Aerial Smart Weapons Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Aerial Smart Weapons Market is Segmented by Product (Missiles, Ammunition and Other Products), Technology (Satellite Guidance, Radar Guidance, Infrared Guidance, and Laser Guidance), and Geography.

Market Snapshot

Aerial Smart Weapons Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: North America
CAGR: >4 %

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Market Overview

The Aerial Smart Weapons Market is expected to register a CAGR of over 4% during the forecast period.

  • The changing nature of aerial warfare and the growth in defense spending towards developing and procuring advanced weapon systems for military aircraft is expected to propel the market for aerial smart weapons during the forecast period.
  • Technological advancements, in terms of miniaturization of electronics, material technologies, propulsion, and guidance systems are expected to propel the growth of the aerial smart weapon systems market during the forecast period.

Scope of the Report

The aerial smart weapons market study includes guided weapons, missiles, and ammunition that are in development and production, that can be launched from military aircraft. Based on the product, the market is segmented into missiles, and Ammunition and other products. The missiles segment includes various air-to-ground missiles, anti-tank rockets launched from aircraft, air-to-air missiles, and air-launched anti-submarine missiles. The ammunition and other products segment include precision-guided artillery ammunition, electromagnetic pulse weapons, air-launched loitering munitions, smart bombs, and sensor fused weapons.

Ammunition and Other Products
Satellite Guidance
Radar Guidance
Infrared Guidance
Laser Guidance
North America
United States
United Kingdom
Rest of Europe
Asia Pacific
South Korea
Rest of Asia-Pacific
Latin America
Rest of Latin America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
Rest of Middle-East and Africa

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Key Market Trends

Growing Focus on the Indigenous Development of Aerial Smart Weapons

Due to the increasing emphasis on reducing the dependency on imports of weapon systems, several nations are focusing on the development of indigenous weapon systems, which is fueling the market growth. This emphasis is further bolstered by the existing compatibility limitations of indigenous air defense systems with ammunition and armament designed by foreign manufacturers. Due to such factors, several nations are focusing on developing their own smart weapons that can be fired from various platforms including military aircraft. For instance, India's Defence Research and Development Organization (DRDO) is currently developing the Smart Anti-Airfield Weapon (SAAW), which is a long-range precision-guided anti-airfield weapon. It is designed to be capable of engaging ground targets with high precision up to a range of 100 km. The air-launched lightweight high-precision guided glide bomb is India's first fully indigenous smart weapon, which is being designed and developed wholly by DRDO. Similarly, several countries, including the US, Israel, Russia, China, Turkey, Pakistan, Iran, France, Saudi Arabia, South Africa, among others, are also developing and deploying their own smart weapons that can be launched from aerial platforms. It is also reported that the US is transferring critical technologies to countries like Saudi Arabia to help them build their own aerial smart weapons. Such developments are expected to help the indigenous development of smart weapons, thereby propelling the growth of the market during the forecast period.

Aerial Smart Weapons Market_Summary

North America Projected to Dominate the Market During the Forecast Period:

North America is the largest market for Aerial smart weapons in 2019. The region is also expected to grow with the highest CAGR during the forecast period, due to large-scale developments in the market by the United States. The US has the highest military spending in the world with a spending of USD 732 billion in 2019 according to SIPRI. The US alone accounted for 38% of the total global defense spending in 2019. The country is divesting huge amounts for the development and induction of advanced smart weapon systems ranging from smart bullets to nuclear-capable hypersonic guided weapons. The country has several aerial smart weapon development programs underway, which is expected to drive the market in the country in the years to come. For instance, in March 2020, the US announced that it has successfully tested its Common-Hypersonic Glide Body, or C-HGB, which is a guided hypersonic weapon. The country aims to induct the weapon into its arsenal by 2023. Such developments are expected to bolster the market prospects in the region during the forecast period.

Aerial Smart Weapons Market_Geography

Competitive Landscape

Some of the prominent players in the market are BAE Systems plc, Raytheon Technologies Corporation, Lockheed Martin Corporation, General Dynamics Corporation, and Northrop Grumman Corporation. Due to the changing nature of aerial warfare, several nations are planning to develop and induct next-generation aerial smart weapons for their militaries. As the focus is increasing on developing indigenous smart weapons, local manufacturers can grab the opportunity to increase their market share through higher investments in R&D, which will help their growth during the forecast period. Players can also establish joint ventures and partnerships with other players to enable technology transfer which will facilitate innovations and aid the development of highly sophisticated aerial smart weapons during the forecast period.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Product

      1. 5.1.1 Missiles

      2. 5.1.2 Ammunition and Other Products

    2. 5.2 Technology

      1. 5.2.1 Satellite Guidance

      2. 5.2.2 Radar Guidance

      3. 5.2.3 Infrared Guidance

      4. 5.2.4 Laser Guidance

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia Pacific

        1. India

        2. China

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. Brazil

        2. Mexico

        3. Rest of Latin America

      5. 5.3.5 Middle-East and Africa

        1. United Arab Emirates

        2. Saudi Arabia

        3. Israel

        4. Rest of Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 BAE Systems plc

      2. 6.2.2 General Dynamics Corporation

      3. 6.2.3 Lockheed Martin Corporation

      4. 6.2.4 Raytheon Technologies Corporation

      5. 6.2.5 Northrop Grumman Corporation

      6. 6.2.6 MBDA

      7. 6.2.7 Saab AB

      8. 6.2.8 The Boeing Company

      9. 6.2.9 Rafael Advanced Defense Systems Ltd.

      10. 6.2.10 Safran SA

      11. 6.2.11 Northrop Grumman Corporation

      12. 6.2.12 Israel Aerospace Industries


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Frequently Asked Questions

The Aerial Smart Weapons Market market is studied from 2018 - 2026.

The Aerial Smart Weapons Market is growing at a CAGR of >4% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BAE Systems plc, Raytheon Technologies Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation are the major companies operating in Aerial Smart Weapons Market .

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