Guided Weapon System Global Market Report 2026

A guided weapon system is a type of armament engineered to accurately steer its trajectory toward a predetermined target using various internal or external guidance mechanisms. It operates with greater precision than unguided systems, often making mid-course adjustments to correct deviations and enhance targeting accuracy. These systems combine multiple components that work together to ensure effective control and targeting throughout the weapon's flight.

The primary types of guided weapon systems include missiles, guided rockets, guided mortars, and guided bombs. Missiles are self-propelled weapons designed to deliver explosive payloads with high accuracy over various distances. They employ technologies such as infrared, laser, radar, and global positioning system (GPS) and are used in applications like air-to-air missiles, air-to-ground missiles, anti-ship missiles, precision-guided munitions, and unmanned aerial vehicles. These systems are utilized by both defense forces and homeland security agencies.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the guided weapon system market by increasing costs of imported electronics, sensors, and advanced materials. The impact is notable across North America and Europe where high value defense components are sourced globally. These pressures affect procurement costs. However, tariffs encourage domestic defense manufacturing and strategic supply chain independence.

The guided weapon system market research report is one of a series of new reports from The Business Research Company that provides guided weapon system market statistics, including guided weapon system industry global market size, regional shares, competitors with a guided weapon system market share, detailed guided weapon system market segments, market trends and opportunities, and any further data you may need to thrive in the guided weapon system industry. This guided weapon system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The guided weapon system market size has grown strongly in recent years. It will grow from $49.97 billion in 2025 to $53.76 billion in 2026 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to military modernization programs, geopolitical tensions, defense budget expansion, demand for accurate strike capabilities, technological advancements in guidance systems.

The guided weapon system market size is expected to see strong growth in the next few years. It will grow to $71.17 billion in 2030 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to increased defense spending, adoption of ai enabled targeting, demand for unmanned combat systems, cross domain warfare strategies, development of next generation missiles. Major trends in the forecast period include rising demand for precision guided munitions, integration of multi sensor guidance systems, advancements in target tracking accuracy, growth in autonomous weapon capabilities, modernization of defense arsenal.

Rising defense expenditures worldwide are expected to drive the growth of the guided weapon system market in the near future. Defense expenditure refers to the total budget a country allocates to maintain and enhance its military capabilities. Escalating geopolitical tensions have prompted nations to increase their defense spending to strengthen readiness amid regional conflicts and global power rivalries. Increased defense budgets facilitate investments in advanced guided weapon systems, which offer precision-strike capabilities that improve military effectiveness while minimizing collateral damage. For example, the Stockholm International Peace Research Institute, a Sweden-based organization, reported that global military spending reached $2,718 billion in 2024, representing a 9.4% real-term increase compared to the previous year. Hence, rising defense expenditures are expected to boost the guided weapon system market.

Companies in the guided weapon system sector are concentrating on the development of advanced technologies like electronic warfare-resistant guided missiles to ensure accuracy and effectiveness despite electronic jamming attempts. These missiles are engineered to retain targeting and navigation functions even when electronic signals are intentionally disrupted. For instance, in October 2024, Israel Aerospace Industries, an aerospace and defense company based in Israel, developed the Teaser missile, which features an external aiming system called Teaser-Sight. This system enables the missile to engage targets up to 2.5 kilometers away. Traveling at a speed of approximately 200 meters per second, the missile allows the operator to keep visual contact with the target throughout its flight. Designed for small infantry and special forces units, the lightweight, shoulder-fired weapon is effective against light structures, lightly armored vehicles, and personnel, and operates without relying on satellite navigation.

In April 2025, General Atomics Electromagnetic Systems (GA-EMS), a U.S.-based technology firm, entered a partnership with Rafael Advanced Defense Systems Ltd. to develop precision-guided missiles. Their collaboration focuses on the Bullseye missile, a long-range, precision-guided strike weapon built to meet U.S. military standards and capable of multi-platform launches from air, ground, and sea. Utilizing Rafael's expertise in modular missile design and testing, this partnership aims to lower development risks and costs, enabling large-scale production of a high-performance missile with significant cost savings per unit. Rafael Advanced Defense Systems Ltd. is an Israeli manufacturer specializing in guided weapon systems.

Major companies operating in the guided weapon system market are Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies, Inc., Leonardo S.p.A., Textron Inc., Rheinmetall AG, Elbit Systems Ltd., Israel Aerospace Industries Ltd., Hanwha Aerospace, Diehl Defence GmbH & Co. KG, Saab AB, Rafael Advanced Defense Systems Ltd., Kongsberg Defence & Aerospace, MBDA Holdings SAS, Defence Research and Development Organisation, ASELSAN A.S., Bharat Dynamics Limited, Tactical Missiles Corporation JSC, Denel Dynamics, KBP Instrument Design Bureau.

North America was the largest region in the guided weapon system market in 2025. The regions covered in the guided weapon system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the guided weapon system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The guided weapon system market consists of revenues earned by entities by providing services such as system integration services, training services, system modernization, and supply chain support. The market value includes the value of related goods sold by the service provider or included within the service offering. The guided weapon system market also includes sales of guidance control units, target acquisition systems, seeker heads, actuation systems, and navigation systems. 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.

Guided Weapon System Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses guided weapon system 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.

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Where is the largest and fastest growing market for guided weapon system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The guided weapon system 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Missiles; Guided Rockets; Guided Mortars; Guided Bombs
• 2) By Technology: Infrared; Laser; Radar; Global Positioning System (GPS)
• 3) By Application: Air-To-Air Missile; Air-To-Ground Missile; Anti-Ship Missile; Precision-Guided Munition
• 4) By End-User: Defense; Homeland Security
• Subsegments:
• 1) By Missiles: - Air-To-Air Missiles (AAM); Air-To-Surface Missiles (ASM); Surface-To-Air Missiles (SAM); Surface-To-Surface Missiles (SSM); Anti-Ship Missiles; Anti-Tank Guided Missiles (ATGM); Cruise Missiles
• 2) By Guided Rockets: Air-Launched Guided Rockets; Ground-Launched Guided Rockets; Naval-Launched Guided Rockets
• 3) By Guided Mortars: Lightweight Guided Mortars; Medium Caliber Guided Mortars; Heavy Caliber Guided Mortars
• 4) By Guided Bombs: Laser-Guided Bombs (LGB); GPS-Guided Bombs; Infrared-Guided Bombs; Electro-Optical Guided Bombs
• Companies Mentioned: Lockheed Martin Corporation; General Dynamics Corporation; Northrop Grumman Corporation; BAE Systems plc; Thales Group; L3Harris Technologies, Inc.; Leonardo S.p.A.; Textron Inc.; Rheinmetall AG; Elbit Systems Ltd.; Israel Aerospace Industries Ltd.; Hanwha Aerospace; Diehl Defence GmbH & Co. KG; Saab AB; Rafael Advanced Defense Systems Ltd.; Kongsberg Defence & Aerospace; MBDA Holdings SAS; Defence Research and Development Organisation; ASELSAN A.S.; Bharat Dynamics Limited; Tactical Missiles Corporation JSC; Denel Dynamics; KBP Instrument Design Bureau.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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