Precision Guided Munitions Market size worth over $45 Bn by 2026
Published Date: March 28, 2020 Authors: Ankita Bhutani, Preeti Wadhwani
Precision Guided Munitions Market size is set to surpass USD 45 billion by 2026, according to a new research report by Global Market Insights, Inc.
The rising defense budget allocation toward the procurement of ammunition is fueling the precision guided munition industry growth. Countries across the globe are engaged in upgrading their existing ammunition capabilities in order to safeguard their borders.
Increasing number of Missile Technology Control Regime (MTCR) countries
Increasing number of countries participating in MTCR will propel the precision guided munition market demand. MTCR is a non-government informal political understanding between 35 countries. The multilateral export control regime of MTCR allows technological proliferation across countries, positively driving the market.
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Browse key industry insights spread across 250 pages with 313 market data tables and 30 figures & charts from the report, “Precision Guided Munition Market Size By Munition Type (Tactical Missiles, Guided Rockets, Guided Ammunition, Loitering Munition), By System (Infrared, Global Positioning System (GPS), Inertial Navigation System (INS), Radar Homing, Semi-active Lasers, Anti-radiation), By Type (Autonomous, Semi-autonomous), By End-use (Airborne, Land-Based, Naval), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Presence of major defense manufacturers in North America
North America precision guided munitions market captured more than 25% revenue share in 2019 and is projected to expand at 8% CAGR through 2026. Number of market players present in North America is one of the major factors driving the regional market growth. Five out of top ten global defense players including Lockheed Martin, General Dynamics, BAE Systems, Boeing, and Raytheon have headquarters in the U.S. These market players extensively invest in R&D.
Versatile scope of application promoting INS
The Inertial Navigation System (INS) segment size surpassed USD 7.5 billion in 2019. INS used the concept of dead reckoning along with the integration of various sensors and mechanical components. This makes INS most accurate, versatile, and easy to operate navigational systems. INS has found its application in numerous ammunitions including guided rockets and tactical missiles.
Technological advancement in precision guided munitions
Various precision guided munitions market players are investing in R&D activities to improve operational capabilities of precision guided munitions. This will allow companies to improve their market share and promote market opportunities. For instance, Defense Advanced Research Projects Agency (DARPA) signed a contract with BAE Systems worth USD 3.1 million for the development and demonstration of optical seeker for precision guided munitions under Seeker Cost Transformation (SECTR) program. The program concluded in July 2019 with multiple test fire.
Demand to replace aging ammunition systems in MEA
The MEA market valued at more than USD 4 billion in 2019 and is anticipated to witness growth of over 7% from 2020 to 2026. The growth can be attributed to efforts taken by the governments of Gulf countries toward modification and advancements of their existing weapon systems.
Some of the key players operating in the precision guided munitions market include Aerojet Rocketdyne, Bharat Dynamics Ltd., Elbit Systems, General Dynamics Corporation, Hanwha Corporation, Israel Aerospace Industries, Kongsberg, L3Harris, Leonardo S.p.A., Lockheed Martin, MBDA, Northrop Grumman Corporation, Raytheon Company, Rheinmetall AG, Saab AB, Thales Group, The Boeing Co., BAE Systems, KBP Instrument Design Bureau, China North Industries Corporation (Norinco), Denel Dynamics, LIG Nex 1, and Roketsan A.S.
Increasing investments for the development of advanced precision guided munition created a positive market outlook. Industry players are engaged in delivering customized solution as per client requirement. This helps to build long-standing relationship among customers with the enhancement in revenue share.
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