Smart Weapons Market By Weapon Type (Guided Missiles, Precision-Guided Ammunition, Smart Bombs, Smart Projectiles), By Application (Air-to-Surface, Surface-to-Air, Air-to-Air, Land-based, Naval-based), By Technology (GPS Guidance, Laser Guidance, Infrared Guidance, Radar Guidance), By End-User (Military Forces, Defense Contractors, Government), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Smart Weapons Market was valued at USD 13.6 billion in 2024-e and will surpass USD 23.2 billion by 2030; growing at a CAGR of 9.3% during 2025 - 2030.

The smart weapons market is rapidly expanding as military forces across the globe increasingly adopt precision-guided munitions to enhance combat efficiency, accuracy, and effectiveness. Smart weapons integrate advanced technologies like GPS, laser, infrared, and radar guidance systems to deliver high precision in target engagement. These systems not only minimize collateral damage but also ensure that military objectives are met with greater efficiency. As a result, there is growing demand for smart weapons in various military applications, including air-to-surface, surface-to-air, and naval-based engagements, among others.

The continuous advancement of technology is driving the market, with key developments in miniaturization, guidance systems, and weaponry design. The integration of AI and machine learning into weapon systems has further revolutionized their operational capabilities, allowing for more autonomous and faster decision-making. The market is also benefiting from the increasing focus on military modernization and the adoption of advanced defense systems by emerging and established military powers.

Guided Missiles Are Largest Weapon Type Owing to Strategic Importance in Modern Warfare

Guided missiles are the largest weapon type in the smart weapons market due to their strategic importance in modern warfare. These missiles are equipped with advanced guidance systems, such as GPS, infrared, and radar, which ensure their precision and high-impact capabilities. Guided missiles can be used in a wide range of military operations, including air-to-air, air-to-surface, and surface-to-air engagements, providing superior accuracy and effectiveness in both offensive and defensive combat.

The global demand for guided missiles has surged as military forces prioritize long-range capabilities, precision targeting, and minimizing collateral damage. Their ability to strike high-value targets with exceptional accuracy makes them indispensable for modern military operations. As countries around the world continue to focus on enhancing their missile defense systems and strike capabilities, guided missiles will remain a dominant force in the smart weapons market.

Precision-Guided Ammunition Is Fastest Growing Weapon Type Due to Enhanced Accuracy and Versatility

Precision-guided ammunition (PGA) is the fastest growing weapon type in the smart weapons market, driven by its ability to deliver exceptional accuracy and versatility in a variety of military applications. PGAs, such as guided bullets and shells, utilize advanced guidance technologies like GPS and laser guidance systems to hit targets with high precision, reducing the risk of collateral damage and increasing operational efficiency. These weapons are used across different platforms, including land-based systems, naval vessels, and aircraft.

The demand for precision-guided ammunition is increasing due to its compact size, cost-effectiveness, and ability to be deployed in a variety of scenarios. As military forces seek to improve operational capabilities in urban warfare, counterterrorism, and peacekeeping operations, PGAs are gaining prominence. Their adaptability to various weapon platforms and the growing emphasis on accuracy and minimized damage contribute to the rapid growth of this segment.

Air-to-Surface Applications Are Largest Owing to High Demand for Strike Capabilities

Air-to-surface applications are the largest segment in the smart weapons market, driven by the high demand for precision strike capabilities in military operations. Air-to-surface weapons, such as guided missiles and smart bombs, are designed to engage targets on the ground from aircraft, providing military forces with the ability to target enemy positions, infrastructure, and high-value assets with high precision. These weapons are critical in both offensive and defensive strategies, particularly in modern warfare where speed and accuracy are paramount.

The strategic advantage offered by air-to-surface applications, including the ability to engage distant or difficult-to-reach targets, has made them a cornerstone of military air forces. As military technology continues to evolve, air-to-surface weapons will continue to play a pivotal role in shaping defense strategies, with increasing reliance on precision-guided systems that ensure successful mission outcomes with minimal unintended effects.

Military Forces Are Largest End-User Due to Widespread Adoption in Defense Operations

Military forces are the largest end-users in the smart weapons market, as these technologies are critical to enhancing defense operations and maintaining superiority in combat. Armed forces worldwide are increasingly adopting smart weapons as part of their modernization efforts, ensuring that their operations are more efficient, precise, and less prone to collateral damage. The advanced guidance systems integrated into these weapons allow military forces to conduct a wide range of missions, including air, land, and naval-based operations, with a high degree of success.

The growing global defense budgets, particularly in countries such as the United States, China, and Russia, have accelerated the development and procurement of smart weapons. Military forces are investing heavily in these technologies to enhance the capabilities of their armed forces, improve operational readiness, and reduce the risks associated with conventional weapon systems. As the need for advanced weapons systems continues to rise, military forces will remain the largest end-user of smart weapons.

North America Is Largest Region Owing to Robust Military Spending and Technological Leadership

North America is the largest region in the smart weapons market, owing to its robust military spending and technological leadership in defense systems. The United States, in particular, has a significant share of the global market, with substantial investments in the development and deployment of smart weapons for both offensive and defensive purposes. The region’s defense contractors, such as Lockheed Martin, Raytheon, and Northrop Grumman, are leading the way in designing and manufacturing advanced weapon systems that incorporate cutting-edge guidance technologies.

North America’s dominance in the smart weapons market is also attributed to the growing adoption of precision-guided munitions by the U.S. military and its allies. With ongoing advancements in missile defense systems and the increasing focus on counterterrorism operations, the region is expected to continue leading the global market for smart weapons. The strong defense infrastructure, coupled with continued innovation, ensures that North America remains the largest regional market for smart weapons.

Leading Companies and Competitive Landscape

The smart weapons market is highly competitive, with several leading companies spearheading innovations in precision-guided technologies and weapon systems. Key players in the market include Lockheed Martin, Raytheon Technologies, Northrop Grumman, BAE Systems, and Thales Group, all of which have established themselves as leaders in the development of smart weapons for military applications. These companies are focused on enhancing the precision, versatility, and efficiency of their products through continuous research and development.

The competitive landscape is characterized by ongoing advancements in guidance technologies, such as GPS, laser, and radar, which are integral to the performance of smart weapons. Companies are investing heavily in the development of next-generation smart weapons that are more compact, cost-effective, and capable of being integrated into a variety of platforms, including unmanned aerial vehicles (UAVs) and land-based systems. Strategic partnerships and collaborations between defense contractors and military agencies are common, allowing companies to stay competitive and expand their market reach. As defense forces increasingly prioritize precision and operational efficiency, the competitive landscape will continue to evolve, with companies striving to meet the growing demand for advanced smart weapons.

List of Leading Companies:

• Lockheed Martin
• Raytheon Technologies
• BAE Systems
• Northrop Grumman
• General Dynamics
• Thales Group
• Leonardo S.p.A.
• Saab AB
• MBDA
• Elbit Systems
• L3Harris Technologies
• Textron Inc.
• Honeywell International Inc.
• Rafael Advanced Defense Systems
• Indra Sistemas

Recent Developments:

• In December 2024, Lockheed Martin announced the successful testing of its next-generation precision-guided missile, capable of targeting multiple threats simultaneously.
• In November 2024, Raytheon Technologies unveiled a new infrared guidance system for smart bombs, improving accuracy and reducing collateral damage.
• In October 2024, MBDA expanded its product line with a new class of surface-to-air missiles featuring enhanced radar guidance for greater range and precision.
• In September 2024, Northrop Grumman introduced a new laser-guided missile system for air-to-surface strikes, providing improved targeting in challenging environments.
• In August 2024, BAE Systems announced a collaboration with Rafael Advanced Defense Systems to develop an integrated smart weapon system for naval applications.

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