Guided Weapon System Market Set to Reach $66.43 Billion by 2029

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The Business Research Company’s Guided Weapon System Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, August 25, 2025 /EINPresswire.com/ -- What Is The Expected Cagr For The Guided Weapon System Market Through 2025?
The size of the guided weapon system market has seen significant growth over the recent years. From $46.38 billion in 2024, it is projected to increase to $49.97 billion in 2025, with a compound annual growth rate (CAGR) of 7.7%. Factors such as increasing demand from developing economies, escalating terrorism threats, superior capabilities in range and payload, government-driven indigenization initiatives, and an uptick in maritime security operations, we can account for this robust growth during the historical period.

A substantial expansion is predicted in the market for the guided weapon system within the approaching years. It is estimated to reach $66.43 billion in 2029, with a compound annual growth rate of 7.4%. Global increases in defense budgets, escalating geopolitical pressures, the need for precision and accuracy, expanding use of UAVs and drones, and investment in R&D contribute to this growth forecasted for the period. The period will also see prevailing trends such as the progress in AI and machine learning, the synchronisation of network-centric warfare systems, a demand for cost-effective weapon systems, international defense alliances and cooperation, and the need for fast-reacting capabilities.

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What Are The Key Factors Driving Growth In The Guided Weapon System Market?
The predicted rise in defense funding is expected to propel the guided weapon system market's progress in the approaching years. Nations allocate this expenditure to safeguard and enhance their defense mechanisms. The escalating geopolitical disagreements necessitate nations to fortify their defense budgets, thereby improving preparedness against regional conflicts and global power battles. An increased defense budget bolsters the demand for guided weapon systems, allowing governments to invest in state-of-the-art, precision-attack abilities that augment military effectiveness while curbing incidental damage. For example, the Stockholm International Peace Research Institute, an organization located in Sweden, reported that in April 2025, worldwide military expenditure amounted to 2,718 billion dollars in 2024. This represents a 9.4% uptick after adjusting for inflation as compared to the preceding year. Thus, the continuous rise in defense spending will stimulate the expansion of the guided weapon system market.

What Are The Top Players Operating In The Guided Weapon System Market?
Major players in the Guided Weapon System Global Market Report 2025 include:
• 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.

What Are The Major Trends That Will Shape The Guided Weapon System Market In The Future?
Major firms within the guided weapon system market are putting their efforts into the creation of sophisticated solutions, including guided missiles that can resist electronic warfare, in order to retain effectiveness and precision even when electronic signals are intentionally interfered. These types of missiles are engineered to preserve their targeting and navigational skills even in circumstances where electronic signals are intentionally blocked or disturbed. As an example, Israel Aerospace Industries, a defense and aerospace organization based in Israel, developed an electronic warfare-resistant guided missile known as Teaser in October 2024. This weapon features an external targeting system known as Teaser-Sight, enabling it to strike targets up to 2.5 kilometers away. Its fast speed of approximately 200 meters per second allows the user to keep visual contact with the target for the duration of its flight. Designed specifically for smaller military or special forces units, the warhead is ideal for neutralizing lightly armored vehicles, light structures, or individuals. It's lightweight, shoulder-fired, and functions independently of satellite-based navigation systems.

Comprehensive Segment-Wise Insights Into The Guided Weapon System Market
The guided weapon system market covered in this report is segmented –

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, Unmanned Aerial Vehicle
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), Ballistic Missiles, 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

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Global Guided Weapon System Market - Regional Insights
For the year analyzed in the Guided Weapon System Global Market Report 2025, North America emerged as the dominant region. The forecast indicates continued growth in this regional market. The study encompasses regions including North America, Western Europe, Eastern Europe, Asia-Pacific, South America, the Middle East, and Africa.

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