Market Trends of Naval Missiles And Missile Launch Systems Industry
Missiles Segment To Dominate Market Share During the Forecast Period
- The missiles segment of the market currently dominates the market and is expected to continue its dominance primarily due to their relatively higher deliveries compared to missile launching systems.
- The growth of this segment is expected to increase due to rising military expenditure and various modernization efforts by major global powers. For instance, in 2022, the global military expenditure reached USD 2,240 billion; this was a growth of 6% from the year 2021.
- With this huge investment in defense expenditure, various countries are rapidly expanding their arsenal of advanced cruise and ballistic missiles to equip their growing naval vessel fleet with enhanced attack capabilities. For instance, in December 2023, the Indian MoD approved the funds for the procurement of 450 Medium Range Anti-Ship Missiles (MRAShM) for surface platforms of the Indian Navy. The MRAShM is a lightweight Surface-to-Surface Missile that will be equipped onboard Indian Naval Ships as a primary offensive weapon. The turbojet-propelled missile will have a range of about 300 km, and it can be equipped with an IIR seeker or RF seeker.
- Similarly, in December 2023, the Spanish Navy awarded a USD 334 million contract to Kongsberg Defence & Aerospace to deliver Naval Strike Missiles (NSM). The missiles are planned to be equipped with NSM, a F-110 class frigate, which is currently under construction by Navantia.
- Furthermore, several nations are making progress in developing cutting-edge technologies like artificial intelligence (AI) to enhance their naval capabilities and effectively respond to different types of maritime threats. For instance, in December 2023, Iran announced that it had equipped its naval warships with Abu Mahdi cruise missiles. These missiles feature technologies such as artificial intelligence and command guidance for changing their course mid-air with a range of over 1,000 kilometers. Such developments of new naval missiles for the naval forces are anticipated to drive the growth of the segment during the forecast period.
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North America to Dominate Market Share During the Forecast Period
- The North American region dominates market share primarily due to the large military spending of the United States, which in turn supports the development and procurement programs for naval forces. For instance, in 2022, the US military defense expenditure rose to USD 877 billion, with a growth of 9% compared to 2021.
- With this huge defense spending, the US is investing in naval fleet modernization of the Navy and Marine Corps primarily to establish and maintain maritime dominance with a balanced naval force and by employing increased lethality across all domains. These procurement programs are carried out to address increasingly complex threats in the global maritime environment.
- For instance, as part of the FY2024 proposed budget request, the US Navy plans to invest USD 32.8 billion for the procurement of nine battle force ships. The request includes funds for the second Columbia class submarine, two Block V Virginia class fast attack submarines, and advance procurement funds for four future SSNs, two Arleigh Burke-class destroyers, and two Constellation class guided missile frigates.
- With this robust naval fleet and induction programs, it is anticipated to generate demand for new advanced missile systems. For instance, in the FY2024 budget document, the US Navy announced that it plans to procure 13 Naval Strike Missile (NSM) missiles, 125 Standard Missile-6 (SM-6), 120 RAM Block II missiles, 147 Evolved Sea Sparrow Missile (ESSM) and the Marine Corps will procure 90 NSM missiles and 34 Block V Tactical Tomahawk (TACTOM) missiles.
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