Global Smart Weapons Market Report, published by Variant Market Research, forecast that the global market is expected to reach $19 billion by 2024 from $12 billion in 2016, growing at a CAGR of 6.4% from 2016 to 2024. By geography, North America and Europe are expected to grow at a CAGR of 6.9% and 6.5%, respectively, during the forecast period.
Rise in awareness towards border security, increasing procurement of military equipment, and increased demand for high precision in weapons, are the major factors driving the global smart weapons market. Moreover, increased government expenditure to modernise military equipment has also fuelled the market growth. However, high price of these weapons may restrain the market growth in coming years. Rising worldwide demand for technologically advanced smart weapons would provide several growth opportunities for the market in coming years.
The global smart weapons market is bifurcated into type and geography. By type, the market is segmented into air-to-ground missiles, surface-to-air missiles, smart bombs, sensor fused weapons, direct energy weapons, precision artillery munitions, electro-magnetic pulse weapons, smart bullets, and others. Air-to-ground missiles segment accounted for the largest market share in 2016, owing to its extensive usage during terrorism and country war. Directed energy weapons are estimated to grow at the fastest CAGR over the forecast period.
Geographically, the market is categorised into North America, Europe, Asia-Pacific and Rest of the world (RoW).North America accounted for the largest market share of 45.3% in 2016, owing to, sizable defense budget and constant product development by major companies in the region. Asia-Pacific accounted for the second largest market share of 25.1%, driven by rising military expenses in countries such as China and India, to modernize their military power. North America is to attain the fastest CAGR of 6.9% over the forecast period 2016-2024. The growth would be attributed to increased research and development activities in countries such as U.S., to enhance border security operations.
The major players in the smart weapons market include Boeing, Raytheon Company, General Dynamics, Denel Dynamics, Leonardo S.P.A, Textron Defense Systems, L-3 Fuzing And Ordnance Systems Inc., Rafael Advanced Defense Systems Ltd., Alliant Techsystems Inc. and Israel Aerospace Industries, among others.