Land-Based Smart Weapons Market Report 2025

The land-based smart weapons market size has grown strongly in recent years. It will grow from $5.09 billion in 2024 to $5.51 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to rising demand for precision strike capabilities, increasing cross-border tensions, rising focus on minimizing collateral damage, rise in asymmetric warfare and insurgencies, and rising demand for real-time battlefield awareness.

The land-based smart weapons market size is expected to see strong growth in the next few years. It will grow to $7.43 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. This anticipated expansion is driven by the increasing use of unmanned ground systems, growing investment in AI technologies for defense, heightened interest in autonomous weapons platforms, and a stronger emphasis on integrated battlefield systems. Additionally, there is a surging requirement for precision-focused operations in urban combat settings. Notable developments expected during the forecast period include progress in autonomous targeting capabilities, deeper AI integration, innovation in precise strike methods, incorporation of network-centric warfare frameworks, and enhancements in sensor fusion tech.

The increasing military budgets are expected to propel the growth of the land-based smart weapons market going forward. Military budgets refer to the government's total funds for defense, including the purchase, development, and maintenance of smart weapons. The rise in military budgets is primarily driven by increasing geopolitical tensions, as countries allocate more resources to strengthen their defense capabilities and ensure national security amid growing regional conflicts and global power rivalries. The increase in military budgets boosts the development and deployment of land-based smart weapons by funding advanced technologies, production, and training, resulting in more precise, reliable, and effective battlefield systems. For instance, in November 2023, according to the Ministry of Defence, a UK-based government agency, the UK defense spending rose from £52.8 billion (around $66.2 billion) in 2022/23 to £54.2 billion (approximately $ 68 billion) in 2023/24. Therefore, the increasing military budgets drive the growth of the land-based smart weapons market.

Key players in the land-based smart weapons market are increasingly focused on developing cutting-edge systems such as land-based cruise missiles to improve precision strike efficiency and broaden mission flexibility. A naval cruise missile is a precision-guided, long-range weapon launched from maritime platforms to hit land or sea-based objectives with high accuracy. These systems enhance a military’s offensive reach while lowering human risk and improving mission success. For example, in June 2024, MBDA S.A.S, a France-based defense manufacturer, introduced the Land Cruise Missile (LCM) system. This new ground-launched missile builds on the Naval Cruise Missile (NCM) platform and is intended for delivering precision strikes over long distances with high survivability. It comprises ground launch units on a specialized vehicle and an integrated mission planning suite. The LCM incorporates NCM’s key features, such as terrain-following flight, low radar signature, and high target lethality.

In August 2023, Rheinmetall AG, a Germany-based defense company, acquired Expal Systems for $1.36 billion. With this acquisition, Rheinmetall seeks to boost its core weapons and munitions business by significantly increasing its production capabilities and expanding its ammunition offerings. This move also strengthens the company’s capacity to meet surging global demand - particularly among NATO members - for high-grade military munitions. Expal Systems, based in Spain, is known for its expertise in land-based weapon systems, including advanced mortar technologies and artillery-grade ammunition.

Major players in the land-based smart weapons market are, Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, General Dynamics Ordnance and Tactical Systems Inc., Northrop Grumman Corporation, BAE Systems plc, Larsen And Toubro Limited, Thales Group, L3Harris Technologies Inc., Textron Systems Corporation, Rheinmetall AG, Hanwha Aerospace Co. Ltd., MBDA Missile Systems, Diehl Defence, Saab AB, Rafael Advanced Defense Systems Ltd., Poongsan Corporation, ASELSAN A.S., Denel Dynamics, UVision Air Ltd., NORINC.

North America was the largest region in the land-based smart weapons market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in land-based smart weapons report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the land-based smart weapons market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Land-based smart weapons refer to technologically advanced weapons deployed on land that utilize integrated systems like sensors, guidance mechanisms, and onboard computers to accurately locate, track, and hit targets with high precision. These include guided artillery shells, smart missiles, and robotic ground vehicles that come equipped with decision-making and targeting functionalities. Utilizing real-time data along with autonomous or semi-autonomous operations, these weapons boost operational efficiency, limit unintended damage, and improve adaptability on the battlefield.

The primary categories of land-based smart weapons encompass missiles, artillery systems, smart munitions, unmanned ground vehicles (UGVs), and cyber weapons. Missiles are designed for precision delivery of explosive payloads over long distances to either stationary or mobile targets. These systems make use of multiple technologies such as radar guidance, satellite navigation, laser and infrared guidance, GPS-based systems, inertial navigation, and autonomous targeting capabilities. Their applications span various areas including military missions, industrial protection, homeland security, and counter-terrorism efforts. Key users include military defense bodies, governmental agencies, private security providers, and research organizations.

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

The land-based smart weapons market consists of sales of anti-tank guided missiles, loitering munitions, precision-guided mortars, ground-based directed energy weapons, electronic warfare ground systems, mine-resistant smart explosive devices, and autonomous combat ground robots. 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 and 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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