Precision Guided Munition Market Analysis

Precision Guided Munition Market Analysis

Based on system, the precision guided munition market is segmented in infrared, Global Positioning System (GPS), Inertial Navigation System (INS), radar homing, semi-active lasers, anti-radiation and others. The Inertial Navigation System (INS) segment was dominating the market with over USD 10 billion in revenue in 2022. The Inertial Navigation System (INS) technology has advanced, offering high accuracy & reliability, making it crucial for precisely guiding PGMs to their intended targets. The rising complexity of military operations in diverse environments including GPS-denied areas has raised the demand for autonomous & robust navigation solutions provided by Inertial Navigation Systems (INSs).
 

Based on type, the precision guided munition market is segmented into autonomous and semi-autonomous. The semi-autonomous segment held a market share of over 80% in 2022. Semi-autonomous PGMs offer a balance between human control and automation, enhancing precision while maintaining flexibility. This appeals to military forces seeking to minimize civilian casualties and collateral damages. Advancements in artificial intelligence and target recognition technologies have improved the effectiveness of semi-autonomous PGMs. The proliferation of unmanned & autonomous enemy threats such as drones has also spurred the development of PGMs with capabilities such as rapid response and autonomous interceptions.
 

Asia Pacific is witnessing development in the precision guided munition market as the region's escalating geopolitical tensions and territorial disputes have prompted countries to heavily invest in defense modernization including the acquisition of advanced PGMs. The emergence of regional military powers has increased the demand for sophisticated munitions to maintain strategic superiority. In 2023, China's budget for PGMs is over USD 10 billion. The country is developing several new PGM systems including the air-launched anti-ship missile (YJ-18), the land attack cruise missile (YJ-21), and the Hypersonic Glide Vehicle (HGV).