Next Generation Weapons Technology Market Report 2026

The next generation weapons technology market size has grown strongly in recent years. It will grow from $20 billion in 2025 to $21.31 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to increasing global defense spending on advanced weapon systems, rising adoption of precision-guided and smart munitions, advancements in missile and directed energy technologies, growing integration of AI and autonomous systems in military operations, expansion of cybersecurity and electronic warfare capabilities for defense applications.

The next generation weapons technology market size is expected to see strong growth in the next few years. It will grow to $27.39 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to development of hypersonic weapons and next-generation missile technologies, increasing adoption of fully autonomous combat systems, integration of AI-driven decision-making and predictive targeting, rising demand for energy-based and non-kinetic weapon systems, growth in emerging defense markets investing in modernized and network-centric warfare technologies. Major trends in the forecast period include growing adoption of hypersonic weapon systems for long-range strategic missions, increasing demand for precision-guided munitions to reduce collateral damage, rising development of next-gen electronic warfare and countermeasure platforms, expansion of directed energy weapons for missile defense and anti-drone operations, growing investment in multi-domain warfare integration across land, air, and naval platforms.

The growth of the next-generation weapons technology market is expected to be driven by the increasing defense budgets. Defense budgets are government-funded allocations for military activities, including operations, personnel, equipment, and national security initiatives. These budgets are rising due to the growing need for modernization in military capabilities, which is essential for maintaining national security and strategic influence in the face of shifting power dynamics. The increase in defense budgets allows for significant investment in the research, development, and acquisition of advanced weapons technologies. This investment leads to the creation of cutting-edge systems, ensuring military forces are prepared to address emerging threats. For example, the Stockholm International Peace Research Institute (SIPRI) reported that global military spending reached $2.443 trillion in 2023, marking a 6.8% increase from 2022. Consequently, the rising defense budgets are fueling the expansion of the next-generation weapons technology market.

Key players in the next-generation weapons technology market are concentrating on developing advanced remote weapon systems to improve combat precision and safety. Remote weapon systems (RWS) are sophisticated technologies that allow weapons to be operated remotely, eliminating the need for human operators at the weapon's location. These systems enhance military safety and effectiveness by enabling target engagement without exposing personnel to direct danger. For instance, Electro Optic Systems, an Australian defense technology company, unveiled the R500, a next-generation remote weapon system, in February 2025. The R500 improves precision and adaptability in complex combat scenarios by incorporating AI-driven targeting, counter-UAS capabilities, and multi-weapon flexibility. It offers enhanced lethality, better situational awareness, and increased survivability, making it ideal for armored vehicles and tactical platforms. The system includes a high-resolution sensor unit, a larger ammunition capacity, and compatibility with unmanned ground vehicles, demonstrating EOS' commitment to providing advanced technology to defense forces.

In November 2023, General Atomics Aeronautical Systems, Inc., a U.S.-based provider of next-generation weapons technology, formed a partnership with EDGE Group to integrate EDGE's smart weapons onto the MQ-9B SkyGuardian Remotely Piloted Aircraft (RPA). The collaboration aims to improve the MQ-9B’s operational effectiveness, precision strike capabilities, and mission versatility, making it more adaptable to modern warfare conditions. EDGE Group, based in the UAE, is a provider of next-generation enhanced weapons.

Major companies operating in the next generation weapons technology market are Raytheon Company, The Boeing Company, Lockheed Martin, General Dynamics Mission Systems, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems, Thales Group, Leidos Holdings Inc., Rheinmetall AG, Elbit Systems, Israel Aerospace Industries (IAI), Naval Group, MBDA, General Atomics, AeroVironment Inc., Bharat Dynamics Limited, Electro Optic Systems, Zen Technologies, Hanwha Defense.

North America was the largest region in the next generation weapons technology market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the next generation weapons technology 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 the cost of advanced sensors, microelectronics, propulsion materials, and guidance components used in next generation weapons systems, increasing development and procurement expenses. High-tech segments such as hypersonic missiles, directed energy weapons, and electronic warfare systems are most affected, especially in regions dependent on semiconductor and metal imports. However, tariffs also stimulate domestic defense manufacturing and strengthen national supply chains for critical military technologies.

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

Next-generation weapons technology refers to cutting-edge military systems that incorporate AI, autonomous capabilities, hypersonic missiles, and energy weapons, all aimed at improving precision, adaptability, and overall combat effectiveness. These technologies are designed to enhance targeting accuracy, minimize collateral damage, increase survivability, and ensure seamless integration with network-centric warfare systems, facilitating real-time decision-making.

The primary product categories in next-generation weapons technology include missiles, munitions, guided projectiles, guided rockets, guided firearms, and directed energy weapons. Missiles, in particular, are self-propelled, precision-guided weapons that leverage advanced technologies such as AI, hypersonic propulsion, and stealth for superior speed, accuracy, and adaptability in modern combat scenarios. They employ various technologies, including laser, infrared, radar, and global positioning systems (GPS), to operate across multiple platforms, including air, land, and sea.

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

The next generation weapons technology market consists of revenues earned by entities by providing services such as advanced weapon system development, artificial intelligence integration, cybersecurity solutions, defense simulation training, and smart ammunition development. The market value includes the value of related goods sold by the service provider or included within the service offering. The next generation weapons technology market also includes sales of hypersonic missiles, smart ammunition, cyber warfare systems, electronic warfare equipment, and directed energy weapons. 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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