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Close-in Weapon Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 80 Pages
  • August 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5120001
UP TO OFF until Sep 30th 2023
The Close-In Weapon Systems Market is expected to register a CAGR of over 6% during the forecast period (2022 - 2027).

The COVID-19 pandemic has had a mild impact on market conditions. Despite minute disruptions in the supply chain and production halts in some circumstances, the market demand, in general, was high. This can be mainly attributed to the increasing trend of defense expenditure across the world.

The close-in weapon systems market is anticipated to be driven by a consistent increase in the global military fleet, internal and external security threats, technological innovations, aging global military fleet, joint ventures, and strategic alliances formed to address the specific requirements of the modernization initiatives undertaken by the global armed forces.

Moreover, the growing instances of asymmetric warfare and the emphasis on developing advanced warfare systems are the main drivers for the market. However, the design and operational issues regarding the use of automated weaponry including CIWS may challenge the industry in the short term.

Key Market Trends

Growing Emphasis on Developing Advanced Combat Systems

During the last decade, many countries have developed and fielded their autonomous weapon systems to bolster their military capabilities and strengthen their troops in several conflicts around the world. The proliferation of innovations in the field of sensor technologies, weapon firing systems, and other auxiliary systems are aimed at enhancing the accuracy and performance capabilities of the current generation of CIWS. The emphasis on increasing the autonomy of the weapon systems has given rise to unmanned weapon technologies such as RWS and CIWS that can effectively neutralize a target without human intervention. The new variants of CIWS feature advanced optronic that renders them exceptionally suitable for urban warfare and thus reduce the casualties during a war. The increasing induction of military vehicles equipped with RWS and CIWS systems for protection against incoming projectiles is driving the demand for such systems. Furthermore, the emergence of sophisticated missiles is driving the defense manufacturers to develop new variants of CIWS to counter the incoming hostile projectile before impact effectively. The ongoing Russia and Ukraine war has driven major western countries to offer CIWS systems to Ukraine. The United States, Germany, and NATO have supplied several CIWS to the Ukrainian army. On the other hand, in Asia-Pacific, several countries have also been investing into developing its inventory via its defense manufacturing companies. In March 2022, India's Bharat Forge Limited has unveiled its new Close-In-Weapon System (CWIS) specifically designed and developed to keep aerial threats at bay. Several such developments and international military conflicts are expected to drive the demand for the market.

North America to Dominate the Market During the Forecast Period

The United States and Canada are avid users of CIWS in North America and are currently focused on upgrading their existing vehicle fleet and their corresponding capabilities. The US FY2021 defense budget prioritizes modernization of military systems to compete with China and Russia on the global front while emphasizing day-to-day operations for ongoing conflicts, crisis response, and allied engagement. International collaboration within the region is expected to drive the market furthermore. As of April 2022, a robust plan to modernize continental defenses under the North American Aerospace Defense Command (NORAD) was discussed between the United States and Canadian defense organizations, for installing close-in defense weapons that can respond to any adversary air attacks. The United States National defense total as of 2022 was valued at USD 782 Billion, increasing by 3.9% over the military expenditure budget of 2021. Following this, defense procurements for close-in weapon systems have increased in the United States via it’s defense product providers. For instance, in March 2022, Raytheon Technologies signed a modification contract to provide services for the upgrade of MK15 CIWS in a deal worth USD 93.6 million. Similarly, in May 2022, the Canadian military announced its plans to procure new ground-based air defense systems at a cost of USD 1 Billion. The military has started the process to procure a new high-tech system that will be capable of shooting down enemy aircraft, missiles, and drones. The weapons included highly capable Close-In Weapons Systems that could take down any adversary aircrafts entering without authorization.

Competitive Landscape

The close-in weapon systems market is consolidated with major players such as Raytheon Technologies Corporation, Leonardo S.p.A, BAE Systems plc, Rheinmetall AG, ASELSAN AS, and Thales Group, dominating the market share. The growing demand for CIWS is fostering R&D for new optronics and sensor subsystems. Meanwhile, companies are trying to expand their geographical presence in emerging markets such as Asia-Pacific, along with a dedicated product portfolio for the CIWS systems. For instance, Raytheon Technologies, under its Missile & Defense systems, offers the Phalanx Weapon System. This weapon is a rapid-fire, computer-controlled, radar-guided gun that can defeat anti-ship missiles and other close-in threats on land and at sea. With such dedicated systems, the company has established a prominent role as a popular provider of CIWS systems across various geographies of the market, with countries like South Korea anticipated to procure the systems in the coming future. Players from countries like India, and Japan, among others, are looking to collaborate with foreign manufacturers to build the weapon systems, and this provides growth opportunities to the foreign players to enhance their geographical reach in the years to come.

Additional Benefits:

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.1 Type
5.1.1 Gun-based
5.1.2 Missile-based
5.2 Platform
5.2.1 Terrestrial
5.2.2 Naval
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Rest of the World
6.1 Vendor Market Share
6.2 Company Profiles
6.2.2 BAE Systems PLC
6.2.3 General Dynamics Corporation
6.2.4 Leonardo SpA
6.2.5 Rafael Advanced Defense Systems Ltd
6.2.6 Raytheon Technologies Corporation
6.2.7 Rheinmetall AG
6.2.8 Thales Group

Companies Mentioned

A selection of companies mentioned in this report includes:

  • BAE Systems PLC
  • General Dynamics Corporation
  • Leonardo SpA
  • Rafael Advanced Defense Systems Ltd
  • Raytheon Technologies Corporation
  • Rheinmetall AG
  • Thales Group