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Smart Weapons Market Size - By Product, By Technology, By Platform and Forecast, 2025 - 2034
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Smart Weapons Market
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Premium Report Details
Base Year: 2024
Companies covered: 15
Tables & Figures: 220
Countries covered: 18
Pages: 190
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Smart Weapons Market Size
The global smart weapons market was valued at USD 19.5 billion in 2024 and is estimated to grow at a CAGR of 6.3% from 2025 to 2034.
The defense budgets of major global powers are increasing, driving the development of military technologies, including smart weapons. These budget increases support the modernization of military capabilities, address emerging threats, and enhance tactical advantages. Countries are investing in high-precision and network-enabled weapons to strengthen their military capabilities. The demand for advanced guidance systems, multi-effects warheads, and all-weather operational capabilities has led to investments in weapons. This trend demonstrates how increased military spending supports both the procurement and development of advanced weapon systems for various operational needs.
For instance, the U.S. Air Force awarded Raytheon, an RTX business, a $345 million contract to produce and deliver over 1,500 StormBreaker smart weapons. This network-enabled air-to-surface weapon engages moving targets in all weather conditions. StormBreaker is currently operational on the F-15E Strike Eagle and F/A-18E/F Super Hornet platforms. In 2023, it underwent 28 test drops, with ongoing testing for F-35 variants, demonstrating how defense spending enables technological advancement.
Global geopolitical tensions, including territorial disputes, border conflicts, and military standoffs, have led nations to strengthen their defense capabilities. Precision weapons have become essential in modern warfare due to their accuracy, reduced collateral damage, and capability to neutralize specific targets. Nations seek to maintain military advantages while following international regulations on minimizing civilian casualties. The demand for these weapons has increased due to their effectiveness in asymmetric warfare and integration with networked platforms that enhance battlefield decision-making. Regional power competition has made precision-guided munitions a key defense investment priority. This is particularly evident in the Asia-Pacific region, Middle East, and Eastern Europe, where ongoing conflicts and defense partnerships influence military procurement. Precision weapons are now central to military modernization efforts as nations respond to emerging security challenges.
Smart Weapons Market Trends
The increasing presence of unmanned aerial systems (UAS) in warfare has driven the demand for smart weapons designed for counter-UAS (C-UAS) operations. These weapons incorporate guidance and fuzing technologies that deliver high precision and minimize collateral damage. Military forces seek these cost-effective solutions as they reduce munition consumption while maintaining operational effectiveness. The development of platform-agnostic systems allows integration across multiple platforms to address various combat situations. For instance, L3Harris demonstrates this trend through its contract to provide over 4,000 fuzes for C-UAS operations. The company's technology converts Hydra 70 rockets with APKWS guidance kits into efficient C-UAS weapons. These platform-agnostic fuzes are compatible with all Hydra 70 launchers, including L3Harris' VAMPIRE system. The company continues to develop an improved proximity fuze version with expanded modes and safety capabilities, supporting the military's need for effective smart weapons that meet evolving mission demands.
The global defense industry is experiencing an increase in international collaborations for the development and production of advanced smart weapons. These partnerships allow countries to strengthen their domestic manufacturing capabilities while accessing advanced technologies from international defense companies. Nations are working to decrease their reliance on imports through joint ventures and technology transfers that support their domestic defense programs. This approach is particularly evident in emerging markets like India, where domestic manufacturing policies encourage international defense firms to partner with local manufacturers, strengthening the country's defense manufacturing capabilities. For instance, UAE's EDGE Group's proposal to collaborate with India for local production of AL TARIQ smart weapons demonstrates this trend. This partnership aims to enhance India's domestic defense capabilities while utilizing EDGE Group's smart weapons expertise. The collaboration supports India's objectives of expanding its defense manufacturing base. These partnerships represent the industry's shift toward international cooperation to address regional and global security requirements effectively.
Smart Weapons Market Analysis
The smart weapons industry faces constraints due to integration challenges with existing platforms and operational difficulties in varied combat environments. Defense modernization initiatives and growing demand for counter-UAS capabilities and precision targeting systems present market opportunities. Export controls and international compliance requirements significantly influence market operations. Government policies promoting local production and technology transfer agreements enable collaborative development while maintaining safety and security standards in smart weapons deployment.
Based on platform, the market is segmented into air, land, naval. In 2024, the land segment accounted for the largest market share with 50.4% share.
The land segment in the smart weapons market is primarily driven by the increasing demand for advanced military technologies for ground-based defense systems. These include precision-guided munitions (PGMs), smart bombs, and smart artillery systems, which enhance accuracy and effectiveness in combat. Integration of AI and machine learning technologies also plays a significant role in improving the operational capabilities of these systems, enabling them to make real-time decisions based on battlefield data.
The adoption of smart weapons in land platforms offers enhanced tactical advantage, allowing for greater precision while minimizing collateral damage. These systems are widely used in defense sectors for counterinsurgency operations, border security, and military engagements, particularly in complex terrains. Furthermore, with evolving threats and modern warfare strategies, there is a growing emphasis on developing versatile and highly automated weapons system.
Based on technology, the market is divided into laser, radar, GPS, infrared, wire-guided. The radar segment is the fastest-growing segment with a CAGR of 7.2% during the forecast period.
Radar technology in the smart weapons market plays a crucial role in enhancing the targeting and operational capabilities of advanced weapon systems. It enables precise detection, tracking, and targeting of threats, even in challenging environments such as low visibility or adverse weather conditions. Radar is integrated into various smart weapons, including guided missiles, air defense systems, and artillery, providing real-time situational awareness for accurate engagement. Its advanced capabilities, such as phased-array radar, allow for faster processing and multi-target tracking, crucial for modern warfare.
Radar technology also aids in countermeasure development, where it is used to detect and neutralize enemy radar and missile threats, forming part of the broader electronic warfare strategy. The evolution of radar technology, with improvements in resolution, range, and signal processing, is directly contributing to more reliable, efficient, and responsive smart weapons. Additionally, the integration of radar systems with artificial intelligence enhances decision-making, enabling automated targeting and faster response times in dynamic combat situations.
North America is expected to reach over USD 12.5 million by 2034. North America plays an important role in the smart weapons market, with the United States being the primary contributor through substantial investments in advanced weaponry development. The U.S. military prioritizes the integration of precision-guided munitions and smart targeting systems, as demonstrated by programs such as the Joint Direct Attack Munition (JDAM). The procurement of network-enabled weapons reflects the military's modernization efforts. The region's market growth is further supported by investments in counter-UAS technologies and strategic collaborations with defense manufacturers.
China is enhancing its smart weapons capabilities through investments in artificial intelligence and autonomous weapon systems. The country prioritizes the development of precision-guided munitions, including air-to-surface and anti-ship weapons, to strengthen its defense capabilities. The People's Liberation Army (PLA) is integrating smart weapons into land, air, and naval platforms as part of its modernization efforts. The combination of domestic production capabilities and government support for defense technology drives the development and deployment of smart weapons across operational domains.
Germany's smart weapons market reflects its commitment to modernizing defense systems in alignment with NATO requirements and European security needs. The country focuses on precision-guided munitions, including advanced missile systems and air-to-ground weapons, to improve military readiness. Its smart weapons portfolio benefits from collaborative programs with European allies, including missile co-development and technology-sharing initiatives. Germany maintains strict compliance with international regulations in the deployment of advanced weapons within its armed forces.
Japan's smart weapons development supports its self-defense capabilities and regional security objectives. The country invests in precision-guided munitions and advanced missile systems to counter emerging threats, particularly in maritime and aerial domains. The growth of smart weapons is driven by the modernization of Self-Defense Forces' equipment and enhanced domestic manufacturing capabilities. Japan maintains technology-sharing agreements with allies, particularly the United States, to develop weapon systems aligned with its strategic requirements.
South Korea is expanding its smart weapons portfolio through comprehensive defense modernization plans. The country develops precision-guided systems, including advanced missiles and artillery, to enhance its deterrence capabilities against regional threats. South Korea demonstrates its commitment to modern defense strategy through investments in autonomous and network-enabled weapons. The development of smart weapon systems suited to South Korea's operational needs is supported by international defense company partnerships and domestic production capabilities.
Smart Weapons Market Share
L3Harris Technologies Inc. develops radar and communication systems, providing weapons solutions that improve targeting and defense capabilities. The company integrates AI and machine learning into its systems to enhance operational efficiency and decision-making in combat scenarios. Leonardo S.p.A. manufactures defense technologies, including radar systems and precision-guided munitions. Their systems improve situational awareness and strike accuracy for land, air, and naval platforms. Lockheed Martin Corporation produces weaponry, including missile defense systems and precision strike capabilities, incorporating radar and sensor technologies to support weapon operations across multiple platforms.
Smart Weapons Market Companies
Major players operating in the smart weapons industry are:
Smart Weapons Industry News
This smart weapons market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2034, for the following segments:
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Market, By Product
Market, By Technology
Market, By Platform
The above information is provided for the following regions and countries: