PUBLISHER: Markets & Data | PRODUCT CODE: 1756020
PUBLISHER: Markets & Data | PRODUCT CODE: 1756020
Global hypersonic weapons market is projected to witness a CAGR of 10.78% during the forecast period 2025-2032, growing from USD 8.35 billion in 2024 to USD 18.94 billion in 2032. The global hypersonic weapons market is currently experiencing rapid growth, driven by defense modernization that prioritizes technological advancements. Hypersonic missiles are critical for strategic deterrence because they have unmatched speed, maneuverability, and precision. Defense modernization is moving fast due to increasing investments in propulsion and guidance systems. Geopolitical competition is driving demand for hypersonic innovation as military forces are implementing hypersonic technology to increase capabilities and as a result, modern militaries are focusing on stealthy missiles that ensure a rapid response and are capable of penetrating advanced air defense systems. As many nations are racing to develop and deploy these advanced weapons capabilities, collaboration and research programs will continue to shape the future of hypersonic and high-speed warfare, resulting in global security changes.
For instance, in November 2024, the Missile Defense Agency awarded Northrop Grumman Corporation USD 540.9 million in funding to support the company's development of the Glide Phase Interceptor, a technology to detect and intercept hypersonic weapons.
Hypersonic Weapons as Catalysts of Global Business Growth
The hypersonic weapons market is key to stimulating global economic growth. Hypersonic weapons and the countries investing in hypersonic weapons are driving defense spending and technology development. Countries continue to prioritize hypersonic strike capabilities that can meet the requirements for propulsion systems, AI-targeting, and stealth. The market growth is propelled by developing collaboration among multiple sectors, which impacts many more industries than just the defense industry, including aerospace technologies, materials science, and cybersecurity, among others. The growing investments being made by governments and private companies into new hypersonic systems, pushing the hypersonic weapons market growth and are projected to accelerate the way governments structure their security strategies and manage workforce costs.
For instance, in May 2024, Avioniq AB selected to join the UK Ministry of Defense's Hypersonic Technologies & Capability Development Framework (HTCDF) agreement. Avioniq submitted technology for assessment for Lot 2 of the eight-lot framework, which covers Modelling and Simulation, and Mission Planning.
Strategic Industry Collaborations Fuel Market Expansion
The market is growing as industry collaborators align resources to push forward innovation in propulsion systems, AI-driven targeting, and stealth capabilities. The government and private entities are collaborating to develop high-speed strike capabilities, essential to outperform adversaries in modern battle space. These collaborations enable cost efficiency, reduce risk, and are essential to rapid deployment dynamics that change the nature of global defense planning. Investment in future constructs of hypersonic systems means that the market will rise significantly, and this will directly impact security policy and military advancement. Advanced materials and precision-guided systems will enhance the sustainability of national defense capabilities and highlight hypersonic as a key strategic element in future combat.
For example, in April 2023, the Department of Defense awarded three companies - Northrop Grumman Corporation, General Electric Company and Carbon-Carbon Advanced Technologies (C-CAT) contracts to expand and strengthen the United States' industrial base for hypersonic missiles and other strategic systems. The three combined contracts are worth a total of USD 25 million and were awarded by the Pentagon's Office of the Assistant Secretary of Defense for Industrial Base Policy.
Dominance Of Hypersonic Glide Vehicles Fuels Market Growth
The hypersonic glide vehicle market growth is attributed to the technological advancement in design, propulsion, and navigation guides. Further development for hypersonic research is trending with additional funding to increase research and development, driving innovation and enhancing global security capabilities. Also, as nations are prioritizing high-speed strike capabilities, the market for hypersonic is experiencing rapid growth, shaping the future of military technology and aerospace development shortly. The integration of new generation materials and AI-capable targeting systems will continue to push the hypersonic market. In addition, different organizations are significantly working on advancing the functioning of hypersonic weapons by investing in different research and development activities and technological advancements.
For instance, in March 2025, India's Defense Research and Development Organization (DRDO) unveiled its latest advancements in hypersonic technology, showcasing the highly anticipated Hypersonic Glide Vehicle (HGV) and Transporter Erector Launcher (TEL) as part of the Long-Range Anti-Ship Missile (LR-ASHM) program.
North America Dominates the Hypersonic Weapon Market
In North America, the hypersonic weapons market is driven by defense expenditures, technological advancements, and military strategy. The continent is advancing rapidly because hypersonic weapons are becoming more advanced with new propulsion systems, AI-based targeting, and better stealth technology. This often gives the region much more capabilities over traditional advanced weaponry. As research and development continue, North America remains a leader in the hypersonic weapons space and a sense-maker for global defense strategies and security policy. Furthermore, companies in the market are developing different advanced hypersonic weapons to strengthen their market presence and expand their product portfolio.
For instance, in January 2025, Castelion Corporation is a fast-growing American defense manufacturer, developed advanced hypersonic long-range strike weapons. It is committed to enhancing the United States and its allies' deterrence capability and intends to be an enabler to that advancement.
Impact of U.S. Tariffs on Global Hypersonic Weapons Market
Increased Production Costs: Tariffs on aerospace materials and electronics will raise manufacturing costs, affecting the affordability of defense programs.
Supply Chain Interruptions: Restrictions on imports impact the supply of many specialized components, delaying the schedule for development of hypersonic systems.
Regionalized Defence Programs: Countries are investing in their hypersonic technology, reducing reliance on U.S. suppliers.
Alternate Sourcing Strategies: Countries are looking to establish new supply chains and develop partnerships with aerospace manufacturers outside of the United States.
Key Players Landscape and Outlook
The hypersonic weapons market is influenced by a combination of government defense agencies, aerospace advanced developers, and research organizations for emerging technologies. The market is changing with advances in scramjet engines, artificial intelligence targeting, and stealth technology as these components enhance military capabilities. The future illustrates increased attention and funding to hypersonic systems, and when combined with global defense strategies emphasizing rapid and precise responses, it requires disruptive change within the hypersonic weapons market with heightened demand for high-speed and maneuverable strike weapons. Emerging global strategies for defense processes will increase transformation advances for operational tempo improvements regarding military space operations and defense deterrence strategies.
For instance, in May 2025, RTX Corporation delivered the first hypersonic-tracking missile defense radar to the Missile Defense Agency, enhancing its existing AN/TPY-2 system with advanced Gallium Nitride (GaN) technology. This upgraded radar improves detection and tracking capabilities, supporting the U.S. Army's Terminal High Altitude Area Defense (THAAD) battery while also providing crucial cuing data for missile defense systems.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.