PUBLISHER: The Business Research Company | PRODUCT CODE: 1760416
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760416
Smart weapons technology refers to sophisticated weapon systems that are designed to accurately target and engage threats through integrated guidance, control, and targeting systems. These weapons typically use GPS, laser, infrared, or radar technologies to enhance precision and minimize collateral damage. They are built for high performance in modern warfare, allowing for real-time data processing and autonomous or semi-autonomous targeting.
The primary types of products in smart weapons technology include missiles, munitions, guided projectiles, guided rockets, guided firearms, and directed energy weapons. Missiles are precision-guided weapons that incorporate smart technologies and propulsion systems, enabling them to hit targets accurately from land, sea, or air over long distances. The technologies used in these weapons include laser, infrared, radar, GPS, and other advanced systems. These weapons can be launched from various platforms, such as air, land, and sea-based systems.
The smart weapons technology market research report is one of a series of new reports from The Business Research Company that provides smart weapons technology market statistics, including the smart weapons technology industry global market size, regional shares, competitors with the smart weapons technology market share, detailed smart weapons technology market segments, market trends, and opportunities, and any further data you may need to thrive in the smart weapons technology industry. This smart 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 smart weapons technology market size has grown strongly in recent years. It will grow from $20.01 billion in 2024 to $21.49 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth observed during the historic period can be attributed to factors such as the increasing demand for precision-guided weapons, a stronger emphasis on reducing friendly fire incidents, the growing involvement of military forces in urban warfare, the rising use of real-time data for targeting, and a greater reliance on satellite-based navigation systems.
The smart weapons technology market size is expected to see strong growth in the next few years. It will grow to $28.43 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The expected growth in the forecast period is driven by rising threats of asymmetric warfare, the growing adoption of autonomous defense systems, a higher demand for integrated battlefield solutions, increased government focus on border security, and a rise in the procurement of advanced weaponry. Key trends during this period include advancements in artificial intelligence, innovations in sensor fusion and targeting, increased investment in research and development, the development of hypersonic weapon systems, and progress in electronic countermeasure technologies.
The increasing defense budgets are expected to drive the growth of the smart weapons technology market in the coming years. Defense budgets refer to the financial resources allocated by governments to maintain and develop their armed forces and military operations. The rise in defense budgets is primarily a result of escalating geopolitical tensions, with countries allocating more funds to strengthen their military capabilities in response to regional conflicts, strategic rivalries, and national security threats. Smart weapons technology improves precision and efficiency in military operations, contributing to defense budgets by reducing the need for large-scale deployments and minimizing the costs associated with collateral damage. For example, in November 2024, the UK Ministry of Defense reported an increase of approximately $1.4 billion (£1.1 billion) in defense spending compared to 2022-23. Consequently, rising defense budgets are driving the expansion of the smart weapons technology market.
Leading companies in the smart weapons technology sector are focusing on developing innovative solutions, such as autonomous systems, to enhance targeting accuracy and operational efficiency. Autonomous systems are technologies that can function independently without human intervention, utilizing sensors, AI, and machine learning to make decisions. In military settings, these systems allow weapons and vehicles to autonomously perform tasks such as navigation, targeting, and surveillance. For instance, in September 2023, MARSS Group, a UK-based technology company, introduced the Interceptor-SR, a portable autonomous system designed to counter drones. This cutting-edge system uses AI-driven autonomous tracking, thermal sensors, and kinetic neutralization capabilities to independently identify and neutralize Class 1 drones. The Interceptor-SR is versatile, offering both mounted and dismounted deployment options, making it a valuable solution for various military operations. Its modular design ensures adaptability and effectiveness in countering aerial threats.
In November 2024, AeroVironment, Inc., a US-based defense contractor, acquired BlueHalo LLC for $4.1 billion. With this acquisition, AeroVironment seeks to create a more diversified defense technology company by incorporating BlueHalo's expertise in uncrewed systems, loitering munitions, counter-UAS, space technologies, electronic warfare, and cyber capabilities. This move aims to leverage AI and autonomy to boost innovation, manufacturing capacity, and customer support. BlueHalo LLC, a US-based manufacturer, specializes in advanced engineering products, including smart weapon technologies.
Major players in the smart weapons technology market are Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems, L3Harris Technologies Inc., Textron Inc, Rheinmetall AG, Elbit Systems Ltd., Israel Aerospace Industries Ltd., MBDA, Diehl Stiftung & Co. KG, Saab AB, General Atomics, Aselsan A.S., Denel SOC Ltd., Thales Group, UVision Air, Rafael Advanced Defense Systems Ltd., Bharat Dynamics Limited
North America was the largest region in the smart weapons technology market in 2024. The regions covered in smart weapons technology report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the smart weapons technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The smart weapons technology market consists of revenues earned by entities by providing services such as integration of smart weapon systems with defense platforms, maintenance and repair of advanced munitions, simulation-based training for personnel, modernization and upgradation of existing weapon systems, data analytics and AI-based targeting solutions, cybersecurity support against electronic threats, and logistics and inventory management for mission readiness. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart weapons technology market also includes sales of smart missiles, smart bombs, guided mortar rounds, smart artillery shells, directed energy weapons, smart small arms, loitering munitions, and unmanned combat aerial vehicles (UCAVs). 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 that 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.
Smart 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 smart 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 smart 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 smart 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.