Cruise Missile Market - Global Forecast 2025-2032

The cruise missile market is undergoing rapid transformation, driven by evolving technological demands and shifting defense strategies. As leading militaries prioritize flexibility, reach, and strategic influence, cruise missile systems have become central to modern operations.

Market Snapshot: Cruise Missile Market Size and Growth Outlook

The cruise missile market grew from USD 4.16 billion in 2024 to USD 4.44 billion in 2025. It is expected to continue expanding at a CAGR of 6.94%, reaching USD 7.12 billion by 2032. This growth reflects robust demand for advanced guided munitions worldwide as nations adapt to rising security imperatives and seek adaptive, precision-guided solutions.

Scope & Segmentation: Detailed View of Market Structure

• Propulsion Type: Liquid fuel, ramjet, solid fuel, turbojet
• Platform: Air-launched, ground-launched (including fixed and mobile systems), ship-launched, submarine-launched
• Range: Long range, medium range, short range
• Guidance System: GPS-INS, infrared, laser, radar, terrain contour matching
• Speed: Hypersonic, subsonic, supersonic
• Warhead Type: Conventional, nuclear
• Application: Air force, army, navy
• Regions: Americas (North America—United States, Canada, Mexico; Latin America—Brazil, Argentina, Chile, Colombia, Peru), Europe, Middle East & Africa (United Kingdom, Germany, France, Russia, Italy, Spain, Netherlands, Sweden, Poland, Switzerland, United Arab Emirates, Saudi Arabia, Qatar, Turkey, Israel, South Africa, Nigeria, Egypt, Kenya), Asia-Pacific (China, India, Japan, Australia, South Korea, Indonesia, Thailand, Malaysia, Singapore, Taiwan)
• Key Industry Players: Raytheon Technologies Corporation, Lockheed Martin Corporation, The Boeing Company, MBDA SAS, Northrop Grumman Corporation, Saab AB, Israel Aerospace Industries Ltd., Kongsberg Defence & Aerospace AS, Rafael Advanced Defense Systems Ltd., Tactical Missiles Corporation JSC

Cruise Missile Market: Key Takeaways for Decision Makers

• Technological innovation in propulsion, guidance, and low-observable design is reshaping operational doctrine, enhancing range, precision, and survivability.
• Modular designs and digital connectivity enable real-time adaptation, allowing nations to rapidly update payloads and mission parameters for emerging threats.
• Integration of AI and machine learning boosts target acquisition performance and mitigates collateral impact, supporting more complex missions.
• Defense collaborations and joint R&D across countries encourage standardization, faster deployment, and cross-platform interoperability.
• Robust supply chain strategies and regional production are increasingly crucial to overcoming procurement delays and regulatory changes.
• Competitive dynamics favor vertically integrated companies with control across subsystems, warhead adaptation, and advanced software-defined weapon capabilities.

Tariff Impact: United States Market Changes and Their Ripple Effects

Tariff adjustments implemented by the United States in 2025 have materially altered the competitive and operational landscape. Adjustments affecting key components such as composites, advanced propulsion, and specialized electronics have increased the focus on domestic sourcing and regional partnerships. Companies are optimizing procurement pipelines, building alliances with local manufacturers, and pursuing joint ventures to enhance resilience and reduce reliance on imports. Compliance requirements and customs procedures are causing more cautious inventory planning and collaborative international manufacturing arrangements. Regulatory agencies and industry are working together to streamline approvals, offer incentives, and strengthen self-reliance across critical missile subsystems.

Methodology & Data Sources: Building a Robust Research Foundation

This report utilizes structured interviews with procurement leaders, system integrators, and technical experts to capture firsthand market perspectives. Secondary research includes analysis of defense publications, policy documents, and performance case studies. A comprehensive trend synthesis is conducted across propulsion, platform, guidance, speed, warhead, and application domains, validated through peer review for factual accuracy and current relevance.

Why This Report Matters: Strategic Value for Decision Makers

• Gain targeted intelligence on technology trends, competitive positioning, and procurement strategies for the cruise missile market.
• Understand supply chain vulnerabilities and regulatory considerations to minimize risk in global defense programs.
• Identify high-value regional opportunities and align R&D investments with policy shifts and operational priorities.

Conclusion: Preparing for the Next Evolution

The cruise missile sector is advancing with rapid technology upgrades and greater emphasis on modularity and collaboration. Sustained innovation, region-focused strategies, and investment in digital and supply chain resilience will underpin future success. This report delivers the actionable context leaders need to navigate a shifting defense environment with confidence.