Close-in Weapon Systems - Global Strategic Business Report

The global market for Close-in Weapon Systems was valued at US$6.9 Billion in 2024 and is projected to reach US$10.6 Billion by 2030, growing at a CAGR of 7.4% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Close-in Weapon Systems market.

Global Close-in Weapon Systems Market - Key Trends & Drivers Summarized

What Makes Close-in Weapon Systems a Critical Layer of Modern Defense?

Close-in Weapon Systems (CIWS) have evolved into one of the most indispensable components of modern naval and land-based defense architectures. Designed to detect, track, and neutralize incoming short-range threats such as missiles, aircraft, drones, and even small surface targets, CIWS are often the last line of defense in layered security frameworks. These systems employ a combination of rapid-firing guns, radar and electro-optical sensors, and increasingly, laser-based countermeasures to intercept high-speed projectiles. The growing sophistication of aerial and missile threats, including supersonic and maneuverable cruise missiles, has necessitated the deployment of advanced CIWS capable of reacting within seconds. Nations with expansive naval operations, particularly the United States, China, Russia, and India, are heavily investing in upgrading or acquiring CIWS to protect aircraft carriers, destroyers, and other high-value vessels. The increasing prevalence of unmanned aerial vehicles (UAVs) and swarm drone attacks is another major factor accelerating the relevance of CIWS, prompting defense agencies to adopt systems with enhanced tracking algorithms and AI-supported targeting capabilities. Furthermore, the integration of CIWS with multi-domain operational networks ensures a seamless flow of information across defense platforms, improving situational awareness and combat responsiveness. As asymmetric threats and regional conflicts intensify, especially in the Middle East, Indo-Pacific, and Eastern Europe, the demand for highly reliable, automated point-defense systems is expected to continue its upward trajectory.

Why Are Nations Prioritizing Investments in CIWS Over Other Defense Technologies?

The prioritization of Close-in Weapon Systems over other defense technologies stems from the growing urgency to address fast-evolving aerial threats that often bypass traditional air defense layers. Conventional surface-to-air missile systems and long-range interceptors, while effective against distant targets, are inadequate when an incoming threat penetrates close proximity to a naval vessel or strategic land asset. CIWS offers a vital safety net in these critical moments, capable of autonomous target identification and instantaneous response. Nations with coastal vulnerabilities and heavily trafficked maritime trade routes, such as Japan, South Korea, and those in the European Union, are increasingly viewing CIWS as an essential asset for preserving sovereignty and maintaining deterrence. Additionally, geopolitical instability and the growing assertiveness of near-peer adversaries are driving several governments to modernize legacy defense platforms by integrating newer, multi-layered CIWS solutions. In many cases, these systems are modular and can be retrofitted onto existing ships or mobile land vehicles, thereby offering flexibility without the need for entirely new defense infrastructures. Defense procurement agencies are also favoring CIWS due to their relative cost-efficiency and minimal human intervention, allowing continuous protection even under high-threat saturation. The rise of hybrid warfare, marked by non-state actors employing commercially available drones and improvised missile systems, further underscores the value of compact, agile, and smart defense solutions like CIWS. As such, CIWS is not only seen as a military necessity but also a strategic enabler that significantly enhances a country's overall defensive posture.

How Are Emerging Technologies Reshaping the Effectiveness of CIWS?

The technological landscape surrounding Close-in Weapon Systems is undergoing a substantial transformation, driven by innovations in artificial intelligence, sensor fusion, automation, and directed-energy weaponry. Traditional gun-based CIWS platforms like the Phalanx and Goalkeeper are being enhanced with radar-guided accuracy, advanced electro-optical tracking systems, and improved ballistic computing to boost interception success rates. Meanwhile, laser-based CIWS prototypes, developed by countries such as the United States, Israel, and Germany, are entering active testing and deployment phases. These systems offer a virtually unlimited magazine, reduced operational costs, and stealth operation without visible or acoustic signatures. Another notable advancement is the incorporation of AI and machine learning algorithms that enable predictive threat assessment and real-time decision-making. These systems can adapt to new threat patterns, including swarm dynamics, and dynamically prioritize targets based on threat probability. Additionally, integration with shipborne and land-based Combat Management Systems (CMS) allows CIWS platforms to function as a coordinated node within broader defensive ecosystems. Miniaturization and modular design improvements are also allowing the deployment of CIWS on smaller vessels, armored vehicles, and even strategic infrastructure like offshore platforms and airports. Moreover, the use of dual-mode tracking systems combining infrared and radar has significantly improved performance under challenging conditions such as electronic jamming, poor visibility, or evasive maneuvers. Collaborations between defense contractors and technology firms are further pushing the boundaries of CIWS capabilities, resulting in faster refresh rates, greater tracking precision, and reduced false alarms. These advances are redefining the strategic utility of CIWS from being a reactive safeguard to a proactive component of integrated defense strategies.

What Are the Main Drivers Accelerating Global Demand for CIWS Systems?

The growth in the Close-in Weapon Systems market is driven by several factors related to technological innovation, shifting military doctrines, threat evolution, and end-user preferences. First, the escalating threat of hypersonic missiles and low-flying cruise projectiles has forced nations to invest in faster, smarter CIWS that can close the time gap between detection and interception. Second, the rise in asymmetric warfare, particularly the use of drones and loitering munitions by non-state actors, has made traditional air defense systems insufficient for close-range protection, prompting the military to seek agile, responsive alternatives. Third, defense modernization programs across NATO, Asia-Pacific, and the Middle East are placing heavy emphasis on autonomous systems that reduce reliance on human operators and deliver consistent performance during saturation attacks. Fourth, the strategic need to protect naval assets in contested waters, including the South China Sea, Black Sea, and Persian Gulf, is encouraging extensive deployment of ship-mounted CIWS. Fifth, the growing availability of advanced off-the-shelf technologies is reducing development costs and enabling faster procurement cycles, making CIWS accessible to a broader range of militaries. Sixth, the increasing integration of CIWS into land-based applications such as airfields, military bases, and energy infrastructure is expanding its utility beyond traditional naval settings. Seventh, evolving procurement strategies by defense ministries now emphasize rapid deployment and upgrade potential, aligning well with the modular nature of CIWS platforms. Finally, the continuous support from defense contractors, driven by long-term contracts and international military partnerships, ensures a steady pipeline of innovations and system enhancements, further accelerating market adoption.

Scope of the Report

The report analyzes the Close-in Weapon Systems market, presented in terms of market value (USD). The analysis covers the key segments and geographic regions outlined below:

• Segments: Type (Gun-based System, Missile-based System); Platform (Terrestrial Platform, Naval Platform).
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Gun-based System segment, which is expected to reach US$5.8 Billion by 2030 with a CAGR of a 5.9%. The Missile-based System segment is also set to grow at 9.5% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $1.9 Billion in 2024, and China, forecasted to grow at an impressive 11.4% CAGR to reach $2.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Close-in Weapon Systems Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Close-in Weapon Systems Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Close-in Weapon Systems Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as ASELSAN A.S., BAE Systems plc, Boeing Defense, Space & Security, China Aerospace Science & Industry Corp, China Aerospace Science & Technology and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 48 companies featured in this Close-in Weapon Systems market report include:

• ASELSAN A.S.
• BAE Systems plc
• Boeing Defense, Space & Security
• China Aerospace Science & Industry Corp
• China Aerospace Science & Technology
• ELTA Systems Ltd
• General Dynamics Corporation
• Leonardo S.p.A.
• LIG Nex1 Co., Ltd.
• Lockheed Martin Corporation
• MBDA Inc.
• Norinco (China North Industries)
• Northrop Grumman Corporation
• Rafael Advanced Defense Systems Ltd.
• Raytheon Technologies (RTX)
• Rheinmetall AG
• Roketsan A.S.
• Saab AB
• Thales S.A.
• United Technologies (L3Harris et al.)

This edition integrates the latest global trade and economic shifts into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes historical analysis from 2015 to 2023.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025 (E), competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.