Rocket and Missile Market Report 2026

The rocket and missile market size has grown strongly in recent years. It will grow from $68.26 billion in 2025 to $72.99 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to increasing military procurement of rockets and missiles to strengthen offensive and defensive capabilities, advancements in rocket motors and propulsion technologies improving range and performance, growth in deployment of guided missile systems requiring sophisticated control actuator components, rising use of rockets for scientific exploration and payload delivery missions, expansion of defense modernization programs driving demand for advanced missile subsystems such as gas generators and pumps.

The rocket and missile market size is expected to see strong growth in the next few years. It will grow to $91.76 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to growing development of next-generation precision-guided missiles with enhanced targeting accuracy, rising investment in hypersonic weapon technologies driving demand for advanced propulsion systems, increasing adoption of modular missile architectures enabling faster production and customization, advancement in lightweight materials supporting improved missile speed and maneuverability, expanding global security concerns driving continued procurement of multi-role rockets and missiles. Major trends in the forecast period include miniaturization of guidance and actuator systems, increased emphasis on multirole/dual-use missile systems, modularization and commonality of subsystems across missile families, growth in indigenous propulsion and solid motor manufacturing programs, expanded focus on countermeasures and survivability (ecm/decoys).

The rising defense budget is expected to support the growth of the rocket and missile market in the coming years. A defense budget refers to a financial plan or allocation of funds designated by a government to cover the costs of military and defense-related activities. Higher defense budgets provide the financial resources necessary for substantial research, development, procurement, and maintenance of advanced rocket and missile systems, thereby strengthening national defense capabilities and contributing to the growth of the rocket and missile market. For example, in October 2025, the UK Parliament's House of Commons Library reported that defense spending outlined in the 2025 Spending Review is anticipated to reach USD 83.3 billion (£62.2 billion) in 2025/26 and increase to USD 98.2 billion (£73.5 billion) by 2028/29, representing an annual average real-terms growth rate of 3.8%. Therefore, increasing defense budgets are driving the expansion of the rocket and missile market.

Companies in the rocket and missile market are developing advanced technologies such as air missiles to reach a broader customer base, generate higher sales, and increase revenue. An air missile, also known as a guided missile, is a propelled projectile engineered to navigate through the air toward a designated target. For instance, in February 2023, Bharat Dynamics Limited (BDL), an India-based manufacturer of ammunition and missile systems, introduced the Vertical Launched VL SR SAM, a Semi-Active Laser Seeker Homing Anti-Tank Guided Missile, and a Drone Delivered Missile. The VL SR SAM is an advanced, ship-based, all-weather air defense system designed to respond rapidly to supersonic sea-skimming threats. It includes a canisterized missile, Weapon Control System, Vertical Launcher Unit, Multi-Function Radar, Launcher Control System, Data Link Transceiver, and Inertial Navigation System, providing a comprehensive defense solution. The Semi-Active Laser Seeker Homing Anti-Tank Guided Missile is subsonic, with a range of 4,000 meters and a 25-second flight time, and can be launched from a tripod or a BMP for operational flexibility. The Drone Delivered Missile features a lightweight and compact design suitable for targeting soft-skinned threats, with a 1.5 km range and a 9-second flight time, offering efficient and precise engagement against drone-delivered dangers.

In July 2023, L3Harris Technologies Inc., a US-based aerospace and defense company, acquired Aerojet Rocketdyne Inc. for an undisclosed amount. This acquisition is intended to strengthen the defense industrial base, enhance competition, accelerate innovation in propulsion systems, and expand L3Harris’ capabilities in missile defense, hypersonics, and advanced rocket engines. It also aims to establish a more resilient global supply network to support the Department of Defense and civil space customers worldwide. Aerojet Rocketdyne Inc. is a US-based aerospace manufacturer specializing in propulsion systems, rocket engines, and energetics solutions for defense and space applications.

Major companies operating in the rocket and missile market are Denel Dynamics (Pty) Ltd., General Dynamics Corporation, Kongsberg Defence & Aerospace AS, Lockheed Martin Corporation, MBDA Incorporated, Roketsan Roket Sanayii ve Ticaret A.S., Mesko S.A., Nordic Ammunition Company, Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corporation, Saab AB, Thales Group, Bharat Dynamics Limited, Aerojet Rocketdyne Holdings Inc., Hindustan Aeronautics Limited, Larsen & Toubro Ltd., Rostec State Corporation, Tactical Missiles Corporation, Almaz-Antey Concern, Novator Design Bureau, JSC Makeyev Design Bureau, Yuzhnoye Design Office, YUZHMASH, Pakistan Ordnance Factories, Konstruktorskoye Byuro Radioelektronnykh Priborov, NPO Mashinostroyenia, The Boeing Company, Northrop Grumman, Defence Research and Development Organisation.

North America was the largest region in the rocket and missile market in 2025. The regions covered in the rocket and missile 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 are raising costs for rockets & missiles market inputs such as specialized alloys, precision actuators, turbopumps, and avionics, which increases unit manufacturing expenses and can delay deliveries. Segments most affected include propulsion systems (rocket motors, gas generators, turbines & pumps) and control/actuation subsystems, with production hubs and import-reliant regions such as parts of Europe, Asia-Pacific, and North America feeling the strongest effects. Increased costs push buyers toward local sourcing and supplier diversification, and while short-term procurement and export cycles slow, tariffs can spur domestic capability development and localized supply-chain investment creating some positive industrial-policy outcomes.

The rocket and missile market research report is one of a series of new reports that provides rocket and missile market statistics, including rocket and missile industry global market size, regional shares, competitors with a rocket and missile market share, detailed rocket and missile market segments, market trends and opportunities, and any further data you may need to thrive in the rocket and missile industry. This rocket and missile 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.

Rockets and Missiles represent a class of military weapons systems that utilize rocket propulsion to deliver explosive warheads to designated targets. While their primary function is as weaponry, rockets also serve to transport scientific instruments or humans to areas inaccessible by conventional means of transportation. Conversely, a missile is an unmanned rocket capable of autonomously delivering a payload to a specific location for the purpose of target destruction.

The primary types within this category are missiles and rockets. Missiles are propelled weapons equipped with engines enabling them to cover significant distances, flying through the air until they reach their intended target and explode upon impact. They encompass various guidance types, including guided and self-guided rockets and missiles, utilizing different propulsion methods such as ramjet, turbojet, scramjet, liquid propulsion, solid propulsion, and hybrid propulsion. Missiles are utilized across multiple applications including air-to-air, air-to-surface, surface-to-air, surface-to-surface, air-to-marine, and marine-to-air operations.

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

The rockets and missiles market consists of sales of control actuator systems, rocket motor, gas generators, turbine and pumps. 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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