- Summary
- Table Of Content
- Methodology
Smart Weapons Market Size:
Smart Weapons Market Size is estimated to reach over USD 29.60 Billion by 2032 from a value of USD 18.73 Billion in 2024 and is projected to grow by USD 19.51 Billion in 2025, growing at a CAGR of 6.4% from 2025 to 2032.
Smart Weapons Market Scope & Overview:
Smart weapons encompass a diverse array of munitions, including guided missiles, precision-guided munitions (PGMs), smart bombs, and guided artillery shells, among others. These weapons leverage sophisticated guidance systems, sensors, and communication technologies to accurately engage targets with minimal collateral damage, offering militaries strategic advantages in various operational scenarios. These weapons provide military forces with the ability to neutralize high-value targets while minimizing the risk to friendly forces and civilian populations, thereby, reshaping doctrines and strategies across the defense landscape.
Smart Weapons Market Dynamics - (DRO) :
Key Drivers:
Growing security threats and counterterrorism are driving the smart weapons market expansion
Security threats and the ongoing battle against terrorism serve as significant drivers of the global market. In response to the evolving nature of threats posed by terrorist organizations and insurgent groups, nations worldwide are investing in advanced weaponry and munitions to bolster their defense capabilities and counter these threats effectively. The proliferation of extremist ideologies, asymmetric warfare tactics, and the persistent risk of terrorist attacks have heightened the need for specialized weapons systems, intelligence-gathering tools, and counterterrorism equipment among military, law enforcement, and homeland security agencies.
Further, manufacturers and defense contractors are under pressure to develop cutting-edge weaponry and munitions capable of neutralizing emerging threats, such as improvised explosive devices (IEDs), unmanned aerial vehicles (UAVs), and cyber-attacks. Additionally, collaborative efforts between governments, defense industries, and research institutions further accelerate the market growth.
- For instance, in November 2021, Raytheon Technologies unveiled StormBreaker smart weapon, which provide operators flexibility to hit moving targets in adverse weather conditions. The weapon can fit in jets, such as F-15E Strike Eagle. In addition to this, the weapon has precision and versatility to address a wide range of threats and scenarios.
Thus, according to the smart weapons market analysis, the growing security threats and counterterrorism are driving the smart weapons market size.
Key Restraints:
Geopolitical instabilities are affecting the smart weapons market demand
Geopolitical instability serves as a significant restraint on the global market, making a deep impact on demand, supply chains, and investment decisions within the defense industry. Moreover, geopolitical conflicts and crises can disrupt international arms trade, with embargoes, sanctions, or export controls, limiting the flow of weapons and ammunition to certain regions or countries.
Further, the threat of conflict or geopolitical instability may also deter foreign investment in defense industries, hampering technology transfers, joint ventures, and collaborative research initiatives essential for innovation and competitiveness. Therefore, the aforementioned factors would further impact the smart weapons market size.
Future Opportunities :
Growing customization and modularization in weapon systems are expected to create potential growth for smart weapons market opportunities
Customization and modularization present significant opportunities for the global market, offering tailored solutions to meet diverse military requirements and operational scenarios. By embracing customization, manufacturers can cater to the specific needs of armed forces worldwide, providing flexibility and adaptability in weapon systems and munitions. This approach allows for the integration of advanced technologies, specialized features, and ergonomic designs, enhancing effectiveness and user satisfaction on the battlefield. Moreover, customization fosters closer collaboration between manufacturers and end-users, enabling iterative improvements and rapid response to emerging threats or operational feedback.
Further, modular designs facilitate ease of maintenance, repair, and upgrades, reducing lifecycle costs and enhancing sustainability for military forces. Additionally, modularity enhances interoperability, as standardized interfaces and common architectures enable seamless integration with existing systems and future advancements. This approach empowers armed forces to optimize their weapon inventory, streamline logistics, and adapt to evolving mission requirements.
- For instance, in November 2023, General Atomics Aeronautical Systems, Inc. (GA-ASI) announced collaboration with Remotely Piloted Aircraft (RPA), to integrate EDGE weapon systems into GA-ASI’s MQ-9B SkyGuardian remotely piloted aircraft (RPA). With this collaboration, both the companies will work together to integrate guide-glide weapon solutions and precision munition into GA-ASI’s MQ-9B SkyGuardian.
Thus, based on the above smart weapons market analysis, the growing customization and modularization in weapon systems are expected to drive the smart weapons market opportunities.
Smart Weapons Market Segmental Analysis :
By Product:
Based on product, the market is segmented into missiles, munitions, guided projectiles, guided rockets, and precision guided firearms.
Trends in the product:
- The growing innovations in propulsion systems, guidance and navigation technologies, and warhead design have led to improvements in weapons’ range, accuracy, and lethality.
- Additionally, the integration of advanced sensors, artificial intelligence, and network-centric capabilities enhances the situational awareness and operational effectiveness of modern missile systems, further driving the segment growth.
- Thus, the above factors are driving the smart weapons market demand.
The missiles segment accounted for the largest revenue share in the year 2024.
- Missiles represent a critical component of naval arsenals, ranging from anti-ship missiles designed to target enemy vessels with precision to surface-to-air missiles employed for air defense purposes.
- They are equipped with advanced guidance systems and propulsion technologies, enabling navies to engage threats across vast distances with high accuracy and lethality.
- Additionally, anti-submarine missiles and land-attack cruise missiles are integral to naval operations, providing capabilities for submarine warfare and striking land-based targets respectively.
- For instance, in May 2024, the Defence Research and Development Organisation (DRDO) successfully tested Supersonic Missile-Assisted Release of Torpedo (SMART) system from the coast of Odisha. The system represents the next generation of missile torpedo system, designed for Indian Navy’s anti-submarine warfare capabilities.
- Thus, based on the above analysis, these factors are further driving the smart weapons market growth.
The munitions segment is anticipated to register the fastest CAGR during the forecast period.
- Munitions utilize sophisticated guidance systems to accurately strike intended targets, minimizing collateral damage and maximizing mission success rates. They encompass a wide range of weapon systems, including missiles, bombs, and artillery shells, each equipped with guidance technologies such as GPS, laser, or infrared homing to ensure accuracy across various combat scenarios.
- Governments and defense forces worldwide increasingly prioritize the adoption of precision-guided munitions to uphold international humanitarian laws and mitigate the political and humanitarian repercussions of civilian casualties.
- Miniaturization allows for the development of smaller, more compact guidance systems and components without compromising functionality or performance. This trend is crucial in enhancing the versatility and integration capabilities of precision guided munitions across various platforms, including drones, unmanned aerial vehicles (UAVs), and smaller aircraft.
- For instance, in May 2024, the S. Air Force awarded contract of USD 7.5 billion to Boeing, to develop Joint Direct Attack Munitions (JDAK). The company will provide JDAM tail kits and other supplies under the awarded agreement.
- Thus, based on the above analysis, these factors are expected to drive the smart weapons market share and trends during the forecast period.
By Technology:
Based on technology, the market is segmented into wire-guided, satellite, radar, optical, micro computing, laser, infrared, GPS, and others.
Trends in the technology:
- As modern conflicts evolve and adversaries adopt asymmetrical tactics, there is a growing demand for advanced weapons systems that can deliver precise and decisive responses.
- The technological advancements, particularly in areas such as artificial intelligence (AI), data analytics, and miniaturization, are driving innovation within the advanced weapons sector. These advancements enable the development of more sophisticated guidance systems, improved target recognition capabilities, and enhanced situational awareness for weapon platforms.
The satellite segment accounted for the largest revenue share in the year 2024.
- Satellite leverages global positioning system (GPS) satellites to provide accurate positioning data for guiding munitions to their intended targets.
- Satellite-guided weapons offer long-range precision engagement capabilities, enabling militaries to strike targets with high accuracy from stand-off distances, thereby, reducing the risk to friendly forces and minimizing collateral damage.
- By leveraging satellite guidance technology, navies can optimize the effectiveness of their smart weapon systems, maintain strategic superiority at sea, and safeguard critical maritime interests.
- For instance, in August 2024, Planet announced the partnership with North Atlantic Treaty Organization (NATO), to provide high-resolution satellite data as a part of the Alliance Persistent Surveillance from Space (APSS) program. With this partnership, NATO would be able to track the troop movements in the battlefield.
- Thus, based on the above analysis, these factors would further supplement the smart weapons market
The radar segment is anticipated to register the fastest CAGR during the forecast period.
- Radar-guided weapons can autonomously acquire and engage targets, leveraging radar signatures for targeting and terminal guidance.
- This technology is particularly effective in scenarios where line-of-sight visibility may be limited, such as in urban environments or during adverse weather conditions, ensuring reliable target engagement capabilities across a range of operational scenarios.
- For instance, in February 2025, Raytheon Technologies successfully tested AI/machine learning (ML)-powered radar warning receiver (RWR) technology in fourth-generation aircraft. With the integration of cognitive algorithm deployment system (CDAS), the RWR will boost aircrew survivability, while providing cost-effective mass deployment of AI and ML.
- These developments in the radar segment are anticipated to further drive the smart weapons market trends during the forecast period.
By Platform:
Based on platform, the smart weapons market is segmented into air, land, and naval.
Trends in the platform:
- With the proliferation of unmanned aerial systems (UAS) and increasing integration of advanced sensors and communication technologies, the demand for advanced weaponry for land, air, and sea continues to rise, while driving innovation and investment.
- The integration of smart weapons across different platforms enables militaries to conduct multi-domain operations and project power with precision and flexibility, boosting their prevention capabilities and operational effectiveness in modern warfare scenarios.
The land segment accounted for the largest revenue share of 56.21% in the year 2024.
- As military modernization initiatives prioritize enhancing land-based capabilities to address asymmetric threats and conventional conflicts, the land platform segment remains a focal point for defense procurement and technological advancement.
- Smart weapons deployed on land platforms provide ground forces with enhanced firepower, precision strike capabilities, and increased lethality against a range of targets, including enemy forces, vehicles, and infrastructure.
- These systems contribute to the modernization of ground forces and facilitate their ability to conduct precision strikes in support of tactical and strategic objectives.
- For instance, in January 2023, Rheinmetall signed a contract of USD 32.61 million with NATO, to supply 40mm ammunition to their armed forces. The company’s munitions are developed with the latest standards of the European Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH).
- Thus, based on the above analysis, these factors are driving the smart weapons market growth and trends.
The air segment is anticipated to register the fastest CAGR during the forecast period.
- Air-based platforms encompass a wide range of aircraft, including fighter jets, bombers, attack helicopters, and unmanned aerial vehicles (UAVs).
- Smart weapons deployed on air platforms offer aerial forces the ability to conduct precision strikes against ground, air, and naval targets with minimal collateral damage.
- These systems enhance air superiority, close air support, and offensive capabilities, enabling air forces to effectively engage and neutralize threats across a spectrum of operational environments.
- Air-based weapon systems play a crucial role in modern aerial warfare, enabling rapid and precise response capabilities to address emerging threats and achieve mission objectives with heightened efficiency and effectiveness.
- For instance, in January 2024, the U.S. air force awarded a contract of USD 345 million to Raytheon Technologies, to develop and deliver around 1,500 StormBreaker smart munitions. These weapons were deployed on F-15 Strike Eagle to target stationary and moving objects in any weather conditions.
- These factors are anticipated to drive the smart weapons market trends during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific smart weapons market expansion is estimated to reach over USD 8.14 billion by 2032 from a value of USD 4.95 billion in 2024 and is projected to grow by USD 5.17 billion in 2025. Out of this, the China market accounted for the maximum revenue split of 34.80%. The region is emerging as a key growth market for smart weapons, fueled by rising defense expenditures, territorial disputes, and security concerns across the region. Countries such as China, India, Japan, South Korea, and Australia are investing heavily in the development and acquisition of advanced weapon systems to modernize their armed forces and address evolving security challenges. Further, the region offers significant prospects for defense contractors and technology providers, particularly in the fields of guided missiles, anti-tank missiles, network-enabled weapons, and counter-electronics systems, as countries seek to enhance their military capabilities and maintain regional stability. These factors would further drive the regional smart weapons market during the forecast period.
- For instance, in February 2025, Bharat Electronics Limited announced the partnership with Safran Electronics & Defense, to establish a joint venture for developing precision-guided weapons in India. With this strategic partnership, the companies will manufacture combat weapon systems and smart munitions, which are compatible with LCA Tejas and Rafale.
North America market is estimated to reach over USD 9.03 billion by 2032 from a value of USD 5.66 billion in 2024 and is projected to grow by USD 5.90 billion in 2025. North America holds a significant portion of the market driven by extensive defense budgets, robust R&D capabilities, and a strong focus on technological innovation. The United States dominates the market in this region, being a major producer and exporter of smart weapon systems. The U.S. Department of Defense (DoD) invests heavily in the development and procurement of advanced land-based smart weapons, including guided missiles, precision-guided bombs, and network-enabled weapons, to maintain military superiority and address emerging security threats.With a focus on maintaining military superiority and addressing emerging threats, the region continues to invest in advanced weapon technologies, driving growth in the regional market share.
- For instance, in February 2025, the U.S Army awarded a contract to Northrop Grumman Corporation to develop precision-guidance kits to change conventional 155-millimeter artillery shells into GPS-guided smart munitions.
Additionally, according to the analysis, the smart weapons industry in Europe is projected to witness significant development during the forecast period. Europe, which represents a significant market for advanced weapons, is driven by the defense modernization efforts of NATO member states and other European countries. With increasing security challenges and geopolitical tensions in the region, European nations are investing in advanced weapon systems and technologies to enhance their defense capabilities and address emerging threats.
Additionally, Latin American countries are investing in upgrading their weapon systems with advanced weapon systems to address evolving security threats. Further, Middle East countries are investing in advanced weapon systems and technologies to boost their defense capabilities and address regional security challenges. The need for advanced weapons, including precision-guided munitions, guided missiles, and counter-electronics systems, is expected to remain strong in the Middle East and Africa, driven by defense modernization initiatives and the need to counter asymmetric threats and insurgencies.
Top Key Players and Market Share Insights:
The global smart weapons market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the smart weapons industry include-
- The Boeing Company (U.S.)
- Thales Group (France)
- Textron Inc. (U.S.)
- Saab AB (Sweden)
- Rheinmetall AG (Germany)
- Raytheon Technologies Corporation (U.S.)
- Northrop Grumman Corporation (U.S.)
- MBDA (France)
- Lockheed Martin Corporation (U.S.)
- Leonardo S.p.A (Italy)
- L3Harris Technologies Inc. (U.S.)
- Israel Aerospace Industries Ltd (Israel)
- General Dynamics Corporation (U.S.)
- Elbit Systems Ltd (Israel)
- BAE Systems plc (U.K.)
Recent Industry Developments :
Agreement:
- In March 2025, Elbit Systems and Rafael Advanced Defense Systems Ltd. have been granted a contract, to provide naval control and launching system to protect warships of NATO countries. The agreement includes the delivery of 5 vessels along with RAFAEL’s high end decoy countermeasures.
Smart Weapons Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 29.60 Billion |
| CAGR (2025-2032) | 6.4% |
| By Type |
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| By Component |
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| By Application |
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| By End-User |
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| By Region |
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| Key Players |
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| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
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Key Questions Answered in the Report
How big is the Smart Weapons Market? +
Smart Weapons market size is estimated to reach over USD 29.60 Billion by 2032 from a value of USD 18.73 Billion in 2024 and is projected to grow by USD 19.51 Billion in 2025, growing at a CAGR of 6.4% from 2025 to 2032.
Which is the fastest-growing region in the Smart Weapons Market? +
Asia-Pacific is the region experiencing the most rapid growth in the market.
What specific segmentation details are covered in the Smart Weapons report? +
The smart weapons report includes specific segmentation details for product, technology, platform, and region.
Who are the major players in the Smart Weapons Market? +
The key participants in the market are The Boeing Company (U.S.), Thales Group (France), Textron Inc. (U.S.), Saab AB (Sweden), Rheinmetall AG (Germany), Raytheon Technologies Corporation (U.S.), Northrop Grumman Corporation (U.S.), MBDA (France), Lockheed Martin Corporation (U.S.), Leonardo S.p.A (Italy), L3Harris Technologies Inc. (U.S.), Israel Aerospace Industries Ltd (Israel), General Dynamics Corporation (U.S.), Elbit Systems Ltd (Israel), BAE Systems plc (U.K.), and others.
