Market Snapshot
| 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 naval smart weapons market is projected to record a CAGR of more than 4% during the forecast period.
- The growing demand for sea-based warfare, along with the increasing fleets of naval vessels of countries around the world, is propelling the procurement of sea-based smart weapons.
- The market is primarily driven by the growing demand for precision strikes, to hit the target with high accuracy.
- However, smart weapons require high capital investment and with the rapid pace of innovations in different parts of the world, technologies are also becoming obsolete at a very rapid pace. This market also faces tight government norms regarding the sharing of technology with other countries.
Scope of the Report
Smart weapons are also known as precision-guided munition, intended to precisely hit a specific target, to minimize collateral damage and increase lethality against intended targets.
The study on the naval smart weapons market includes weapons, missiles, and ammunition that are in development and production, for their use in the military sector. Based on the product, the market is segmented into missiles, and ammunition and other products. The missiles segment includes various surface-to-air missiles, air-to-ground missiles, anti-tank rockets, air-to-air rockets, air-to-surface rockets, and anti-submarine rockets. The ammunition and other products segment includes smart bullets, precision artillery ammunition, electromagnetic pulse weapons, sensor fused weapons, and smart bombs.
| Weapon Type | |
| Missile | |
| Ammunition and Other Products |
| Technology | |
| Laser Guidance | |
| Radar Guidance | |
| Satellite Guidance | |
| Infrared Guidance |
| Geography | |||||||
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| Rest of the World |
Key Market Trends
Laser Guidance Segment Holds the Highest Share in the Market
Based on the technology, the laser guidance segment currently accounts for the highest market share, and it is expected to dominate the market during the forecast period. The laser guidance systems are integrated into missiles, rockets, and other weapons, to hit the aim with more accuracy. The rising demand to decrease the number of friendly fatalities and damages to assets, even from a distance of 8-12 km, is propelling the use of the laser guidance technology in various missile programs. For instance, in December 2019, BAE Systems was awarded a USD 2.68 billion contract to deliver additional Advanced Precision Kill Weapon System (APKWS) laser-guided rockets to the US Navy. With the advancement in technology, these laser-guided weapons are able to find their way in even bad weather conditions. Other than missiles, laser guidance is currently being integrated into ammunitions to preciously kill the intended targets with high accuracy. For instance, in early 2020, the US Navy successfully completed the test of Excalibur S precision-guided munition, developed by Raytheon, to engage mobile land and maritime targets. The munition uses GPS technology and incorporates a semi-active laser seeker to precisely hit the target. This munition is compatible to be launched through various land and sea platforms. Such developments are expected to further propel the demand for laser guidance weapons in the coming years.
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North America Held the Highest Market Share in 2019
In terms of geography, North America currently holds a major market share. The United States accounts for the largest share in North America, owing to factors, such as high spending by the government on the modernization of military equipment, R&D by major players to enhance the military power, and the increasing procurements of naval vessels, like frigates, destroyers, and aircraft carriers, among others. For instance, in May 2019, Boeing was awarded a USD 139.8 million modification contract to manufacture and supply the US Navy with 12,000 additional precision laser guidance sets for Joint Direct Attack Munition. The contract was scheduled to be completed by April 2020. Also, in March 2020, Lockheed Martin successfully completed a Critical Design Review (CDR) for the High Energy Laser with Integrated Optical-dazzler and Surveillance (HELIOS) system onboard Arleigh Burke destroyer. Moreover, the presence of several smart weapons manufacturers and increasing government investments are accelerating the development of new and enhanced weapons.
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Competitive Landscape
The naval smart weapons market is fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the market are BAE Systems, Lockheed Martin, Raytheon, and General Dynamics. Several companies have formed long-term partnerships with the armed forces to upgrade and enhance battlefield capabilities. Also, companies are investing heavily in the research and development for the innovation of new and advanced products and technologies that may help develop tactical advantages over the rivals. For instance, the US Navy awarded Lockheed Martin a contract worth USD 175 million in mid-2019 for updating components of the Long-range Anti-ship Missile System. The system involves a long-range, precision-guided anti-ship missile, which includes multimodal sensor suite, weapon data link, and enhanced digital anti-jam GPS to detect and destroy specific targets among numerous ships at sea. The contract is expected to come to an end by the end of 2022. The modernization of navigation kits and aids to upgrade the existing missiles is anticipated to support the growth of companies.
Recent Development
In June 2021, Exavision supplies targeting electro-optical systems for naval remote controlled stations to the French Navy.
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
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
5.1 Weapon Type
5.1.1 Missile
5.1.2 Ammunition and Other Products
5.2 Technology
5.2.1 Laser Guidance
5.2.2 Radar Guidance
5.2.3 Satellite Guidance
5.2.4 Infrared Guidance
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 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
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
6.2 Company Profiles
6.2.1 The Boeing Company
6.2.2 Lockheed Martin Corporation
6.2.3 Raytheon Technologies Corporation
6.2.4 BAE Systems PLC
6.2.5 Rheinmetall AG
6.2.6 Thales Group
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
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Naval Smart Weapons Market market is studied from 2018 - 2027.
What is the growth rate of Naval Smart Weapons Market?
The Naval Smart Weapons Market is growing at a CAGR of >4% over the next 5 years.
Which region has highest growth rate in Naval Smart Weapons Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Naval Smart Weapons Market?
North America holds highest share in 2021.
Who are the key players in Naval Smart Weapons Market?
Lockheed Martin Corporation, BAE Systems PLC, Raytheon Technologies Corporation, General Dynamics Corporation, The Boeing Company are the major companies operating in Naval Smart Weapons Market.
