leads the market due to continued investments in naval modernization and counter-UAV programs. The U.S. Navy is continuing to upgrade survivability of its fleet platform and layered missile defense. The advancements in capability through the integration of directed energy systems and AI-enabled threat detection is further enhancing U.S. capabilities, reinforcing its global leadership in this market.
   
• The Germany close-in weapon systems market is projected to grow at a CAGR of 10.3% because of higher defense spending and regional security commitments in NATO. The country is actively modernizing its naval and land-based platforms with next-generation close-range defense systems. Germany's drive for defense autonomy and purchase of next-gen CIWS as part of the European defense framework is further accelerate market growth.
   
• The China CIWS market is expected to grow at a CAGR of 10.5% during the forecast period owing to aggressive naval expansion and regional tensions in the Indo-Pacific. The Chinese Navy is rapidly commissioning vessels equipped with advanced CIWS platforms including experimental laser-based systems. The increasing focus on domestic innovation and self-reliance in defense base in China, is facilitating modernization of short-range air defense on a scale.
   
• India close-in weapon systems market is projected to reach USD 1.3 billion by 2034., due to the threat from UAVs and cross-border missile systems continues to grow. Ongoing procurement of naval and land-based defense assets, combined with “Make in India” initiatives is boosting the indigenous CIWS development. As part of its military modernization, India is enhancing point defense capabilities to protect key assets and critical infrastructure.
   
• The UAE close-in weapon systems market was accounted for USD 140.9 million in 2024 due to its strategic investment in point defense to respond to regional missile and drone threats. The nation continues to boost air defense coverage of key infrastructure, ports, and naval vessels. Robust defense partnerships with Western vendors and focus on cutting-edge laser-based systems are making the UAE a key CIWS adopter in the Gulf.
   
• The CIWS market of Saudi Arabia is expected to grow at a CAGR of 10.2% through the forecast period, due to investment in defense infrastructure and maritime security. Fleet modernization, along with threats from regional missile/transitory drone threats accelerate demand for CIWS on ships and CIWS for base-security systems. Under Vision 2030, procurement from U.S. and European OEMs enables technology transfer in addition to support in capability enhancement.
   
• The close-in weapon systems market in South Africa is expected to reach USD 199.6 million by 2034 as the South African Navy have increased a modernization process and an increased emphasis on coastal defense. Upgrades to the Valour-class frigates; the interest in affordable, land-based CIWS will drive growth. Challenges of regional budget slows large-scale procurement; however maritime security challenges and regional instability are driving interest in investing in short-range air defense capabilities.
   

Close-In Weapon Systems Market Share

The close-in weapon systems (CIWS) market is moderately consolidated with the existence of well-established global defense giants and regional competitors. The top 4 companies in the market are the Lockheed Martin Corporation, Rheinmetall, Thales, and RTX Corporation, which dominate the market with a 54.6% market share. Their dominance is attributed to long-standing government contracts, platform capabilities, and multiple investments in radar, missiles and directed-energy technologies.
 

The competition is further fueled by innovation in multi-domain interoperability, counter-drone technology, and automation. While defense companies in the West dominate mature markets, new entrants from the Middle East and Asia are gaining market share through localized production and cost-effective systems. Strategic partnerships and defense export programs are also intensifying international competition.
 

Close-In Weapon Systems Market Companies

The top 4 companies operating in the close-in weapon systems (CIWS) industry are:

• Lockheed Martin Corporation
• Rheinmetall AG
• Thales Group
• RTX Corporation 
   

Lockheed Martin is the leading CIWS player, based on its rich legacy of missile defense and naval system expertise. It is the industry leader in building next-generation CIWS solutions, such as laser systems like HELIOS, for inclusion in the U.S. Navy's Aegis combat system. Lockheed's advantage is its capability to integrate multi-layered defense capabilities across platforms, backed by deep government connections and sophisticated R&D capabilities.
 

Rheinmetall AG has a significant foothold in the CIWS market through its Oerlikon product series, specifically the Skynex system, that provides modularity and high-rate gun-based intercepts. The firm is committed to meeting the emerging threat of unmanned aerial systems and precision-guided weapons, particularly in European and Middle East defense markets. Its capability to provide scalable and deployable air defense capabilities improves its attractiveness in both maritime and terrestrial CIWS markets.
 

Close-In Weapon Systems Industry News

• In May 2024, Saab, the Swedish defense and security company, is significantly expanding its presence in the United States with the construction of a new advanced munitions production facility in Grayling, Michigan.
   
• In March 2024, Larsen & Toubro Ltd., a supplier of infrastructure, Engineering and Defence announced that it signed a contract for the supply of Close-In weapon systems (CIWS) which are indigenously developed, to the Indian Air Force. The CIWS is planned for deployment at various locations across the country provide protection for assets from low signature and low flying aerial threats, including UAVs.
   
• In October 2022, Nexter and Thales have launched the redesigned RAPIDFire turret, a next generation, remotely operated naval and land artillery capability. The RAPIDFire system is designed to provide close-in self-defense from air and surface threats including drones, drone swarms, loitering munitions, fast attack craft, helicopters, missiles and fighter jets, up to 4,000 meters.
   

This close-in weapon systems market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Weapon Type

• Gun-based systems
• Missile-based systems
• Laser-based systems
• Hybrid systems

Market, By Technology

• Radar-guided systems
• Electro-optical/infrared (EO/IR)-guided systems

Market, By Platform

• Naval-based CIWS
• Land-based CIWS

Market, By Range

• Short-range (2 km)
• Medium-range (2–10 km)
• Extended range (>10 km)

Market, By End Use

• naval forces (Navy)
• ground forces

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa