Missiles Market Report 2026

The missiles market size has grown strongly in recent years. It will grow from $24.56 billion in 2025 to $26.45 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to rising global defense spending driving procurement of guided missile systems, advancements in guidance and targeting technologies improving precision, increased deployment of missiles for air, land, and naval combat operations, development of diverse propulsion systems enabling long-range and high-speed attacks, growth in modernization programs replacing aging missile inventories.

The missiles market size is expected to see strong growth in the next few years. It will grow to $37.05 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to rising demand for next-generation multi-role missiles with enhanced maneuverability, increasing investment in hypersonic and counter-stealth missile technologies, development of network-enabled missiles for integrated battlefield operations, expansion of missile defense penetration capabilities to counter advanced threats, growing defense budgets supporting large-scale production of advanced missile systems. Major trends in the forecast period include increasing adoption of multi-mission missile platforms, advancements in propulsion systems for enhanced speed, rising demand for precision-guided munitions, development of lightweight composite missile components, growing investments in long-range strike capabilities.

The missile market is also driven by government initiatives aimed at strengthening defense capabilities. Government initiatives involve plans or actions to address specific defense challenges, often funded through various sources such as taxes, grants, and donations. For instance, in August 2023, the German government introduced the European Sky Shield Initiative (ESSI) to enhance Europe's air and missile defense capabilities. ESSI involves the construction of a ground-based integrated air defense system with anti-ballistic missile capabilities in Europe. These government initiatives play a crucial role in providing stable and reliable funding for missile development, contributing to the growth of the missile market.

Major companies in the missile market are concentrating on developing advanced products, such as cruise missiles, to meet evolving security threats in modern warfare environments. Cruise missiles are precision-guided weapons that maintain a consistent speed and altitude, delivering explosive payloads over long distances. Their design enhances maneuverability and stealth, making them effective for striking strategic targets. For example, in September 2024, Anduril Industries, a US-based defense technology company, launched the Barracuda family of cruise missiles, which includes the Barracuda-100, -250, and -500 models, each with distinct capabilities. The Barracuda-500 is designed for cargo launch from transport aircraft, while the Barracuda-250 is optimized for internal carriage on platforms like the F-35. All variants boast a range exceeding 500 nautical miles, a payload capacity of over 100 pounds, the ability to achieve 5 Gs of maneuverability, and more than 120 minutes of loitering time. This design ensures adaptability for various missions and compatibility with multiple payloads.

In July 2023, L3Harris Technologies Inc., a prominent US-based aerospace and defense technology company, successfully acquired Aerojet Rocketdyne for an undisclosed sum. This strategic acquisition is anticipated to reinforce L3Harris's position in the defense industrial base and facilitate accelerated innovation in propulsion systems. Aerojet Rocketdyne, a US-based company renowned for its expertise in manufacturing rockets, hypersonic technologies, strategic missiles, and electric propulsive systems, adds significant capabilities to L3Harris's portfolio, positioning the company for advancements in critical aerospace and defense technologies.

Major companies operating in the missiles market are Raytheon Technologies Corporation, Boeing International Holdings Ltd., Lockheed Martin Corporation, Airbus SE, Hanwha Corporation, China Aerospace Science and Technology Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, L3Harris Technologies Inc., Textron Inc., JSC Rosoboronexport, Leonardo SpA, Rheinmetall AG, Israel Aerospace Industries, Saab AB, Roketsan Roket Sanayii ve Ticaret AS, MBDA Incorporated, Rafael Advanced Defense Systems Ltd., Kongsberg Gruppen ASA, Aerojet Rocketdyne Holdings Inc., ASELSAN A.S., Bharat Dynamics Limited, Ukroboronprom State Concern, Avibras Industrial Aerospecial SA, Tactical Missiles Corporation.

Asia-Pacific was the largest region in the missiles market in 2025. Western Europe is expected to be the fastest-growing region in the global missiles market report during the forecast period. The regions covered in the missiles market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have significantly influenced the missiles market by increasing costs for critical materials, propulsion components, electronics, and guidance systems sourced internationally. These tariff-related cost pressures have especially affected advanced propulsion segments such as ramjet, scramjet, and liquid propulsion systems, as well as regions dependent on imported defense technologies across Asia-Pacific, Europe, and the Middle East. However, tariffs have also encouraged domestic manufacturing, boosting local supply chain development and accelerating indigenous missile production programs in several nations. As a result, while near-term acquisition challenges persist, long-term strategic independence and capability-building have seen positive momentum.

The missiles market research report is one of a series of new reports that provides missiles market statistics, including missiles industry global market size, regional shares, competitors with a missiles market share, detailed missiles market segments, market trends and opportunities, and any further data you may need to thrive in the missiles industry. This missiles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Missiles represent guided airborne weapons engineered for precision, high-speed delivery of explosive warheads. Their components comprise the targeting system, guidance system, flight system, engine, and warhead.

Primary product types consist of cruise missiles and ballistic missiles. Cruise missiles, designed for terrestrial targets, maintain atmospheric flight at a consistent speed, aiming to deliver a sizable warhead with exceptional accuracy across long distances. These missiles vary in range, spanning short-range, medium-range, and intermediate-range categories, utilizing propulsion systems such as ramjets, scramjets, turbojets, liquid propulsion, solid propulsion, and hybrid propulsion. Missiles find application in defense and homeland security measures.

The countries covered in the missiles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The missiles market consists of sales of guided missiles or rockets to deliver an explosive warhead with precision at high speed. Values in this missiles market are factory gate values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.