PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 2111510
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 2111510
Close-in Weapon System Market size was valued at US$ 8,902.3 Million in 2025, expanding at a CAGR of 6.9% from 2026 to 2033.
The Close in Weapon System (CIWS) Market refers to the development, production, integration, and maintenance of automated defensive weapon systems to detect, track, and neutralize incoming threats at close range on naval platforms and on land. They are the last line of defense against any missile, UAVs, aircraft, rockets, and other precision-guided threats. The increasing defense modernization programs, rising geopolitical tensions, naval vessel procurements, and the concerns about hypersonic missile attacks and drone strikes are fueling the growth of the market. Moreover, the advancements in the radar-guided targetings, fire control mechanisms, and hybrid gun/missile systems are also contributing to the success of these weapon systems. The continued growth of the market will be fueled by the growing investments in maritime security and protection of critical infrastructures in the forecast period.
Close-in Weapon System Market- Market Dynamics
Rising Global Naval Fleet Modernization Driving Demand for Advanced Close-in Weapon Systems
The increasing modernization of naval fleets and the growing sophistication of anti-ship missiles, unmanned aerial vehicles (UAVs), and loitering munitions are key factors driving the growth of the Close-in Weapon System (CIWS) Market. Layered ship-defense architectures are increasingly being considered and formulated by modern navies because of the various types and evolving threats in the air, with the need to safeguard high-value naval assets from these threats. For example, the U.S. Navy's shipbuilding plan for FY2025 calls for the fleet to grow from 295 ships today to 390 ships by 2054, with 364 new combat and support ships being built over the next 30 years (according to Congressional Budget Office (CBO) in An Analysis of the Navy's 2025 Shipbuilding Plan). The massive navy expansion programs are likely to drive substantial growth in the demand for integrated, ship self-defense systems like CIWS.
Advanced radar, electro-optical/infrared (EO/IR) sensors, artificial intelligence (AI) fire control and interception systems are gradually becoming a standard feature of modern surface combatants. They are designed to serve as a last line of defense against threats coming from the air and enhance the survivability of naval vessels in the growing contested maritime environment. The adoption of the next-generation CIWS on destroyers, frigates, amphibians and on future naval platforms will be accelerating as defense agencies keep investing on advanced naval platforms and fleet modernization projects to sustain the global Close-in Weapon System Market growth.
The Global Close-in Weapon System Market is segmented on the basis of Type, Platform, Range, Technology, End User, and Region.
Based on Type, the Gun-Based segment accounted for the highest market share for Close-in Weapon System (CIWS) Market due to its capability to fire at any anti-ship missiles, fast attack craft, and unmanned aerial vehicles (UAVs) at very short range, in addition to its rapid-fire capability and proven operational reliability. Naval forces are widely using gun-based CIWS as the final line of defense against incoming attack, as they are capable of being deployed instantly. For example, the U.S. Navy gave Raytheon (RTX) a US$205m contract in September 2025 for ongoing production, upgrading, conversion, and overhauls of Phalanx Close-In Weapon System (CIWS) that are installed on all U.S. Navy surface combatants and the navies of 24 allied countries. This contract marks the enduring significance of gun-based CIWS in today's naval defense architectures.
The Naval segment is growing as a consequence of continued investments in the shipboard defensive systems, based on Platform, as part of long-term fleet modernization initiatives. The U.S. Navy's FY2026 Shipbuilding and Conversion Budget, for example, provides for procurement of Phalanx Block 1B Mk 15 Mod 21/22 Close-In Weapon Systems for the future USS Enterprise (CVN-81), in which the Navy budgeted US$28.3 million for three CIWS installations. The investment highlights the continued integration of close-in weapon systems on next-generation aircraft carriers and major surface combatants.
Close-in Weapon System Market- Geographical Insights
North America is the leading region in the Close-in Weapon System Market as the U.S. Navy is investing in operational readiness and modernization of ship self-defence capabilities. For example, in 2024, the USS Gravely successfully made a close-in intercept of an anti-ship cruise missile in the Red Sea, highlighting the value of the Phalanx Close-In Weapon System in protecting against contemporary missile threats. This on-the-field battle has bolstered procurement and upgrade initiatives of close-range naval defense systems of the U.S. Navy and allied navies.
Rising defence budgets in Europe, growing NATO air and missile defense activity, and a growing demand for short-range air defense systems in response to security threats, are expected to be responsible for significant growth in Europe. In February 2025, Rheinmetall supplied the first verification version of Boxer Skyranger to the German Bundeswehr on a 2024 order for one verification version and 18 production vehicles. The Skyranger 30 is a European-developed 30 mm cannon, with a radar system and an electro-optical sensing package, and has guided missiles.
The Close-in Weapon System (CIWS) Market is a highly competitive market with different leading global defense manufacturers contending for the development of advanced ship self-defense solutions that can fight the high-speed aerial threats, such as anti-ship missiles, drones, and loitering munitions. Artificial intelligence-based fire control systems, multi-sensor integration, hybrid gun-missile platforms, and directed energy technologies are all being invested in by companies to improve interception accuracy and quickness. Defense ministry strategic partnerships and naval modernization contracts continue to be strong competitive strategies, as do ongoing product improvements. Some of the key market players are RTX Corporation, Rheinmetall AG, Leonardo S.p.A, BAE Systems plc, ASELSAN A.S, Northrop Grumman Corporation, Hanwha Aerospace, Thales Group, Elbit Systems Ltd, and Lockheed Martin Corporation.
In June 2026, Naval Group unveiled its Multi-purpose and Modular Launching System (MPLS) Close-In Weapon System as Rampart at Eurosatory 2026. The firm demonstrated the modular CIWS on a wheeled platform, indicating its land application, and confirmed that it is developing an export version as well as one for the French Navy, with industrialization and future orders planned for 2027.