Naval Smart Weapons Market Trends

Statistics for the 2023 & 2024 Naval Smart Weapons market trends, created by Mordor Intelligence™ Industry Reports. Naval Smart Weapons trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Team License

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Corporate License

$8750

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Market Trends of Naval Smart Weapons Industry

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.

Naval Smart Weapons Market: Smart Weapons Market: Military Expenditure, in USD Billion, By Region, Global, 2023

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 Market: Market CAGR (%), By Region, Global, 2023

Naval Smart Weapons Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)