The precision-guided munitions market is estimated to be USD 37.24 billion in 2025 and is projected to reach USD 49.71 billion by 2030, at a CAGR of 5.9%. The evolution of precision-guided munitions is being driven by multiple strategic and operational imperatives that align with next-generation defense solutions. Military forces globally are prioritizing systems that offer higher operational efficiency, reduced logistical burden, and enhanced mission reliability. This shift reflects a growing demand for munitions that consume less energy, require minimal maintenance, and contribute to leaner, more agile force structures. Furthermore, the increasing emphasis on precision over volume, as well as the push for sustainable and intelligent warfare, aligns with broader defense modernization trends. PGMs are becoming essential for executing missions with accuracy while minimizing collateral damage and resource consumption.
EO/IR seekers provide a low-signature, passive guidance capacity that permits the munitions to home toward the target while radiating non-detectable signals, making the platforms very survivable against defenses predicated upon radars. The capability to provide function in bright lighting conditions at nighttime, as well as potentially in obscurant-filled areas like smoke or dust, facilitates more flexibility across all types of missions and terrains.
These systems are found more in air-to-ground bombs, loitering munitions, and autonomous missiles, where imagery in the visible or thermal infrared is employed for target identification, aim point determination, and final-course correction. Integration with onboard processors and artificial intelligence algorithms also enables sophisticated features like automatic target recognition (ATR), mid-course image-based updates, and in-flight retargeting.
One of the strongest points of INS is its fault tolerance in contested environments. As opposed to GPS, which is subject to being denied or spoofed by electronic warfare systems, INS will operate reliably even when in GPS-degraded or denied environments. It is therefore the go-to navigation system for future PGMs, especially for high-threat environments where electronic countermeasures dominate. In addition, INS is a crucial part of multi-mode guidance systems, wherein it is coupled with GPS, laser seekers, radar, or imaging systems. It provides precise midcourse navigation and terminal guidance stabilization and aids precision engagement even when external cues are intermittent or missing.
Miniaturization of INS components, particularly through the evolution of microelectromechanical systems (MEMS), has seen its integration into a broad spectrum of munitions - tactical missiles and guided bombs, artillery shells, and loitering munitions. Its flexibility and comparatively low signature also facilitate platform-agnostic deployment, rendering it useful in air, land, and sea domains.
They compare differently to air-launched PGMs as they are rapidly deployable, salvaged-in-mass, and can be fired from extremely mobile launcher platforms such as HIMARS or MLRS mounted on trucks, thus providing them greater battlefield survivability and tactical response capability. Being network-connected allows them to suit sensor-to-shooter, speedily precise response, and response engagements of sensitive time targets.
The US possesses the most advanced and diverse set of PGMs, ranging from air-to-ground bombs to guided rockets, loitering bombs, and long-range tactical missiles to precision artillery rounds. JDAM, StormBreaker, Excalibur, GMLRS, and JAGM are widely employed in all branches of the armed forces and are regularly updated through modular enhancements and software-driven revisions.
Further, the U.S. Department of Defense also gives high value to multi-domain precision fires under its modernization plans, like Long-Range Precision Fires (LRPF), Joint All-Domain Command and Control (JADC2), and Next-Generation Air Dominance (NGAD). The programs guarantee sustained investment in network-enabled, AI-integrated interoperable PGMs. On top of national needs, the US holds a dominant share in foreign military sales of PGMs, which are in high demand among NATO allies as well as Indo-Pacific partners. Its well-established network of prime contractors, including Lockheed Martin, RTX, Boeing, and Northrop Grumman, solidifies its leadership position.
Break-up of profiles of primary participants in the precision-guided munitions market: By Company Type: Tier 1 - 49%, Tier 2 - 37%, and Tier 3 - 14% By Designation: C-Level Executives - 55%, Director level - 27%, and Others - 18% By Region: North America - 32%, Europe - 32%, Asia Pacific - 16%, Middle East - 10%, Rest of the world - 10%
Prominent companies in the precision-guided munitions market are Northrop Grumman (US), RTX (US), General Dynamics Corporation (US), BAE Systems (UK), Lockheed Martin Corporation (US), MBDA (France), Israel Aerospace Industries (Israel), QinetiQ (UK), Boeing (US), and Aselsan AS (Turkey), among others.
EO/IR: The largest segment by targeting system during the forecast period
Electro-Optical/Infrared (EO/IR) guidance systems are poised to dominate the precision-guided munitions market because they can deliver real-time, high-fidelity target acquisition and terminal guidance even in highly complex operational environments. These systems allow PGMs to visually detect, track, and engage static and moving targets with pinpoint accuracy - vital for today’s precision strike missions where rules of engagement frequently require positive target identification and low collateral damage.EO/IR seekers provide a low-signature, passive guidance capacity that permits the munitions to home toward the target while radiating non-detectable signals, making the platforms very survivable against defenses predicated upon radars. The capability to provide function in bright lighting conditions at nighttime, as well as potentially in obscurant-filled areas like smoke or dust, facilitates more flexibility across all types of missions and terrains.
These systems are found more in air-to-ground bombs, loitering munitions, and autonomous missiles, where imagery in the visible or thermal infrared is employed for target identification, aim point determination, and final-course correction. Integration with onboard processors and artificial intelligence algorithms also enables sophisticated features like automatic target recognition (ATR), mid-course image-based updates, and in-flight retargeting.
Inertial Navigation System: The fastest-growing segment by guidance & navigation system during the forecast period
Inertial Navigation Systems (INS) are positioned to dominate the precision-guided munitions market because they form the basis for providing accurate, autonomous navigation and guidance for nearly all types of precision weapons. INS technology guides by employing internal sensors - gyroscopes and accelerometers - to monitor the position, orientation, and speed of a munition without any external inputs, which makes it a central element in both standalone and hybrid guidance systems.One of the strongest points of INS is its fault tolerance in contested environments. As opposed to GPS, which is subject to being denied or spoofed by electronic warfare systems, INS will operate reliably even when in GPS-degraded or denied environments. It is therefore the go-to navigation system for future PGMs, especially for high-threat environments where electronic countermeasures dominate. In addition, INS is a crucial part of multi-mode guidance systems, wherein it is coupled with GPS, laser seekers, radar, or imaging systems. It provides precise midcourse navigation and terminal guidance stabilization and aids precision engagement even when external cues are intermittent or missing.
Miniaturization of INS components, particularly through the evolution of microelectromechanical systems (MEMS), has seen its integration into a broad spectrum of munitions - tactical missiles and guided bombs, artillery shells, and loitering munitions. Its flexibility and comparatively low signature also facilitate platform-agnostic deployment, rendering it useful in air, land, and sea domains.
Surface-to-Surface: The fastest-growing segment by guided rockets during the forecast period
Surface-to-surface guided rockets will dominate the precision-guided munitions (PGM) market due to their unique combination of accuracy, range, responsiveness, and affordability. These weapons close a critical capability gap between cost-effective unguided artillery and costly tactical missiles, and they offer an attractive alternative to both large-scale military forces and emerging defense forces. One of their strongest assets is that they can perform highly precise fires at distant ranges from mobile, surface-based launchers without the requirement of air superiority. Systems like the guided multiple launch rocket system (GMLRS) and similar systems across the globe are capable of striking static and relocatable targets with short notice, and they excel at suppression of enemy air defenses (SEAD), counter-battery missions, and precision interdiction.They compare differently to air-launched PGMs as they are rapidly deployable, salvaged-in-mass, and can be fired from extremely mobile launcher platforms such as HIMARS or MLRS mounted on trucks, thus providing them greater battlefield survivability and tactical response capability. Being network-connected allows them to suit sensor-to-shooter, speedily precise response, and response engagements of sensitive time targets.
The US to account for the highest market share in the precision-guided munitions market during the forecasted year
The US will be the largest holder in the global precision-guided munitions market due to its unmatched defense budget, mature industrial base, and strategic priority on precision, networked warfare. The doctrine of the US military prioritizes the reduction of collateral damage while it sustains global strike capabilities, rendering PGMs core to both tactical and strategic force projection.The US possesses the most advanced and diverse set of PGMs, ranging from air-to-ground bombs to guided rockets, loitering bombs, and long-range tactical missiles to precision artillery rounds. JDAM, StormBreaker, Excalibur, GMLRS, and JAGM are widely employed in all branches of the armed forces and are regularly updated through modular enhancements and software-driven revisions.
Further, the U.S. Department of Defense also gives high value to multi-domain precision fires under its modernization plans, like Long-Range Precision Fires (LRPF), Joint All-Domain Command and Control (JADC2), and Next-Generation Air Dominance (NGAD). The programs guarantee sustained investment in network-enabled, AI-integrated interoperable PGMs. On top of national needs, the US holds a dominant share in foreign military sales of PGMs, which are in high demand among NATO allies as well as Indo-Pacific partners. Its well-established network of prime contractors, including Lockheed Martin, RTX, Boeing, and Northrop Grumman, solidifies its leadership position.
Break-up of profiles of primary participants in the precision-guided munitions market: By Company Type: Tier 1 - 49%, Tier 2 - 37%, and Tier 3 - 14% By Designation: C-Level Executives - 55%, Director level - 27%, and Others - 18% By Region: North America - 32%, Europe - 32%, Asia Pacific - 16%, Middle East - 10%, Rest of the world - 10%
Prominent companies in the precision-guided munitions market are Northrop Grumman (US), RTX (US), General Dynamics Corporation (US), BAE Systems (UK), Lockheed Martin Corporation (US), MBDA (France), Israel Aerospace Industries (Israel), QinetiQ (UK), Boeing (US), and Aselsan AS (Turkey), among others.
Research Coverage
The market study covers the precision-guided munitions market across segments. It aims to estimate the market size and the growth potential of this market across different segments, such as system, launch platform, product, mode of operation, speed, range, and region. The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.Key benefits of buying this report
This report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall precision-guided munitions market and its subsegments. The report covers the entire ecosystem of the precision-guided munitions industry and will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report will also help stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.The report provides insights on the following pointers:
- Analysis of Key Drivers (Increased demand for precision guided munition to minimize collateral damage, reduction in logistics burden, growing military modernization programs, change in nature of warfare) Restraints (Regulations to arms transfer, high manufacturing costs) Opportunities (Miniaturization of munitions, development of hybrid precision guided munitions), and Challenges (Storage and lifecycle challenges) that impact the growth of the precision guided munitions market.
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the precision-guided munitions market.
- Market Development: Comprehensive information about lucrative markets - the report analyzes the precision-guided munitions market across varied regions
- Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the precision-guided munitions market
- Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players, such as Northrop Grumman (US), RTX (US), General Dynamics Corporation (US), BAE Systems (UK), Lockheed Martin Corporation (US), MBDA (France), Israel Aerospace Industries (Israel), QinetiQ (UK), Boeing (US), Aselsan AS (Turkey), among others, in the precision-guided munitions market
Table of Contents
1 Introduction
2 Research Methodology
4 Premium Insights
5 Market Overview
6 Industry Trends
7 Precision-Guided Munition Market, by Product
8 Precision-Guided Munition Market, by System
9 Precision-Guided Munition Market, by Launch Platform
10 Precision-Guided Munition Market, by Mode of Operation
11 Precision-Guided Munition Market, by Speed
12 Precision-Guided Munition Market, by Range
13 Precision-Guided Munition Market, by Region
14 Competitive Landscape
15 Company Profiles
16 Appendix
List of Tables
List of Figures
Companies Mentioned
- Northrop Grumman
- Lockheed Martin Corporation
- Rtx
- Boeing
- General Dynamics Corporation
- Bae Systems
- Aselsan A.S.
- Mbda
- Israel Aerospace Industries Ltd.
- Thales
- Rheinmetall AG
- Leonardo S.P.A.
- Kongsberg
- Saab Ab
- Elbit Systems Ltd.
- Rafael Advanced Defense Systems Ltd.
- Leidos
- General Atomics
- Denel Dynamics
- Hanwha Group
- Polska Grupa Zbrojeniowa
- Rostec
- Roketsan
- Bharat Dynamics Limited
- Lig Nex1
- Drdo
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 375 |
| Published | May 2025 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 37.24 Billion |
| Forecasted Market Value ( USD | $ 49.71 Billion |
| Compound Annual Growth Rate | 5.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 26 |
