Close-In Weapon Systems (CIWS) Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 - 2034

The Global Close-In Weapon Systems Market was valued at USD 7.2 billion in 2024 and is estimated to grow at a CAGR of 9.5% to reach USD 17.8 billion by 2034. This growth is primarily driven by rising threats from unmanned aerial vehicles (UAVs) and missiles, along with increasing global defense spending. The CIWS market has faced challenges in recent years, including the impact of tariffs imposed by the U.S. administration, which raised the price of critical raw materials for CIWS systems and, in turn, increased production costs.

The tariffs also led to disruptions in supply chains, delaying the execution of contracts and limiting access to international markets for defense contractors. Retaliatory trade actions from allied countries further complicated the trade landscape, affecting the ability of U.S. defense companies to remain globally competitive in CIWS technology and negatively impacting the procurement budgets of both domestic and foreign buyers.

As threats from UAVs and advanced missile technologies become more sophisticated, militaries are turning to CIWS as an essential line of defense for naval vessels and critical infrastructure. These systems offer a rapid-response capability to detect, track, and neutralize incoming threats at extremely short ranges, ensuring survival in hostile environments. The market is categorized by technology into radar-guided and electro-optical/infrared (EO/IR)-guided systems, with radar-guided systems being the dominant segment due to their excellent performance in tracking fast-moving aerial threats across various environmental conditions.

Gun-based systems segment held a 52.5% share in 2024. This dominance is largely due to their operational maturity, cost-efficiency, and high rate of fire, making them the preferred choice for many defense applications. These systems are known for their ability to deliver rapid and accurate fire, which is essential in close-in defense scenarios where every second counts. Their relatively low-cost engagement capability allows for more effective neutralization of threats without the need for expensive ammunition or resources.

In terms of platform, naval-based CIWS systems are the leading segment, accounting for 76.8% of the market in 2024. This is driven by the high proliferation of CIWS technology on warships like destroyers, frigates, and aircraft carriers, which are increasingly integrating these systems to counter the growing threat of anti-ship missiles and swarming drones. Global naval modernization programs and advancements in blue-water navies further bolster this trend.

United States Close-In Weapon Systems (CIWS) Market reached USD 2.4 billion in 2024 was the largest due to continued investments in naval defense and counter-UAV capabilities. The U.S. Navy’s ongoing efforts to enhance fleet survivability through the integration of advanced technologies, including directed energy systems and AI-powered threat detection, reinforce the country’s leadership in the CIWS space.

Leading players in the Close-In Weapon Systems (CIWS) Market include Thales Group, Lockheed Martin Corporation, Rheinmetall AG, and RTX Corporation. To strengthen their position in the CIWS market, companies are focusing on technological innovation, including the integration of directed energy and AI-driven systems to improve threat detection and response times. By investing heavily in research and development, these companies aim to stay ahead of emerging threats, such as advanced UAVs and missiles.

Strategic partnerships with defense contractors and governments help improve market access, while collaboration with other industry players allows for the sharing of technology and expertise. Additionally, manufacturers are expanding their production capacities to meet the increasing demand for CIWS solutions, making the systems more affordable and accessible to a broader range of global customers.

Comprehensive Market Analysis and Forecast

• Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
• Competitive landscape with Porter’s Five Forces and PESTEL analysis
• Market size, segmentation, and regional forecasts
• In-depth company profiles, business strategies, financial insights, and SWOT analysis

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