Smart Weapons Market size is set to surpass USD 19 billion by 2026, according to a new research report by Global Market Insights Inc. Growth in the market will be propelled by rise in awareness toward reducing friendly or unwanted fire to minimize fatalities.
Miniaturization of weapon navigation technologies will allow these systems to be retrofitted with ammunitions, turning them into smart weapons. Major industry players are engaged in development of these technologies, improving market opportunities.
Cost reduction in converting conventional weapons into smart weapons through retrofit options will boost the market size expansion. For instance, an unguided rocket will cost approximately USD 1,097, which is 10 times less than laser-guided munitions. Highly advanced defense system such as PARAS AGM or ATM or Hellfire will cost around USD 0.5 million. The price difference between modified retrofitted smart weapons and integrated defense systems has improved the demand for smart weapons.
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Technological developments in the smart weapons market
Technological developments have changed the way of conventional warfare and will increase the market penetration. Various countries and major organizations are engaged in the development of new weapon systems capable of precisely hitting the target with no chances of misfire. The integration of these weapon systems with smart vehicles will boost the market demand.
Browse key industry insights spread across 300 pages with 232 market data tables & 25 figures & charts from the report, Smart Weapons Market Size By End-Use (Land, Airborne, Naval), By Weapon Type (Missiles, Munitions, Guided Rockets, Guided Projectiles, Guided Firearms), By Component (Infrared, Laser, Global Positioning Systems (GPS), Radar), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increasing cross-border conflicts to support the acquisition of guided rockets
The rise in cross-border conflicts and terrorist activities amid the ongoing pandemic is creating a sensitive geopolitical situation across the globe. Major countries are actively allocating their defense budget toward the acquisition of guided rockets, influencing the segment to capture more than 7% of the market share by 2026.
Integration of weapon guided technologies to improve operational accuracy
The lasers segment generated over USD 1 billion revenue in 2019 on account of increasing efforts of major industry players to integrate more than one weapon guidance mechanism to improve operational accuracy.
For instance, in February 2020, Raytheon initiated the testing of Excalibur weapons for the U.S. navy, which were capable of intercepting moving targets. The initial phase of the launch was guided through Global Positioning Systems (GPS) followed by laser guidance to improve the accuracy of the impact point.
Regional collaboration in North America to improve arms sale
The North America smart weapons market size is estimated to expand at more than 6% CAGR during the forecast timeframe. Efforts taken by the U.S. government to undergo long-term manufacturing agreements with other countries are driving the market growth. New contracts will reduce the manufacturing cost in the U.S. through outsourcing and supplying the latest technologies to friendly allies, creating a win-win situation.
Entering long-term agreements and integrating new systems to improve market offerings
Major strategies practiced by companies include entering long-term contracts and integrating various weapon navigation & guidance systems to improve target preciseness. For instance, in May 2020, Raytheon received a contract worth USD 10 billion for the development of a Long-Range Standoff Weapon (LRSO) from the U.S. Air Force (USAF). The contract is expected to serve the country until 2030.
Prominent vendors operating in the smart weapons market are Airbus Defence & Space, Aselsan A.S., BAE Systems PLC, Diehl Defence, General Dynamics, Hanwha Corporation, L3Harris, Israel Aerospace Industries Ltd., JSC Concern Vko "Almaz-Antey", Kongsberg Gruppen, Leonardo S.P.A., Lockheed Martin Corporation, MBDA, Northrop Grumman Corporation, Rafael Advanced Defense Systems, Raytheon Company, Rheinmetall AG, Saab AB, Thales Group, and The Boeing Company.