Smart Weapons Market size is anticipated to grow at a CAGR of over 6% between 2023 and 2032

Smart Weapons Market Size

Smart Weapons Market size was USD 17.4 billion in 2022 and is expected to grow at a CAGR of more than 6% during the forecast period 2023-2032.

The steady and significant rise in budgetary spends by governments & defense ministries on the development, procurement, and deployment of cutting-edge smart weapon systems are driving market growth.

Gross interference by government regulatory agencies, who can establish rules and regulations on weapons systems, reduces the business opportunities for smart weapons. These agencies place constraints on the development of weapons, testing, manufacture, sale, and employment.

Smart Weapons Market Report Attributes
Report Attribute Details
Base Year 2022
Smart Weapons Market Size in 2022 USD 17.4 Billion
Forecast Period 2023 to 2032
Forecast Period 2023 to 2032 CAGR 6 %
2032 Value Projection USD 30.5 Billion
Historical Data for 2018 to 2022
No. of Pages 250
Tables, Charts & Figures 313
Segments covered Weapon Type, Technology, End Use, and Region
Growth Drivers Continuous growth in global arms trade
Large investments from government
Ongoing advancements in technology
Modernization of armed forces
Improved operational efficiency and effectiveness of military forces
Pitfalls & Challenges High interference of government regulatory bodies
Export controls and regulations is limiting the growth

COVID-19 Impact
The COVID-19 pandemic affected a number of markets such as the smart weapons market in 2020. The defense industry worldwide experienced disruptions in production, supply chains, and availability of workforce due to lockdowns & social distancing. This resulted in production, procurement, and delivery delays of smart weapons. Governments diverted funds from defense budgets to meet healthcare and economic needs, which limited military expenditure on smart weapon systems. International trade restriction and lower global demand also impeded market growth.

Smart Weapons Market Trends
The market for smart weapons is going through a number of key trends. There is increased focus on technology development with ongoing innovation in guidance systems, AI, and sensors. Autonomous smart weapon development such as drones & unmanned systems is increasing. Integration of network-centric warfare is increasing, which enhances the coordination and effectiveness of the military.

In addition, there is emphasis on non-lethal smart weapons, which minimize collateral damage. Cybersecurity issues are also rising, considering the greater connectivity of these systems. More stringent export control laws are being enacted, and environmental factors are influencing the creation of more environmentally friendly smart weapon technologies. Rapid prototyping and 3D printing are accelerating development, while global cooperation is on the rise. Finally, emerging economies are investing in smart weapons, growing smart weapons market.

Geez, lasers have conquered the battlefield! In 2022, the game of lasers was already more than $4.5 billion. And they say it will continue to grow like crazy, 7% annually until 2032. That’s because lasers make guns much more precise. They don’t blow things up indiscriminately; they hit their target right on, which means fewer innocent people get injured. And get thisthese laser-guided weapons are lightning fast, zipping towards their target at the speed of light. So, they can take out those pesky drones before they even know what hit them. But hold on, there’s more. Lasers are not only accurate and fast, they’re also surprisingly affordable and easy to use. That makes them a no-brainer for modern armies. No surprise laser technology is also becoming the top pick for intelligent weapons, keeping our military personnel one step ahead of the foe with accuracy, velocity, and intelligence.

The North America region accounted for 30% market revenue share in the smart weapon market in 2022. Specifically the U.S., has one of the largest defense spending budgets in the world, a strong focus on technological advantage. This investment in military modernization drives development and acquisition of smart weapon systems advanced in technology. North America has a number of large defense contractors and technology firms, promoting innovation & research in smart weapon technologies. This makes the region a leader in developments in the defense industry.

The U.S. aggressively exports its smart weapon systems, resulting in a large portion of the world’s arms trade. The synergy of large defense budgets, changing security threats, technological advancements, and export prospects has driven the market expansion.

Smart Weapons Market Share

Major companies operating in the smart weapons market are

• BAE Systems plc
• Elbit Systems Ltd
• General Dynamics Corporation
• Israel Aerospace Industries Ltd
• L3Harris Technologies Inc.
• Leonardo S.p.A
• Lockheed Martin Corporation
• MBDA
• Mitsubishi Heavy Industries
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB
• Textron Inc.
• Thales Group
• The Boeing Company.

The competitive landscape is characterized by continuous innovation as companies strive to improve their offerings with new technologies, integrations, and partnerships.