Smart Bullets Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2152
Smart Bullets Market size is anticipated to witness a surge in demand due to growing security concerns resulted by the rise in terrorist organizations and events. In the recent years, arms race has been observed among several countries including India, Pakistan and China that is further projected to boost industry demand.
Smart weapons are missiles and bombs that are known for their accuracy and are directed by lasers and other prominent means. Given the need of these weapons in warfare, product demand is anticipated to increase over the forecast period. In addition, high demand for the weapons is attributable to the competitive advantages providing accurate, reliable first short and quick hit capability coupled with overall reduction in the logistics carrying cost.
As per Stockholm International Peace Research Institute (SIPRI), the U.S., China, India, Saudi Arabia and Russia are the key countries having maximum expenditure in the overall smart bullets market. In 2017, the U.S. government boosted their defense system by spending over USD 611.2 billion, in order to help the law enforcement to keep the terrorists out of the country. Even the Indian government announced to increase their defense budget over 6.2%. This budget comprises the purchase of new weapons, aircrafts, equipment, naval warships and army vehicles.
Increasing demand for powerful striking power and efficient defense system along with enhanced efficiency of weapon navigation technologies will foster product penetration. Moreover, stringent government protocols aimed at reducing global arms transfer and to maintaining peace are key driving factors for the global smart bullets market growth.
Key restraint associated with smart bullets market is the soaring prices of advanced weapons. However, technological advancement along with growing product demand is projected to reduce the cost of smart weaponries during the forecast timeframe.
On the basis of product types, self-guided products are increasing becoming well recognized in the global defense industry. Superior features including tracking the target path, changes in the speed, automatic data transfer are key factors supporting product penetration. Furthermore, the product come with various advantages including improved fatality with aim point range. They are even active against moving targets. Thus, boosting the overall smart bullets market growth.
Based on the end user, airborne is the fastest growing segment in the overall smart bullets market amongst other classifications including land and naval defense. This steady growth of the segment is credited to the emergence of latest weaponry technologies including Unmanned Combat Aerial Vehicle (UCAVs). The technology is becoming an innovative and low-cost alternative to conventional airborne attack platforms, fueling the expansion of global smart bullets market.
Military agencies and missile suppliers are heavily investing in improving the capabilities of small bombs that are fired from unmanned aerial vehicles (UAVs) owing to shifting conventional approaches for carrying out air-to-surface missile attacks. Development of small missiles that is supported by the miniaturization of improved guidance technology will encourage several organizations to invest in the procurement of these missiles. Thereby, subsequently fueling the growth of the smart bullets market size.
North America leads the global smart bullets market due to increasing focus of the U.S. administration towards the integration of technologically improved weapons into its defense list. Moreover, the U.S. government is even a crucial customer in North America as well on a global level.
Asia Pacific is expected to witness fastest industry growth by 2024 owing to increase in investments by various countries for advanced weaponry. Additionally, continuous conflicts in countries including China, India, Ukraine, Lebanon, Afghanistan and Pakistan is another major factor positively impacting the demand as well as the growth of the global smart bullets market.
Global smart bullets market is a highly consolidated market as majority of the top players held together over 60% of the market share in 2016. Several players are gradually focusing on product innovation and technological upgradation in the current offerings to enhance their business foothold. High competition within the industry is expected to strengthen further over the forecast timeframe.
Some of the dominating smart bullets market players include Raytheon, Lockheed Martin, Dassault Aviation, BAE Systems, Taser International and General Dynamics. Other prominent players are Northrop Grumman, Textron Defense Systems, Thales Group, Harris Corporation and Boeing Corporation.
In February 2017, Lockheed Martin partnered with Raytheon in a progressive effort to manufacture a military surface ship defense with medium caliber smart bullets that offers U.S. Navy vessels to ward off overrun attacks from missiles, fast attack boats and aircraft. It will be helpful in bearing down the attacks from different directions at once.
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