Naval Smart Weapons Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.01 Billion |
| Market Size (2029) | USD 10.86 Billion |
| CAGR (2024 - 2029) | 6.32 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Naval Smart Weapons Market Analysis
The Naval Smart Weapons Market size is estimated at USD 8.01 billion in 2024, and is expected to reach USD 10.86 billion by 2029, growing at a CAGR of 6.32% during the forecast period (2024-2029).
The growing demand for sea-based warfare, along with the increasing fleets of naval vessels of countries worldwide, is propelling the procurement of sea-based smart weapons. Increased geopolitical tension demands smart weapons for strategic superiority at sea. Innovations in hypersonic and AI-driven targeting systems form the crux of maintaining a competitive edge and boosting the market's growth.
Integrating AI, machine learning, and improved sensor technologies brings tremendous opportunities to improve targeting accuracy and operational efficiency. Defense contractors and naval forces are working together to achieve the most advanced systems, rapidly being deployed to achieve full integration and bring the technologies to market. On the other hand, the development is costly, and integrating new technologies into current naval platforms is complex.
Advanced systems must be secured from cyber threats because vulnerabilities may critically influence mission success and, in the worst scenario, have implications for national security. Regulatory barriers and export restrictions create obstacles to market growth and international cooperation. Additionally, the continuous development of guidance systems, like laser and GPS technologies, ensures better performance in naval operations. Better interoperability between NATO allies and strategic partnerships will go even further to drive growth in the market.
Naval Smart Weapons Market Trends
The Laser Guidance Segment to Dominate the Market During the Forecast Period
The laser guidance segment, driven by its technological edge, currently commands the largest share of the naval smart weapons market and is poised to maintain its dominance through the forecast period. Laser guidance systems, crucial components in missiles, rockets, and various weapons, excel at targeting stationary and moving objectives. Bolstered by escalating defense budgets, exemplified by the USD 858 billion allocations in the United States in 2023, along with continuous investments and procurements, fuel the market’s growth. Enhanced targeting pods, such as the AN/AAQ-33 Sniper pod, bolster detection and tracking and seamlessly integrate with platforms like the F-35 and UAVs, enhancing operational flexibility. The increasing adoption of laser-guided precision munitions in naval missions further cements the segment’s market dominance.
Advancements in technology have rendered laser-guided weapons effective even in adverse weather conditions. Beyond missiles, laser guidance is now incorporated into ammunition, ensuring precise and highly accurate target strikes. Notably, in November 2023, BlueHalo secured a contract from the US Navy's Office of Naval Research and the Naval Surface Warfare Center for a high-energy laser-directed energy weapon prototype. This initiative, an evolution of BlueHalo's LOCUST Laser Weapon System, is tailored for integration into the Marine Corps' Joint Light Tactical Vehicle (JLTV). The successful integration of the LOCUST system onto the JLTV signifies a pivotal advancement in directed energy weapon technology, offering a potent mobile defense against the evolving UAS threat landscape.
North America to Dominate the Market During the Forecast Period
North America leads the naval smart weapons market, driven by its substantial defense budgets and robust NATO alliances. In 2023, the United States allocated nearly USD 858 billion to defense, facilitating extensive R&D and procurement of cutting-edge naval weaponry. Additionally, NATO's collaborative defense initiatives, bolstered by its commitments, not only boost member nations' joint capabilities but also enhance overall interoperability.
The growth in North America is further supported by the US Navy's fleet modernization efforts and the incorporation of advanced technologies like hypersonic missiles and AI-driven targeting systems. Investments in high-tech warships and submarines underscore the region's commitment to bolstering its naval capabilities, solidifying its strategic advantage. Moreover, North America is cementing its position as the market leader by fortifying naval security measures and fostering strategic partnerships.
Illustrating this trend, in March 2024, New Directions Technologies Inc. clinched a significant contract worth USD 111.4 million. This cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity (IDIQ) contract focuses on providing comprehensive engineering support, system and test engineering, management analysis, and training services. The contract, under the Naval Air Warfare Center Weapons Division’s (NAWCWD) Research and Engineering Department, aims to enhance concurrent engineering and subject matter expertise across critical projects, particularly in missiles and sensor systems.
Naval Smart Weapons Industry Overview
The naval smart weapons market is fragmented. Some prominent companies in the market are BAE Systems PLC, Lockheed Martin Corporation, RTX Corporation, Northrop Grumman Corporation, and General Dynamics Corporation.
Many key players have forged enduring partnerships with military entities to bolster battlefield capabilities. Simultaneously, these firms channel significant investments into R&D, focusing on cutting-edge products and technologies to gain a tactical edge over competitors. A prime example is Northrop Grumman Corporation, which, in December 2023, secured a substantial USD 235.7 million contract from the US Navy. The deal encompasses the delivery of 118 AGM-88G Advanced Anti-Radiation Guided Missile-Extended Range (AARGM-ER), with a breakdown of 84 missiles designated for the Navy and 34 for the Air Force, along with additional training and testing components. This contract, including spares, tooling, and test equipment, not only highlights the modernization of navigation kits but also underscores the growth trajectory of these companies.
Naval Smart Weapons Market Leaders
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Lockheed Martin Corporation
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General Dynamics Corporation
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BAE Systems plc
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Northrop Grumman Corporation
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RTX Corporation
*Disclaimer: Major Players sorted in no particular order
Naval Smart Weapons Market News
- April 2024: Raytheon, an RTX business, secured a USD 344 million contract to develop an SM-2 Block IIICU and an SM-6 Block IU. These variants will incorporate a standard guidance section that includes electronics and software for target acquisition. The upgrades feature a new guidance section, target detection device, stand-off flight termination system, and an electronics unit. This marks a vital innovation in missile technology as Raytheon proves its commitment to innovative defense solutions.
- November 2023: EDGE and Roketsan, a Turkish company focused on rockets, missiles, guided munitions, and weapon systems, entered a collaborative agreement at the Dubai Airshow 2023. The cooperation will include research to develop advanced smart weapon technologies. The agreement aims to enhance existing solutions and accelerate product portfolios through a combined, focused effort. This recent development marks a giant stride in further strengthening the strategic relationship between EDGE and Roketsan and reinforces their positions as key innovators in the smart weapons domain.
- October 2023: Charles Stark Draper Laboratory Inc. won a USD 2.2 billion contract extension to continue supporting the Trident II D5 weapon system and initiate its next-generation counterpart. The company is a major contractor for the Trident II D5 guidance system and will leverage its extensive experience to enhance its capabilities and support future mission requirements.
Naval Smart Weapons Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Weapon Type
- 5.1.1 Missiles
- 5.1.2 Ammunition and Other Products
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5.2 Technology
- 5.2.1 Laser Guidance
- 5.2.2 Radar Guidance
- 5.2.3 Satellite Guidance
- 5.2.4 Infrared Guidance
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.2 Europe
- 5.3.2.1 United Kingdom
- 5.3.2.2 France
- 5.3.2.3 Germany
- 5.3.2.4 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 India
- 5.3.3.2 China
- 5.3.3.3 Japan
- 5.3.3.4 South Korea
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 The Boeing Company
- 6.2.2 Lockheed Martin Corporation
- 6.2.3 RTX Corporation
- 6.2.4 BAE Systems PLC
- 6.2.5 Rheinmetall AG
- 6.2.6 THALES
- 6.2.7 L3Harris Technologies Inc.
- 6.2.8 Northrop Grumman Corporation
- 6.2.9 Textron Inc.
- 6.2.10 General Dynamics Corporation
- 6.2.11 MBDA
- 6.2.12 Leonardo SpA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Naval Smart Weapons Industry Segmentation
Smart weapons, also known as precision-guided munition, are intended to precisely hit a specific target, minimize collateral damage, and increase lethality against intended targets.
The market is segmented by weapon type, technology, and geography. By weapon type, the market is segmented into missiles and ammunition and other products. By technology, the market is segmented into laser, radar, satellite, and infrared guidance. The report also offers the market sizes and forecasts for major countries worldwide. For each segment, the market sizes and forecasts have been done based on value (USD) terms.
| Weapon Type | Missiles | |
| Ammunition and Other Products | ||
| Technology | Laser Guidance | |
| Radar Guidance | ||
| Satellite Guidance | ||
| Infrared Guidance | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | United Kingdom |
| France | ||
| Germany | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Rest of the World |
Naval Smart Weapons Market Research FAQs
How big is the Naval Smart Weapons Market?
The Naval Smart Weapons Market size is expected to reach USD 8.01 billion in 2024 and grow at a CAGR of 6.32% to reach USD 10.86 billion by 2029.
What is the current Naval Smart Weapons Market size?
In 2024, the Naval Smart Weapons Market size is expected to reach USD 8.01 billion.
Who are the key players in Naval Smart Weapons Market?
Lockheed Martin Corporation, General Dynamics Corporation, BAE Systems plc, Northrop Grumman Corporation and RTX Corporation are the major companies operating in the Naval Smart Weapons Market.
Which is the fastest growing region in Naval Smart Weapons Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Naval Smart Weapons Market?
In 2024, the North America accounts for the largest market share in Naval Smart Weapons Market.
What years does this Naval Smart Weapons Market cover, and what was the market size in 2023?
In 2023, the Naval Smart Weapons Market size was estimated at USD 7.50 billion. The report covers the Naval Smart Weapons Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Naval Smart Weapons Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Naval Smart Weapons Industry Report
Statistics for the 2024 Naval Smart Weapons market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Naval Smart Weapons analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
