PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1883002
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1883002
The global ballistic missiles market was valued at USD 9.83 billion in 2024 and is projected to grow to USD 10.14 billion in 2025, reaching USD 14.05 billion by 2032. North America dominated the market in 2024 with a 32.35% share, driven by advanced missile modernization programs, nuclear deterrence strategies, and investments in missile defense systems such as THAAD, Patriot PAC-3/4, and Aegis BMD.
A ballistic missile is a guided, rocket-propelled weapon designed to deliver conventional, nuclear, chemical, biological, or other warheads to predetermined targets using a primarily ballistic trajectory. The market encompasses RDT&E, production, procurement, modernization, operation, maintenance, and support services for missile programs. Growth is fueled by geopolitical tensions, notably Russia's invasion of Ukraine, China's assertive Indo-Pacific posture, and North Korea and Iran's nuclear ambitions. Investments focus on survivable second-strike capabilities, counterforce accuracy, and extended ranges for both regional and global deterrence.
Technological Advancements Driving Market Growth
Hypersonic glide vehicles (HGVs), Multiple Independently Targetable Reentry Vehicles (MIRVs), and miniaturized warheads are reshaping the ballistic missile landscape. The U.S., Russia, and China are leading in R&D, testing, and deployment of hypersonics, while AI integration and advanced command-and-control systems enhance rapid targeting, battle management, and operational decision-making. State-owned firms such as Russia's Roscosmos and China's CASIC, alongside major Western players including Lockheed Martin, Northrop Grumman, and Raytheon, dominate development due to the high technical and financial barriers for new entrants.
Market Drivers and Restraints
Escalating arms competition and regional instability are primary drivers. North Korea's solid-fuel ICBM tests, Russia's ICBM modernization, and China's DF-17 hypersonics have compelled allied nations to invest in countermeasures and advanced BMD systems. Massive contracts, such as Lockheed Martin's USD 756 million LRHW hypersonic award in February 2024, highlight high demand. Conversely, stringent international arms control regimes like the MTCR and Wassenaar Arrangement, combined with export restrictions, limit technology transfer and market access, particularly for non-allied states. High R&D and lifecycle costs further constrain procurement scale, leaving small, survivable arsenals as the norm.
Market Opportunities
Integration of AI and advanced C5ISR systems is creating demand for next-generation battlefield management and decision support systems. Contracts such as BAE Systems' USD 450 million AI-powered TITAN targeting system in May 2024 and Lockheed Martin's USD 4.5 billion JADC2 program in March 2024 highlight the focus on compressing sensor-to-shooter timelines. Hypersonic and counter-hypersonic system development is also accelerating, evidenced by the U.S. LRHW, Japan-AUKUS collaborations, and India's Agni-VI testing in March 2024. These initiatives expand both R&D and procurement cycles, stimulating the market globally.
Segment Analysis
By missile type, Land-Attack Ballistic Missiles (LABMs) dominated in 2024, crucial for strategic deterrence and long-range precision strikes. Anti-Ship Ballistic Missiles (AShBMs) are fastest-growing due to Indo-Pacific naval threats. By component, guidance systems captured the largest share in 2024, while sensors and seekers are fastest-growing due to hypersonic and terminal-phase targeting needs. Supersonic missiles dominated by speed in 2024, but hypersonic systems are the fastest-growing segment. Ground-based launchers led in 2024, with naval SLBMs anticipated to grow fastest due to second-strike survivability. Solid propellant propulsion dominated and is expected to continue as the fastest-growing segment.
North America led the market in 2024 with USD 3.18 billion, supported by the U.S. nuclear triad and advanced missile defense systems. Europe ranked second, relying on NATO deterrence and allied missile systems. Asia Pacific is projected to achieve the highest growth due to China-U.S. strategic competition and modernization programs in India, North Korea, and Pakistan. The Middle East shows moderate growth, primarily due to Iran's regional deterrence programs, while Latin America and Africa are gradually increasing capabilities focused on regional defense.
Competitive Landscape and Key Developments
Leading players include Lockheed Martin, Boeing, Northrop Grumman, Raytheon, CASIC, DRDO, and MBDA. Key recent developments include Raytheon's alliance with South Korea's ADD in May 2024, North Korea's new hypersonic missile launch in April 2024, and India's successful Agni-VI test in March 2024. Lockheed Martin signed a USD 3 billion contract in January 2024 to modernize the Minuteman III ICBM system. These activities underscore the strategic focus and technological advancements driving market expansion.
In conclusion, the global ballistic missiles market, valued at USD 9.83 billion in 2024, USD 10.14 billion in 2025, and projected at USD 14.05 billion by 2032, is set for sustained growth. Geopolitical tensions, technological advancements, AI integration, and hypersonic development continue to shape a market crucial to national security and strategic deterrence worldwide.
Segmentation
By Missile Type
By Component
By Missile Speed
By Launch Platform
By Missile Range
By Propulsion System
By Region