Cluster Munitions Market Report 2026

The cluster munitions market size has grown strongly in recent years. It will grow from $6.13 billion in 2025 to $6.62 billion in 2026 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to cold war era artillery and air-delivered munition development, expansion of conventional warfare capabilities, widespread adoption of area-effect weapons in military arsenals, increasing global defense spending cycles, early integration of submunition-based strike systems.

The cluster munitions market size is expected to see strong growth in the next few years. It will grow to $9.09 billion by 2030 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to ongoing modernization of defense strike capabilities, rising geopolitical tensions and regional conflicts, increased demand for rapid response artillery systems, defense stockpile replenishment programs, evolution of long-range precision and hybrid engagement doctrines. Major trends in the forecast period include increased demand for area denial and wide-area effect munitions in modern warfare, modernization of legacy artillery and missile-based cluster delivery systems, growing emphasis on battlefield saturation capability in conventional defense strategies, rising focus on cost-effective mass engagement weapons for dispersed targets, enhanced integration of precision submunition delivery in advanced defense programs.

The increasing geopolitical tensions and armed conflicts are expected to propel and support the growth of the cluster munitions market going forward. Geopolitical tensions refer to the escalation of political hostility, rivalries, and armed confrontations between nations or regional blocs that destabilize international security frameworks. The growing intensity of geopolitical tensions is largely driven by the outbreak and prolonged continuation of large-scale conflicts, where active warzones such as the Russia-Ukraine war and the conflict in the Middle East compel nations to rapidly expand and modernize their military arsenals in response to evolving threat perceptions. The surge in defense procurement activities and military modernization initiatives across conflict-affected and neighboring regions is further contributing to and directly accelerating demand for high-impact area-denial weapons such as cluster munitions. For instance, in July 2024, according to The Armed Conflict Location & Event Data Project (ACLED), a US-based non-profit organization, more than 165,273 political violence events were recorded globally, representing a 15% increase from July 2023 to June 2024. Therefore, rising geopolitical tensions and conflicts are driving the growth of the cluster munitions market.

The rising defense expenditures are expected to propel and contribute to the growth of the cluster munitions market going forward. Defense expenditures refer to government spending allocated toward military forces, weapons procurement, research activities, and defense infrastructure to strengthen national security capabilities. The rising defense expenditures are primarily driven by escalating geopolitical tensions, which are prompting nations to strengthen military capabilities and invest in advanced defense systems to ensure national security preparedness. Increasing defense expenditures are supporting procurement activities, stockpiling efforts, and R&D funding, thereby driving higher demand and advanced development of cluster munitions. For instance, in April 2024, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based research institute, global military expenditure rose from $2.28 trillion in 2022 to $2.44 trillion in 2023, reflecting a 6.8% increase and marking the highest level ever recorded, which highlights expanding defense budgets and procurement activities worldwide. Therefore, the rising defense expenditures are driving the growth of the cluster munitions market.

Leading companies and governments operating in the cluster munitions market are focusing on developing advanced solutions, such as glide-enabled submunition delivery systems, to enhance strike range, improve targeting flexibility, and increase operational effectiveness. A glide-enabled submunition delivery system disperses multiple submunitions over a target using aerodynamic glide technology, enabling extended-range, accurate, and wide-area coverage without direct overflight. For example, in January 2024, Russia announced plans to mass-produce cluster ‘glide’ bombs, designed to be deployed from aircraft and glide toward targets before dispersing multiple submunitions over a broad area. These munitions enhance standoff attack capabilities, reduce aircraft exposure to enemy defenses, and improve the effectiveness of area-target engagements in modern warfare scenarios.

Major companies operating in the cluster munitions market are Rostec, RTX Corporation, Lockheed Martin Corporation, China North Industries Group Corporation Limited (NORINCO), General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Rheinmetall AG, Hanwha Aerospace Co. Ltd., Elbit Systems Ltd., Ares Incorporated, Poongsan Corporation, Day & Zimmermann Company, Denel Dynamics, Bharat Dynamics Limited, Tactical Missiles Corporation, JSC, Avibras Indústria Aeroespacial S. A., Pakistan Ordnance Factories.

North America was the largest region in the cluster munitions market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cluster munitions market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the cluster munitions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cluster munitions market consists of sales of dual-purpose improved conventional munition (Dpicm), sensor-fused weapon (Sfu), cluster bomb unit (Cbu) variants, and M26 rocket warhead. 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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