Close-In Weapon Systems (CIWS) Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 - 2034

PUBLISHED: June 13, 2025

PAGES: 180 Pages

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Description

The Global Close-In Weapon Systems Market was valued at USD 7.2 billion in 2024 and is estimated to grow at a CAGR of 9.5% to reach USD 17.8 billion by 2034. This growth is primarily driven by rising threats from unmanned aerial vehicles (UAVs) and missiles, along with increasing global defense spending. The CIWS market has faced challenges in recent years, including the impact of tariffs imposed by the U.S. administration, which raised the price of critical raw materials for CIWS systems and, in turn, increased production costs. The tariffs also led to disruptions in supply chains, delaying the execution of contracts and limiting access to international markets for defense contractors. Retaliatory trade actions from allied countries further complicated the trade landscape, affecting the ability of U.S. defense companies to remain globally competitive in CIWS technology and negatively impacting the procurement budgets of both domestic and foreign buyers.

Close-In Weapon Systems (CIWS) Market - IMG1

As threats from UAVs and advanced missile technologies become more sophisticated, militaries are turning to CIWS as an essential line of defense for naval vessels and critical infrastructure. These systems offer a rapid-response capability to detect, track, and neutralize incoming threats at extremely short ranges, ensuring survival in hostile environments. The market is categorized by technology into radar-guided and electro-optical/infrared (EO/IR)-guided systems, with radar-guided systems being the dominant segment due to their excellent performance in tracking fast-moving aerial threats across various environmental conditions.

Market Scope
Start Year	2024
Forecast Year	2025-2034
Start Value	$7.2 billion
Forecast Value	$17.8 billion
CAGR	9.5%

Gun-based systems segment held a 52.5% share in 2024. This dominance is largely due to their operational maturity, cost-efficiency, and high rate of fire, making them the preferred choice for many defense applications. These systems are known for their ability to deliver rapid and accurate fire, which is essential in close-in defense scenarios where every second counts. Their relatively low-cost engagement capability allows for more effective neutralization of threats without the need for expensive ammunition or resources.

In terms of platform, naval-based CIWS systems are the leading segment, accounting for 76.8% of the market in 2024. This is driven by the high proliferation of CIWS technology on warships like destroyers, frigates, and aircraft carriers, which are increasingly integrating these systems to counter the growing threat of anti-ship missiles and swarming drones. Global naval modernization programs and advancements in blue-water navies further bolster this trend.

United States Close-In Weapon Systems (CIWS) Market reached USD 2.4 billion in 2024 was the largest due to continued investments in naval defense and counter-UAV capabilities. The U.S. Navy's ongoing efforts to enhance fleet survivability through the integration of advanced technologies, including directed energy systems and AI-powered threat detection, reinforce the country's leadership in the CIWS space.

Leading players in the Close-In Weapon Systems (CIWS) Market include Thales Group, Lockheed Martin Corporation, Rheinmetall AG, and RTX Corporation. To strengthen their position in the CIWS market, companies are focusing on technological innovation, including the integration of directed energy and AI-driven systems to improve threat detection and response times. By investing heavily in research and development, these companies aim to stay ahead of emerging threats, such as advanced UAVs and missiles. Strategic partnerships with defense contractors and governments help improve market access, while collaboration with other industry players allows for the sharing of technology and expertise. Additionally, manufacturers are expanding their production capacities to meet the increasing demand for CIWS solutions, making the systems more affordable and accessible to a broader range of global customers.

Product Code: 14159

Chapter 1 Methodology & Scope

1.1 Market scope and definition
1.2 Research design
- 1.2.1 Research approach
- 1.2.2 Data collection methods
1.3 Data mining sources
- 1.3.1 Global
- 1.3.2 Regional/Country
1.4 Base estimates and calculations
- 1.4.1 Base year calculation
- 1.4.2 Key trends for market estimation
1.5 Primary research and validation
- 1.5.1 Primary sources
1.6 Forecast model
1.7 Research assumptions and limitations

Chapter 2 Executive Summary

2.1 Industry 360° synopsis
2.2 Key market trends
- 2.2.1 Weapon type trends
- 2.2.2 Technology trends
- 2.2.3 Platform trends
- 2.2.4 Range trends
- 2.2.5 End use trends
- 2.2.6 Regional trends
2.3 TAM Analysis, 2025-2034 (USD Million)
2.4 CXO perspectives: Strategic imperatives
- 2.4.1 Executive decision points
- 2.4.2 Critical success factors
2.5 Future outlook and strategic recommendations

Chapter 3 Industry Insights

3.1 Industry ecosystem analysis
- 3.1.1 Supplier landscape
- 3.1.2 Profit margin
- 3.1.3 Cost structure
- 3.1.4 Value addition at each stage
- 3.1.5 Factor affecting the value chain
- 3.1.6 Disruptions
3.2 Industry impact forces
- 3.2.1 Growth drivers
  - 3.2.1.1 Rising threats from UAVs and missiles
  - 3.2.1.2 Rising demand for land-based CIWS for base defense
  - 3.2.1.3 Growing demand for multi-layered defense systems
  - 3.2.1.4 Increasing defense budgets in emerging economies
  - 3.2.1.5 Naval fleet modernization programs
- 3.2.2 Industry pitfalls and challenges
  - 3.2.2.1 High procurement and maintenance costs
  - 3.2.2.2 Complex integration challenges
- 3.2.3 Market opportunities
3.3 Growth potential analysis
3.4 Regulatory landscape
- 3.4.1 North America
- 3.4.2 Europe
- 3.4.3 Asia Pacific
- 3.4.4 Latin America
- 3.4.5 Middle East & Africa
3.5 Porter's analysis
3.6 PESTEL analysis
3.7 Technology and innovation landscape
- 3.7.1 Current technological trends
- 3.7.2 Emerging technologies
3.8 Emerging business models
3.9 Compliance requirements
3.10 Defense budget analysis
3.11 Global defense spending trends
3.12 Regional defense budget allocation
- 3.12.1 North America
- 3.12.2 Europe
- 3.12.3 Asia Pacific
- 3.12.4 Middle East and Africa
- 3.12.5 Latin America
3.13 Key defense modernization programs
3.14 Budget forecast (2025-2034)
- 3.14.1 Impact on industry growth
- 3.14.2 Defense budgets by country
- 3.14.3 Defense budget allocation by segment
  - 3.14.3.1 Personnel
  - 3.14.3.2 Operations and maintenance
  - 3.14.3.3 Procurement
  - 3.14.3.4 Research, development, test and evaluation
  - 3.14.3.5 Infrastructure and construction
  - 3.14.3.6 Technology and innovation
3.15 Supply chain resilience
3.16 Geopolitical analysis
3.17 Workforce analysis
3.18 Digital transformation
3.19 Mergers, acquisitions, and strategic partnerships landscape
3.20 Risk assessment and management
3.21 Major contract awards (2021-2024)

Chapter 4 Competitive Landscape, 2024

4.1 Introduction
4.2 Company market share analysis
- 4.2.1 By region
  - 4.2.1.1 North America
  - 4.2.1.2 Europe
  - 4.2.1.3 Asia Pacific
- 4.2.2 Market concentration analysis
4.3 Competitive benchmarking of key players
- 4.3.1 Financial performance comparison
  - 4.3.1.1 Revenue
  - 4.3.1.2 Profit margin
  - 4.3.1.3 R&D
- 4.3.2 Product portfolio comparison
  - 4.3.2.1 Product range breadth
  - 4.3.2.2 Technology
  - 4.3.2.3 Innovation
- 4.3.3 Geographic presence comparison
  - 4.3.3.1 Global footprint analysis
  - 4.3.3.2 Service network coverage
  - 4.3.3.3 Market penetration by region
- 4.3.4 Competitive positioning matrix
  - 4.3.4.1 Leaders
  - 4.3.4.2 Challengers
  - 4.3.4.3 Followers
  - 4.3.4.4 Niche players
- 4.3.5 Strategic outlook matrix
4.4 Key developments, 2021-2024
- 4.4.1 Mergers and acquisitions
- 4.4.2 Partnerships and collaborations
- 4.4.3 Technological advancements
- 4.4.4 Expansion and investment strategies
- 4.4.5 Digital Transformation Initiatives
4.5 Emerging/ Startup Competitors Landscape

Chapter 5 Market Estimates & Forecast, By Weapon Type, 2021-2034 (USD Million)

5.1 Key trends
5.2 Gun-based systems
5.3 Missile-based systems
5.4 Laser-based systems
5.5 Hybrid systems

Chapter 6 Market Estimates & Forecast, By Technology, 2021-2034 (USD Million)

6.1 Key trends
6.2 Radar-guided systems
6.3 Electro-optical/infrared (EO/IR)-guided systems

Chapter 7 Market Estimates & Forecast, By Platform, 2021-2034 (USD Million)

7.1 Key trends
7.2 Naval-based CIWS
7.3 Land-based CIWS

Chapter 8 Market Estimates & Forecast, By Range, 2021-2034 (USD Million)

8.1 Key trends
8.2 Short-range (<2 km)
8.3 Medium-range (2–10 km)
8.4 Extended range (>10 km)

Chapter 9 Market Estimates & Forecast, By End Use, 2021-2034 (USD Million)

9.1 Key trends
9.2 Naval forces (Navy)
9.3 Ground forces

Chapter 10 Market Estimates & Forecast, By Region, 2021-2034 (USD Million)

10.1 Key trends
10.2 North America
- 10.2.1 U.S.
- 10.2.2 Canada
10.3 Europe
- 10.3.1 UK
- 10.3.2 Germany
- 10.3.3 France
- 10.3.4 Italy
- 10.3.5 Spain
- 10.3.6 Netherlands
10.4 Asia Pacific
- 10.4.1 China
- 10.4.2 India
- 10.4.3 Japan
- 10.4.4 South Korea
- 10.4.5 Australia
10.5 Latin America
- 10.5.1 Brazil
- 10.5.2 Mexico
10.6 MEA
- 10.6.1 South Africa
- 10.6.2 Saudi Arabia
- 10.6.3 UAE