PUBLISHER: The Business Research Company | PRODUCT CODE: 1730965
PUBLISHER: The Business Research Company | PRODUCT CODE: 1730965
Next-generation weapons technology refers to cutting-edge military systems that incorporate AI, autonomous capabilities, hypersonic missiles, and energy weapons, all aimed at improving precision, adaptability, and overall combat effectiveness. These technologies are designed to enhance targeting accuracy, minimize collateral damage, increase survivability, and ensure seamless integration with network-centric warfare systems, facilitating real-time decision-making.
The primary product categories in next-generation weapons technology include missiles, munitions, guided projectiles, guided rockets, guided firearms, and directed energy weapons. Missiles, in particular, are self-propelled, precision-guided weapons that leverage advanced technologies such as AI, hypersonic propulsion, and stealth for superior speed, accuracy, and adaptability in modern combat scenarios. They employ various technologies, including laser, infrared, radar, and global positioning systems (GPS), to operate across multiple platforms, including air, land, and sea.
The next generation weapons technology market research report is one of a series of new reports from The Business Research Company that provides next generation weapons technology market statistics, including the next generation weapons technology industry global market size, regional shares, competitors with the next generation weapons technology market share, detailed next generation weapons technology market segments, market trends, and opportunities, and any further data you may need to thrive in the next generation weapons technology industry. This next generation weapons technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The next-generation weapons technology market size has grown strongly in recent years. It will grow from $18.81 billion in 2024 to $20.11 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth observed in the historic period can be attributed to several factors, including the rising demand for autonomous weapons, the expanding development of directed energy weapons, the ongoing military modernization programs, the growing emphasis on cybersecurity, and the increasing deployment of battlefield robotics.
The next generation weapons technology market size is expected to see strong growth in the next few years. It will grow to $25.99 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth projected for the forecast period can be attributed to factors such as the rising demand for autonomous weapons, an increase in the adoption of electromagnetic railguns, greater use of edge computing in military applications, a rise in military satellite deployments, and the ongoing expansion of military modernization programs. Key trends during this period include the integration of artificial intelligence (AI), the development of hypersonic weapons, a stronger focus on cybersecurity, the growth of electromagnetic weapons, and the widespread adoption of 5G and millimeter-wave communications.
The growth of the next-generation weapons technology market is expected to be driven by the increasing defense budgets. Defense budgets are government-funded allocations for military activities, including operations, personnel, equipment, and national security initiatives. These budgets are rising due to the growing need for modernization in military capabilities, which is essential for maintaining national security and strategic influence in the face of shifting power dynamics. The increase in defense budgets allows for significant investment in the research, development, and acquisition of advanced weapons technologies. This investment leads to the creation of cutting-edge systems, ensuring military forces are prepared to address emerging threats. For example, the Stockholm International Peace Research Institute (SIPRI) reported that global military spending reached $2.443 trillion in 2023, marking a 6.8% increase from 2022. Consequently, the rising defense budgets are fueling the expansion of the next-generation weapons technology market.
Key players in the next-generation weapons technology market are concentrating on developing advanced remote weapon systems to improve combat precision and safety. Remote weapon systems (RWS) are sophisticated technologies that allow weapons to be operated remotely, eliminating the need for human operators at the weapon's location. These systems enhance military safety and effectiveness by enabling target engagement without exposing personnel to direct danger. For instance, Electro Optic Systems, an Australian defense technology company, unveiled the R500, a next-generation remote weapon system, in February 2025. The R500 improves precision and adaptability in complex combat scenarios by incorporating AI-driven targeting, counter-UAS capabilities, and multi-weapon flexibility. It offers enhanced lethality, better situational awareness, and increased survivability, making it ideal for armored vehicles and tactical platforms. The system includes a high-resolution sensor unit, a larger ammunition capacity, and compatibility with unmanned ground vehicles, demonstrating EOS' commitment to providing advanced technology to defense forces.
In November 2023, General Atomics Aeronautical Systems, Inc., a U.S.-based provider of next-generation weapons technology, formed a partnership with EDGE Group to integrate EDGE's smart weapons onto the MQ-9B SkyGuardian Remotely Piloted Aircraft (RPA). The collaboration aims to improve the MQ-9B's operational effectiveness, precision strike capabilities, and mission versatility, making it more adaptable to modern warfare conditions. EDGE Group, based in the UAE, is a provider of next-generation enhanced weapons.
Major players in the next generation weapons technology market are Raytheon Company, The Boeing Company, Lockheed Martin, General Dynamics Mission Systems, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems, Thales Group, Leidos Holdings Inc., Rheinmetall AG, Elbit Systems, Israel Aerospace Industries (IAI), Naval Group, MBDA, General Atomics, AeroVironment Inc., Bharat Dynamics Limited, Electro Optic Systems, Zen Technologies, Hanwha Defense.
North America was the largest region in the next generation weapons technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in next generation weapons technology report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the next generation weapons technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The next generation weapons technology market consists of revenues earned by entities by providing services such as advanced weapon system development, artificial intelligence integration, cybersecurity solutions, defense simulation training, and smart ammunition development. The market value includes the value of related goods sold by the service provider or included within the service offering. The next generation weapons technology market also includes sales of hypersonic missiles, smart ammunition, cyber warfare systems, electronic warfare equipment, and directed energy weapons. 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 and 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.
Next Generation Weapons Technology Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on next generation weapons technology market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for next generation weapons technology ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The next generation weapons technology market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.