Precision Guided Munition Market Report 2026

The precision guided munition market size has grown rapidly in recent years. It will grow from $42.86 billion in 2025 to $47.21 billion in 2026 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to increased deployment of GPS-guided and laser-guided munitions in modern warfare, rising demand for precision strike capabilities to reduce collateral damage, technological improvements in inertial navigation systems for guided weapons, expansion of aircraft self-protection missile programs, early development of autonomous long-range and loitering munition platforms.

The precision guided munition market size is expected to see strong growth in the next few years. It will grow to $67.2 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to growing adoption of network-enabled and multi-mode guidance systems, increasing procurement of loitering munitions for flexible battlefield engagement, integration of artificial intelligence to enhance targeting accuracy and autonomy, expanding modernization programs to replace legacy unguided munitions with precision variants, development of digital guided missiles optimized for contested and GPS-degraded environments. Major trends in the forecast period include enhanced precision guidance systems, long-range loitering capabilities, integration of multi-sensor targeting, miniaturization of munition components, network-centric munition connectivity.

The rise in military expenditure is expected to significantly drive the growth of the precision-guided munition (PGM) market. Military expenditure refers to the financial resources allocated by governments to maintain and modernize their armed forces, including investments in advanced weaponry and defense technologies. Increasing military budgets often prioritize modernization programs and the acquisition of precision-guided munitions to enhance operational effectiveness, minimize collateral damage, and increase lethality against designated targets. For instance, according to The House of Commons Library, the UK allocated £54.2 billion ($68.8 billion) for defense spending in the 2023/24 financial year, projected to rise to £57.1 billion ($70.74 billion) in 2024/25, reflecting a 4.5% increase in real terms. Therefore, rising military expenditure is expected to propel the adoption and market growth of precision-guided munitions.

Major companies in the precision-guided munition sector are focusing on technological innovations such as guided high-explosive ammunition to meet evolving customer requirements and enhance market competitiveness. Guided high-explosive ammunition integrates precision guidance systems, allowing the munition to accurately strike specific targets while minimizing collateral damage. For example, in October 2023, Northrop Grumman Corporation, a US-based aerospace and defense company, received a contract from the US Navy to develop its 57mm guided high-explosive ammunition. The program involves testing and qualifying the munition for use with the Mk110 Naval Gun Mount, ensuring precision and operational readiness.

In October 2023, EDGE Group, a UAE-based defense and technology conglomerate, acquired a 50% stake in Brazilian Missile House for an undisclosed amount. This acquisition strengthens EDGE’s presence in the Latin American defense market, particularly in Brazil, and focuses on the development of advanced high-tech missile systems. Brazilian Missile House is a Brazil-based defense contractor specializing in missile systems and aerospace technology.

Major companies operating in the precision guided munition market are Northrop Grumman Corporation, Lockheed Martin Corporation, The Boeing Company, BAE Systems plc, General Dynamics Corporation, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Elbit Systems Ltd., Saab AB, Israel Aerospace Industries Ltd., Rheinmetall AG, Bharat Dynamics Limited, Denel Dynamics a division of Denel SOC Ltd., LIG Nex 1 Co. Ltd., Rafael Advanced Defense Systems Ltd., Kongsberg Gruppen ASA, Roketsan A.S., China Aerospace Science and Industry Corporation, China North Industries Group Corporation Limited, Hanwha Defense Co. Ltd., Taurus Systems GmbH, Diehl Defence GmbH & Co. KG, Nexter Systems S.A., Raytheon Technologies Corporation, Aerojet Rocketdyne Holdings Inc., Precision Guided Solutions LLC, Textron Inc.

Asia-Pacific was the largest region in the precision-guided munition market in 2025. The regions covered in the precision guided munition 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 on precision-guided munitions components have influenced the market by increasing costs of guidance systems, propulsion units, and sensor packages, affecting tactical missiles, guided rockets, and loitering munitions segments. Regions like North America, Europe, and Asia-Pacific, where production hubs are concentrated, are most impacted. While tariffs may slow production and increase prices, they also encourage domestic manufacturing, investment in advanced guidance technologies, and supply chain localization, which can improve strategic defense capabilities.

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

A precision-guided munition is a guided weapon designed to detect electromagnetic energy reflected from a target, enabling it to destroy a specific point target while minimizing collateral damage. These munitions are guided using various technologies, including a global positioning system (GPS), a laser guidance beam, or an integrated inertial navigation system.

The main types of products within the precision-guided munition category include tactical missiles, guided rockets, guided ammunition, torpedoes, and loitering munitions. Tactical missiles are weapons with shorter ranges intended for use in close combat areas. They operate at various speeds, including subsonic, supersonic, and hypersonic. The different modes of operation encompass semi-autonomous and autonomous, utilizing technologies such as infrared, semi-active laser, inertial navigation system (INS), GPS, radar homing, and anti-radiation. Additionally, precision-guided munitions are segmented by launch platform into land-based, airborne, and naval applications.

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

The precision-guided munition market consists of sales of autonomous long range artillery munition, loitering munitions, aircraft self-protection missile and digital guided missiles. Values in this 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.

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