Rocket and Missile Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Rocket and Missile Market is projected to expand from USD 66.58 Billion in 2025 to USD 93.65 Billion by 2031, reflecting a compound annual growth rate of 5.85%. These systems, which include self-propelled airborne units for delivering military warheads or deploying space exploration payloads, are seeing increased demand due to rising geopolitical instability and a corresponding boost in national defense budgets focused on modernizing strategic capabilities. Consequently, governments are prioritizing the procurement of precision-guided munitions and tactical launch systems to guarantee operational readiness and maintain effective deterrence.

Despite this growth, the industry encounters significant hurdles related to supply chain fragility, specifically a shortage of critical raw materials and semiconductors needed for sophisticated guidance units. These logistical constraints limit production scalability and delay delivery timelines, making it difficult for manufacturers to fulfill the escalating backlog of orders. According to the Aerospace, Security and Defence Industries Association of Europe, the defense sector saw a turnover increase of 13.8 percent in 2024, reaching 183.4 billion euros, underscoring the financial magnitude of the sector despite these supply chain bottlenecks.

Market Drivers

Heightened geopolitical tensions and a worldwide increase in defense spending are fundamentally transforming procurement strategies for rocket and missile systems. Faced with escalating cross-border security threats, nations are prioritizing the acquisition of long-range precision strike capabilities and integrated air defense architectures to ensure combat readiness. This strategic realignment has triggered a substantial influx of capital into the aerospace defense sector to expand tactical weaponry production lines. As reported by the Stockholm International Peace Research Institute (SIPRI) in their April 2025 'Trends in World Military Expenditure, 2024' Fact Sheet, global military spending surged by 9.4 percent to reach 2.71 trillion USD, representing the sharpest year-on-year rise since the end of the Cold War and directly fueling the development of hypersonic technologies and modern ballistic missile stockpiles.

Simultaneously, the rapid expansion of Low Earth Orbit (LEO) satellite constellations is revolutionizing the market's launch services segment. The commercial drive to establish global broadband connectivity and real-time earth observation networks necessitates high-frequency orbital access, promoting the adoption of reusable launch vehicle architectures that have drastically reduced the cost per kilogram to orbit. According to a January 2025 official update from SpaceX, the company successfully executed 134 missions with its Falcon rocket family in 2024, comprising the majority of global orbital launches. This robust demand for both kinetic defense systems and space access is reflected in the order books of major industry players, with Lockheed Martin Corporation reporting a record year-end backlog of 176 billion USD in January 2025, signaling enduring global demand for advanced defense systems.

Market Challenges

The Global Rocket and Missile Market faces significant obstacles due to supply chain fragility, particularly the scarcity of essential raw materials and semiconductors required for complex guidance units. This logistical instability severely constrains production scalability, making it difficult for manufacturers to convert record-high order backlogs into realized revenue. When the supply of vital components, such as rare earth elements and advanced processors, is interrupted, production lines for precision-guided munitions stagnate, leading to extended lead times and delayed deployment schedules that ultimately compromise the operational readiness of defense clients.

This contraction within the vendor base has established a precarious landscape where the failure of a single sub-tier manufacturer can halt major programs. According to the National Defense Industrial Association, private sector respondents reported a 26 percent loss of critical suppliers over the last three years in 2024, highlighting a severe erosion of the industrial base. This decrease in qualified sources forces missile manufacturers to depend on a diminishing pool of vendors, increasing the risk of bottlenecks and directly hindering the industry's capacity to capitalize on rising global demand.

Market Trends

A growing emphasis on indigenous manufacturing and supply chain sovereignty is reshaping the industrial landscape as nations seek to protect their defense capabilities from cross-border logistical disruptions. Governments are increasingly mandating the localization of critical sub-systems, forcing prime contractors to expand domestic production rather than relying on fragmented global supply chains. This strategic shift is driving the aggressive ramping of local assembly lines to ensure strategic autonomy independent of international trade bottlenecks. As noted in a March 2025 Flight Global report titled 'MBDA boosts missile output as backlog spikes to €37bn,' European missile systems manufacturer MBDA increased its missile production and delivery by 33 percent in 2024 compared to the previous year, directly addressing the urgent need for sovereign inventory replenishment.

Furthermore, the development of Hypersonic Glide Vehicles and scramjet propulsion is accelerating the creation of next-generation strike capabilities designed to penetrate modern anti-access/area-denial architectures. Industry leaders are investing heavily in specialized infrastructure to produce advanced air-breathing engines capable of sustaining speeds exceeding Mach 5 for extended periods, which is crucial for long-range maneuverability. These propulsion advancements are vital for moving hypersonic prototypes into operational service. According to a June 2025 article in Design Development Today titled 'Northrop Grumman Expands Propulsion Capacity with New Maryland Facility,' Northrop Grumman is implementing a 100 million USD investment at its Elkton site to build a new innovation center dedicated to the production requirements of hypersonic air-breathing propulsion systems.

Key Players Profiled in the Rocket and Missile Market

• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• Northrop Grumman Corporation
• MBDA
• Thales Group
• BAE Systems PLC
• Defense Space & Security
• Saab AB
• Israel Aerospace Industries Ltd.
• Roketsan AS

Report Scope

In this report, the Global Rocket and Missile Market has been segmented into the following categories:

Rocket and Missile Market, by Launch Mode:

• Surface-To-Surface
• Surface-To-Air
• Subsea-To-Surface
• Air-To-Air
• Air-To-Surface

Rocket and Missile Market, by Propulsion:

• Solid Propulsion
• Liquid Propulsion
• Hybrid Propulsion
• Turbojet
• Ramjet
• Scramjet

Rocket and Missile Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Rocket and Missile Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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